VANCOUVER, British Columbia, Feb. 04, 2021 (GLOBE NEWSWIRE) — 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:
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:
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 Officer
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)