Ceylon Graphite Commences Expanded 2021 Drill Program
February 04 2021 - 8:29AM
Ceylon Graphite Corp. (“Ceylon Graphite” or the “Company”)
(TSX-V: CYL) (OTC: CYLYF) (FSE: CCY) is pleased to
announce that it has designed and launched an expanded drill
program at one of its properties in Sri Lanka, with drilling
commencing on its H1 site. H1 is one of 121 grids held
by Ceylon Graphite’s subsidiary Sarcon Development (Pvt)
Ltd under EL 222. The initial phase of the drill program will
include 6 new 220 to 250 meters bore holes and has been designed to
develop the parameters of the H1 mine. The Company has
also retained the Geological Survey and Mines Bureau Technical
Services drilling team to provide an additional drill rig
and operators to complement its own drill rig and drilling
team.
Drilling at the H1 grid commenced in 2019, four
bore holes were drilled and adit clearing started prior to the
cessation of operations due to COVID-19 related delays these bore
holes resulted in graphite veins of varying thickness being
intercepted at various depths between 67 to 142 meters. Please see
the Company’s press release of 28th June 2019 for more
information.
“We are pleased to begin drilling at scale again and
look forward to completing the drill program in
the next few months,” said Ceylon Graphite, Chairman and
Chief Executive Officer Bharat Parashar. “Previous
drilling at H1 has produced good results and we anticipate even
better results in this program due to the close proximity to the
recently discovered large high grade surface vein. In addition
to the drilling, we have restarted work on an adit which
will follow the vein in the overburden up to the rock and then will
be converted into a shaft to access the mine.”
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/9f0f9601-3f22-40ae-9fd6-739f3299429e
https://www.globenewswire.com/NewsRoom/AttachmentNg/c19cf18d-1b89-4f71-b11a-9767db24a90f
https://www.globenewswire.com/NewsRoom/AttachmentNg/69b53770-4607-4c65-a4cc-a1348fa87f79
The company controls 121 grids with each grid being one square
kilometre areas well-known for its historical graphite production.
Commercial production began at Ceylon’s K1 site in 2020 and the
Company has initiated the application process for an Industrial
Mining License Category A for its M1 site, on which it expects to
begin commercial production in Q3 2021. Ceylon is
currently one of very few public companies that is in commercial
production and unique due to the high-grade nature of its vein
graphite.
The updated 2021 drilling program has been designed to:
- Follow up the
successful 2019 drill campaign at the H1 site
- Assess VLF data
(conductivity) to understand vein direction
- Develop additional
drill targets along known veins to help identify quantity and depth
as well as identify offshoot veins, vein intersections and
caverns.
- Confirmation and
formalization of resource estimate for H1 over the following 6
months
- Start geological
work and drilling in the rest of the 10 prioritized grids with the
second Sarcon drill.
- Provide sufficient
date to file 43-101 compliant resource reports for each site.
- Oversight of the
drilling program by Senior Consultant Geologist Dr.
Ranjith Premasiri. Dr. Premasiri has a PhD In Geophysics
from the United Kingdom and is a Chartered Geologist. He is a
Professor in the Department of Earth Resources at Moratuwa
University in Sri Lanka (Department Head 2016-2019). He has also
worked at the Geological Society and Mines Bureau of Sri Lanka. He
is currently the President of the Geological Society of Sri Lanka
and was General Secretary of the Institute of Geology, Sri Lanka
2009 – 2016.
Qualified Person
Donald K.D. Baxter, P. Eng is a Qualified Person
under National Instrument 43-101 and has reviewed and approved the
geological information provided in this news release.
About Ceylon Graphite Corp.
Ceylon Graphite is a public company listed on
the TSX Venture Exchange, that is in the business of mining for
graphite, and developing and commercializing innovative graphene
and graphite applications and products. Graphite mined in Sri Lanka
is known to be some of the purest in the world and has been
confirmed to be suitable to be easily upgradable for a range of
applications including the high-growth electric vehicle and battery
storage markets as well as construction, healthcare and paints and
coatings sectors. The Government of Sri Lanka has granted the
Company’s wholly owned subsidiary Sarcon Development (Pvt) Ltd. an
IML Category A license for its K1 site and exploration rights in a
land package of over 120km². These exploration grids (each one
square kilometer in area) cover areas of historic graphite
production from the early twentieth century and represent a
majority of the known graphite occurrences in Sri Lanka.
Further information regarding the Company is
available at www.ceylongraphite.com
Bharat Parashar, Chairman and & Chief
Executive Officerinfo@ceylongraphite.comCorporate
Communications+1(202)352-6022
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release
FORWARD LOOKING STATEMENTS:
This news release contains forward-looking
information as such term is defined in applicable securities laws,
which relate to future events or future performance and reflect
management's current expectations and assumptions. The
forward-looking information includes statements about Ceylon
Graphite’s grids, Ceylon Graphite’s plans to undertake additional
drilling and to develop a mine plan, and to commence establishing
mining operations. Such forward-looking statements reflect
management's current beliefs and are based on assumptions made by
and information currently available to Ceylon Graphite, including
the assumption that, there will be no material adverse change in
metal prices, all necessary consents, licenses, permits and
approvals will be obtained, including various Local Government
Licenses and the market. Investors are cautioned that these
forward-looking statements are neither promises nor guarantees and
are subject to risks and uncertainties that may cause future
results to differ materially from those expected. Risk factors that
could cause actual results to differ materially from the results
expressed or implied by the forward-looking information include,
among other things, an inability to reach a final acquisition
agreement, inaccurate results from the drilling exercises, a
failure to obtain or delays in obtaining the required regulatory
licenses, permits, approvals and consents, an inability to access
financing as needed, a general economic downturn, a volatile stock
price, labour strikes, political unrest, changes in the mining
regulatory regime governing Ceylon Graphite, a failure to comply
with environmental regulations and a weakening of market and
industry reliance on high quality graphite. Ceylon Graphite
cautions the reader that the above list of risk factors is not
exhaustive.
These forward-looking statements are made as of
the date hereof and, except as required under applicable securities
legislation, Ceylon Graphite does not assume any obligation to
update or revise them to reflect new events or circumstances. All
of the forward-looking statements made in this press release are
qualified by these cautionary statements and by those made in our
filings with SEDAR in Canada (available at www.sedar.com)
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