Capital Metals PLC (AIM: CMET), a mineral sands company nearing the development stage of its high-grade Eastern Minerals Project in Sri Lanka, has announced that it has received all necessary approvals to begin its new drilling program. This initiative aims to significantly expand the project's resource base and refine the initial mining area.

Key objectives

• Resource extension through deeper aircore drilling down to the alluvial basement and laterally to the west, outside the current Mineral Resource Estimate (“MRE”), targeting the identified palaeo-beach and dune formations on the coastal plain
• Resource/reserve confirmation for final mine design and production scheduling – initially targeting the first 12 months of production
• The minimum objective of the Company is to progressively increase the resource to twice its current volume. The prospects of material increases are likely to be evident in the short-term through visual and laboratory analysis of samples

The current MRE of 17.2 million tonnes at 17.6% Total Heavy Minerals (THM) positions the deposit among the highest grades globally. Previous drilling, which was limited by hand auger methods, did not extend beyond the groundwater table. The new program anticipates reaching depths of around 10 meters, uncovering significant additional resources.

Anticipated Outcomes:

• The drilling will include comprehensive Quality Assurance sampling, with samples sent to Johannesburg for heavy liquid separation and mineralogical assessment.
• Initial results are expected by next quarter, with some visual results reportable within the current quarter.
• Work has commenced on assessing the feasibility of mining below the groundwater table, a practice common in similar projects globally and within Sri Lanka.

Greg Martyr, Executive Chairman of Capital Metals, expressed excitement about the program's potential to expand the project's 10-year mine life and enhance its economic value. The results are eagerly awaited to inform a subsequent resource upgrade.