Elcora drilling finds eight Cg veins at Ragedara

Dec 7, 2015

ELCORA RESOURCES ENCOUNTERS SIGNIFICANT GRAPHITE MINERALIZATION IN MULTIPLE VEINS

Elcora Resources Corp. has progressed to advanced underground drilling work to define the 12 historically worked veins at depth and to find additional veins at the Ragedara mine in Sri Lanka. Historically, the peak production of these 12 veins was 18,000 tonnes per year. The mine was abandoned due to improper mine planning and infrastructure. The vein structure remains open at depth both downward and into the mountain.

Two drilling locations were used at the zero-metre level exploring into the hill, which discovered three veins ranging between 15 and 24 centimetres in width within 10 metres of the old workings. These veins are currently being mined.

An additional drilling location is currently being exploited at the 38 m level to pass under the historical working of the mine. This has already resulted in locating the five veins with widths of 66, 40, 20, 20 and 15 cm. Additional holes are being drilled in order to further define these veins and the current shaft is being deepened in order to provide access for future work.

The graphite grade in the Ragedara veins ranges from 92 to 99 per cent graphite. Historically, some of the veins have also contained fist-sized silica than can be selectively mined from to graphite resulting in two potential products.

“This work is important for proper mining planning in support of the company’s goal to re-establishing peak production at the Radegara mine,” said Troy Grant, Elcora’s president and chief executive officer. “This is another step in Elcora’s continued strategic development of the Ragedara mine and the establishment of a cash flow.”

Dr. Ian Flint, PhD, PGeo, is the qualified person as defined under National Instrument 43-101 who has reviewed and is responsible for the technical information presented in this news release.

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