June 10, Colombo: MRL Corporation, an Australian mining company exploring graphite in Sri Lanka expects to start first drilling at its Pandeniya graphite project in from tomorrow, the company said in a market disclosure today.
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 2014.
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 meters to 125 meters, while drill holes DH2 and DH3 will be up to 300 meters deep and test the continuity of vein graphite mineralization 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 45square kilometer of land located in several provinces of Sri Lanka.
MRL holds 6,300 hectares of Exploration Licenses that could potentially produce 5,000tpa 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.