Blencowe Resources plc (LON:BRES) Chief Executive Officer Mike Ralston caught up with DirectorsTalk for an exclusive interview to discuss their latest update on the Orom-Cross graphite project.
Q1: Mike, this morning you’ve provided an update since the acquisition of the Orom-Cross graphite project, which was in April. Can you just talk us through the key highlights from this update?
A1: The RNS that went out this morning was detailing some of the key achievements over the last quarter which is essentially the three months that we’ve had the Orom-Cross graphite project in Uganda.
In that short amount of time, Blencowe Resources raised £2 million for development in the UK market, we planned a 45-hole drill programme in order to deliver a JORC resource of approximately 10 years of mine life.
In the process of delivering that programme, we found another high grade load of graphite near to where we were drilling and we implemented a further drill programme to ultimately deliver a 65-hole drill programme which has now completed and the samples gone off to the labs.
So, all that in amongst COVID’s challenges suggests it’s been a pretty active quarter and that’s really the progress we’ve made on this asset over the last few months in order to try and advance the project as quickly as we can to add value which is what we’re all about.
Q2: What key objectives are still to be met?
A2: Well, this is an exceptionable asset, we know that it’s got 2-3 billion tonnes of graphite, we’ve got to develop it into a position where we can put a feasibility study in place and ultimately a decision to mine so we’re going to continue towards that objective.
First up, we’ve got to give a JORC resource which should come out in the next couple of months once the samples have gone off and the work is done and thereafter, in parallel, I think you might’ve seen an announcement last Monday which came out talking about the company having mandated SGS in Canada to do further metallurgical test work.
So, in parallel we’re going to be getting that metallurgical test work done also and we’re continuing to work with all the stakeholders, the government, local communities in country to ensure that everything progresses there as well.
So, we’re pushing on all fronts and we’re making sure that the funds that have been raised are being used in the ground, so to speak.
Q3: Finally, how do you view the outlook for the next 12 months for Blencowe Resources?
A3: The first thing we’ve got to get the JORC resource, without that we can’t move forward with the feasibility study so the JORC is very important and that, as I say, will come out in the next couple of months once the work is done in the labs.
Second will be the metallurgical test work and beyond that in 2021 will be the feasibility study where we can put some commercial outcomes on this project and what it can deliver going forward.
Those are probably the three that we’re looking forward to in the next 12 months and beyond that, we’ll obviously be taking it to the next stage.