Ceylon Graphite Corp (CVE:CYL) (OTCMKTS:CYLUF) (FRA:CCY) has said its main aim is to accelerate commercial production volumes from its K1 mine in Sri Lanka now that local coronavirus (COVID-19) restrictions have been eased.
The company's K1 and M1 sites in the country have now returned to full operations, it noted. The group also said it is continuing negotiations with graphite processors and end-users around the world in a bid to strike further sales since announcing its first two commercial deals earlier this year.
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"The capital from our recent successful financing has allowed us to aggressively target increased production,” said Bharat Parashar, the miner's chairman and CEO in a statement.
"We are in active discussions with international vendors for equipment that will enhance our capabilities underground and are close to restarting drilling at our third site known as H1. Our geological team has started geophysical work to follow up on high-grade rich graphite intercepts in the Sabargamuwa area which had historic mining. Our previous work had outlined this and other areas for follow up across our extensive land package.”
The company, established in 2017, holds a total land package of 121 square kilometres which contain historic vein graphite deposits in Sri Lanka, as opposed to flake type graphite deposits.
Graphite mined from the K1 site is some of the highest grade in the world and can be easily upgraded for a range of applications including the high-growth electric vehicle and battery storage markets.
Ceylon is also advancing its M1 site and is in the process of attaining mining licensing approval for production there.
Additional near-term priorities for the miner include developing additional sites and starting geological work at other prospective areas of its land bank.
Shares in Toronto advanced 8.7% to C$0.25 each on the day.
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