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RNS Number : 2700C Capital Metals PLC 26 March 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.
26 March 2025
Capital Metals PLC
("Capital Metals" or the "Company")
Drilling Update
Capital Metals (AIM: CMET), a mineral sands company approaching mine
development stage at the high-grade Taprobane Minerals Project in Sri Lanka
(the "Project"), is pleased to provide the following update on drilling.
Aircore drilling within the Company's northern EL168 area is continuing
successfully, focusing first on the Initial Mining Area ("IMA") of the
existing 17.2Mt high grade Mineral Resource. The purpose of the drilling is to
increase the Mineral Resource, as well as to help with mine planning in
particular for the IMA. A total of 380 metres across 41 drillholes have been
completed in this programme to date. Previous hand auger drilling used to
define the Mineral Resource only went to an average depth of 1.6 metres,
whereas the aircore rig in use is drilling to depths of up to 15 metres before
intersecting basement lithologies.
The programme includes specific targets of new beach placers at depth and
further inland. The Company is pleased to announce that drilling has
intersected a second marine sand package considered to have been deposited
during the Pleistocene epoch. Estimated heavy mineral grades are high, and
work is ongoing to define the extent of this new mineralisation and the impact
on the resource within the IMA and across the Project, with more targeted
drilling to be planned. All drill samples will be analysed and subsequently
domained according to geological formation and updates will be provided when
available. By doing this, discrete geo-metallurgical classification can be
conducted on the surface (Holocene) and buried (Pleistocene) domains and their
individual mineralogical and economic character can be assessed during the
optimisation of the resource for mining.
In addition to targeting extensions to the Mineral Resource, the current phase
of the drill programme will assist the Company in outlining the perimeters of
the IMA, determining optimal locations for mining cells and the location of
the Wet Concentrator Plant site. Planned infill drilling will provide greater
definition of host material characteristics and mineral grade and assemblage
which will increase the certainty of the mine plan and product schedule
through different geological domains. The drilling programme is scheduled to
continue in a southerly direction with land access in a number of areas
already obtained, and an ongoing process to obtain additional land access
agreements as and when required.
Greg Martyr, Executive Chairman of Capital Metals, commented:
"Drilling is progressing well with the cooperation and participation of the
Geological Survey & Mines Bureau. This drilling campaign is targeted at
significantly increasing the size and hopefully grade of the Mineral Resource
and is an important component of the plan to reach a Final Investment
Decision. It will also assist us in determining the specifics of the mining
plan, enhancing our knowledge of the make-up of the products, and dictating
where to locate mining cells and to site the plant. We look forward to
updating shareholders on further observations in due course with assays
targeted to be received over the summer."
Click here to watch a short video message from Stuart Forrester, Chief
Operating Officer, at the drill site:
https://youtu.be/YWCi_SFA83s?si=J0pBvLMGIwr7_VgW/
(https://youtu.be/YWCi_SFA83s?si=J0pBvLMGIwr7_VgW/) .
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$130m 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)
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