REG - Capital Metals PLC - Drilling Update

Capital MetalsAnnouncement

11/06/2025 07:00

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RNS Number : 3638M  Capital Metals PLC  11 June 2025

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INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

11 June 2025

Capital Metals PLC

 

("Capital Metals" or the "Company")

 

Drilling Update

 

Indications of exceptional high-grade resource extensions discovered laterally
and at depth

 

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 within
the northern EL168 area, focusing on the Initial Mining Area of the existing
17.2 Mt Mineral Resource.

 

Highlights

 

·    Phase 1 completed: 170 reverse circulation holes for 1,501 metres
predominately in the proposed initial mining area in a 400m north by 40m east
drilling pattern

 

·    New discovery: Indications of high-grade mineralisation at depth and
outside the Mineral Resource where drilling extended down to 15m with an
average depth of around 10m - previous hand auger drilling used to define the
Mineral Resource, calculated on a total 2,621m of drilling, only went to an
average of 1.6m depth

 

·    Indications of exceptional high grades: Preliminary indications from
panning of samples obtained at depth (subject to laboratory assay) in some
cases of over 60% Total Estimated Heavy Minerals, compared to existing Mineral
Resource grade of 17.6% (already one of the highest-grade mineral sands
deposits globally)

 

·    Resource expansion: Additional mineralisation inland in the area
drilled to date is approximately double the width of the existing Mineral
Resource

 

·    Resource upgrade: In addition to the anticipated resource increase
from the new discovery at depth, the Company is confident it will be able to
reduce the cut-off grade of the Mineral Resource from 5% to 2% upon
optimisation, which will significantly increase the size of the resource with
a slight reduction in grade (with any grade reduction expected to be offset by
higher grades encountered at depth)

 

·    Laboratory assays: First batch of 539 routine and QA samples
commenced analysis at Scientific Services laboratory in South Africa, with
assay results expected within approximately one month, and the remaining 1,042
samples having recently arrived in Cape Town

 

·    Geo-metallurgical analysis: Scanning of heavy minerals upon
completion of the assay will allow a detailed mineralogical analysis programme
to be completed to inform the resource model update and mining and production
schedules

 

Greg Martyr, Executive Chairman of Capital Metals, commented:

 

"We are delighted with the initial observations from Phase 1 drilling. Whilst
results are only estimates at this stage, extensive new mineralisation
discovery is evident. This confirms our exploration model and validates our
expectation of a substantial resource increase. There is, however, a lot more
drilling to be completed before we know how consistent this expansion is over
the whole Project.  We are also in discussions with the Geological Survey and
Mines Bureau regarding the phased implementation of the global practice of
mining below the water table to access the deeper resources.

 

We'd like to thank our local stakeholders, particularly the GSMB, for their
continued support and collaboration. We look forward to continuing the
drilling programme which will further our understanding of the resource and
assist with mine planning in the Initial Mining Area."

 

Figure 1: Drill sample trays and panning profiles showing significantly deeper
high-grade mineral intercepts

 

 

 

 

Next Steps

 

Phase 2 drilling expected to commence shortly to include completion of 400m
north by 40m east spaced extensional drilling programme for the balance of the
EL168 tenement in a southerly direction from the Phase 1 drilling (phasing to
accommodate land ownership access).  This would be followed up by infill
drilling, based on results from Phases 1 and 2, for the proposed Initial
Mining Area at a 100m north by 20m east drill pattern to provide greater
definition of host material characteristics and mineral grade and assemblage
which will increase the certainty of the mine plan and product schedule.

 

 

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)

 

 

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