The group revealed it had been awarded a so called IMLB license by the relevant authority of the Sri Lankan government.
IML is an Industrial Mining License and under category B, typically some single borehole blasting is permitted plus the use of certain machinery and equipment in the mining process. It means the site may also excavate or produce a small amount of graphite per month.
Bharat Parashar, chief executive at Ceylon Graphite said: "This is another step in the right direction. The license will allow us to speed up mine development work at M1 as we apply for a IMLA license, a process that has already started."
Earlier this month, the group said it had discovered a large, wide crystalline graphite vein at the project.
The Vancouver-based explorer found a 55 centimeter-wide vein at the H1 site in Meewitiya during the digging of a new shaft.
Contact Giles at [email protected]