Lanka Graphite gets ready to commence graphite production in Sri Lanka

The company is formalising an off-take agreement to supply high grade vein graphite.

Lanka Graphite Ltd (ASX:LGR) has been granted its first artisanal mining license (AML) in Sri Lanka to commence small scale graphite production. An AML grants the licensee the exclusive right to mine, process and trade in all minerals specified in the license within an area not exceeding 10 hectares and to a depth not exceeding 25 meters. Lanka is focused on the exploration of a number of historic and new mining tenements in central and south-western Sri Lanka. Interestingly, historic mining at a number of these granted tenements produced very high grade ‘lump’ or vein style graphite returning grades of more than 95% carbon. The company is engaging local miners to start clearance and preparation of the site. Lanka will engage third party local technical consultants to commence the installation of wall support at the identified historic mines. The company recently identified additional outcropping high-grade vein graphite mineralisation near the existing mines. Lanka is also in discussions with Global Graphene Group to formalise an off-take agreement to supply high grade vein graphite for use in value-added graphene enhanced applications. The company is planning to apply for further artisanal mining licenses at its various exploration licenses to increase production to a minimum of 2000 tonnes per annum within two years. Importantly, this will see Lanka transition from a graphite mining exploration company to a graphite producer. -http://www.proactiveinvestors.com.au