REG - Capital Metals PLC - 2nd Batch of Drill Assay Results

Capital MetalsAnnouncement

Mon 07:15

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RNS Number : 7704S  Capital Metals PLC  28 July 2025

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK
VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH
LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED. ON
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

28 July 2025

Capital Metals PLC

 

("Capital Metals" or the "Company")

 

2nd Batch of Drill Assay Results

 

Continuing trend of exceptional grades

 

Capital Metals (AIM: CMET), a mineral sands company approaching mine
development stage at its high-grade Taprobane Minerals Project in Sri Lanka
(the "Project"), is pleased to announce it has received the second set of
drill assay results from the Phase 1 drilling programme in the northern EL168
area. The results have been returned from the Company's laboratory partner,
Scientific Services Geological Laboratories, based in Cape Town, South Africa.

 

Highlights

 

·        Further exceptional Total Heavy Mineral ("THM") grades have
been confirmed from the second batch of 601 routine and QA samples from the
400mN by 40mE grid drilling (on top of the initial batch of 539 samples
reported on 16 July 2025), with Heavy Liquid Separation assays continuing to
demonstrate high-grade mineralisation. There are 466 remaining samples still
being processed from the first phase of the drilling campaign.

·        Drill hole MUAC054 encountered 13m @ 13.3% THM grade and,
within this, an exceptional 8m @ 20.6% from 6m depth and 1m at 60.7% from 11m
depth. This compares favourably with the current Mineral Resource average
grade of 17.6% THM, which extends to an average depth of just 1.6m.

·        Intercepts include:

o   13m @ 13.3% THM from 1m in hole MUAC054

o   6.3m @ 32.4% THM from 5m in hole MUAC028 (including 4.3m @ 44.6% THM
from 7m)

o   6m @ 10.9% THM from 0m in hole MUAC114

o   3m @ 9.9% THM from 6m in hole MUAC063

o   6m @ 7.2% THM from 6m in hole MUAC064

o   6m @ 6.9% THM from 0m in hole MUAC113

o   11m @ 6.4% THM from 0m in hole MUAC111

o   7m @ 5.8% THM from 0m in hole MUAC115

o   8m @ 5.2% THM from 0m in hole MUAC112

NOTE: Intercepts are calculated using a 2% Heavy Mineral bottom cut.

·        The existing Mineral Resource in the initial mining area
covers 65 hectares, however, aircore drilling assay results received to date
indicate the mineralisation remains open to the west and now extends across
159 hectares using a bottom cut of 2% THM.

·        Mineralisation is also evident exceeding 10m depth in several
locations (e.g. MUAC015, MUAC016, MUAC017, MUAC030, MUAC054, MUAC111),
significantly deeper than the previous resource average depth.

·        A zone of very high-grade Heavy Minerals has also been
discovered from ~5m depth (e.g. MUAC028) that extends 700m west of the
previous resource boundary, with this area remaining open along strike pending
proposed infill drilling at 100mN spacing. This work will commence upon
completion of the regional 400mN by 40mE programme.

·        All QA and QC data have been returned and processed. Results
confirm a high level of precision and accuracy, as is anticipated with a
strong quality focus in both field and laboratory personnel and practices.

 

Greg Martyr, Executive Chairman of Capital Metals, commented:

 

"Results to date indicate a significant extension of mineralisation and
potential for many multiples of the existing resource to be achievable in the
initial mining area. We are hopeful that applying the same methodology
throughout the remainder of the resource area will continue this trend. We
look forward to providing further reports as appropriate during the ongoing
drilling campaign in order to support a targeted Mineral Resource upgrade
before the end of this calendar year."

 

Next Steps

 

The results from the remaining 456 routine and QA samples of the 400mN by 40mE
grid drilling are pending. It is anticipated that these will reveal further
high-grade mineralisation.

Heavy Mineral sinks are undergoing microscope logging to determine their gross
mineralogical characteristics. From this, composites of like mineral can be
selected for geo-metallurgical characterisation by XRD, XRF, and QEMSCAN
analysis. Applying these results will allow discrete mineralogical character
to be incorporated in the proposed Mineral Resource Estimate update and inform
the mining reserve and production schedules.

 

For further information, please visit www.capitalmetals.com
(http://www.capitalmetals.com) or contact:

 

 Capital Metals plc                                      Via Vigo Consulting

 Greg Martyr (Executive Chairman)
 Vigo Consulting (Investor Relations)                    +44 (0)20 7390 0234

 Ben Simons / Peter Jacob                                capitalmetals@vigoconsulting.com (mailto:capitalmetals@vigoconsulting.com)
 SPARK Advisory Partners (Nominated Adviser)             +44 (0)20 3368 3550

 Neil Baldwin / James Keeshan
 Hannam & Partners (Broker & Financial Advisor)          +44 (0)20 7907 8500
 Andrew Chubb / Leif Powis

 

About Capital Metals

 

Capital Metals is a UK company listed on the London Stock Exchange (AIM:
CMET). We are developing the Taprobane Minerals Project in Sri Lanka,
approximately 220km east of Colombo, containing industrial minerals including
ilmenite, rutile, zircon, and garnet. The Project is one of the highest-grade
mineral sands projects globally, with potential for further grade and resource
expansion. In 2022, a third-party Preliminary Economic Assessment provided a
Project NPV of US$155-235m based on existing resources, with further
identified optimisation potential. We are committed to applying modern mining
practices and bringing significant positive benefits to Sri Lanka and the
local community. We expect over 300 direct new jobs to be created and over
US$150m in direct government royalties and taxes to be paid.

 

Visit our website:

www.capitalmetals.com (http://www.capitalmetals.com)

 

Follow us on social media:

 

X: @MetalsCapital (https://twitter.com/MetalsCapital)

LinkedIn: @Capital Metals plc (https://uk.linkedin.com/company/capitalmetals)

 

Competent Persons Statement

Information in this announcement relating to the drill assay results is based
on data reviewed by Mr Richard Stockwell, a principal of Placer Consulting Pty
Ltd (which owns equity securities in Capital Metals PLC) and Technical Manager
of the Company. Mr Stockwell is a Fellow of the Australian Institute of
Geoscientists and has in excess of 20 years' experience, which is relevant to
the style of mineralisation and type of deposit under consideration, and to
the activity he is undertaking, to qualify as a Competent Person as defined in
the 2021 Edition of the "Australasian Code for Reporting of Exploration
Results, Mineral resources and Ore Reserves". Mr Stockwell consents to the
inclusion of the information in the form and context in which it appears.

 

 

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