Home » Sovereign Metals (SVML) (Page 3)
Category Archives: Sovereign Metals (SVML)
#SVML Sovereign Metals LTD – Change of Director’s Interest Notice and AGM
Sovereign Metals Limited (ASX: SVM, AIM: SVML, OTCQX: SVMLF) (the Company) advises that Mr. Ian Middlemas, non-executive director (and PDMR), has purchased 400,000 fully paid ordinary shares (of no par value) in the Company on market at an average price of A$0.709 for consideration of A$283,414.
A Change of Director’s Interest Notice has been provided below:
Appendix 3Y
Change of Director’s Interest Notice
Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.
Introduced 30/09/01 Amended 01/01/11
|
Name of entity SOVEREIGN METALS LIMITED |
|
ABN 71 120 833 427 |
We (the entity) give ASX the following information under listing rule 3.19A.2 and as agent for the director for the purposes of section 205G of the Corporations Act.
|
Name of Director |
Ian Peter Middlemas |
|
Date of last notice |
24 June 2020 |
Part 1 – Change of director’s relevant interests in securities
In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust
Note: In the case of a company, interests which come within paragraph (i) of the definition of “notifiable interest of a director” should be disclosed in this part.
|
Direct or indirect interest |
Indirect |
|
Nature of indirect interest (including registered holder) Note: Provide details of the circumstances giving rise to the relevant interest.
|
Arredo Pty Ltd (director and shareholder) |
|
Date of change |
4 – 8 October 2024 |
|
No. of securities held prior to change |
16,100,000 Shares
|
|
Class |
Fully paid ordinary shares (ASX.SVM) |
|
Number acquired |
400,000 |
|
Number disposed |
Not applicable |
|
Value/Consideration Note: If consideration is non-cash, provide details and estimated valuation
|
$283,414 (average price of A$0.709) |
|
No. of securities held after change |
16,500,000 |
|
Nature of change Example: on-market trade, off-market trade, exercise of options, issue of securities under dividend reinvestment plan, participation in buy-back |
On-market purchase
|
Part 2 – Change of director’s interests in contracts
Note: In the case of a company, interests which come within paragraph (ii) of the definition of “notifiable interest of a director” should be disclosed in this part.
|
Detail of contract |
Not applicable |
|
Nature of interest
|
Not applicable |
|
Name of registered holder (if issued securities)
|
Not applicable |
|
Date of change |
Not applicable |
|
No. and class of securities to which interest related prior to change Note: Details are only required for a contract in relation to which the interest has changed
|
Not applicable |
|
Interest acquired |
Not applicable |
|
Interest disposed |
Not applicable |
|
Value/Consideration Note: If consideration is non-cash, provide details and an estimated valuation
|
Not applicable |
|
Interest after change |
Not applicable |
Part 3 – +Closed period
|
Were the interests in the securities or contracts detailed above traded during a +closed period where prior written clearance was required? |
No |
|
If so, was prior written clearance provided to allow the trade to proceed during this period? |
Not applicable |
|
If prior written clearance was provided, on what date was this provided? |
Not applicable |
|
Initial notification/Amendment |
Initial |
|
LEI |
213800NSPXSASTENFQ34 |
|
Place of transaction |
Australian Securities Exchange (ASX) |
AGM
Sovereign Metals Limited (ASX: SVM, AIM: SVML, OTCQX: SVMLF) (the Company) advises that the Annual General Meeting (Meeting) will be held on Friday, 22 November 2024 at 11:00am (AWST) at the Conference Room, Ground Floor, 28 The Esplanade, Perth, Western Australia 6000.
In accordance with 110D of the Corporations Act 2001 (Cth), the Company will not be dispatching physical copies of the Notice of Meeting (unless a shareholder has elected to receive documents in hard copy in accordance with the timeframe specified in section 110E(8) of the Corporations Act 2001 (Cth)).
A copy of the Notice of Meeting can be viewed and downloaded online as follows:
· the Company’s website: http://sovereignmetals.com.au/announcements/.
· the Company’s ASX Market announcements page at www.asx.com.au under the Company’s ASX code “SVM”; or
· if you have provided an email address and have elected to receive electronic communications from the Company, you will receive an email to your nominated email address with a link to an electronic copy of the Notice of Meeting.
The Company intends to hold a physical meeting. The Company will notify shareholders of any changes to this by way of an announcement on ASX and AIM and the details will also be made available on our website.
The Notice of Meeting is important and should be read in their entirety. If you are in doubt as to the course of action you should follow, you should consult your stock broker, investment advisor, accountant, solicitor or other professional adviser.
You may also, prior to the Meeting, obtain a paper copy of the Notice of Meeting (free of charge) by contacting the Company Secretary on +61 8 9322 6322 or by sending an email to info@sovereignmetals.com.au.
Holders of Depositary Interests should complete and sign a Form of Instruction, which will be sent separately to each Holder of Depositary Interests, and return it by the time and in accordance with the instructions set out in the Form of Instruction. Holders of Depositary Interests will not be eligible to vote in person at the Meeting.
How do I update my communications preferences?
Shareholders can still elect to receive some or all of their communications in physical or electronic form or elect not to receive certain documents such as annual reports. To review your communications preferences, or sign up to receive your shareholder communications via email, please update your communication preferences with Computershare at https://www-au.computershare.com/Investor/#Home.
ENQUIRIES
|
Dylan Browne Company Secretary +61(8) 9322 6322 |
|
Nominated Adviser on AIM and Joint Broker |
|
|
SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
|
Ewan Leggat Charlie Bouverat |
|
|
|
|
|
Joint Brokers |
|
|
Stifel |
+44 20 7710 7600 |
|
Varun Talwar |
|
|
Ashton Clanfield |
|
|
|
|
|
Berenberg |
+44 20 3207 7800 |
|
Matthew Armitt |
|
|
Jennifer Lee |
|
|
|
|
|
Buchanan |
+ 44 20 7466 5000 |
#SVML Sovereign Metals LTD – Issue of Performance Rights
Sovereign Metals Limited (Sovereign or Company) (ASX:SVM, AIM:SVML, OTCQX:SVMLF) advises that it has today issued 2,000,000 unlisted performance rights to Directors following shareholder approval on 12 September 2024 as follows:
· 600,000 unlisted performance rights subject to the “Definitive Feasibility Study Milestone” expiring on or before 31 October 2025;
· 600,000 performance rights subject to the “Grant of Mining Licence Milestone” expiring on or before 31 March 2026; and
· 800,000 performance rights subject to the “Final Investment Decision Milestone” expiring on or before 30 June 2026.
The Company has also issued 2,725,000 unlisted performance rights to key staff (not PDMRs) as part of their incentive remuneration as follows:
· 917,500 unlisted performance rights subject to the “Definitive Feasibility Study Milestone” expiring on or before 31 October 2025;
· 917,500 performance rights subject to the “Grant of Mining Licence Milestone” expiring on or before 31 March 2026; and
· 890,000 performance rights subject to the “Final Investment Decision Milestone” expiring on or before 30 June 2026.
Further, the following unlisted performance rights lapsed following cessation of employment (non-PDMR):
· 125,000 performance rights subject to the “Grant of Mining Licence Milestone” expiring on or before 31 March 2026; and
· 300,000 performance rights subject to the “Final Investment Decision Milestone” expiring on or before 30 June 2026.
Following the issue and cancellation of these unlisted performance rights, the Company has the following securities on issue:
· 599,879,879 fully paid ordinary shares (of no par value);
· 10,977,500 unlisted performance rights subject to the “Definitive Feasibility Study Milestone” expiring on or before 31 October 2025;
· 4,992,500 unlisted performance rights subject to the “Grant of Mining Licence Milestone” expiring on or before 31 March 2026; and
· 6,190,000 unlisted performance rights subject to the “Final Investment Decision Milestone” expiring on or before 30 June 2026.
Change of Directors’ Interest Notices are provided below.
ENQUIRIES
|
Dylan Browne Company Secretary info@sovereignmetals.com |
|
Nominated Adviser on AIM and Joint Broker |
|
|
SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
|
Ewan Leggat Charlie Bouverat |
|
|
|
|
|
Joint Brokers |
|
|
Stifel |
+44 20 7710 7600 |
|
Varun Talwar |
|
|
Ashton Clanfield |
|
|
|
|
|
Berenberg |
+44 20 3207 7800 |
|
Matthew Armitt |
|
|
Jennifer Lee |
|
|
|
|
|
Buchanan |
+ 44 20 7466 5000 |
Appendix 3Y
Change of Director’s Interest Notice
Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.
Introduced 30/09/01 Amended 01/01/11
|
Name of entity SOVEREIGN METALS LIMITED |
|
ABN 71 120 833 427 |
A)
We (the entity) give ASX the following information under listing rule 3.19A.2 and as agent for the director for the purposes of section 205G of the Corporations Act.
|
Name of Director |
Benjamin Stoikovich |
|
Date of last notice |
24 November 2023 |
Part 1 – Change of director’s relevant interests in securities
In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust
Note: In the case of a company, interests which come within paragraph (i) of the definition of “notifiable interest of a director” should be disclosed in this part.
|
Direct or indirect interest |
Direct and Indirect
|
|
Nature of indirect interest (including registered holder) Note: Provide details of the circumstances giving rise to the relevant interest.
|
Selwyn Capital Limited (beneficial interest)
|
|
Date of change |
27 September 2024 |
|
No. of securities held prior to change |
(a) 4,190,000 (b) 600,000 (c) 350,000 (d) 500,000 |
|
Class |
(a) Ordinary Fully Paid Shares (b) Unlisted Performance Rights subject to the “Definitive Feasibility Study Milestone” expiring 31 October 2025 (c) Unlisted Performance Rights subject to the “Grant of Mining Licence Milestone” expiring 31 March 2026 (d) Unlisted Performance Rights subject to the “Final Investment Decision Milestone” expiring 30 June 2026 |
|
Number acquired |
(b) 300,000 (c) 300,000 (d) 400,000 |
|
Number disposed |
Not applicable |
|
Value/Consideration Note: If consideration is non-cash, provide details and estimated valuation
|
Not applicable – see nature of change below |
|
No. of securities held after change |
(a) 4,190,000 (b) 900,000 (c) 650,000 (d) 900,000 |
|
Nature of change Example: on-market trade, off-market trade, exercise of options, issue of securities under dividend reinvestment plan, participation in buy-back |
Issue of Performance Rights following shareholder approval |
Part 2 – Change of director’s interests in contracts
Note: In the case of a company, interests which come within paragraph (ii) of the definition of “notifiable interest of a director” should be disclosed in this part.
|
Detail of contract |
Not applicable |
|
Nature of interest
|
Not applicable |
|
Name of registered holder (if issued securities)
|
Not applicable |
|
Date of change |
Not applicable |
|
No. and class of securities to which interest related prior to change Note: Details are only required for a contract in relation to which the interest has changed
|
Not applicable |
|
Interest acquired |
Not applicable |
|
Interest disposed |
Not applicable |
|
Value/Consideration Note: If consideration is non-cash, provide details and an estimated valuation
|
Not applicable |
|
Interest after change |
Not applicable |
Part 3 – +Closed period
|
Were the interests in the securities or contracts detailed above traded during a +closed period where prior written clearance was required? |
No |
|
If so, was prior written clearance provided to allow the trade to proceed during this period? |
Not applicable |
|
If prior written clearance was provided, on what date was this provided? |
Not applicable |
|
Initial notification/Amendment |
Initial |
|
LEI |
213800NSPXSASTENFQ34 |
|
Place of transaction |
Australian Securities Exchange (ASX) |
Appendix 3Y
Change of Director’s Interest Notice
Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.
Introduced 30/09/01 Amended 01/01/11
|
Name of entity SOVEREIGN METALS LIMITED |
|
ABN 71 120 833 427 |
B)
We (the entity) give ASX the following information under listing rule 3.19A.2 and as agent for the director for the purposes of section 205G of the Corporations Act.
|
Name of Director |
Francis (Frank) Eagar |
|
Date of last notice |
20 October 2023 |
Part 1 – Change of director’s relevant interests in securities
In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust
Note: In the case of a company, interests which come within paragraph (i) of the definition of “notifiable interest of a director” should be disclosed in this part.
|
Direct or indirect interest |
Direct |
|
Nature of indirect interest (including registered holder) Note: Provide details of the circumstances giving rise to the relevant interest.
|
|
|
Date of change |
27 September 2024 |
|
No. of securities held prior to change |
(a) 500,000 (b) 1,000,000 (c) 500,000 (d) 700,000 |
|
Class |
(a) Ordinary Fully Paid Shares (b) Unlisted Performance Rights subject to the “Definitive Feasibility Study Milestone” expiring 31 October 2025 (c) Unlisted Performance Rights subject to the “Grant of Mining Licence Milestone” expiring 31 March 2026 (d) Unlisted Performance Rights subject to the “Final Investment Decision Milestone” expiring 30 June 2026 |
|
Number acquired |
(b) 300,000 (c) 300,000 (d) 400,000 |
|
Number disposed |
Not applicable |
|
Value/Consideration Note: If consideration is non-cash, provide details and estimated valuation
|
Not applicable – see nature of change below |
|
No. of securities held after change |
(a) 500,000 (b) 1,300,000 (c) 800,000 (d) 1,100,000 |
|
Nature of change Example: on-market trade, off-market trade, exercise of options, issue of securities under dividend reinvestment plan, participation in buy-back |
Issue of Performance Rights following shareholder approval |
Part 2 – Change of director’s interests in contracts
Note: In the case of a company, interests which come within paragraph (ii) of the definition of “notifiable interest of a director” should be disclosed in this part.
|
Detail of contract |
Not applicable |
|
Nature of interest
|
Not applicable |
|
Name of registered holder (if issued securities)
|
Not applicable |
|
Date of change |
Not applicable |
|
No. and class of securities to which interest related prior to change Note: Details are only required for a contract in relation to which the interest has changed
|
Not applicable |
|
Interest acquired |
Not applicable |
|
Interest disposed |
Not applicable |
|
Value/Consideration Note: If consideration is non-cash, provide details and an estimated valuation
|
Not applicable |
|
Interest after change |
Not applicable |
Part 3 – +Closed period
|
Were the interests in the securities or contracts detailed above traded during a +closed period where prior written clearance was required? |
No |
|
If so, was prior written clearance provided to allow the trade to proceed during this period? |
Not applicable |
|
If prior written clearance was provided, on what date was this provided? |
Not applicable |
|
Initial notification/Amendment |
Initial |
|
LEI |
213800NSPXSASTENFQ34 |
|
Place of transaction |
Australian Securities Exchange (ASX) |
#SVML Sovereign Metals LTD – 2024 Annual Report
2024 ANNUAL REPORT
Sovereign Metals Limited (ASX: SVM, AIM: SVML, OTCQX: SVMLF) (Sovereign or the Company) advises its 2024 Annual Report has been published today at https://sovereignmetals.com.au/company-reports/ and is attached as a PDF to this news release.
The Company has also published an Appendix 4G (Key to Disclosures: Corporate Governance Council Principles and Recommendations) and 2024 Corporate Governance Statement today which are available at https://sovereignmetals.com.au/corporate-governance/ and are attached as a PDF to this news release.
Further, the Company advises that its Annual General Meeting (AGM) will be held on Friday, 22 November 2024.
An item of business at the AGM will be the re-election of Directors. In accordance with clause 6.2(f) of the Company’s Constitution, the closing date for receipt of nominations from persons wishing to be considered for election as a Director is Friday, 4 October 2024. Any nominations must be received at the Company’s registered office no later than 5.00pm (Perth time) on Friday, 4 October 2024.
Further information about the AGM, including the Notice of AGM, will be provided to shareholders in October 2024.
2024 OPERATING AND FINANCIAL REVIEW
KASIYA RUTILE-GRAPHITE PROJECT
Sovereign is focused on the development of its Kasiya rutile-graphite project (Kasiya or the Project) in Malawi where a Pilot Mining and Land Rehabilitation Program (Pilot Phase) is in progress as part of an ongoing PFS Optimisation Study.
The Company’s objective is to develop a large-scale, long life rutile-graphite operation, focusing on developing an environmentally and socially responsible, sustainable operation.
Figure 1: Sovereign’s Kasiya project displaying location in South-East Africa
Kasiya is the largest rutile deposit in the world with more than double the contained rutile as its nearest rutile peer, Sierra Rutile. The Kasiya Mineral Resource Estimate (MRE) is 1.8 Billion tonnes (Bt) at 1.0% rutile resulting in 17.9 Million tonnes (Mt) tonnes of contained natural rutile and 24.4Mt of contained graphite. The MRE has broad zones of very high-grade rutile which occurs contiguously across a very large area of over 200km2. Rutile mineralisation lies in laterally extensive, near surface, flat “blanket” style bodies in areas where the weathering profile is preserved and not significantly eroded.
HIGHLIGHTS
Highlights during and subsequent to the end of the financial year were as follows:
Rio Tinto investment to become a 19.9% Strategic Investor
· Rio Tinto has invested ~$60 million since July 2023 to become a 19.9% strategic investor in Sovereign
· Investment proceeds used to continue advancing the Kasiya Project in Malawi
· Pilot Mining and Land Rehabilitation Program (Pilot Phase) and infill drilling program at Kasiya has been overseen by the Rio Tinto-Sovereign Technical Committee
· Rio Tinto’s investment represents a significant step towards unlocking a major new supply of low-CO2 natural rutile and flake graphite
· The Government of Malawi applauded the timely investment by Rio Tinto and marked it as a milestone towards realising the country’s aspirations of growing the mining sector as a priority industry
Kasiya Optimisation Advances to Pilot Phase
· Sovereign commenced the Pilot Phase at Kasiya as part of the ongoing PFS Optimisation Study
· In July 2024, the dry mining component of the Pilot Phase was successfully completed, confirming Kasiya can be efficiently mined using standard mobile excavators and trucks, demonstrating operational alternatives as part of ongoing PFS Optimisation Study
· Hydraulic mining trial has since commenced at the Kasiya Pilot Site which is expected to take approximately three months to complete and includes backfilling of the main trial pit, deposition and rehabilitation testwork
· Results from the Pilot Phase, in particular the analysis of dry-mining versus hydraulic mining, will be fundamental for the ongoing Optimisation Study
· Significant field activities and a number of test work programs are ongoing in order to provide data for the PFS Optimisation Study
· Government of Malawi demonstrated strong support for with all required approvals and community permissions for the Pilot Phase obtained within three months
Figure 2: Kasiya Pilot Phase Test Pit mined to 20 metres depth
Key Management Appointments to Drive Project Optimisation and Development at Kasiya
· Appointment of experienced African based mining executive, Mr Frank Eagar, as the new Managing Director and CEO
· Previous Managing Director Dr Julian Stephens transitioned to Non-Executive Director
· Key technical appointments of experienced African engineering, social, environmental and legal teams to work on project optimisation and advancing the development of the Kasiya Project
Infill Drilling Program To Upgrade Kasiya Resource
· Infill drilling has commenced with focus on the southern part of the MRE, which intends to provide ore feed for the first eight years of production
· Program aims to upgrade the MRE in this area from Indicated to Measured category, allowing conversion of Ore Reserves from Probable to Proven category
· Resource upgrade expected in early 2025
Pre-Feasibility Study Confirms Kasiya as a Major Critical Minerals Project
· “Market Leader” Position in Two Critical Minerals:
– Positioned to become the world’s largest rutile producer and potentially one of the world’s largest natural graphite producers outside of China
– Extremely low CO2-footprint operation incorporating climate-smart attributes with renewables power solutions
– Initial Probable Ore Reserves declared of 538Mt, representing only 30% of the total Mineral Resource
– Substantial production rate and mine life upside exists as the PFS modelling was limited to only 25 years
Outstanding Battery Anode Material Produced from Kasiya Graphite
· Kasiya graphite concentrate confirmed to be an excellent feedstock for natural graphite anode materials suitable for lithium-ion battery production
· Kasiya natural graphite presents a unique, low-cost opportunity to develop lithium-ion battery supply chains outside of China
· Very high quality Coated Spherical Purified Graphite (CSPG) anode material produced from Kasiya graphite concentrate has performance characteristics comparable to the highest quality natural graphite battery material produced by dominant Chinese anode manufacturers
o Electrochemical testing achieved very high first cycle efficiencies of 94.2% to 95.8% supporting long battery life
o Excellent initial discharge capacities greater than 360mAh/g as required for highest quality natural graphite anode materials
o Very low specific surface areas (known as BET) of ≤2.0m2/g minimising the loss of lithium in the first cycle
o Excellent tap densities of 1.11 to 1.18g/cm3 meaning higher electrical storage
· Outstanding anode material results are attributed to the unique geological setting of the highly weathered Kasiya orebody compared to fresh rock hosted graphite deposits, including:
o high purity of the natural flake,
o near perfect crystallinity, and
o very low levels of sulphur and other impurities.
· Further optimisation testwork to commence using additional concentrate being generated at pilot-scale facility in South Africa
· Results will form the basis for ongoing and future discussions with potential offtakers
Commencement of Trading on OTCQX Markets
· In July 2024, Sovereign upgraded to the OTCQX Market, the top tier of the OTC Markets, providing access to a broader eligible U.S. investor base
· OTCQX quotation follows increased U.S. investor and strategic interest in Sovereign and its Kasiya Rutile-Graphite Project in Malawi
Key Appointments
· Appointment of highly experienced environmental and social specialist Mr Marco Da Cunha, as its new Lead Environmental, Social and Governance Officer. Mr Da Cunha has almost 20 years of experience in environmental and social management and more recently was part of Rio Tinto’s Simandou iron ore project team in Guinea
· Highly experienced, Africa-based social specialist consultancy, SocialEssence were appointed to the Company’s owners team to lead social and community development programs in Malawi. SocialEssence has a strong and successful track record of implementing social responsibility programs across southern Africa, including at First Quantum Minerals’ Zambian project
· Three senior appointments and promotions across Sovereign’s key legal, permitting and technical functions in Malawi, strengthening the Company’s in-country capabilities
· In July 2024, appointment of consultant Dr Surinder Ghag to Sovereign’s owner’s team as Chief Technology Officer – Graphite. Dr Ghag will assist Sovereign’s graphite strategy in product qualification the for the lithium-ion battery industry
Commissioning of Sustainable Farming Initiative in Malawi
· Sovereign initiated and progressed with its Conservation Farming Program (Farming Program) in Malawi as part of its sustainability initiatives related to the development of Kasiya
· The Program is aimed at improving the livelihoods of local communities through the creation of successful smallholder farmers.
· During the year, the Company announced that it is estimated the Farming Program has tripled crop yields in a season that is predicted to have 20% lower yields due to El Niño weather.
Figures 3 & 4 – Left: planted field using traditional techniques & Right: Field farmed under the Program showing substantially more crop growth
Partnering with International Development Organisation in Malawi
· During the year, Sovereign entered into a Memorandum of Understanding (MoU) with The Palladium Group – a US-based international development entity operating in Malawi
· Palladium implements several development projects, including the Feed the Future Malawi Growth Poles Project, which invests in local rural communities to advance sustainable, climate-smart, and inclusive wealth creation
· Sovereign and Palladium will collaborate around Sovereign’s Kasiya Project to provide key agricultural inputs, training, technologies, and financing to develop and integrate smallholder farmers into the emerging high growth agriculture value chains
Figure 5: Kasiya Pilot Phase Test Pit mined to 20 metres depth
Results of Operations
The net loss of the Group for the year ended 30 June 2024 was $18,600,894 (2023: $5,819,873). Significant items included in the year end loss are the following:
· Interest income of $1,821,876 (2023: $268,967) earned on term deposits held by the Group.
· Exploration and evaluation expenses of $14,831,671 (2023: $10,627,458) in relation to the Group’s projects in Malawi. This is attributable to the Group’s accounting policy of expensing exploration and evaluation expenditure incurred by the Group subsequent to acquisition of the rights to explore and up to the completion of feasibility studies;
· Non-cash share-based payments expenses totalling $2,303,201 (2023: $2,083,592) relating to performance rights. The fair value of incentive options and rights is measured at grant date and recognised over the period during which the option and rights holders become unconditionally entitled to the incentive securities;
· Business development expenses of $2,340,819 (2023: $2,096,822) which includes the Group’s investor and shareholder relations activities including but not limited to public relations costs, marketing and digital marketing, broker and advisor fees, travel costs, conference fees, business development consultant fees and costs of the Group’s ASX and AIM listings; and
· A one-off gain of in 2023 of $9,480,980 (2024: nil) from the demerger of NGX Limited (NGX) and its graphite projects relating to the difference between the fair value of the in-specie distribution of NGX shares to existing Sovereign shareholders and the carrying value of the net assets demerged, less costs.
Financial Position
As at 30 June 2024, the Group had cash and cash equivalents of $31,564,130 as at 30 June 2024 (2023: $5,564,376) and no debt (2023: nil). The Group had net assets of $34,358,774 at 30 June 2024 (2023: $9,672,569), an increase of $24,686,205 or approximately 72% compared with the previous year. This is largely attributable to the increase in cash reserves following the investment made by Rio Tinto in the year.
Following the additional $19.1 million invested by Rio Tinto since 30 June 2024, Sovereign remains in strong financial position with cash at bank of approximately $43 million and no debt.
ENQUIRIES
Frank Eagar (South Africa/Malawi)
CEO & Managing Director
+27 21 065 1890
Sapan Ghai (London)
CCO
+44 207 478 3900
|
Nominated Adviser on AIM and Joint Broker |
|
|
SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
|
Ewan Leggat Charlie Bouverat |
|
|
|
|
|
Joint Brokers |
|
|
Stifel |
+44 20 7710 7600 |
|
Varun Talwar |
|
|
Ashton Clanfield |
|
|
|
|
|
Berenberg |
+44 20 3207 7800 |
|
Matthew Armitt |
|
|
Jennifer Lee |
|
|
|
|
|
Buchanan |
+ 44 20 7466 5000 |
MIDAS SHARE TIPS: Give your portfolio a power boost with mineral miner Sovereign Metals #SVML
by Joanne Hart
Sovereign Metals #SVML has rights over a 600 square mile site, which contains the world’s largest rutile deposit
Electric car sales have been bumpy of late. Consumer enthusiasm has been muted and forecasters have been forced to dampen expectations for this year.
Over time, however, these vehicles are still predicted to become a major feature of our roads, as car-makers increasingly move away from traditional motors and ramp up production of their electric equivalents.
Lithium is a critical ingredient of the batteries that power most electric vehicles. But they also need graphite, and today, more than 80 per cent of the world’s graphite is mined and processed in China. This is a problem.
Sovereign Metals #SVML – Spiral Plant Successfully Installed
Sovereign Metals Limited (ASX: SVM; AIM: SVML; OTCQX: SVMLF) (Sovereign or the Company) is pleased to announcethat it has successfully installed and commissioned an industrial-scale spiral concentrator plant at the Company’s laboratory and testing facility in Lilongwe, Malawi.
The plant enables Sovereign to process material from the test pit mined as part of the Pilot Mining and Land Rehabilitation (Pilot Phase) at its Kasiya Rutile-Graphite Project (Kasiya or Project).
Highlights:
- Industrial scale spiral concentrator plant successfully installed and commissioned at Sovereign’s expanded laboratory and testing facility in Lilongwe, Malawi
- Graphite pre-concentrate from spiral plant will facilitate ongoing testwork and offtake discussions with lithium-ion battery makers and traditional graphite markets
- Spiral plant commissioning commenced with material from the Pilot Phase test pit being processed at a throughput rate of up to 3 tonnes per hour for continuous sample preparation
- The spiral installed and commissioned is the identical model selected for the Wet Concentrator Plant per the simple 2023 Kasiya pre-feasibility study (PFS) process flowsheet
- Commissioning and subsequent use of spiral plant also provides Malawian employee training in industrial scale processing prior to full-scale operations
- Sovereign is targeting a market-leading position as the world’s largest and lowest-cost producer of rutile for the titanium industry and flake graphite for the lithium-ion battery market
Managing Director Frank Eagar commented: “The new infrastructure allows Sovereign to deliver large-scale graphite pre-concentrate for qualification by its future potential customers. With a simple and conventional process flowsheet, Kasiya ore is processed at a throughput rate of up to 3 tonnes per hour for continuous sample preparation. Our PFS optimisation continues to advance as planned with oversight from the Sovereign-Rio Tinto Technical Committee.“
The spiral plant will prepare a graphite gravity concentrate from the Pilot Phase test pit’s run of mine at a bulk scale. The concentrate will then be sent to specialised laboratories where flotation, purification, spheronisation and coating testwork for the battery anode segment in line with Sovereign’s strategy to commercialise Kasiya’s graphite by-product.
This follows the Company’s recent announcement that downstream testwork performed by a leading independent consultancy had demonstrated that Coated Spherical Purified Graphite (CSPG) produced from Kasiya natural flake graphite has performance characteristics comparable to leading Chinese natural graphite anode materials manufacturers (See Company Announcement dated 4 September 2024).
Graphite concentrate will also be provided to traditional industrial graphite users, including refractories, foundries, expandable graphite, graphite foil, brake lining pads, and lubrication.
Figure 1: Installed Spiral plant at Sovereign’s Lilongwe facility
Figure 2: Commencement of spiral commissioning
Kasiya Process Flowsheet
The Kasiya process flowsheet is separated into distinct simple processing areas.
Wet Concentrator Plant (WCP)
The WCP will receive mined material pre-screened at 2mm to remove oversize. Simple gravity separation through spirals will produce a Heavy Mineral Concentrate (HMC) and a separate gravity tailings stream enriched in graphite. The spiral installed and commissioned is the identical model selected for the Wet Concentrator Plant per the 2023 Kasiya PFS process flowsheet. It will have the same throughput capacity as a spiral in the designed plant.
Mineral Separation Plant (MSP)
At the MSP, the HMC will initially undergo electrostatic separation to separate heavy minerals into electrically conductive minerals including rutile, and non-conductive minerals. Magnetic separation will then isolate rutile, which is non-magnetic, from other conductive minerals. Sovereign recently installed and is commissioning a CoronaStat Electric Separator at its facility in Lilongwe. This unit has been supplied by OreKinetics Pty Ltd which has also supplied the majority of electrostatic separators to the mineral sands industry over the last 20 years.
Figure 3: CoronaStat Electric Separator at Sovereign’s Lilongwe facility clearly showing non-conductive material on left-hand-side and conductive minerals including rutile on right-hand-side
Figure 4: Bench-scale magnetic separator at Sovereign’s Lilongwe facility separating non-magnetic rutile from other conductive minerals
Graphite Plant
The graphite tailings stream collected from the gravity spirals will be processed through froth flotation, including polishing and stirred media mills, producing a coarse-flake graphite concentrate and tailings.
Tailings storage and management will be further refined as part of the ongoing Kasiya PFS Optimisation Study.
ENQUIRIES
Frank Eagar (South Africa/Malawi)
CEO & Managing Director
+27 21 065 1890
Sapan Ghai (London)
CCO
+44 207 478 3900
|
Nominated Adviser on AIM and Joint Broker |
|
|
SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
|
Ewan Leggat Charlie Bouverat |
|
|
|
|
|
Joint Brokers |
|
|
Stifel |
+44 20 7710 7600 |
|
Varun Talwar |
|
|
Ashton Clanfield |
|
|
|
|
|
Berenberg |
+44 20 3207 7800 |
|
Matthew Armitt |
|
|
Jennifer Lee |
|
|
|
|
|
Buchanan |
+ 44 20 7466 5000 |
#SVML Sovereign Metals LTD – Rio Tinto Shareholding and Issue of Shares
ISSUE OF SHARES
Sovereign Metals Limited (ASX: SVM, AIM: SVML, OTCQX: SVMLF) (Sovereign or the Company) advises that it has issued 2,326,880 fully paid ordinary shares (Shares) in the capital of the Company, comprising of 1,290,392 Shares issued to Rio Tinto Mining and Exploration Limited (Rio Tinto) and 1,036,488 Shares issued to SCP Resource Finance, as an advisory fee of 3% on the amount of Rio Tinto’s option investment in July 2024 (refer to Company announcement on 3 July 2024).
An application will be made for the Shares to be admitted to trading on AIM (Admission) and it is expected that Admission will become effective on or around 19 September 2024.
RIO TINTO INCREASES ITS SHAREHOLDING TO 19.9%
Following the exercise of its unlisted options on 3 July 2024, Rio Tinto has made an additional investment of A$690,360 in Sovereign through the issue of 1,290,392 Shares (Additional Shares) pursuant to Rio Tinto’s first right of refusal on equity issues. This is in accordance with the Investment Agreement between Rio Tinto and the Company dated 16 July 2023. Following the issue of Additional Shares today, Rio Tinto has increased its shareholding in Sovereign to 19.9%.
Total Voting Rights
For the purposes of the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules (DTRs), following Admission of the Shares, Sovereign will have 599,879,879 Ordinary Shares in issue with voting rights attached. The figure of 599,879,879 may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company, under the ASX Listing Rules or the DTRs.
Following the issue of Shares, Sovereign has the following securities on issue:
· 599,879,879 fully paid ordinary shares;
· 9,460,000 unlisted performance rights subject to the “Definitive Feasibility Study Milestone” expiring on or before 31 October 2025;
· 3,600,000 unlisted performance rights subject to the “Grant of a Mining Licence Milestone” expiring on or before 31 March 2026; and
· 4,800,000 unlisted performance rights subject to the “Final Investment Decision Milestone” expiring on or before 30 June 2026.
Classification: 2.5 Total number of voting rights and capital
ENQUIRIES
|
Dylan Browne +61(8) 9322 6322 |
|
Nominated Adviser on AIM and Joint Broker |
|
|
SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
|
Ewan Leggat Charlie Bouverat |
|
|
|
|
|
Joint Brokers |
|
|
Stifel |
+44 20 7710 7600 |
|
Varun Talwar |
|
|
Ashton Clanfield |
|
|
|
|
|
Berenberg |
+44 20 3207 7800 |
|
Matthew Armitt |
|
|
Jennifer Lee |
|
|
|
|
|
Buchanan |
+ 44 20 7466 5000 |
MST Access – Sovereign Metals #SVML Charging Up a World-Leading Rutile & Graphite Operation
#SVML #SVM Sovereign Metals – MST Financial Access note by Michael Bentley: Charging up a World Leading Rutile & Graphite Operation
✅ Kasiya project hosts the world’s largest #rutile deposit and world’s 2nd largest flake #graphite deposit
✅ SVML to become world’s largest scale, lowest cost rutile producer as supply shortfall emerges
✅ Low cost, large scale, attractive end markets | Rio Tinto getting set (now owns 19.9%)
✅ MST Access currently values SVML at £0.72 (A$1.41) – currently £0.30
#SVML Sovereign Metals LTD – Result of Meeting
A General Meeting (AGM) of Sovereign Metals Limited (Company) (ASX:SVM, AIM:SVML, OTCQX:SVMLF) was held today, 12 September 2024, at 10.00am (AWST).
The resolutions voted on were in accordance with the Notice of Meeting previously advised to the Australian Securities Exchange (ASX) and shareholders. All resolutions were decided on and carried by way of poll.
In accordance with Section 251AA of the Corporations Act 2001 and ASX Listing Rule 3.13.2, the details of the poll and proxies received in respect of each resolution are set out below.
Classification 3.1 Additional regulated information required to be disclosed under the laws of a Member State
ENQUIRIES
|
Dylan Browne Company Secretary info@sovereignmetals.com |
|
Nominated Adviser on AIM and Joint Broker |
|
|
SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
|
Ewan Leggat Charlie Bouverat |
|
|
|
|
|
Joint Brokers |
|
|
Stifel |
+44 20 7710 7600 |
|
Varun Talwar |
|
|
Ashton Clanfield |
|
|
|
|
|
Berenberg |
+44 20 3207 7800 |
|
Matthew Armitt |
|
|
Jennifer Lee |
|
|
|
|
|
Buchanan |
+ 44 20 7466 5000 |
|
Resolution |
Number of Proxy Votes |
Number and Percentage of Votes cast on the Poll |
Voting Method and Result |
|||||
|
For |
Against |
Abstain |
Proxy’s Discretion |
For |
Against |
Abstain |
||
|
1. Issue of Advisory Shares |
33,758,103 |
49,000 |
– |
2,233,818 |
49,649,439 |
49,000 |
– |
Carried on vote by poll |
|
2. Issue of Performance Rights to a Director – Mr Benjamin Stoikovich |
8,211,814 |
1,771,219 |
23,824,070 |
2,233,818 |
10,545,632 |
1,771,219 |
37,381,588 |
Carried on vote by poll |
|
3. Issue of Performance Rights to a Director – Mr Frank Eagar |
8,744,733 |
1,771,219 |
23,291,151 |
2,233,818 |
11,078,551 |
1,771,219 |
36,848,669 |
Carried on vote by poll |
#SVML Sovereign Metals LTD – Outstanding Battery Anode Material Produced
Kasiya graphite concentrate confirmed to be an excellent feedstock for natural graphite anode materials suitable for battery production
· Kasiya natural graphite presents a unique, low-cost opportunity to develop lithium-ion battery supply chains outside of China
· Very high quality Coated Spherical Purified Graphite (CSPG) anode material produced from Kasiya graphite concentrate has performance characteristics comparable to the highest quality natural graphite battery material produced by dominant Chinese anode manufacturers
o Electrochemical testing achieved very high first cycle efficiencies of 94.2% to 95.8% supporting long battery life
o Excellent initial discharge capacities greater than 360mAh/g as required for highest quality natural graphite anode materials.
o Very low specific surface areas (known as BET) of ≤2.0m2/g minimising the loss of lithium in the first battery charging cycle
o Excellent tap densities of 1.11 to 1.18g/cm3 meaning higher electrical storage
· Outstanding anode material results are attributed to the unique geological setting of the highly weathered Kasiya orebody compared to fresh rock hosted graphite deposits, including:
o high purity of the natural flake,
o near perfect crystallinity, and
o very low levels of sulphur and other impurities.
· Further optimisation testwork to commence using additional concentrate being generated at pilot-scale facility in South Africa
· Results will form the basis for ongoing and future discussions with potential offtakers
Managing Director Frank Eagar commented: “These results confirm that Kasiya graphite concentrate will be an excellent anode material feedstock to the battery industry. Not only is the weathered, saprolite-hosted graphite easy to purify to very high-grades, the anode material produced meets the highest industry specifications. Along with the very low BET specific surface area and high tap densities (both resulting in excellent first cycle efficiencies and initial battery discharge capacities), Kasiya has the potential to become a dominant source of graphite supply ex-China. Combining these excellent results with one of the largest graphite resources globally, industry low operating costs and lowest global warming potential, Kasiya is presenting significant advantages over its graphite peers. We look forward to further testwork and market updates as we continue to develop Kasiya as a supplier of premium quality, cost competitive natural graphite concentrate.”
Classification 2.2: This announcement includes Inside Information
ENQUIRIES
|
Frank Eagar (South Africa/Malawi) +61(8) 9322 6322 |
Sam Cordin (Perth) |
Sapan Ghai (London)
|
|
Nominated Adviser on AIM and Joint Broker |
|
|
SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
|
Ewan Leggat Charlie Bouverat |
|
|
|
|
|
Joint Brokers |
|
|
Stifel |
+44 20 7710 7600 |
|
Varun Talwar |
|
|
Ashton Clanfield |
|
|
|
|
|
Berenberg |
+44 20 3207 7800 |
|
Matthew Armitt |
|
|
Jennifer Lee |
|
|
|
|
|
Buchanan |
+ 44 20 7466 5000 |
Sovereign Metals Limited (ASX:SVM; AIM:SVML; OTCQX: SVMLF) (the Company or Sovereign) is very pleased to announce an update on the downstream testwork conducted at leading independent consultancy ProGraphite GmbH (ProGraphite) in Germany.
The test work program demonstrated that CSPG produced from Kasiya natural flake graphite has performance characteristics comparable to the leading Chinese natural graphite anode materials manufacturers such as BTR New Material Group (BTR).
Electrochemical testing of the CSPG samples at a leading German institute achieved first cycle efficiencies (FCE) of 94.2% to 95.8%, with results above 95% a key specification for highest quality natural graphite anode materials under the Chinese standard.
Following spheronisation and purification testwork1 which produced spherical graphite with very high purities of 99.99%, the purified spherical graphite (PSG) samples were pitch coated and carbonised to produce CSPG.
The coating process produced CSPG with very low BET specific surface area of 2.0m2/g and lower and high tap densities of 1.11-1.18g/cm3 (Table 1).
A low specific surface area is required for anode materials to minimise the loss of lithium in forming a secondary protective coating on the anode material known as the Solid Electrolyte Interphase (SEI). The pitch coating process also assists in increasing the density of the anode material as measured by the tap density – a higher density assists in storing more electrical energy in the lithium-ion battery.
|
Table 1: CSPG Results |
||||
|
CSPG Sample |
||||
|
Sample |
Units |
1 |
2 |
3 |
|
D10 |
[µm] |
11.05 |
11.08 |
14.86 |
|
D50 |
[µm] |
17.46 |
17.27 |
23.71 |
|
D90 |
[µm] |
26.75 |
27.5 |
36.72 |
|
Tap Density |
[g/cm3] |
1.11 |
1.12 |
1.18 |
|
BET |
[m2/g] |
1.6 |
2.0 |
1.4 |
Electrochemical testing of the CSPG samples at a leading German institute achieved FCE of 94.2% to 95.8%, with results above 95% a key specification for highest quality natural graphite anode materials under the Chinese standard. A very high FCE minimises lithium losses in the initial formation cycles of a lithium-ion battery, supporting battery life. Kasiya CSPG also met the criteria for an initial discharge capacity of more than 360mAh/g (ampere-hours per gram) for highest quality anode materials, with initial capacities of 362-366mAh/g. These results will be used to fast-track discussions with potential offtakers.
|
Table 2: Electrochemical Results – China CSPG Standard |
|
|||||||||||
|
|
CSPG Sample |
China Standard GB/T-24533-2019
|
||||||||||
|
1 |
2 |
3 |
Grade I |
Grade II |
Grade III |
|||||||
|
First Cycle Efficiency |
[%] |
95.8 |
94.2 |
95.8 |
≥95 |
≥93 |
≥91 |
|
||||
|
Initial Capacity |
[mAh/g] |
362 |
364 |
366 |
≥360 |
≥360 |
≥345 |
|
||||
Furthermore, the testwork demonstrated that CSPG produced from Kasiya natural flake graphite has initial performance characteristics comparable to the leading Chinese natural graphite anode materials manufacturers such as BTR. BTR has a 20-year track record in the production of lithium-ion battery anode materials, is a dominant player in the market and has recently concluded anode material offtake agreements with global automotive companies including Ford. BTR’s highest specification CSPG materials, that have low swelling, long cycle life, good processability and outstanding electrochemical performance include their GSN17 and LSG17 products (with D50 of 17.0+/- 1.5μm).
|
Table 3: Electrochemical Results – BTR CSPG products |
|
|||||||||
|
|
CSPG Sample |
BTR3
|
||||||||
|
1 |
2 |
GSN 17 |
LSG 17 |
|||||||
|
First Cycle Efficiency |
[%] |
95.8 |
94.2 |
≥95 |
≥94 |
|
||||
|
Initial Capacity |
[mAh/g] |
362 |
364 |
≥360 |
≥355 |
|
||||
|
D50 |
[μm] |
17.5 |
17.3 |
17.0+/- 1.5 |
17.0+/- 1.5 |
|
||||
In December 2023, China imposed trade restrictions on graphite that required producers to apply to the government for permits to export high-grade graphite materials and related products. Given China’s dominance of natural graphite and graphite derived products such as CSPG, global EV production and Net Zero ambitions could be negatively impacted given the lack of anode industry development ex-China. In May 2024, the US government imposed a new 25% tariff on natural graphite from China, as part of a broader initiative that included an increase of tariffs on EVs and lithium-ion batteries.
High performance CSPG materials manufactured from Kasiya natural graphite present an opportunity for development of ex-China supply chains for battery anode materials. Sovereign believes that the outstanding electrochemical results for Kasiya CSPG are as a result of the unique geological setting of the Kasiya orebody. The near perfect crystallinity i.e. fully ordered graphite resulting from the very high metamorphic grade of the underlying host rock (paragneiss metamorphosed to granulite facies) and the high purity of the natural flake being assisted by the highly weathered nature of the ore.2 This is as opposed to fresh rock hosted graphite deposits which generally have much higher impurity levels including sulphur, which negatively impacts electrochemical performance. The very low sulphur profile of Kasiya graphite is due to the fact that the primary sulphide minerals have been altered to sulphates by the intense weathering. The sulphates are water soluble and are leached from the ore during weathering.
Further optimisation testwork for anode materials is planned, using additional graphite concentrate currently being generated at pilot-scale in South Africa. This material will also be used to provide offtaker evaluation samples.
A program for assessing Kasiya concentrate for traditional refractories and foundry applications has also been developed. The coarse component of the pilot plant concentrate will be used for this testwork program.
1 Refer to ASX Announcement “Downstream Testwork Demonstrates High Quality Graphite” dated 15 May 2024
2 Refer to ASX Announcement “Kasiya Graphite Shows Excellent Suitability For Use In Lithium Ion Batteries” dated 8 June 2023
3 BTR anode material specs taken from this webpage: https://www.btrchina.com/en/NegativeProducts/info.aspx?itemid=1069
Competent Person Statement
The information in this report that relates to Lithium-Ion Battery Testwork is based on information compiled by Dr Surinder Ghag, PhD., B. Eng, MBA, M.Sc., who is a Member of the Australasian Institute of Mining and Metallurgy (MAusIMM). Dr Ghag is engaged as a consultant by Sovereign Metals Limited. Dr Ghag has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Ghag consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The information in this report that relates to Exploration Results (table 1) is based on information compiled by Mr Samuel Moyle, a Competent Person who is a member of The Australasian Institute of Mining and Metallurgy (AusIMM). Mr Moyle is the Exploration Manager of Sovereign Metals Limited and a holder of ordinary shares and unlisted performance rights in Sovereign Metals Limited. Mr Moyle has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Moyle consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Forward Looking Statement
This release may include forward-looking statements, which may be identified by words such as “expects”, “anticipates”, “believes”, “projects”, “plans”, and similar expressions. These forward-looking statements are based on Sovereign’s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Sovereign, which could cause actual results to differ materially from such statements. There can be no assurance that forward-looking statements will prove to be correct. Sovereign makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (‘MAR’). Upon the publication of this announcement via Regulatory Information Service (‘RIS’), this inside information is now considered to be in the public domain.
Appendix 1: JORC Code, 2012 Edition – Table 1
SECTION 1 – SAMPLING TECHNIQUES AND DATA
|
Criteria |
JORC Code explanation |
Commentary |
|
Sampling Techniques |
Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.
|
Metallurgical Composite Sample: The sample was a composite of 24 Hand Auger (HA) and Push Tube (PT) holes drilled in 2022 in the Kingfisher pit. All drilling samples within the pit shell were added to the composite resulting in a sample of 2,498kg. Specifically, the composite sample consisted of selected rutile mineralised zones from holes, NSHA0009, 0010, 0056, 0060, 0061, 0074, 0119, 0311, 0343, 0344, 0345, 0350 and NSPT 0011, 0013, 0014, 0015, 0017, 0020, 0021, 0023, 0024, 0025, 0026, 0027. The following workflow was used to generate a pre-concentrate graphite feed at AML: · Wet screen at 2mm to remove oversize · Two stage cyclone separation at a cut size of 45µm to remove -45µm material · Pass +45µm -2mm (sand) fraction through Up Current Classifier (UCC) · Pass UCC O/F through cyclone at cut point of 45µm · Pass UCC O/F cyclone U/F (fine) over MG12 Mineral Technologies Spiral · Pass UCC U/F (coarse) over MG12 Mineral Technologies Spiral · Spiral cons are combined for further processing. Fine and coarse gravity tailing samples contain approximately 75%-80% of the graphite present in the feed sample. The majority of the graphite lost is contained in the -45µm fines. |
|
Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
|
Placer Consulting (Placer) Resource Geologists have reviewed Standard Operating Procedures (SOPs) for the collection of HA and PT drill samples and found them to be fit for purpose. Drilling and sampling activities are supervised by a suitably qualified Company geologist who is present at all times. All bulk 1-metre drill samples are geologically logged by the geologist at the drill site. The primary metallurgical composite sample is considered representative for this style of mineralisation. |
|
|
Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.
|
HA drilling was used to obtain 1-metre samples. The bulk metallurgical sample was a composite of selected samples from routine resource drilling. Existing rutile and graphite exploration results were used to determine the 1-metre intervals suitable to contribute to the two bulk sample composites. |
|
|
Drilling Techniques |
Drill type (e.g. core, reverse circulation, open‐hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face‐sampling bit or other type, whether core is oriented and if so, by what method, etc).
|
Hand-auger drilling is completed with 75mm diameter enclosed spiral bits with 1-metrelong steel rods. Each 1m of drill sample is collected into separate sample bags and set aside. The auger bits and flights are cleaned between each metre of sampling to avoid contamination. Placer has reviewed SOPs for hand-auger drilling and found them to be fit for purpose and support the resource classifications as applied to the MRE. |
|
Drill Sample Recovery |
Method of recording and assessing core and chip sample recoveries and results assessed.
|
The configuration of drilling and nature of materials encountered results in negligible sample loss or contamination. Samples are assessed visually for recoveries. Overall, recovery is good. Drilling is ceased when recoveries become poor generally once the water table has been encountered. Auger drilling samples are actively assessed by the geologist onsite for recoveries and contamination. |
|
Measures taken to maximise sample recovery and ensure representative nature of the samples.
|
The Company’s trained geologists supervise auger drilling on a 1 team 1 geologist basis and are responsible for monitoring all aspects of the drilling and sampling process.
|
|
|
Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.
|
No bias related to preferential loss or gain of different materials has occurred. |
|
|
Logging |
Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation mining studies and metallurgical studies.
|
All individual 1-metre auger intervals are geologically logged, recording relevant data to a set template using company codes.
|
|
Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.
|
All logging includes lithological features and estimates of basic mineralogy. Logging is generally qualitative. |
|
|
The total length and percentage of the relevant intersection logged
|
100% of samples are geologically logged. |
|
|
Sub-sampling techniques and sample preparation |
If core, whether cut or sawn and whether quarter, half or all core taken.
|
Not applicable – no core drilling conducted.
|
|
If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry. |
Primary individual 1-metre samples from all HA and PT holes drilled are sun dried, homogenised and riffle split.
|
|
|
For all sample types, the nature, quality and appropriateness of the sample preparation technique.
|
Metallurgical Composite Sample: 1-metre intervals selected for the 2,498kg metallurgical sample were divided into weathering units. MOTT and PSAP material were combined and homogenised in preparation for dispatch to Australian laboratory Intertek for TGC assay. Per Australian import quarantine requirements the contributing SOIL/FERP material from within 2m of surface was kept separate to undergo quarantine heat treatment at Intertek Laboratory on arrival into Australia. The two sub samples (SOIL/FERP and MOTT/PSAP) were then dispatched from Intertek to AML Laboratory (AML). AML sub-sampled and assayed the individual lithologies prior to combining and homogenising the sample in preparation for test-work. |
|
|
Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.
|
The sample preparation techniques and QA/QC protocols are considered appropriate for the nature of this test-work.
|
|
|
Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.
|
The sampling best represents the material in situ. |
|
|
Whether sample sizes are appropriate to the grain size of the material being sampled.
|
The sample size is considered appropriate for the nature of the test-work. |
|
|
Quality of assay data and laboratory tests |
The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. |
Metallurgical Composite Sample: The following workflow was used to generate a graphite product; o Coarse and fine rougher graphite flotation o Polishing grind of coarse and fine rougher graphite concentrate o Cleaner flotation of coarse and fine graphite o Cleaner concentrate sizing at 180µm o Regrind of separate +180µm/-180µm fractions o Three stage recleaner flotation of +180µm/-180µm fractions
|
|
For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.
|
Acceptable levels of accuracy and precision have been established. No handheld methods are used for quantitative determination.
|
|
|
Nature of quality control procedures adopted (e.g. standards, blanks, duplicate, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.
|
Acceptable levels of accuracy and precision have been established in the preparation of the bulk sample composites. |
|
|
Verification of sampling & assaying |
The verification of significant intersections by either independent or alternative company personnel.
|
No drilling intersections are being reported. |
|
The use of twinned holes.
|
No twin holes completed in this program.
|
|
|
Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. |
All data was collected initially on paper logging sheets and codified to the Company’s templates. This data was hand entered to spreadsheets and validated by Company geologists.
|
|
|
Discuss any adjustment to assay data.
|
No adjustment to assay data has been made.
|
|
|
Location of data points |
Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.
|
A Trimble R2 Differential GPS is used to pick up the collars. Daily capture at a registered reference marker ensures equipment remains in calibration. No downhole surveying is completed. Given the vertical nature and shallow depths of the holes, drill hole deviation is not considered to significantly affect the downhole location of samples. |
|
Specification of the grid system used. |
WGS84 UTM Zone 36 South. |
|
|
Quality and adequacy of topographic control. |
DGPS pickups are considered to be high quality topographic control measures. |
|
|
Data spacing & distribution |
Data spacing for reporting of Exploration Results. |
Metallurgical Composite Sample: The hand-auger holes contributing to this metallurgical were selected from pit area Kingfisher and broadly represent early years of mining as contemplated in the PFS (Approximately the first three years).
It is deemed that these holes should be broadly representative of the mineralisation style in the general area.
|
|
Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. |
Not applicable, no Mineral Resource or Ore Reserve estimations are covered by new data in this report. |
|
|
Whether sample compositing has been applied. |
Metallurgical Composite Sample: The sample was composited as described under Sampling Techniques in this Table.
|
|
|
Orientation of data in relation to geological structure |
Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known considering the deposit type
|
No bias attributable to orientation of sampling has been identified. |
|
If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.
|
All holes were drilled vertically as the nature of the mineralisation is horizontal. No bias attributable to orientation of drilling has been identified. |
|
|
Sample security |
The measures taken to ensure sample security |
Samples are stored in secure storage from the time of drilling, through gathering, compositing and analysis. The samples are sealed as soon as site preparation is complete.
A reputable international transport company with shipment tracking enables a chain of custody to be maintained while the samples move from Malawi to Australia or Malawi to Johannesburg. Samples are again securely stored once they arrive and are processed at Australian laboratories. A reputable domestic courier company manages the movement of samples within Perth, Australia.
At each point of the sample workflow the samples are inspected by a company representative to monitor sample condition. Each laboratory confirms the integrity of the samples upon receipt. |
|
Audits or reviews |
The results of any audits or reviews of sampling techniques and data
|
It is considered by the Company that industry best practice methods have been employed at all stages of the exploration.
Malawi Field and Laboratory visits have been completed by Richard Stockwell in May 2022. A high standard of operation, procedure and personnel was observed and reported.
|
SECTION 2 – REPORTING OF EXPLORATION RESULTS
|
Criteria |
Explanation |
Commentary |
|
Mineral tenement & land tenure status |
Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environment settings. |
The Company owns 100% of the following Exploration Licences (ELs) under the Mines and Minerals Act 2019 (Malawi), held in the Company’s wholly-owned, Malawi-registered subsidiaries: EL0609, EL0582, EL0492, EL0528, EL0545, EL0561, EL0657 and EL0710. A 5% royalty is payable to the government upon mining and a 2% of net profit royalty is payable to the original project vendor. No significant native vegetation or reserves exist in the area. The region is intensively cultivated for agricultural crops. |
|
The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. |
The tenements are in good standing and no known impediments to exploration or mining exist. |
|
|
Exploration done by other parties
|
Acknowledgement and appraisal of exploration by other parties. |
Sovereign Metals Ltd is a first-mover in the discovery and definition of residual rutile and graphite deposits in Malawi. |
|
Geology |
Deposit type, geological setting and style of mineralisation |
The rutile deposit type is considered a residual placer formed by the intense weathering of rutile-rich basement paragneisses and variable enrichment by eluvial processes. Rutile occurs in a mostly topographically flat area west of Malawi’s capital, known as the Lilongwe Plain, where a deep tropical weathering profile is preserved. A typical profile from top to base is generally soil (“SOIL” 0-1m) ferruginous pedolith (“FERP”, 1-4m), mottled zone (“MOTT”, 4-7m), pallid saprolite (“PSAP”, 7-9m), saprolite (“SAPL”, 9-25m), saprock (“SAPR”, 25-35m) and fresh rock (“FRESH” >35m). The low-grade graphite mineralisation occurs as multiple bands of graphite gneisses, hosted within a broader Proterozoic paragneiss package. In the Kasiya areas specifically, the preserved weathering profile hosts significant vertical thicknesses from near surface of graphite mineralisation. |
|
Drill hole information |
A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: easting and northings of the drill hole collar; elevation or RL (Reduced Level-elevation above sea level in metres of the drill hole collar); dip and azimuth of the hole; down hole length and interception depth; and hole length |
All intercepts relating to the Kasiya Deposit have been included in public releases during each phase of exploration and in this report. Releases included all collar and composite data and these can be viewed on the Company website. There are no further drill hole results that are considered material to the understanding of the exploration results. Identification of the broad zone of mineralisation is made via multiple intersections of drill holes and to list them all would not give the reader any further clarification of the distribution of mineralisation throughout the deposit.
|
|
If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case |
No information has been excluded. |
|
|
Data aggregation methods |
In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high-grades) and cut-off grades are usually Material and should be stated. |
No data aggregation was required. |
|
Where aggregate intercepts incorporate short lengths of high-grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. |
No data aggregation was required. |
|
|
The assumptions used for any reporting of metal equivalent values should be clearly stated. |
Not applicable |
|
|
Relationship between mineralisation widths & intercept lengths |
These relationships are particularly important in the reporting of Exploration Results. |
The mineralisation has been released by weathering of the underlying, layered gneissic bedrock that broadly trends NE-SW at Kasiya North and N-S at Kasiya South. It lies in a laterally extensive superficial blanket with high-grade zones reflecting the broad bedrock strike orientation of ~045° in the North of Kasiya and 360° in the South of Kasiya. No drilling intercepts are being reported. |
|
If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. |
The mineralisation is laterally extensive where the entire weathering profile is preserved and not significantly eroded. Minor removal of the mineralised profile has occurred where alluvial channels cut the surface of the deposit. These areas are adequately defined by the drilling pattern and topographical control for the resource estimate. |
|
|
If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’. |
No drilling intercepts are being reported. |
|
|
Diagrams |
Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of the drill collar locations and appropriate sectional views. |
Refer to figures in previous releases. These are accessible on the Company’s webpage. |
|
Balanced reporting |
Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high-grades and/or widths should be practiced to avoid misleading reporting of exploration results. |
All results are included in this report and in previous releases. These are accessible on the Company’s webpage. |
|
Other substantive exploration data |
Other exploration data, if meaningful and material, should be reported including (but not limited to: geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. |
Limited lateritic duricrust has been variably developed at Kasiya, as is customary in tropical highland areas subjected to seasonal wet/dry cycles. Lithological logs record drilling refusal in just under 2% of the HA/PT drill database. No drilling refusal was recorded above the saprock interface by AC drilling. Sample quality (representivity) is established by geostatistical analysis of comparable sample intervals.
|
|
Further work |
The nature and scale of planned further work (e.g. test for lateral extensions or depth extensions or large-scale step-out drilling). |
The Company is currently in a project optimisation phase with various work programs underway. |
|
Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. |
Refer to diagrams in previous releases. These are accessible on the Company’s webpage. |