REG - Capital Metals PLC - Initial Drill Assay Results

Capital MetalsAnnouncement

16/07/2025 09:00

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RNS Number : 2876R  Capital Metals PLC  16 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.

 

16 July 2025

Capital Metals PLC

 

("Capital Metals" or the "Company")

 

Initial Drill Assay Results

 

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 first 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

·    Exceptional Heavy Mineral grades with very low slimes content are a
consistent characteristic of the first 539 routine and QA samples assayed by
Heavy Liquid Separation

·    Grades over 60%, as visually observed and announced on 11 June, have
now been confirmed by laboratory assay results

·    Intercepts include:

o  6.3m @ 29.2% HM from 5m in hole MUAC028

o  8m @ 19.9% HM from 0m in hole MUAC008

o  4m @ 16.7% HM from 6m in hole MUAC025

o  2.2m @ 23.4% HM from 0m in hole MUAC014

o  7m @ 8.9% HM from 0m in hole MUAC007

o  9m @ 6.2% HM from 1m in hole MUAC020

o  12m @ 5.3% HM from 0m in hole MUAC015

o  10m @ 5.2% HM from 0m in hole MUAC030

o  11m @ 5.1% HM from 0m in hole MUAC016

·    These results are extremely significant, particularly given the
current Resource is only to an average depth of 1.6m and the current cut-off
grade is 5%, with plans to reduce this to 2%

·    Mineralisation is evident in coastal and inland areas, extending west
of the known resource

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

·    A Competency of Personnel audit of laboratory services was completed
during the month, with no advisory items reported

 

Greg Martyr, Executive Chairman of Capital Metals, commented:

"We are delighted with the initial drill assay results. Our visual
observations of >60% grades have now been proven by laboratory assays, with
several significant intercepts that carry important implications for the
Project's overall mine life and mine planning. The results to date, together
with what we expect from the ongoing drilling programme, should unearth a game
changing Resource upgrade for the Company, targeted to be completed before the
end of the year. We would once again like to thank the GSMB for their
continued support."

 

Next Steps

The results from the remaining 1,042 samples of the 400mN by 40mE grid
drilling and 20mE infill drilling are pending. It is anticipated that these
will reveal further high-grade mineralisation, helping to better constrain
both coastal and inland deposits for detailed analysis.

Heavy Mineral sinks will be microscopically logged to determine their gross
mineralogical characteristics to assist in the compositing of like intervals
for XRD, XRF, and QEMSCAN analysis.

The Company expects drilling operations to continue on site through July to
September and will update the market as and when further assay results become
available. The Company expects the next phase of drilling to be completed in
September, with plans to continue beyond this period - both in this region and
in other areas of the Project - subject to ongoing regulatory approvals.

 

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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