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Capital Metals PLC on Wednesday said initial results from its latest drilling programme in Sri Lanka show evidence of high-grade mineralisation beyond the boundaries and depth of its current mineral resource. The mineral sands exploration company, which is focused on Sri Lankan projects said phase 1 drilling at the northern section of the EL168 tenement delivered indications of heavy mineral grades significantly higher than the 17.6% recorded in its existing 17.2 million tonne resource, which is already considered one of the highest-grade deposits globally. Early observations suggest grades exceeding 60% total estimated heavy minerals in some samples, though these are pending laboratory confirmation. The current resource was defined using shallow hand-auger drilling with an average depth of 1.6 metres, while the new programme reached down to 15 metres, with an average of around 10 metres. Capital Metals said mineralisation appeared to extend both deeper and further inland, approximately doubling the width of the known deposit in the area drilled to date. A total of 170 reverse circulation holes were drilled over 1,501 metres, and assays are now under way in South Africa, with results expected within a month. The company said it also plans to optimise its model by reducing the cut-off grade from 5% to 2%, which could significantly increase the size of the resource. Executive Chair Greg Martyr said: ‘Whilst results are only estimates at this stage, extensive new mineralisation discovery is evident. This confirms our exploration model and validates our expectation of a substantial resource increase.’ Phase 2 drilling is expected to begin shortly to extend coverage further south within the EL168 tenement. Shares in Capital Metals were up 8.6% at 3.15 pence in London on Wednesday afternoon. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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