Over the last fortnight, Blencowe Resources has released several encouraging updates on the 100%-owned Orom-Cross graphite project in Uganda. On 20 October, the company announced receipt of the final US$0.25m tranche of technical assistance funding from the US International Development Finance Corporation (DFC), bringing the total received to US$5.0m. The funding is non-dilutive, and we view its completion as a further indication of the DFC’s continued backing of the company and project.
On 26 October, Blencowe reported that follow-up surface mapping had identified outcropping graphite mineralisation across c25km of strike. The results provide initial support for the company’s view that Orom-Cross could host 2-3Bt of graphite mineralisation, reinforcing our contention that the project has multi-generational potential. Selected grab samples from three target areas returned grades exceeding 20% TGC, indicating scope to identify additional highgrade zones. Strategically, all three areas sit within 10km of the proposed plant site.
Today, Blencowe announced further successful testing of Orom-Cross graphite, delivering exceptional supercapacitor results with existing offtake partner YUNASKO. According to the company, the results pave the way for independent NASA testing, potentially opening up further higher-value aerospace and defence applications.
Price today 6p. Target price 47.9p. Upside 698%.
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