MRL Corporation has established ‘first mover’ status and is on the ground operating in southern Sri Lanka with four highly prospective vein graphite development projects.
Sri Lankan vein or lump graphite is the highest quality of naturally occurring material in the world. The quality of the graphite produced has a purity level in excess of 90% carbon with little upgrading or processing required. This type of graphite has been pre-treated by nature to contain extremely high levels of carbon purity that attract premium pricing.
MRL is establishing a major tenement position within southern Sri Lanka, which is globally renowned for its unique vein style graphitic mineralization.
Current programs are focused along 650 metres of historic mine workings on the Pandeniya to Wallagala strike-line within the Warakapola project.
MRL’s Sri Lanka project work is not greenfield exploration. All projects areas have extensive historical workings and remnant graphite. The program entails delineating a resource prior to conversion to a mining licence.
Two other ASX-listed entities plan to explore for graphite in Sri Lanka - Bora Bora Resources and Viculus Limited.
MRL’s projects have low CAPEX and OPEX requirements. Annual production of 5000 tonnes of premium quality vein graphite should generate revenues of about US$10 million.
MRL re-listed on the ASX on December 24, 2013 after completing a restructure and re-branding of Mongolian Resources, which included the divestment of Mongolian coal assets and acquisition of Sri Lankan graphite assets.
Medusa Mining’s managing director Peter Hepburn-Brown has also been appointed as a director of MRL, which believes his experience at Medusa’s operating Co-O Gold Project in the Philippines will translate directly to high grade and narrow vein graphite assets that MRL intends to develop in Sri Lanka.
MRL holds a 100% interest over four projects known as Warakapola, Pujapitiya, Palinda Nuwara and Hikkaduwa that include 6300 hectares of Exclusive Exploration Licences and a further 344sqkm under application. The projects cover historical workings within a known graphite province that produced large volumes of vein or lump graphite from the 1890s to the 1930s.