10th Jul 2024 11:51
(Alliance News) - Capital Metals PLC on Wednesday said that it now has received all of the necessary consents to start drilling at the Eastern Minerals project in Sri Lanka.
According to the mineral sands exploration company, which is focused on Sri Lankan projects, the programme is now due to start shortly. It will focus on increasing the mineral resource estimate, as well as getting "greater certainty" in the proposed initial mining area.
Capital Metals' "minimum objective" is to progressively increase the resource to twice its current volume. The prospects of material increases are likely to be evident in the short-term through visual and laboratory analysis of samples, it explained.
The project's current mineral resource estimate is 17.2 million tonnes at just under 18% total heavy minerals.
"We've glimpsed the upside potential from 2018 and 2021 drilling which produced grades above our current [mineral resource estimate]. Multiples of the current MRE are possible when drilling to the alluvial basement with an average anticipated depth of 10 metres compared to the current average of 1.6 metres for the MRE. Material resource extension is also likely from drilling the whole marine sand package, inland of the beach and foredunes," said Executive Chair Greg Martyr.
"We are very excited to finally be in a position to test the upside with a view to expanding the project's current 10-year mine life and throughput, with the subsequent result of materially enhancing the [net present value] of the project."
Shares in Capital Metals were trading up 5.3% at 1.79 pence each in London on Wednesday morning.
By Holly Beveridge, Alliance News senior reporter
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