16th Jul 2025 14:47
(Alliance News) - Capital Metals PLC on Wednesday reported "extremely significant" results from recent drilling at its Taprobane project in Sri Lanka.
The London-based mining firm targets mineral sand deposits in the South Asian country. One of the ten drill intercepts at Taprobane yielded 29.2% heavy minerals, according to the assay testing laboratory contracted by Capital Metals.
The company was optimistic given that testing confirmed assay grades above 60% that were previously based on "visual observations". The current cut-off grade is only 5%, which Capital Metals had planned to reduce to 2%. The firm also noted the relatively shallow depth of drilling, which so far is to an average of 1.6 metres.
"The results to date, together with what we expect from the ongoing drilling programme, should unearth a game changing resource upgrade for the company, targeted to be completed before the end of the year," commented Chair Greg Martyr.
Results from remaining drill samples are pending, but are expected to yield "further high-grade mineralisation". Capital Metals aims to complete the next round of drilling in September, and continue work after this, subject to approval.
Also on Wednesday, the company pushed back the deadline to finalise USD2 million in funding from Ambeon Holdings PLC, a Colombo, Sri Lanka-based investment firm. Back in May, Ambeon proposed to invest in Capital Metals via a subscription priced at 2.75 pence per share. Ambeon's existing stake in Capital Metals is 13.09%, as of Wednesday.
The mining firm has extended the option period to August 11, though it expects to complete the subscription process before this date. Thus far neither company has signed off a firm commitment.
"It has been a busy period for the company and we are very pleased with the support from Ambeon and its strategic partners who are rolling up their sleeves on many fronts to assist in accelerating the approvals required to start construction of the Taprobane minerals project," said Martyr.
He added that Ambeon's investment should provide "more than enough funding to get us through the final investment decision scheduled before the end of this year".
Shares in Capital Metals rose 1.8% to 2.80p on Wednesday afternoon in London. The stock was as high as 3.30p in the early afternoon.
By Holly Munks, Alliance News reporter
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