MRL Corporation targets graphite production in Sri Lanka by...

MRL Corporation targets graphite production in Sri Lanka by 2015
Friday, March 07, 2014 by Proactive Investors


MRL Corporation has established “first mover” status and is “on the ground” operating in southern Sri Lanka with four highly prospective vein graphite development projects.
MRL Corporation has established “first mover” status and is “on the ground” operating in southern Sri Lanka with four highly prospective vein graphite development projects.

Recommendation: Speculative Buy
Target Price: $0.09
ASX Code: MRF
Share Price: $0.03
52 Week -
High: $0.20
Low: $0.03
Issued Ordinary Shares: 74.3M
Options: 48.2M
Cash: $1.2M
Market Cap: $2.2M
Enterprise Value: $1.0M



MRL Corporation Ltd (ASX: MRF) has established “first mover” status and is “on the ground” operating in southern Sri Lanka with four highly prospective vein graphite development projects.

Peter Hepburn-Brown, the MD of Medusa Mining ($450M Market Cap.) has been appointed as a director of MRL.

Sri Lankan vein or lump graphite is the highest quality of naturally occurring material in the world. The quality of the graphite produced has a purity level in excess of 90%C with little upgrading or processing required.

MRL is establishing a major tenement position within southern Sri Lanka which is globally renowned for its unique vein style graphitic mineralisation.

This type of graphite has been pre-treated by nature to contain extremely high levels of carbon purity that attract premium pricing.

Current programs are focused along 650 metres of historic mine workings on the Pandeniya to Wallagala strike-line within the Warakapola Project.

MRL’s Sri Lanka project work is not greenfield exploration. All projects areas have extensive historical workings and remnant graphite. This will entail delineating a resource prior to conversion to a mining licence.

MRL’s strategy is to convert at least one license to a Mining Licence within the next 12 months. All project areas are 100% owned.

Two other Australian ASX-listed entities plan to explore for graphite in Sri Lanka, Bora Bora Resources Ltd (ASX:BBR) and Viculus Limited (ASX:VCL).

MRL owns 100% of all its existing licences and the applications which it has made.

MRL are on the ground in Sri Lanka and with a development program in place, which neither of the above companies has at this point in time.

MRL’s projects have low CAPEX and OPEX requirements. Production of 5,000tpa of premium quality vein graphite should generate revenues of approximately of US$10m pa. Capex to achieve this would be

Proactive Investors calculates that MRL should be priced at $0.09 to $0.10 a share just to maintain parity alongside its two ASX listed peers operating within Sri Lanka. Our share price target would increase on release of positive exploration and development data over the next two quarters.

Speculative Buy

For history/background see link

http://www.proactiveinvestors.com.au/companies/news/53439/mrl-corporation-targets-graphite-production-in-sri-lanka-by-2015-53439.html