26th Mar 2025 13:32
(Alliance News) - Capital Metals PLC on Wednesday said drilling at a Sri Lanka asset is progressing.
Capital Metals is a mineral sands company approaching mine development stage at the high-grade Taprobane project in Sri Lanka. It updated on drilling at the northern EL168 area of the asset.
Executive Chair of Capital Metals Greg Martyr said: "This drilling campaign is targeted at significantly increasing the size and hopefully grade of the mineral resource and is an important component of the plan to reach a final investment decision.
"It will also assist us in determining the specifics of the mining plan, enhancing our knowledge of the make-up of the products, and dictating where to locate mining cells and to site the plant."
The drilling programme's first focus is on the initial mining area of the existing 17.2 million tonnes high grade mineral resource.
A total of 380 metres across 41 drillholes have been completed to date. Drilling has intersected a second marine sand package, it added. It said work is being done to "define the extent of this new mineralisation and the impact on the resource".
Capital Metals said: "Estimated heavy mineral grades are high, and work is ongoing to define the extent of this new mineralisation and the impact on the resource within the [initial mining area] and across the project. Planned infill drilling will provide greater definition of host material characteristics and mineral grade and assemblage which will increase the certainty of the mine plan and product schedule through different geological domains.
"The drilling programme is scheduled to continue in a southerly direction with land access in a number of areas already obtained, and an ongoing process to obtain additional land access agreements as and when required."
Shares in the company advanced 8.0% to 2.70 pence each in London on Wednesday afternoon.
By Lucy Dunnet, Alliance News reporter
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