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Ceylon Graphite unveils major milestone as commercial production starts at its K1 mine in Sri Lanka

Last month, its wholly-owned subsidiary Sarcon Development Pvt Ltd was granted an environmental protection license for K1

Ceylon Graphite Corp -
Sri Lankan graphite is known to be among the purest in the world

Ceylon Graphite Corp (CVE:CYL) announced a major milestone on Friday, saying it had started commercial production of graphite from its K1 mine at Karasnagla in Sri Lanka. 

"We are finally in commercial production mode and look forward to selling our first container of Sri Lankan vein graphite - today we have brought 2 tons of raw graphite to the surface," Bharat Parashar, the group's chief executive told investors in a statement. 

"These three years have been a learning process and whilst this is just the first step to creating a globally recognized graphite mining company, we are now much better prepared to develop our next sites and at a faster pace." 

READ: Ceylon Graphite’s subsidiary Sarcon wins environmental protection license for K1 graphite mining project in Sri Lanka

It comes after news on November 11 this year that Ceylon's wholly-owned subsidiary Sarcon Development Pvt Ltd had been granted an environmental protection license for the K1 project from Sri Lanka's top environmental regulator - the Central Environmental Authority (CEA).

The firm has also recently purchased land next to the project to allow it to construct an adit into the mine for the purposes of access or drainage from the main shaft.

Ceylon also said today that it was currently in discussions with several end-users and processors of natural graphite over sales contracts.

Big land package

The company holds a total land package of 121 square kilometres, which contains historic vein graphite deposits - as opposed to flake-type graphite deposits.

These unique and comparatively higher margin vein (lump) deposits currently make up less than 1% of world graphite production and Ceylon's package represents the majority of known historic graphite resources in Sri Lanka.

Sri Lankan graphite is known to be amongst the purest in the world.

As well as K1, the group also has the M1 development site; the H1 site (over 50 acres) in Hakbewa. It has the P1 development site in the Pasyala district too.

Shares added 7.7% in Toronto in early deals to stand at $0.070 each.

---Updates for share price---

Contact the author at giles@proactiveinvestors.com

Quick facts: Ceylon Graphite Corp

Price: 0.1 CAD

Market: TSX-V
Market Cap: $6.73 m

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Ceylon Graphite readying for first production in early 2020

Proactive Research analyst Christopher Ecclestone updates on the development of Ceylon Graphite Corp's (CVE:CYL) mines in Sri Lanka. Ecclestone says they've received environmental approvals for its K1 mine and has recently gained an industrial mining licence with first production likely in...

on 8/10/19

2 min read