Blencowe Resources (LSE:BRES) has announced encouraging early assay results from shallow drilling at the Beehive deposit within its Orom-Cross graphite project in Uganda, highlighting multiple near-surface intersections exceeding 30 metres and grades reaching 10.78% total graphitic carbon. The findings come shortly after a resource upgrade at the nearby Iyan deposit and indicate meaningful near-surface tonnage with additional depth potential, supporting the case for Orom-Cross as a large-scale, multi-deposit graphite system while strengthening the company’s strategic positioning within global critical mineral supply chains.
Initial results from the first 35 holes of a planned 110-hole shallow drilling programme at Beehive reveal thick, continuous mineralisation beginning at surface, with several holes terminating in graphite. This suggests the possibility of a bulk-mineable deposit situated close to the project’s planned processing infrastructure. Additional assay batches are currently undergoing verification and are expected to contribute to a maiden JORC-compliant resource estimate for Beehive, as well as another expansion of the overall Orom-Cross resource base. Exploration upside remains significant, with potential extensions both along strike and at depth that could extend mine life and improve project economics for future investors and offtake partners.
Despite the promising exploration progress, the company’s outlook is tempered by financial constraints, including the absence of revenue, continuing losses, and increasing cash burn. Market technical indicators remain supportive, with a sustained upward trend and a positive MACD signal, although highly overbought RSI and stochastic readings suggest a heightened risk of a near-term pullback. Valuation metrics are also limited by a negative P/E ratio and the lack of dividend support.
More about Blencowe Resources Plc
Blencowe Resources Plc is a London-listed natural resources company focused on advancing the Orom-Cross graphite project in Uganda. The project aims to develop large-scale graphite resources suitable for downstream processing, targeting supply to Western markets seeking secure and diversified sources of critical battery minerals outside China. The development strategy also benefits from the region’s access to renewable hydropower, supporting the potential for more sustainable graphite production.
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