July 17, Colombo: Shares of MRL Corporation, an Australian mining company exploring graphite in Sri Lanka, are expected to go up after the company revealed that the graphite found in its mines in Sri Lanka are of high-grade with up to 97.8% TGC (Total Graphitic Carbon).
MRL Corporation started coring activities at the first drill hole of its Pandeniya graphite project last month.
The graphite vein intersected last month in just the first diamond hole at interval 97.0m to 97.9m averaged 97% TGC with results TGC as high as 97.8% , the company said in a release.
Assays are from the Pandeniya - Priority 1 Area within the Warakopola Project Area in central Sri Lanka.
The significance of the results is that they confirm the presence of high-grade vein graphite within the first license to be systematically drill tested.
"The results confirm the presence of extremely high grade vein graphite within the Bopitiya / Pandeniya Priority 1 license,"Craig McGuckin, managing director said.
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.