Ceylon Graphite Corp (CVE:CYL) (OTCMKTS:CYLYF) (FSE:CCY) on Wednesday announced it had discovered a new graphite vein over 30 cm in width, 10 feet downhole at its M1site in the Malsiripura area in Sri Lanka, underscoring the potential of the area.
The vein was discovered in the normal course of digging a ventilation shaft and samples have been sent to the Sri Lanka Government’s Geological Survey and Mines Bureau’s lab for testing, the company said in a statement.
Bharat Parashar, CEO at Ceylon, said that the group was 'delighted' at the discovery, which showed its earlier mapping was correct and that it now anticipates a major find.
"We now have identifiable graphite at surface and below the surface in the overburden. A 30 cm (one foot) vein is impressive by any standards.”
He added: "This discovery coupled with the veins we discovered earlier in the year at our other sites clearly demonstrates that Ceylon Graphite has a large resource base.
"We feel the M1 site will be one of the largest in Sri Lanka. Our plan to start commercial production at our K1 site imminently is nearing fructification and we hope to start producing at M1 by the fourth quarter."
The country of Sri Lanka has a compelling history when it comes to graphite -- graphite mined from the country is known to be some of the purest in the world but accounts for less than 1% of global production.
Graphite has a wide range of industrial uses including being used in steel-making, brake-pads and dry lubricants. It is also used in fuel cells, which power hybrid and electric vehicles and in lithium-ion batteries used in portable consumer devices, like laptops and smartphones.
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