Ceylon Graphite Corp. [CYL-TSXV; CBRSF-OTC] discovered new graphite veins on its H1 site and provide an operational update as the company continues to achieve significant milestones as business activities have returned to planned levels in 2021 post-COVID-19 disruptions.
Highlights include the discovery of new graphite veins from the recently commenced drilling at the Company’s H1 site (the company’s third site in addition to the K1 and M1 mines). Both drills have passed 60 metres depth in the first days of drilling. Samples have been sent to the GSMB for testing.
The Industrial Mining License Category A for the K1 mine has been renewed by the Geological Society and Mines Bureau of the Government of Sri Lanka. Production at the K1 site has restarted.
The primary mine shaft at K1 has been extended by 60 feet to the level of the main veins to enable easier excavation of the graphite and expedite ramp up of production. The company has purchased a new hydraulic underground core drilling rig to accelerate production ramp up.
“We are very excited with this new graphite vein discovery at our H1 site on our first holes, which continues to demonstrate the abundance of vein graphite on our properties and the effectiveness of our exploration methodologies,” stated Bharat Parashar, Chairman and CEO. “With our recent exploration success and continued ramping up of operations, Ceylon is rapidly advancing towards its goal of becoming a leading producer of high-grade, environmentally friendly, natural graphite and a vertically integrated advanced material and technology company.”
Graphite mined in Sri Lanka is known to be some of the purest in the world and has been confirmed to be suitable to be easily upgradable for a range of applications including the high-growth electric vehicle and battery storage markets as well as construction, healthcare and paints and coatings sectors. The Government of Sri Lanka has granted the company’s wholly owned subsidiary Sarcon Development (Pvt) Ltd. an IML Category A license for its K1 site and exploration rights in a land package of over 120 km2. These exploration grids (each 1 km2 in area) cover areas of historic graphite production from the early twentieth century and represent a majority of the known graphite occurrences in Sri Lanka.