Sovereign Metals #SVML – Quarterly report for the period ended 31 March 2024.

Sovereign Metals Limited (Company or Sovereign) (ASX:SVM & AIM:SVML) is pleased to provide its quarterly report for the period ended 31 March 2024.

Extension to Rutile Mineralisation at Kasiya

·      Wide-spaced regional reconnaissance drilling, outside the current JORC (2012) Mineral Resource Estimate (MRE) area, identified an 8km extension of mineralisation to the south, which remains open along strike and at depth.

·        Follow-up drilling is now underway focusing on the region to the north of the current Resource footprint, with results expected in the coming weeks.

Representative Bulk Sample Shipped & Project Optimisation

·        During the quarter, the Company composited, despatched and delivered a 30 tonne sample representative of the first probable 10 years of mining from the Kasiya rutile-graphite project (Kasiya or the Project) to a leading engineering consultancy laboratory in South Africa. The ore sample will be used for advanced material handling tests as part of the Project optimisation.

·       Sovereign continues its optimisation test work and technical studies for Kasiya in colaboration with strategic investor, Rio Tinto.

Key Appointments

·        During the quarter, Sovereign appointed highly experienced environmental and social specialist Mr Marco Da Cunha, as its new Lead Environmental, Social and Governance (ESG) 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.

·     During the quarter, Sovereign also made three senior appointments and promotions across key legal, permitting and technical functions in Malawi, strengthening the Company’s in-country capabilities.

·      Subsequent to the quarter, Sovereign announced the 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 qualifying the graphite product Kasiya for lithium-ion battery anodes.

Commissioning of Conservation Farming Program in Malawi

·        During the quarter, Sovereign progressed its Conservation Farming Program (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.

·        Subsequent to the quarter, the Company announced that it is estimated the Program has tripled crop yields  in a season that is predicted have 20% lower yields due to El Niño weather.

Appointment of Stifel as Joint Broker

·       During the quarter, Sovereign appointed Stifel Nicolaus Europe Limited, a subsidiary of Stifel Financial Corp (Stifel), as joint broker to the Company. Stifel is a full-service investment bank, offering securities brokerage, trading, research, underwriting and corporate advisory services.

·       Stifel will work alongside Sovereign’s incumbent brokers, Joh. Berenberg, Gossler & Co KG, and SP Angel Corporate Finance LLP.

·       At the end of the quarter, Sovereign is in a strong financial position with cash at bank of approximately A$36.6 million and no debt.

Classification 2.2: This announcement includes Inside Information

ENQUIRIES