Plumbago signs largest graphite exploration drilling deal worth Rs. 56 m with GSMB

Plumbago Lanka recently announced that it has signed a landmark contract with the Geological Survey and Mines Bureau (GSMB) to the value of Rs. 56 million, the largest graphite exploration drilling contract signed to date with the GSMB.

Under the terms of the contract the GSMB will provide Plumbago Lanka with the necessary drilling equipment and labour required to drill designated land areas in the Dambulla and Kurunegala region.

The contract in this regard was signed by Plumbago Lanka Chairman Chris Cowan and GSMB Chairman Senarath Jayasundara and will permit Plumbago Lanka to drill for graphite on land identified by a versatile time domain electromagnetic survey recently conducted by Plumbago Lanka in Central Sri Lanka.

Speaking about the signing of this contract, Cowan expressed his thanks to Susil Premajayantha, the Minister of Environment and Renewable Energy and his Ministry Secretary B.M.U.D. Basnayake, the Chairman of the GSMB Senarath Jayasundara, and the retiring Director General of the GSMB Mr. Peiris and his team for their support and foresight in realising the importance of such a project and facilitating Plumbago Lanka to bring cutting edge technology and world class mining techniques into Sri Lanka.

“We want to take Sri Lanka back to its dominant position in the world graphite market by introducing high tech exploration methods and bringing the latest in skills and expertise to the local graphite industry,” he added.

“We will also do the value additions locally, continue to employ a local workforce and provide specialist training to these workers. We also hope to carry out more technology transfers to Sri Lanka in the future along with some CSR activities for worthy local causes.”

Plumbago Lanka will be drilling a minimum of 10 holes of 300 metres depth to test for the presence of graphite. This is the second major stage of exploration following on from the initial airborne helicopter survey, which identified follow up drilling targets for Plumbago Lanka, the first time such a survey of this kind has been flown in Sri Lanka.

The exploration drilling will be done post the renewal of Plumbago Lanka’s exploration licenses in this area which were recently extended by the GSMB with the consent of the Ministry of Environment and Renewable Energy.

Plumbago Lanka will employ world’s best practice techniques leveraging off the international mining experience in the Group including environmental assessment and monitoring, initiated prior to drilling. The company will bring local employment, training, CRS and support service opportunities to a historically important region of Sri Lanka.

Plumbago Lanka is a BOI approved company incorporated in 2012 for the purpose of exploring, mining and adding value to graphite. Sri Lanka is highly renowned for its crystalline vein graphite, with purity levels ranging from 90-99% carbon.

http://www.ft.lk/2014/10/20/plumbago-signs-largest-graphite-exploration-drilling-deal-worth-rs-56-m-with-gsmb/

Thnks FG. Consider moving to Graphite thread.