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Capital Metals (CMET) Share Price Rallies as Drilling Programme at Southern License Commences

Sam Boughedda trader
Updated 5 Oct 2021

Capital Metals (LON: CMET), a natural resources company, announced Tuesday that the auger drilling programme at its southern exploration license EL199 has commenced.

The company has hired the Geological Survey and Mines Bureau in Sri Lanka to undertake the drilling program while Capital's newly appointed Technical Manager, Richard Stockwell, will oversee the programme. The drilling combines infill and resource extensions and aims to confirm previous drill work. 

Capital Metals said it will help them delineate the key areas for any mining license applications over EL199 and build out a resource estimate. The company is planning to drill 500 auger holes which will take approximately 3 weeks.

Michael Frayne, CEO of Capital Metals, commented: “Less than 10% of the Project has been drilled to date and one of our key tasks is to build out the resources estimate from our current resource of 17.2 Mt at 17.6% Total Heavy Minerals.

“This drilling campaign will assist the company in order to start planning for mining license application(s) over our southern license area.”

Capital Metals shares are up 3.29% at 11p at the time of writing. Earlier in the session, its stock price rose to a high of 11.7p.

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Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.