Capital Metals reports high-grade mineral sands in Sri Lanka drilling

LONDON - Capital Metals PLC (AIM:CMET) announced Wednesday it has received initial drill assay results from its Phase 1 drilling program at the Taprobane Minerals Project in Sri Lanka, confirming heavy mineral grades exceeding 60% in some samples.

The first 539 routine and quality assurance samples, analyzed by Scientific Services Geological Laboratories in Cape Town, South Africa, showed significant heavy mineral concentrations with low slimes content.

Notable intercepts include 6.3 meters at 29.2% heavy minerals from 5 meters depth in hole MUAC028, and 8 meters at 19.9% heavy minerals from surface in hole MUAC008. Several other holes returned substantial results, including 4 meters at 16.7% heavy minerals and multiple sections showing grades between 5.1% and 8.9%.

Greg Martyr, Executive Chairman of Capital Metals, called the results "delightful" and stated they could lead to a "game changing Resource upgrade" targeted for completion before year-end.

The company noted the findings are particularly significant as the current resource estimate extends to an average depth of only 1.6 meters with a 5% cut-off grade, which the company plans to reduce to 2%. Mineralization was found in both coastal and inland areas, extending west of the previously known resource.

Results from an additional 1,042 samples are still pending. The company expects drilling operations to continue through September, with plans for further drilling subject to regulatory approvals.

Capital Metals describes the Taprobane Minerals Project as one of the highest-grade mineral sands projects globally, containing industrial minerals including ilmenite, rutile, zircon, and garnet. A 2022 third-party assessment estimated the project’s net present value at $155-235 million based on existing resources.

The information about drill assay results was based on data reviewed by Richard Stockwell, Technical Manager of the company, according to the press release statement.

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