2nd Batch of Drill Assay Results

Capital Metals

28/07/2025 07:14

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 or contact:

 

Capital Metals plc
Greg Martyr (Executive Chairman)
Via Vigo Consulting
Vigo Consulting (Investor Relations)
Ben Simons / Peter Jacob
+44 (0)20 7390 0234
capitalmetals@vigoconsulting.com
SPARK Advisory Partners (Nominated Adviser)
Neil Baldwin / James Keeshan
+44 (0)20 3368 3550
Hannam & Partners (Broker & Financial Advisor)Andrew Chubb / Leif Powis
+44 (0)20 7907 8500

 

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

 

Follow us on social media:

 

X: @MetalsCapital

LinkedIn: @Capital Metals plc

 

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.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

 
  END

 

 
DRLRPMFTMTBTMBA