The Sri Lankan Geological Survey and Mines Bureau has granted two new exploration licences for ASX-listed Lanka Graphite Limited in Sabaragamuwa Province. The licences have been granted for a period of two years from August 11, 2015, and comprise a total of 37sqkm.
As disclosed by CSA Global in an Independent Geologist Report of August 15, 2014, both areas contain old mine workings, prospect shafts and adits. A sizeable mine was developed on one of the licence areas and this was located on a structural shear zone.
The exploration licences are adjacent to each other and are considered a good target area. They are to the east of the company’s other exploration licences on Sri Lanka’s west coast.
Lanka Graphite’s executive chairman Jitto Arulampalam says, “The early award of these two licences along with the appointment of Supun Wimalanath as our new in-country general manager of technical services, illustrates that Lanka Graphite is progressing its strategy to explore, develop and exploit graphite opportunities in arguably the high grade vein capital of the world.”
The company began trading on the ASX on August 7 following a merger between Viculus Ltd and Euro Petroleum Ltd via an off-market takeover bid. The new exploration licences add to the 242sqkm of highly prospective ground held by the company in central and southwest Sri Lanka.