Blencowe Resources (LSE:BRES) has reported a maiden JORC 2012 mineral resource estimate for the newly identified Iyan deposit at its Orom-Cross Graphite Project in Uganda. The initial estimate outlines 16.9 million tonnes grading 6.0% total graphitic carbon (TGC) in the Inferred category. With the inclusion of Iyan, the total JORC mineral resource at Orom-Cross increases by 66% to 43.0 million tonnes at an average grade of 5.76% TGC. The updated resource spans the Northern Syncline, Camp Lode and Iyan deposits, all reported using a 3.5% cut-off grade.
The company noted that mineralisation at Iyan remains open both along strike and at depth, with several drill holes terminating in mineralised zones, suggesting potential for further expansion. Additional upside could also come from the nearby Beehive discovery once assay results are incorporated into a future resource update. Management said the larger project scale, combined with consistent metallurgy and strong continuity of near-surface mineralisation, improves development flexibility and supports ongoing discussions around strategic partnerships and project funding as Orom-Cross progresses toward production planning.
Despite the positive resource growth, the company’s outlook remains constrained by weak financial performance, including a lack of revenue, ongoing losses and increasing cash burn. Technical indicators are supportive, with the share price showing a strong upward trend and a positive MACD signal, although highly elevated RSI and stochastic readings suggest the stock may be overbought and at risk of a near-term pullback. Valuation metrics remain limited due to negative earnings and the absence of dividend support.
More about Blencowe Resources Plc
Blencowe Resources Plc is a London-listed exploration and development company focused on graphite projects. Its flagship asset is the 100%-owned Orom-Cross Graphite Project in Uganda, which is being developed with the aim of becoming a large-scale, long-life graphite operation. The project is positioned to supply growing global demand for graphite from both traditional industrial uses and emerging battery markets.
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