Drilling activities started on 11 June at drill hole DH1 of the Bopitiya / Pandeniya priority location.

Structural data obtained from the drill core will be evaluated to determine the next drill location, to better intersect the graphite veins.

After a geological logging, all drill core with graphite intercepts will be separated and half core samples will be prepared for analysis at NAGROM laboratory in Kelmscott, Western Australia.

MRL Corporation managing director Craig McGuckin said: "The outstanding high-grade graphite intersections encountered in our first exploration hole is a validation of the Company’s methodical exploration approach."

"The Directors of MRL are excited by this initial result and anticipate further positive results as the drilling programme continues," McGuckin said.

Geology crews have been trained for using downhole survey and orientation equipment. Prior to drilling at DH4, the DH1 will be surveyed.

Certain drill holes will be cased with PVC casing to maintain access to the drill holes for potential downhole geophysics surveys, the company said.