May 21, Colombo: MRL Corporation, an Australian mining company exploring graphite in Sri Lanka has signed a contract with Sri Lanka's Geological Survey and Mines Bureau (GSMB) contract for diamond drilling services at its Warakapola Pandeniya / Bopitiya graphite project.
GSMB will provide all drilling services for a three-hole NQ Triple Tube diamond drilling program to test the vein graphite potential in three locations across the Warakapola Pandeniya / Bopitiya area, the company said in a stock market disclosure.
The drill is expected to mobilize to site on or around the 29th of May. The first drill location is at Pandeniya and is expected to be between 50 to 125 meters in depth.
Drill holes two and three will be up to 300 meters deep and test the continuity of vein graphite mineralization below the historical shafts and adits.
The contract stipulates a time to complete the drilling program of 15 weeks. However MRL will work with GSMB to complete the program in the most efficient manner, 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 has established first mover status in southern Sri Lanka, with four highly prospective lump/vein graphite development projects.
Current programs are focused along 650 meters of historic mine workings on the Pandeniya to Wallagala strike-line within the Warakapola Project.
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.