Ceylon Graphite Announces Purchase of HXY-2T type Core Drilling Rig

Ceylon Graphite Corp. announces that Sarcon Development (PVT) Ltd its wholly owned subsidiary has purchased a HXY-2T type Core Drilling Rig from the H.H. Drill-Tech Drilling Machinery Co Ltd based in Lianyungang, Jiangsu Province, China.

It is anticipated the drill will arrive in Sri Lanka by the middle of May. For it's immediate requirements, Sarcon has hired a local drilling operator, currently on site to start the drilling process at its K1 site which is a past producing graphite mine. Drilling at K1 will initially be in the area identified during VLF ground mapping around the old mine site and then other parts of the grid.

The company will drill all the 116 grids over the next 24 months, this will provide the precise location(s) of the graphite vein(s) in each grid. The company's goal is to build a geological database for its mining operations.

Bharat Parashar, Chief Executive Officer, said: "Owning its own drill rig will give Sarcon both a cost advantage plus positioning flexibility in the exploration process as we move towards our goal of commencing production."