
Blencowe Resources Plc has kicked off the final round of drilling at its Orom-Cross graphite project in northern Uganda as the company moves closer to completing its Definitive Feasibility Study.
The UK company, in an announcement made yesterday January 9, says the 6,750-metre drilling programme is designed to increase both the resources and reserves at the Orom-Cross project, which will be included in the Definitive Feasibility Study (DFS). Blencowe is expected to use the DFS – the most comprehensive analysis about the viability of a project – to source for financing for the Orom-Cross project.
Blencowe is targeting to complete the DFS by mid-2025.
At least $62 million is needed in initial capital to build the plant and have all the infrastructure in place to start production of graphite at Orom-Cross. This investment will lead to pre-tax earnings of $100 million over the 14 years of the life of the Orom-Cross mine. Although the company says that further drilling could see the life of mine extended beyond 14 years.
Blencowe signed an agreement with the Development Finance Corporation (DFC) of the United States of America (USA) for a $5 million grant in September 2023. The money has been disbursed in tranches, with Blencowe so far receiving $3.5 million. The remainder of the money is expected at the conclusion of the DFS.
The grant made Orom-Cross the first graphite project in the world to receive a grant from the US government, according to Blencowe. The grant will only be repaid when the Orom-Cross project is funded to the production stage. DFC has left the door open for Blencowe for this kind of funding.
Many graphite projects in Africa are struggling to attract funding because of the perceived risk of low prices on the international market. Graphite is listed as one of the key minerals needed in the production of electric batteries, a major component needed to support the transition from the use of dirty fuels to cleaner forms of energy.

A bulk sample at Blencowe’s Orom-Cross project
A local Ugandan drilling firm ADT Drilling is in charge of the drilling at Orom-Cross, while Minrom Consulting from South Africa will undertake the geological assessment alongside Middindi Consulting, according to a statement from Blencowe Resources. ADT Drilling and Minrom enjoy a long-term relationship with Blencowe Resources.