By ASXI1ReleaseI1
I1
2 January 2014
MRL Corporation Limited
ACN 007 870 760
ABN 50 007 870 760
Suites 6 & 7
61 Hampden Road
Nedlands WA 6009
Tel +61 1300 660 448
Fax +61 1300 855 044
UPDATE ON SRI LANKAN ACTIVITIES
MRL Corporation Ltd ("MRL" or "the Company") is pleased to provide an update on the activities on its Sri Lankan graphite projects.
Additional Licences Granted
As previously advised the Company has made application for an additional 367 licences, each one being a 1 km2 grid. All of MRL's granted and application grids are in proven graphite provinces and are geologically robust with many old workings dating back in excess of 70 years since they were last mined using basic mining methods.
The Company is pleased to announce the first 18 grids from the new applications have been granted in the Pujapitiya Project Area. This project area is south of the government owned Kahatagaha / Kolongaha (K/K) Mining Operations.
Nerida Schmidt
Email: info@mrltd.com.au
Web Site: www.mrltd.com.au
MRF, MRFO, MRFOA
The Pujapitiya grids also have prolific remnant graphite at surface and numerous abandoned underground shafts and audits. MRL has commenced planning for site geological mapping and underground exploration.
During the preliminary site visits several thin graphite veins are visible in the roadway and hillside cuttings. Minor veining is also visible in adit entrance.
MRL Senior Geologist and Mines
Captain inspecting adit entrance
Surface sample of remnant graphite taken for analysis
~30 cm remnant graphite at Pujapitiya
The majority of remaining exploration grid applications have passed UDA (Urban Development Authority) approval and are with Geological Survey and Mining Bureau GSMB for approval. If all the new grids are granted it will take MRL's total holdings to 407 grids (47,000 Ha) and make it one of the larger exploration concession holders in Sri Lanka. The company anticipates the outcome of the remaining applications to occur in January
/ February 2014.
Warakapola Exploration Area
y 2
Wallagala Priority 1
Priority 3
Geological mapping by GSMB continues on selected priority grids and is expected to be completed by the end of December 2013. MRL has completed a trial VLF transverse survey over the Wallagala priority exploration area. The Company will be undertaking further geophysical surveys in combination with results from underground exploration will determine the best drilling locations for the priority 1 area.
An experienced underground mining crew of four has been employed to commence entering priority underground workings at Wallagala in mid / late January after completion of safety procedures, training and final equipment purchases. The Mining crew will make safe working areas for geologists to map graphite veins to add to the geological data base. The underground crew will progressively inspect all workings. If commercial thickness veins are encountered they will secure the adit with the view of potential early entry production.
Preliminary Environmental Impact Assessment (PEIA)
The PEIA at Wallagala has been completed and the final report is expected early January 2014. This report will form part of any future Independent Environmental Assessment required to convert exploration licenses into mining licences. The PEIA will allow MRL to obtain water discharge and explosives permits for the Wallagala location.
Re-Instatement to Australian Securities Exchange
The Company was re-instated to the official list of the ASX on 24
December 2013 following the completion of a capital raising. The raising
was managed by CPS Capital Group and the Company thanks them for their continued support. The Board of MRL welcome any new shareholders and thank existing shareholders for their ongoing support.
The Company is entering a very exciting stage with development of the quality Sri Lankan assets and is focused on delivering near term success from the priority areas for shareholders.
Mongolia
As noted in the Company's Prospectus and Annual Report, the investment regime in Mongolian and geophysical results were not conducive to further expenditures and the Company did not anticipate its Mongolian interests would form a material part of its future asset portfolio. The Company has disposed of its Mongolian interests by receiving US$75,000 cash consideration and was relieved of its obligations for ongoing work program of approximately US$200,000. The Company no longer has any interests or activities in Mongolia.
www.mrltd.com.au
About Sri Lankan Lump/Vein Graphite
Lump or Vein graphite is considered to be one of the rarest, commercially valuable, and highest quality types of natural graphite. It occurs in veins along intrusive contacts in solid lumps and is currently only actively mined in Sri Lanka. Sri Lanka is the only country that produces commercial quantities of high grade vein graphite with carbon content greater than 90%Cgr (Carbon as graphite). As a result of the carbon content typically found within lump/vein graphite, production costs are normally lower than flake or amorphous graphite recovery.
Mining commenced at the Kahatagaha/Kolongaha (K/K) Mining Operations in 1872 and by the end of the
1990s had produced in excess of 300,000 tonnes of carbon as graphite. The operation is managed by Kahatagaha Graphite Lanka Limited (KGLL) and exports 100% of the products produced to major clients worldwide.
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