Australia’s MRL Corporation to commence graphite drilling in Sri Lanka
Thursday, 12 June 2014 00:47
MRL Corporation, an Australian mining company exploring graphite in Sri Lanka has started first drilling at its Pandeniya graphite project, the company said in a market disclosure.
MRL Corporation signed a contract with Sri Lanka’s Geological Survey and Mines Bureau (GSMB) last month for diamond drilling services at its Warakapola Pandeniya/Bopitiya graphite project.
Accordingly, a drill rig from the Geological Survey and Mining Bureau has arrived on site at the Pandeniya location and the drilling is expected to begin on or around 11 June.
These will test the vein graphite potential in three locations across the Warakapola Pandeniya/Bopitiya area.
The first hole, DH-1, is expected to be drilled to a depth of between 50 metres to 125 metres, while drill holes DH2 and DH3 will be up to 300 metres deep and test the continuity of vein graphite mineralisation below the historical shafts and adits, the company said .
MRL Corporation has negotiated an agreement to acquire the shares of a company that holds licenses to exercise the exclusive right to explore and mine for graphite within 45 square kilometres of land located in several provinces of Sri Lanka.
MRL holds 6,300 hectares of Exploration Licenses that could potentially produce 5,000 tpa of vein graphite and has applied for further exploration areas surrounding its granted licenses.
Lump or vein graphite is considered to be one of the rarest, commercially valuable, and highest quality types of natural graphite.
Sri Lanka is known as the only major producer of crystalline vein graphite (or lump graphite) – the highest quality of naturally occurring material in the world.
The purity level of vein graphite produced in Sri Lanka is in excess of 90% carbon, and hence requiring very little upgrading and processing to produce a high quality saleable product, leading to low operating costs and high profit margins.