Plumbago Refining Advances Sri Lankan Graphite Project


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11/26/2012 [ACCESSWIRE]

(Willemstad, Curacao) – Caribbean-based firm, Plumbago Refining Corp B.V. (“Plumbago”), has recently completed the acquisition of Sarcon Development (Pvt) Ltd. (“Sarcon”), a Sri Lanka-based company, according to Plumbago spokesperson Jody Lenihan.

Plumbago, through its wholly owned subsidiary, Sarcon, has secured the exclusive exploration rights for 106, 1 km2 grids in Western and Southwestern Sri Lanka. “We are quite pleased with Sarcon’s progress in securing these grids, which are the locations of all of the known graphite resources on public land in Sri Lanka other than the two producing mines. These are all mines that were successful until they discontinued operations in the early 1900’s,” said Lenihan.

The other two mines are currently operated by Kahataga Mines and Bogala Graphite, which combine to produce approximately 330 tonnes per month of high quality vein graphite, with 90% to 99% purity.

“Sarcon’s mandate is to develop its mines to safe and sustainable production of at least 350 tonnes per month, to refine the graphite ore in-country, and to construct a facility to manufacture various graphite-based products for export around the world, thus providing a tremendous value-addition and economic benefit to Sri Lanka” said Lenihan.

According to the Board of Investment approval awarded to Sarcon on October 4th, Plumbago anticipates an investment of USD 15.2 million.

Sarcon has engaged the technical arm of the Geological Survey and Mines Bureau, GSMB Technical Services, to conduct geotechnical surveys at the approximately twenty old mine sites, in four general regions, to determine the potential for resumed production.

“GSMB TS has already delivered the report for the first region, with very encouraging results. The second report is expected by the end of this week, and we understand that GSMB TS is even more positive about region no. 2,” said Lenihan.

It should be noted that Plumbago Refining Corp B.V. of Curacao carries no affiliation with any other companies with similar names in Sri Lanka or anywhere else, said Lenihan. “With our acquisition of Sarcon and its quality exploration licenses, we are confident of achieving our production goals, rapidly.” Lenihan said.

For further information, please email info@plumbagographite.com or visit www.plumbagographite.com

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