Capital Metals (AIM: CMET), a mineral sands company approaching mine development stage at its high-grade Taprobane Minerals Project in Sri Lanka (the “Project”), is pleased to announce it has received the first drill assay results from the Phase 1 drilling programme in the northern EL168 area. The results have been returned from the Company’s laboratory partner, Scientific Services Geological Laboratories, based in Cape Town, South Africa.
Highlights
· Exceptional Heavy Mineral grades with very low slimes content are a consistent characteristic of the first 539 routine and QA samples assayed by Heavy Liquid Separation
· Grades over 60%, as visually observed and announced on 11 June, have now been confirmed by laboratory assay results
· Intercepts include:
o 6.3m @ 29.2% HM from 5m in hole MUAC028
o 8m @ 19.9% HM from 0m in hole MUAC008
o 4m @ 16.7% HM from 6m in hole MUAC025
o 2.2m @ 23.4% HM from 0m in hole MUAC014
o 7m @ 8.9% HM from 0m in hole MUAC007
o 9m @ 6.2% HM from 1m in hole MUAC020
o 12m @ 5.3% HM from 0m in hole MUAC015
o 10m @ 5.2% HM from 0m in hole MUAC030
o 11m @ 5.1% HM from 0m in hole MUAC016
· These results are extremely significant, particularly given the current Resource is only to an average depth of 1.6m and the current cut-off grade is 5%, with plans to reduce this to 2%
· Mineralisation is evident in coastal and inland areas, extending west of the known resource
· All QA and QC data have been returned, confirming a high level of precision and accuracy, as anticipated with a strong quality focus in both field and laboratory personnel and practices
· A Competency of Personnel audit of laboratory services was completed during the month, with no advisory items reported
Greg Martyr, Executive Chairman of Capital Metals, commented:
“We are delighted with the initial drill assay results. Our visual observations of >60% grades have now been proven by laboratory assays, with several significant intercepts that carry important implications for the Project’s overall mine life and mine planning. 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. We would once again like to thank the GSMB for their continued support.”
Next Steps
The results from the remaining 1,042 samples of the 400mN by 40mE grid drilling and 20mE infill drilling are pending. It is anticipated that these will reveal further high-grade mineralisation, helping to better constrain both coastal and inland deposits for detailed analysis.
Heavy Mineral sinks will be microscopically logged to determine their gross mineralogical characteristics to assist in the compositing of like intervals for XRD, XRF, and QEMSCAN analysis.
The Company expects drilling operations to continue on site through July to September and will update the market as and when further assay results become available. The Company expects the next phase of drilling to be completed in September, with plans to continue beyond this period – both in this region and in other areas of the Project – subject to ongoing regulatory approvals.
For further information, please visit www.capitalmetals.com or contact:
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Capital Metals plc Greg Martyr (Executive Chairman) |
Via Vigo Consulting |
About Capital Metals
Capital Metals is a UK company listed on the London Stock Exchange (AIM: CMET). We are developing the Taprobane Minerals Project in Sri Lanka, approximately 220km east of Colombo, containing industrial minerals including ilmenite, rutile, zircon, and garnet. The Project is one of the highest-grade mineral sands projects globally, with potential for further grade and resource expansion. In 2022, a third-party Preliminary Economic Assessment provided a Project NPV of US$155-235m based on existing resources, with further identified optimisation potential. We are committed to applying modern mining practices and bringing significant positive benefits to Sri Lanka and the local community. We expect over 300 direct new jobs to be created and over US$150m in direct government royalties and taxes to be paid.
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