Blencowe Resources expands extent of graphite mineralisation at Beehive significantly
Blencowe Resources () has intersected significant continuous mineralisation to depths below 100 metres in all three deep holes drilled at the Beehive deposit within its Orom-Cross graphite project in Uganda.
The mineralisation runs more than three times deeper than the originally envisaged 30-metre production horizon.
What’s more, all three holes ended within mineralisation, confirming the orebody remains open at depth and reinforcing the project's long-term scale and value potential.
The holes form part of the company’s Stage 7 resource definition programme designed to enhance the upcoming resource upgrade and the ongoing definitive feasibility study.
The Beehive deposit sits outside the current 24.5 million tonne resource. Results from the Stage 7 programme are expected to underpin a material uplift in resource tonnage and overall project valuation.
A substantial number of assays are now pending. Consistent positive results from these will support an expanded resource base, longer mine life, and ultimately a materially higher net present value for Orom-Cross. This deep drilling builds on an extensive drill programme comprising 221 resource holes, eight geotechnical holes, and six deep holes.
Two rigs are now drilling three additional deeper holes at the Northern Syncline deposit, targeting similar vertical ~100 metre extensions as observed at Beehive.
Final core logging and sample preparation from Beehive is nearing completion, with assays to be submitted shortly. The volume of assays pending from over 230 holes is expected to provide a steady stream of results and project de-risking milestones through the remainder of 2025.
Following successful completion of the recent infill drilling campaign, Blencowe expects to receive the next US$750,000 tranche of the US International Development Finance Corporation grant funding shortly. This payment reflects continued strong support for Orom-Cross from the US Government and underscores the importance of delivering a comprehensive, high quality DFS.
Work across all DFS streams continues to advance in parallel, including geology, engineering, infrastructure, and ESG. The DFS is expected to play a pivotal role in unlocking value through strategic offtake partnerships and securing project-level funding - such as with DFC - and other parties already engaged in early-stage discussions that could see full-scale development financing aligned to the Definitive Feasibility Study's completion.
"We are delighted with the new deep drilling results from Beehive which confirm wide graphite zones extending well below the previous 30 metres horizon and it is significant that we are still finishing in mineralisation below 100 metres on all holes,” said Blencowe’s executive chairman Cameron Pearce.
“This speaks to the scale and depth potential of the Orom-Cross deposit. Importantly, we still do not know how deep this orebody goes and that is an exciting position to be in. Independent geologists Minrom have previously suggested Orom-Cross could host over two billion tonnes of graphite and success within both the recent step out drilling at Beehive and these deep holes go a long way to validating that view. We are now drilling the Northern Syncline deposit where three more deep holes are underway, and if we can replicate these Beehive results across such a broad footprint Orom-Cross will continue to establish itself as one of the largest and most robust graphite projects globally. These results, alongside the JORC upgrade, ongoing offtake agreements, DFS progress, and advancing funding strategy, set the stage for a news-rich period ahead that can deliver substantial value accretion for shareholders."
View from Vox
Orom-Cross is the graphite project that keeps on giving. We already knew the potential size of the project was huge. Now, that’s being confirmed as drilling continues and work powers on. Investors are now eagerly awaiting the completion of the DFS which will give an indication of the real economic potential offered by this rich orebody. No surprise, though, that the US government is already interested to the point of stumping up meaningful amounts of cash, and that deals have already been done into the European Union. The next few months should be very interesting.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.