The company has commenced feasibility studies regarding mining operations below the groundwater table, a practice common in beach mineral sands projects globally and already established in Sri Lanka.
Capital Metals (AIM: CMET), a leading mineral sands company focused on the Eastern Minerals Project in Sri Lanka, has announced a significant milestone in its mine development journey. The company has secured all necessary consents to initiate a comprehensive drilling program aimed at expanding resources and enhancing certainty in its initial mining areas.
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| Map of the Eastern Minerals Project in Sri Lanka |
The upcoming drilling campaign, slated to begin shortly, marks a pivotal step towards increasing the resource base of the Eastern Minerals Project. Capital Metals aims to extend its current Mineral Resource Estimate (MRE) through deep aircore drilling into the alluvial basement and lateral expansions westward beyond the existing MRE boundaries. This strategic approach targets palaeo-beach and dune formations along the coastal plain, where substantial mineralization is anticipated.
Greg Martyr, Executive Chairman of Capital Metals, highlighted the potential of the upcoming drilling efforts: “We’ve glimpsed the upside potential from previous drilling campaigns, and our objective now is to significantly increase the resource volume. This includes exploring depths to the alluvial basement, where previous drilling has shown promising grades exceeding our current estimates.”
The Eastern Minerals Project currently boasts an MRE of 17.2 million tonnes at 17.6% Total Heavy Minerals (THM), positioning it among the highest-grade deposits globally. However, recent advancements in drilling technology and exploration insights suggest the potential for substantial additional resources below the groundwater table and beyond the coastal formations originally surveyed.
In preparation for the drilling program, Capital Metals has initiated a rigorous Quality Assurance sampling protocol. Samples will be processed in batches at specialized laboratories in Johannesburg, utilizing advanced analytical techniques including XRF, XRD, and QEMScan. Initial results from the drilling are expected to be reported starting next quarter, with visual assessments likely to precede comprehensive laboratory analyses.
Moreover, the company has commenced feasibility studies regarding mining operations below the groundwater table, a practice common in beach mineral sands projects globally and already established in Sri Lanka. Discussions with local authorities are ongoing to ensure regulatory compliance and operational feasibility in expanding mining activities.
Capital Metals remains optimistic about the economic prospects of the Eastern Minerals Project, having previously demonstrated high-margin operations in its 2022 Preliminary Economic Assessment. Martyr emphasized the potential impact on the project’s valuation, stating, “Expanding the resource base and extending the mine life are critical to enhancing the Project’s Net Present Value. We are committed to unlocking this value and maximizing returns for our stakeholders.”
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