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* Australia's MRL Corporation starts coring first Sri Lanka graphite drill hole
Thu, Jun 12, 2014, 08:23 pm SL Time, ColomboPage News Desk, Sri Lanka.

June 12, Colombo: MRL Corporation, an Australian mining company exploring graphite in Sri Lanka has started coring activities at the first drill hole of its Pandeniya graphite project.

Training on the core orientation tools is complete and the tools are in operation, the company said in a share market release.

The company said down hole survey equipment will arrive in Sri Lanka on 16 June and MRL crew training will be undertaken then. This will be used to measure the downhole Azimuth and Dip of first hole, DH1 and subsequent holes.

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 .

Repairs have been completed to the drainage and access road which had incurred damage from heavy rain and the DH2 pad will be constructed in coming days.

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.

The Australian mining company 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.

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.

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