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Sovereign Metals #SVML – Mining Trials Conclude Successfully
Sovereign Metals Limited (ASX:SVM, AIM:SVML, OTCQX:SVMLF) (Sovereign or the Company) is pleased to announce that it has successfully completed the mining trials stage of its Pilot Mining and Land Rehabilitation Program (Pilot Phase) at the Kasiya Rutile-Graphite Project in Malawi (Kasiya).
Highlights:
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Test mining at Kasiya has successfully concluded following completion of hydraulic and dry mining trials |
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Mining trials have confirmed that soft, friable Kasiya orebody can be efficiently mined utilising various mining methods |
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Fraser Alexander, a global industry leader in hydraulic mining, conducted the trial which commenced in August |
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The dry mining trial confirmed Kasiya can be efficiently mined to depth using standard mobile excavators and trucks |
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The Pilot Phase program continues to progress with oversight from Sovereign-Rio Tinto Technical Committee with land rehabilitation now underway, including backfilling of the test pit |
Hydraulic mining trials at Kasiya were successfully concluded as part of the Kasiya Optimisation Study. Prior to the hydraulic mining trials, a dry mining trial successfully excavated a test pit to a depth of 20 metres. The mining trials confirm that the soft, friable Kasiya ore can be efficiently mined.
Managing Director and CEO, Frank Eagar commented: “I am pleased with the results of the mining trials at the test pit and now look forward to the rehabilitation demonstration stage, with backfilling of the pit already underway. Our findings from this Pilot Phase are constantly improving our understanding of Kasiya and how to optimise operations at this genuine Tier 1 project.”
Following the conclusion of mining trials, land rehabilitation demonstrations are now underway commencing with the backfilling of the test pit. The test pit, which was excavated using conventional dry mining techniques and a simple mobile excavator fleet, covered an area of 120 metres by 110 metres and was mined to a depth of 20 metres through the weathered ore at Kasiya. Mined material is being placed back into the pit and all areas will be graded. The backfilling stage is expected to conclude in December 2024.
As part of the Pilot Phase, the Company has constructed small rehabilitation demonstration pits that will be used to demonstrate multiple rehabilitation processes. Sovereign’s objective is to restore land after mining to conditions that achieve the same or better agricultural yields than prior to mining operations.
The Pilot Phase will demonstrate to local communities the successful rehabilitation of land for agricultural use post-mining. Results will also allow Sovereign to determine optimal approaches, providing critical information for Kasiya’s Environmental and Social Impact Assessment.
Sovereign remains focused on becoming a leading global supplier to the titanium and graphite industries. Kasiya is the world’s largest natural rutile deposit – the purest, highest-grade naturally occurring titanium feedstock – and the world’s second-largest flake graphite deposit – a battery mineral essential for the energy transition.
Figure 1: Hydraulic mining of Kasiya test pit
Figure 2: Water monitor demonstrating hydraulic mining of Kasiya material
Figures 3 & 4: Test pit during hydro-mining trials (above) and aerial view of test pit being backfilled
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Enquires |
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Frank Eagar, Managing Director & CEO South Africa / Malawi +27 21 065 1890 |
Sapan Ghai, CCO London +44 207 478 3900 |
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Nominated Adviser on AIM and Joint Broker |
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SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
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Ewan Leggat Charlie Bouverat |
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Joint Brokers |
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Stifel |
+44 20 7710 7600 |
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Varun Talwar |
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Ashton Clanfield |
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Berenberg |
+44 20 3207 7800 |
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Matthew Armitt |
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Jennifer Lee |
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Buchanan |
+ 44 20 7466 5000 |
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.
#SVML Sovereign Metals LTD – Trading on OTCQX Market
· Sovereign upgrades 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
· Kasiya has the potential to be the world’s largest, lowest-cost producer of rutile, which is the purest form of titanium feedstock, and a long-term secure source of graphite supply outside of China
· U.S. Department of Energy has designated both titanium and graphite as critical minerals due to national security concerns. China currently dominates global supply of both minerals
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Sovereign Metals Limited (ASX: SVM; AIM: SVML; OTCQX: SVMLF) (Sovereign or the Company) is pleased to announce that its shares have commenced trading on the OTCQX® Best Market (OTCQX) under the ticker symbol SVMLF.
The OTCQX is the highest market tier of OTC Markets on which over 12,000 U.S. and global securities trade. Sovereign previously traded on the OTC Pink Market and has been upgraded to the OTCQX as it meets high financial standards, follows best-practice corporate governance and has demonstrated compliance with applicable securities laws. Trading on OTCQX began on 5 July 2024 and will enhance the visibility and accessibility of Sovereign to U.S. investors.
Sovereign is focused on becoming a market leader in supplying two critical minerals to global markets: titanium, in the form of rutile, and graphite. China currently dominates the supply of both critical minerals.
Rutile is the purest, highest-grade natural form of titanium dioxide (TiO2) and is the preferred feedstock in manufacturing titanium pigment and producing titanium metal. Titanium is essential for various industries, including aerospace, defence, pigments, medical and consumer technologies. According to the U.S. Geological Survey, China and Russia control ~70% of the global primary titanium supply chain. Currently, the U.S. relies entirely on foreign sources for titanium sponge, yet based on the U.S. Commerce Department’s Bureau of Industry and Security, titanium supports 15 out of 16 critical infrastructure sectors deemed essential by the federal government.
Graphite is vital for the energy transition as the largest component of lithium-ion batteries used in electric vehicles and other energy storage solutions. Graphite anode material can be up to 50% of the mass of a typical lithium-ion battery. According to S&P Global, in 2023, 77% of the world’s graphite production came from China, with the U.S. importing 42% of its graphite supply from China. In December 2023, China imposed several restrictions on the export of Graphite concentrate. In May 2024, the US government imposed a 25% tariff on all natural graphite imported from China from 2026 onwards.
Sovereign’s 100% owned Tier-One Kasiya Rutile-Graphite Project (Kasiya), located in the southeast African country of Malawi, is both the world’s largest known rutile deposit and second-largest flake graphite deposit. Kasiya can become a long-term secure source of natural graphite supply outside of China.
Through numerous technical studies, Sovereign has already confirmed that the Kasiya project could be the world’s largest and lowest-cost producer of rutile and graphite and is currently undertaking an optimisation study. Sovereign’s strategic investor and one of the world’s largest and most accomplished global mining companies, Rio Tinto continues to provide assistance and advice on technical and marketing aspects of Kasiya. With sustainability a core pillar of Sovereign’s strategy, Kasiya would also have the lowest greenhouse gas emissions of any high-grade titanium feedstock or graphite producer.
NOTICE OF CHANGE OF INTERESTS OF SUBSTANTIAL HOLDER
Sovereign Metals Limited (ASX: SVM, AIM: SVML) (Sovereign or the Company) advises that it was notified today via the filing of a Form 604 with the Australian Securities Exchange (ASX) that Rio Tinto Mining and Exploration Limited (Rio Tinto) provided a notice of change of interests of substantial holder (as defined by the Corporations Act 2001) of the Company as of 4 July 2024, having increased its shareholding in the Company from 83,095,592 ordinary shares, representing 15% of the Company’s issued share capital as at the date of its previous notice, to 118,085,108 ordinary shares, representing 19.76% of the Company’s issued share capital, following the issue of 439,918 shares as approved by Sovereign shareholders on 23 August 2023 and the issue of 34,549,598 shares pursuant to the exercise of options on 4 July 2024.
The Form 604 can be viewed in full via the below link:
https://www.investi.com.au/api/announcements/svm/511e90f4-659.pdf
ENQUIRIES
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Dylan Browne +61(8) 9322 6322 |
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Nominated Adviser on AIM and Joint Broker |
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SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
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Ewan Leggat Charlie Bouverat |
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Joint Brokers |
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Stifel |
+44 20 7710 7600 |
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Varun Talwar |
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Ashton Clanfield |
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Berenberg |
+44 20 3207 7800 |
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Matthew Armitt |
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Jennifer Lee |
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Buchanan |
+ 44 20 7466 5000 |
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Frank Eagar (South Africa/Malawi) +27 21 065 1890 |
Sam Cordin (Perth) +61(8) 9322 6322 |
Sapan Ghai (London) +44 207 478 3900
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Nominated Adviser on AIM and Joint Broker |
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SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
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Ewan Leggat Charlie Bouverat |
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Joint Brokers |
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Stifel |
+44 20 7710 7600 |
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Varun Talwar |
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Ashton Clanfield |
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Berenberg |
+44 20 3207 7800 |
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Matthew Armitt |
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Jennifer Lee |
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Buchanan |
+ 44 20 7466 5000 |
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 Times – Rio Tinto digs deep for African mine, exercising another £9.7m in investment options in Sovereign Metals
Sovereign Metals #SVML featured by Emma Powell in The Times
Rio Tinto digs deep for African mine, exercising another £9.7m in investment options in Sovereign Metals.
Rio has the option to become the operator of the #Kasiya project on arm’s length terms & to gain marketing rights to 40% of products
#SVML Sovereign Metals LTD – Downstream Testwork Shows High Quality Graphite
DOWNSTREAM TESTWORK DEMONSTRATES HIGH QUALITY GRAPHITE FOR LITHIUM-ION BATTERIES
· Spherical Purified Graphite (SPG) with world-leading specifications successfully produced from Kasiya
· Kasiya’s spherical graphite purification demonstrated exceptionally low levels of residual impurities achieving a 99.99% loss-on-ignition (LOI)
· Kasiya SPG demonstrated all required parameters within industry standards with spheronisation yields of up to 68% with further scope to optimise in future testwork
· Testwork was undertaken as part of the Company’s graphite strategy to qualify and commercialise graphite concentrate for use in the lithium-ion battery sector
Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is pleased to announce the results of downstream testwork conducted at leading, independent consultancy ProGraphite GmbH (ProGraphite) in Germany.
Sovereign provided Kasiya graphite concentrate to ProGraphite to produce and characterise coated spherical purified graphite (CSPG) active anode material for lithium-ion batteries. The overall program includes shaping and purification to produce SPG, coating of the material to produce CSPG and evaluation of the electrochemical performance of Kasiya CSPG in a battery. The initial steps of shaping and purification to produce SPG have now been completed with the results showing Kasiya SPG has world-leading specifications.
This SPG material is now undergoing coating and electrochemical testing to characterise CSPG active anode material for lithium-ion batteries.
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Table 1: Spherical Graphite Purification Results |
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SVM Spherical graphite <180 µm concentrate |
SVM Spherical graphite >180 µm concentrate |
Chinese |
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LOI Purity (%) |
99.99% |
99.99% |
>99.95% |
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Fe |
4.4 ppm |
3.3 ppm |
<30 ppm |
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Na |
<1.0 ppm |
<1.1 ppm |
<10 ppm |
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Cr |
1.1 ppm |
0.4 ppm |
<10 ppm |
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Cu |
0.7 ppm |
0.2 ppm |
<10 ppm |
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Ni |
<0.3 ppm |
<0.4 ppm |
<10 ppm |
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Al |
6.6 ppm |
8.8 ppm |
<10 ppm |
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Mo |
<0.3 ppm |
<0.3 ppm |
<10 ppm |
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Si |
7 ppm |
10 ppm |
<30 ppm |
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Ca |
4.3 ppm |
8.4 ppm |
<10 ppm |
1. National Standard of China – Spherical Graphite (GB/T 38887-2020)
The micronisation and spheronisation of Kasiya graphite concentrates achieved excellent yields to spherical graphite for the coarse concentrate and typical yields to spherical graphite for the fines concentrate, with room for further optimisation. The spherical graphite from the fine graphite concentrate in particular exhibited a narrow particle size distribution (D90/D10) ratio and both spherical graphite have reasonable Tap Density and typical BET for uncoated graphite. Coating of the graphite is expected to improve (increase) the tap density and improve (lower) the BET specific surface area.
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Table 2: Concentrate Shaping into Spherical Graphite Results |
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Kasiya Concentrate |
Kasiya Concentrate |
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D50 (microns) |
16.53 |
17.74 |
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D90/D10 Ratio |
2.29 |
2.96 |
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Yield to Spherical Graphite |
40% |
68% |
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Tap Density (g/cm3) |
0.93 |
0.93 |
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BET Specific Surface Area (m2/g) |
7.73 |
6.72 |
The spherical graphite products were purified with commercially proven acids purification and achieved excellent results with an exceptionally high LOI purity of 99.99%. Assays on key trace elements (Fe, Na, Cr, Cu, Al, Mo) show very low levels.
Further, the low Si and Ca results highlight that high quality Kasiya graphite is well-suited to single stage acids purification. Aggressive dosing in acids purification can result in elevated Ca levels due to precipitation of CaF2, necessitating multiple stages of purification to reduce both Si and Ca impurities. These initial purification results indicate that a single purification stage is sufficient for Kasiya graphite concentrate.
The SPG samples will undergo coating and electrochemical tests to provide baseline data for offtake discussions. The results of these tests are expected in the coming weeks.
Managing Director Frank Eagar commented: “These results clearly demonstrate that Kasiya has the potential to disrupt the China dominated graphite supply chain as a long term, secure source of high quality graphite ex-China. We believe Kasiya graphite will have industry low operating costs and is also one of the largest graphite resources globally holding a significant advantage over its graphite peers. We are very pleased to achieve these outstanding results at this stage of the program and will continue fast tracking our graphite product development and qualification campaign.”
Classification 2.2: This announcement includes Inside Information
ENQUIRIES
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Frank Eagar (South Africa/Malawi) +61(8) 9322 6322 |
Sam Cordin (Perth) |
Sapan Ghai (London)
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Nominated Adviser on AIM and Joint Broker |
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SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
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Ewan Leggat Charlie Bouverat |
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Joint Brokers |
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Stifel |
+44 20 7710 7600 |
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Varun Talwar |
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Ashton Clanfield |
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Berenberg |
+44 20 3207 7800 |
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Matthew Armitt |
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Jennifer Lee |
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Buchanan |
+ 44 20 7466 5000 |
Competent Person Statement
The information in this report that relates to Metallurgical 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 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.
#SVML Sovereign Metals Ltd – Testwork Delivers Superior Quality Graphite
Graphite circuit feed prepared at Sovereign’s existing Lilongwe laboratory facility has produced high quality concentrates in benchtop and pilot-scale flotation and cleaning
· Four independent laboratories all successfully produced high-grade graphite concentrate averaging over 97% Total Graphite Content (TGC) with flotation recoveries exceeding 90%
· Flotation results demonstrated 1.44% TGC run-of-mine Kasiya ore upgrades to more than 55% TGC rougher concentrate without crushing or milling, process steps typically required for producing graphite concentrates from hard-rock deposits; contributing to the unique low cost characteristics of Kasiya’s saprolite hosted graphite
· Graphite concentrates indicate exceptionally low levels of sulphur compared to typical hard-rock graphite peers – a key metric to qualify as active anode material for lithium-ion batteries
· Results are part of ongoing testwork being undertaken as part of the Company’s graphite marketing and active anode qualification strategy, supervised by Dr Surinder Ghag
· Downstream testwork to produce and characterise Coated Spherical Purified Graphite (CSPG) active anode material continues at German graphite consultancy ProGraphite GmbH
Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is pleased to announce the results of graphite testwork completed at multiple independent laboratories in Australia, Canada and South Africa.
Graphite flotation and cleaning testwork was conducted on graphite circuit feed from Sovereign’s Kasiya Rutile-Graphite Project (Kasiya or Project) at four different laboratories, which all successfully produced high-grade graphite concentrate (94.9%-97.8% TGC) at high flotation recoveries (91.2%-97.2%).
The testwork demonstrated excellent results using a conventional flowsheet that was consistent across all laboratories, thus confirming Sovereign’s ability to produce a high quality graphite concentrate.
Managing Director Frank Eagar commented: “Our ability to upgrade Kasiya ore at 1.4% graphite to a 55% rougher concentrate without any crushing or milling, highlights more of the unique qualities of Kasiya. There are very limited other graphite projects with these characteristics. The pilot-scale results also confirm that Kasiya produces high-grade concentrates with very low sulphur levels at high recoveries. Simply put, Kasiya will be a standout producer of high-quality graphite concentrate at industry low operating costs.”
Classification 2.2: This announcement includes Inside Information
ENQUIRIES
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Frank Eagar (South Africa/Malawi) +61(8) 9322 6322 |
Sam Cordin (Perth) |
Sapan Ghai (London)
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Nominated Adviser on AIM and Joint Broker |
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SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
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Ewan Leggat Charlie Bouverat |
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Joint Brokers |
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Stifel |
+44 20 7710 7600 |
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Varun Talwar |
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Ashton Clanfield |
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Berenberg |
+44 20 3207 7800 |
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Matthew Armitt |
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Jennifer Lee |
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Buchanan |
+ 44 20 7466 5000 |
The graphite circuit feed provided to the various laboratories was produced at the Company’s existing laboratory facility in Lilongwe, Malawi, where it was screened and separated over a wet shaking table.
Figure 1: Holman Wilfley 2000 wet shaking table in action demonstrating clear separation between Rutile HM, waste and Graphite
The graphite feed grades of 3.5%-4.0% TGC to the graphite circuit are significantly higher than the Mineral Resource Grade of 1.44%, highlighting the ~2.4-2.8-fold upgrading of graphite grades when ROM ore passes through the front-end rutile gravity separation circuit.
This demonstrates the ease of separating the rutile heavy mineral and graphite streams from the front end of the Kasiya Pre-feasibility Study process flowsheet. Subsequently, the two product streams pass into distinct, industry-standard, final product flowsheets. This further highlights the commercial benefits of having both rutile and graphite mineralisation co-existent in the same soft saprolite-hosted orebody.
The first stage of upgrading the graphite feed, rougher flotation, achieved very high rejection (>90%) of waste materials to rougher tails, producing a rougher concentrate with more than 55% TGC and very high recoveries (94%-98%) in laboratory scale testing consistently across all four laboratories. Upgrading the graphite feed at very high recoveries and rejection of non-graphitic minerals without run-of-mine milling is another of Kasiya’s significant advantages, supporting the lowest cost graphite production.
The rougher concentrate was further upgraded through laboratory scale flotation, cleaning and polishing stages, producing high-grade concentrates at high graphite circuit recoveries.
Figure 2: High-level process flowsheet for rutile and graphite production at Kasiya
Pilot-scale testwork confirmed the laboratory-scale results with >90% TGC recovery to high-grade graphite concentrates (<180-micron concentrate at 96.9% TGC and >180-micron concentrate at 97.2% TGC).
Figure 3: Graphite flotation test work at Australia-based ALS Global
HIGHLY FAVOURABLE IMPURITY PROFILE
Kasiya concentrates have very low levels of sulphur. Sulphur can be difficult to remove in the purification processes required to produce anode materials. Other major impurities important for anode material purification processes are iron (Fe), silicon (Si) and aluminium (Al). The Kasiya material has exceptionally low levels of all of these impurities. Benchmarked against the Chinese Standard (China dominates the supply of graphite for battery anodes) this could potentially lead to significant commercial advantages during purification and Kasiya’s potential as a long term secure source of graphite ex-China.
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Kasiya |
Benchmarks |
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Concentrate |
Concentrate |
Combined |
China |
Example Chinese Product 2 |
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Graphite (TGC%) |
96.9% |
97.2% |
97.0% |
>94% |
96.0% |
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Sulphur (S) (%) |
<0.02% |
<0.02% |
<0.02% |
<0.5% |
0.23% |
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Iron (Fe) (%) |
0.48% |
0.46% |
0.47% |
<1.00% |
0.55% |
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Silicon (Si) (%) |
0.60% |
0.80% |
0.68% |
n/d |
1.25% |
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Aluminium (Al) (%) |
0.24% |
0.28% |
0.26% |
n/d |
0.38% |
1. National Standard of China – Flake Graphite (GB/T 3518-2023)
2. Asbury Carbons – A Study Comparing the Performance of Natural Flake Graphite from Two Different Geographical Regions (https://asbury.com/media/1170/a-study-comparing-the-performance-of-natural-flake-graphite.pdf)
CONTINUING DOWNSTREAM TEST WORK
Kasiya concentrate has been sent for downstream testwork at respected graphite consultancy ProGraphite to produce and characterise CSPG active anode material for lithium-ion batteries. ProGraphite is conducting shaping, purification, and coating testwork to produce CSPG and evaluate the electrochemical performance of Kasiya CSPG. This will provide baseline data for further optimisation and engagement with off-takers. Initial outcomes of this test work are expected to be released in the coming weeks.
Competent Person Statement
The information in this report that relates to Metallurgical 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 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.
The information in this announcement that relates to the Mineral Resource Estimate is extracted from an announcement dated 5 April 2023 entitled ‘Kasiya Indicated Resource Increased by over 80%’ which is available to view at www.sovereignmetals.com.au and is based on, and fairly represents information compiled by Mr Richard Stockwell, a Competent Person, who is a fellow of the Australian Institute of Geoscientists (AIG). Mr Stockwell is a principal of Placer Consulting Pty Ltd, an independent consulting company. The original announcement is available to view on www.sovereignmetals.com.au. Sovereign confirms that a) it is not aware of any new information or data that materially affects the information included in the original announcement; b) all material assumptions included in the original announcement continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons’ findings are presented in this announcement have not been materially changed from the original announcement.
The information in this announcement that relates to Production Targets, Ore Reserves, Processing, Infrastructure and Capital Operating Costs, Metallurgy (rutile and graphite) is extracted from an announcement dated 28 September 2023 entitled ‘Kasiya Pre-Feasibility Study Results’ which is available to view at www.sovereignmetals.com.au. Sovereign confirms that: a) it is not aware of any new information or data that materially affects the information included in the original announcement; b) all material assumptions and technical parameters underpinning the Production Target, and related forecast financial information derived from the Production Target included in the original announcement continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons’ findings are presented in this presentation have not been materially modified from the original announcement.
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Ore Reserve for the Kasiya Deposit |
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Classification |
Tonnes |
Rutile Grade |
Contained Rutile |
Graphite Grade (TGC) (%) |
Contained Graphite |
RutEq. Grade* |
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Proved |
– |
– |
– |
– |
– |
– |
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Probable |
538 |
1.03% |
5.5 |
1.66% |
8.9 |
2.00% |
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Total |
538 |
1.03% |
5.5 |
1.66% |
8.9 |
2.00% |
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* RutEq. Formula: Rutile Grade x Recovery (100%) x Rutile Price (US$1,484/t) + Graphite Grade x Recovery (67.5%) x Graphite Price (US$1,290/t) / Rutile Price (US$1,484/t). All assumptions are taken from the PFS ** Any minor summation inconsistencies are due to rounding
|
Kasiya Total Indicated + Inferred Mineral Resource Estimate at 0.7% rutile cut-off grade |
|||||
|
Classification |
Resource |
Rutile Grade |
Contained Rutile |
Graphite Grade (TGC) (%) |
Contained Graphite |
|
Indicated |
1,200 |
1.0% |
12.2 |
1.5% |
18.0 |
|
Inferred |
609 |
0.9% |
5.7 |
1.1% |
6.5 |
|
Total |
1,809 |
1.0% |
17.9 |
1.4% |
24.4 |
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.
#SVML Sovereign Metals LTD – Increased Graphite Bulk Sample Capacity
Industrial scale spiral concentrator to be installed at Sovereign’s expanded laboratory and testing facility in Lilongwe in coming weeks
· Spiral throughput capacity of up to 10 tonnes per hour of ore for graphite and rutile sample preparation
· Installation and commissioning led by Sovereign’s Head of Project Development, Mr Paul Marcos, who previously worked for Base Resources on their Kwale and Toliara projects and for Iluka Resources across various mineral sands operations
· Final graphite concentrate for bulk sample battery anode testwork and qualification advancing under the supervision of Sovereign’s Chief Technology Officer – Graphite, Dr Surinder Ghag
· 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
Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is pleased to announce that following the appointment of graphite specialist Dr Surinder Ghag as Chief Technology Officer – Graphite, the Company will be increasing graphite pre-concentrate sample preparation from its existing testing facility in Lilongwe, Malawi.
In the coming weeks, Sovereign will install and commission a spiral concentrator containing industrial-scale MG12 spiral equipment at the Company’s laboratory and testing facility in Lilongwe, enabling the preparation of rutile concentrate and graphite circuit feed from its Kasiya Rutile-Graphite Project (Kasiya or Project) at a bulk scale. The graphite circuit feed will be sent to specialised laboratories where flotation, purification, spheronisation and coating testwork for the battery anode segment will take place in line with Sovereign’s strategy to commercialise Kasiya’s graphite by-product.
Managing Director Frank Eagar commented: “The intellectual property that Dr Ghag and Mr Marcos bring to Sovereign has meant that we can expand and expedite our graphite commercialisation strategy significantly. The infrastructure, along with the ability to provide large amounts of graphite concentrate to the lithium-ion battery industry for battery anode product qualification, offers Sovereign a big advantage. With a world-class team in place and alongside our strategic investors, Rio Tinto, Kasiya is moving ahead at a considerable pace.”
The spiral concentrator is currently in its final stages of testing at engineering consultancy Paterson & Cooke’s Cape Town laboratory, after which it will be dispatched to Lilongwe, Malawi. The spiral is identical size and scale to that designed in the Pre-feasibility Study flowsheet for the Kasiya Rutile-Graphite Project and will have a throughput capacity of up to 10 tonnes of ore per hour for sample preparation.
Sovereign’s Head of Project Development, Mr Paul Marcos, has led the spiral installation project. Mr Marcos has 30 years of mineral sands operations, engineering, and consulting expertise. Before joining Sovereign in July 2021, Mr Marcos spent over ten years working on Base Resources Limited (Base) projects both in a design role with Ausenco and then on Base’s owner’s team.
Mr Marcos was involved with the original Kwale Project and then Kwale North and Kwale Phase 2 Projects in Kenya and also the Toliara Project’s Scoping, Pre-Feasibility and Definitive Feasibility Studies in Madagascar. Between 1996 and 2004, Mr Marcos worked at major mineral sands producer Iluka Resources Limited in a number of production, mineral processing and project development roles.
Sovereign’s newly appointed graphite specialist Chief Technology Officer – Graphite, Dr Surinder Ghag, will be responsible for graphite testwork programs and product qualification. A highly qualified metallurgist, Surinder brings over 25 years of industry experience, including developing graphite test work programs, ore-to-anode graphite strategies, anode plant feasibility studies, and project development and commissioning.
Figure 1: Final stages of assembling the spiral plant at Paterson & Cooke, South Africa
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 |
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.
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.
#SVML Sovereign Metals LTD – Follow-Up Drilling Initiated North of Kasiya
FOLLOW-UP DRILLING INITIATED NORTH OF KASIYA RESOURCE AREA
· Wide-spaced regional follow-up drilling for the Kasiya Project underway focusing on the region to the north of the current resource footprint, with results from the drill program expected in the coming weeks
· Recently reported reconnaissance drilling to the south identified an 8km extension of mineralisation which remains open along strike and at depth
· Kasiya is already the largest natural rutile deposit and second-largest flake graphite deposit in the world
· Kasiya’s current MRE of 1.8 Billion tonnes at 1.0% rutile and 1.4% graphite comprises broad and contiguous zones of high-grade rutile and graphite that occur across an area of over 201km2
· Optimisation program for the Kasiya Project continues in conjunction with our strategic investor, Rio Tinto
Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is pleased to report that the Company has initiated a follow-up 400 metre spaced drill program at its tier one Kasiya Rutile-Graphite Project (Kasiya) in Malawi. The program will focus on determining the boundaries and extent of mineralisation north of the known Mineral Resource Estimate (MRE) area.
The 70+ hole hand-auger drill program has been designed to target areas where mineralisation was identified in earlier wide-spaced regional hand-auger drilling. The target area is up to 20km north of the current MRE boundary. Drilling is currently underway and will be completed in the coming weeks. Four hand-auger teams have been deployed under the supervision of Sovereign’s in-country technical team.
Samples will be initially processed in the Company’s Lilongwe own lab facility and then shipped for final analysis at certified international laboratories. Results from the drill program are expected in the coming weeks.
SOUTHERN EXTENSION
In February 2024, the Company announced regional hand-auger drilling south of the Kasiya MRE footprint had identified significant strike extensions of approximately 8km across a number of parallel mineralised zones ranging from 400m to 2km in width.
All newly defined mineralisation in the south remains open at depth due to the limitations of the hand-auger drilling method but are expected to continue to the saprock boundary normally between 20 and 30 vertical metres from surface. The multiple mineralised zones identified remain open along strike both to the north and south.
These results indicate the potential to expand the already significant, high-grade rutile and graphite MRE at Kasiya.
Figure 1: Southern mineralised extensions at Kasiya
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 Harry Davies-Ball |
|
|
|
|
|
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 |
Competent Person Statement
The information in this announcement that relates to the Exploration Results is extracted from the announcement dated 1 February 2024 entitled ‘Extensions to Rutile & Graphite Mineralisation at Kasiya’. which is available to view at www.sovereignmetals.com.au. Sovereign confirms that a) it is not aware of any new information or data that materially affects the information included in the original announcement; b) all material assumptions included in the original announcement continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons’ findings are presented in this announcement have not been materially changed from the original announcement.
The information in this announcement that relates to the Mineral Resource Estimate is extracted from an announcement dated 5 April 2023 entitled ‘Kasiya Indicated Resource Increased by over 80%’ which is available to view at www.sovereignmetals.com.au and is based on, and fairly represents information compiled by Mr Richard Stockwell, a Competent Person, who is a fellow of the Australian Institute of Geoscientists (AIG). Mr Stockwell is a principal of Placer Consulting Pty Ltd, an independent consulting company. The original announcement is available to view on www.sovereignmetals.com.au. Sovereign confirms that a) it is not aware of any new information or data that materially affects the information included in the original announcement; b) all material assumptions included in the original announcement continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons’ findings are presented in this announcement have not been materially changed from the original announcement.
The information in this announcement that relates to Production Targets, Ore Reserves, Processing, Infrastructure and Capital Operating Costs, Metallurgy (rutile and graphite) is extracted from an announcement dated 28 September 2023 entitled ‘Kasiya Pre-Feasibility Study Results’ which is available to view at www.sovereignmetals.com.au and is based on, and fairly represents information compiled by . Sovereign confirms that: a) it is not aware of any new information or data that materially affects the information included in the original announcement; b) all material assumptions and technical parameters underpinning the Production Target, and related forecast financial information derived from the Production Target included in the original announcement continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons’ findings are presented in this presentation have not been materially modified from the original announcement.
|
Ore Reserve for the Kasiya Deposit |
|
||||||
|
Classification |
Tonnes |
Rutile Grade |
Contained Rutile |
Graphite Grade (TGC) (%) |
Contained Graphite |
RutEq. Grade* |
|
|
Proved |
– |
– |
– |
– |
– |
– |
|
|
Probable |
538 |
1.03% |
5.5 |
1.66% |
8.9 |
2.00% |
|
|
Total |
538 |
1.03% |
5.5 |
1.66% |
8.9 |
2.00% |
|
* RutEq. Formula: Rutile Grade x Recovery (100%) x Rutile Price (US$1,484/t) + Graphite Grade x Recovery (67.5%) x Graphite Price (US$1,290/t) / Rutile Price (US$1,484/t). All assumptions are taken from the PFS ** Any minor summation inconsistencies are due to rounding
|
Kasiya Total Indicated + Inferred Mineral Resource Estimate at 0.7% rutile cut-off grade |
|||||
|
Classification |
Resource |
Rutile Grade |
Contained Rutile |
Graphite Grade (TGC) (%) |
Contained Graphite |
|
Indicated |
1,200 |
1.0% |
12.2 |
1.5% |
18.0 |
|
Inferred |
609 |
0.9% |
5.7 |
1.1% |
6.5 |
|
Total |
1,809 |
1.0% |
17.9 |
1.4% |
24.4 |
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.
#SVML Sovereign Metals LTD – Capabilities Strengthened with Key Appointments
Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is pleased to announce three senior appointments and promotions across key legal, permitting, and technical functions in Malawi. The appointments have strengthened the Company’s in-country capabilities as it continues to advance its Kasiya Rutile-Graphite Project (Kasiya).
Mr Maxwell Kazako has been appointed Acting In-Country Manager following the promotion of Frank Eagar to Managing Director. Mr Kazako has a strong background in human resources management, general administration and government relations. He brings over 18 years of experience to the role, having worked across Malawian commerce and industry, including for First Merchant Bank and Malawian Airlines.
Ms Natasha Namisengo has been appointed General Legal Counsel. Ms Namisengo is a qualified lawyer with a Bachelor of Laws (Hons) and is admitted to practice in the Supreme Court of Malawi. She also holds a Master’s in Business Administration (MBA). Ms Namisengo has prior experience acting as legal counsel and in company secretary roles in Malawi.
Mr Pilirani Bangula has been appointed Legal Counsel – Compliance. Mr Bangula is a qualified lawyer with 12 years of experience as a legal practitioner, including five years specifically as in-house legal counsel. Mr Bangula has wide-ranging experience in compliance, project oversight and risk management, contract negotiation, and policy drafting.
|
|
Figure 1: (left to right) Mr Maxwell Kazako, Acting In-Country Manager, Ms Natasha Namisengo, General Legal Counsel and Mr Pilirani Bangula, Legal Counsel – Compliance
The Company has also promoted Ms Tupoche Kayange to Laboratory Manager in line with its employee training and development program. Ms Kayange has been instrumental in developing and managing the Company’s laboratory facility in Lilongwe, Malawi. Recently, Ms Kayange led the facility’s expansion and commissioning of new equipment to support bulk sample programs that are currently underway.
Figure 2: Ms Tupoche Kayange, Laboratory Manager at the Company’s facility in Lilongwe, Malawi
Sovereign understands Kasiya’s significant potential to deliver material and long-lasting social and economic benefits for Malawi, including fiscal returns, job creation, skills transfer, and sustainable community development initiatives. Sovereign also recognises the importance of training programs to enhance the capabilities of its employees. The Company has structured training and skills transfer programs, covering on-the-job training for full-time employees and programs for local graduates and interns.
These appointments and promotions align with the Company’s initial targets, ensuring equal opportunity and fairness in employing a diverse workforce and Malawian nationals where possible. Sovereign employs over 80 individuals in Malawi, with at least 30% of the staff being women.
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 Harry Davies-Ball |
|
|
|
|
|
Joint Brokers |
|
|
Berenberg |
+44 20 3207 7800 |
|
Matthew Armitt |
|
|
Jennifer Lee |
|
|
|
|
|
Buchanan |
+ 44 20 7466 5000 |
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.
#SVML Sovereign Metals LTD – Extensions To Rutile & Graphite Mineralisation
EXTENSIONS TO RUTILE & GRAPHITE MINERALISATION AT KASIYA
· Wide-spaced regional reconnaissance drilling, outside the current JORC (2012) compliant Mineral Resource Estimate (MRE) area, identifies a 8km extension of mineralisation to the south which remains open along strike and at depth
· Results are testament to the world-class scale of the Kasiya deposit and demonstrate potential for a future increase of the Kasiya’s MRE, which is already the largest natural rutile deposit and second largest flake graphite deposit in the world
· Kasiya’s current MRE of 1.8 Billion tonnes at 1.0% rutile and 1.4% graphite comprises broad and contiguous zones of high-grade rutile and graphite that occur across an area of over 201km2
· Current focus at Kasiya remains the ongoing Optimisation Study alongside strategic investor Rio Tinto and permitting work streams working with the Malawian Interministerial Committee
Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is pleased to report southern extensions to the mineralised area at Kasiya. Hand-auger drilling has identified a number of zones ranging from ~400m to 2km wide over a strike length of approximately 8km. These results indicate potential to expand the already significant, high-grade rutile and graphite Mineral Resource Estimate at Kasiya.
Results of the Pre Feasibility Study (PFS) released in late 2023 demonstrated Kasiya’s potential to become the world’s largest rutile producer at an average of 222kt per annum and one of the world’s largest natural graphite producers outside of China at an average of 244kt per annum based on an initial 25 year life-of-mine (LOM).
The Kasiya PFS delivered compelling economics with a post-tax NPV8 of US$1.6 Billion and post-tax IRR of 28%. This long-life, multi-generational operation was modelled to initially generate over US$16 Billion of revenue and provide an average annual EBITDA of US$415 Million per annum.
The PFS modelling was limited to only 25 years with an initial Probable Ore Reserves declared of 538Mt, only representing 30% of the total Mineral Resource Estimate.
Managing Director, Frank Eagar commented: “These drilling results re-confirm the significant scale of the Kasiya deposit with the strike now stretching over 37km long. Sovereign continues to test the extent of regional mineralisation via low-cost hand-auger drilling, which has the potential to increase the already very large Kasiya Resource.”
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 Harry Davies-Ball |
|
|||
|
|
|
|
||
|
Joint Brokers |
|
|
||
|
Berenberg |
+44 20 3207 7800 |
|
||
|
Matthew Armitt |
|
|
||
|
Jennifer Lee |
|
|
||
|
|
|
|
||
|
Buchanan |
+ +44 20 7466 5000 |
|
||
REGIONAL DRILLING PROGRAM
Regional hand-auger drilling south of the Kasiya MRE footprint has identified significant strike extensions of approximately 8km across a number of parallel mineralised zones ranging from 400m to 2km in width.
All newly defined mineralisation remains open at depth, due to the limitations of the hand-auger drilling method but are expected to continue to the saprock boundary normally between 20 and 30m vertical metres from surface. The multiple mineralised zones identified remain open along strike both to the north and south.
Figure 1: Southern newly defined mineralised extensions at Kasiya
Highlight drill results include;
· 14m @ 1.03% incl. 2m @ 1.35% rutile from surface
· 17m @ 1.01% incl. 2m @ 1.42% rutile from surface
· 9m @ 0.93% incl. 2m @1.58% rutile from surface
· 12m @ 1.31% incl. 3m @ 1.97% rutile from surface
· 13m @ 1.02% incl. 3m @ 1.16% rutile from surface
· 12m @ 1.02% rutile & 4.5% graphite incl. 2m @ 1.41% rutile from surface
Competent Person Statement
The information in this report that relates to Exploration Results 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’ and as a Qualified Person under the AIM Rules. 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.
The information in this announcement that relates to the Mineral Resource Estimate is extracted from an announcement dated 5 April 2023 entitled ‘Kasiya Indicated Resource Increased by over 80%’ which is available to view at www.sovereignmetals.com.au and is based on, and fairly represents information compiled by Mr Richard Stockwell, a Competent Person, who is a fellow of the Australian Institute of Geoscientists (AIG). Mr Stockwell is a principal of Placer Consulting Pty Ltd, an independent consulting company. The original announcement is available to view on www.sovereignmetals.com.au. Sovereign confirms that a) it is not aware of any new information or data that materially affects the information included in the original announcement; b) all material assumptions included in the original announcement continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons’ findings are presented in this announcement have not been materially changed from the original announcement.
The information in this announcement that relates to Production Targets, Ore Reserves, Processing, Infrastructure and Capital Operating Costs, Metallurgy (rutile and graphite) is extracted from an announcement dated 28 September 2023 entitled ‘Kasiya Pre-Feasibility Study Results’ which is available to view at www.sovereignmetals.com.au. Sovereign confirms that: a) it is not aware of any new information or data that materially affects the information included in the original announcement; b) all material assumptions and technical parameters underpinning the Production Target, and related forecast financial information derived from the Production Target included in the original announcement continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons’ findings are presented in this presentation have not been materially modified from the Announcement.
|
Ore Reserve for the Kasiya Deposit |
|
||||||
|
Classification |
Tonnes |
Rutile Grade |
Contained Rutile |
Graphite Grade (TGC) (%) |
Contained Graphite |
RutEq. Grade* |
|
|
Proved |
– |
– |
– |
– |
– |
– |
|
|
Probable |
538 |
1.03% |
5.5 |
1.66% |
8.9 |
2.00% |
|
|
Total |
538 |
1.03% |
5.5 |
1.66% |
8.9 |
2.00% |
|
* RutEq. Formula: Rutile Grade x Recovery (100%) x Rutile Price (US$1,484/t) + Graphite Grade x Recovery (67.5%) x Graphite Price (US$1,290/t) / Rutile Price (US$1,484/t). All assumptions are taken from this Study ** Any minor summation inconsistencies are due to rounding
|
Kasiya Total Indicated + Inferred Mineral Resource Estimate at 0.7% rutile cut-off grade |
|||||
|
Classification |
Resource |
Rutile Grade |
Contained Rutile |
Graphite Grade (TGC) (%) |
Contained Graphite |
|
Indicated |
1,200 |
1.0% |
12.2 |
1.5% |
18.0 |
|
Inferred |
609 |
0.9% |
5.7 |
1.1% |
6.5 |
|
Total |
1,809 |
1.0% |
17.9 |
1.4% |
24.4 |
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.
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.
This announcement has been approved and authorised for release by the Company’s Managing Director & CEO, Frank Eagar.
Appendix I – DRILL RESULTS – Table 2
Rutile and graphite drilling results from Kasiya are shown below in Table 2.
|
Hole ID |
Interval Thickness |
Rutile % |
TGC % |
From (m) Downhole |
Hole Type |
|
KYHA1273 |
8.0 |
1.52 |
0.7 |
9.0 |
HA |
|
incl |
5.0 |
2.08 |
0.3 |
12.0 |
|
|
KYHA1274 |
9.0 |
0.93 |
2.0 |
0.0 |
HA |
|
incl |
2.0 |
1.58 |
0.5 |
0.0 |
|
|
KYHA1275 |
3.0 |
0.96 |
1.0 |
0.0 |
HA |
|
KYHA1276 |
6.0 |
0.83 |
0.9 |
0.0 |
HA |
|
incl |
2.0 |
1.25 |
0.3 |
0.0 |
|
|
KYHA1277 |
10.0 |
0.74 |
2.0 |
0.0 |
HA |
|
incl |
2.0 |
1.32 |
0.3 |
0.0 |
|
|
KYHA1278 |
2.0 |
0.95 |
0.3 |
0.0 |
HA |
|
KYHA1279 |
7.0 |
0.78 |
0.8 |
0.0 |
HA |
|
incl |
3.0 |
1.02 |
0.3 |
0.0 |
|
|
KYHA1280 |
12.0 |
0.85 |
0.8 |
0.0 |
HA |
|
incl |
3.0 |
1.27 |
0.2 |
0.0 |
|
|
KYHA1281 |
3.0 |
0.78 |
0.2 |
0.0 |
HA |
|
KYHA1282 |
14.0 |
1.03 |
1.6 |
0.0 |
HA |
|
incl |
2.0 |
1.35 |
0.3 |
0.0 |
|
|
KYHA1283 |
5.0 |
0.80 |
0.3 |
0.0 |
HA |
|
incl |
2.0 |
1.26 |
0.3 |
0.0 |
|
|
KYHA1284 |
2.5 |
0.65 |
4.8 |
7.0 |
HA |
|
incl |
2.0 |
1.09 |
0.8 |
0.0 |
|
|
KYHA1285 |
2.0 |
1.03 |
0.3 |
0.0 |
HA |
|
KYHA1286 |
7.0 |
0.73 |
0.3 |
0.0 |
HA |
|
incl |
2.0 |
1.21 |
0.4 |
0.0 |
|
|
KYHA1287 |
10.0 |
0.91 |
3.2 |
0.0 |
HA |
|
incl |
2.0 |
1.54 |
0.5 |
0.0 |
|
|
KYHA1288 |
2.0 |
1.30 |
0.4 |
0.0 |
HA |
|
KYHA1289 |
2.0 |
0.67 |
0.2 |
0.0 |
HA |
|
KYHA1290 |
3.0 |
0.59 |
0.0 |
0.0 |
HA |
|
KYHA1291 |
2.0 |
0.70 |
0.2 |
0.0 |
HA |
|
KYHA1292 |
5.0 |
0.91 |
0.4 |
0.0 |
HA |
|
incl |
2.0 |
1.28 |
0.3 |
0.0 |
|
|
KYHA1293 |
11.0 |
0.71 |
3.3 |
0.0 |
HA |
|
incl |
2.0 |
1.18 |
0.3 |
0.0 |
|
|
KYHA1294 |
7.0 |
0.74 |
0.4 |
0.0 |
HA |
|
incl |
3.0 |
1.01 |
0.4 |
0.0 |
|
|
KYHA1295 |
3.0 |
0.71 |
0.1 |
0.0 |
HA |
|
KYHA1296 |
13.0 |
0.76 |
2.7 |
0.0 |
HA |
|
KYHA1297 |
NSR |
HA |
|||
|
KYHA1298 |
4.0 |
0.84 |
0.2 |
0.0 |
HA |
|
incl |
2.0 |
1.11 |
0.2 |
0.0 |
|
|
KYHA1299 |
4.0 |
0.85 |
0.4 |
0.0 |
HA |
|
incl |
2.0 |
1.15 |
0.4 |
0.0 |
|
|
KYHA1300 |
14.0 |
0.78 |
4.2 |
0.0 |
HA |
|
incl |
2.0 |
1.00 |
0.4 |
0.0 |
|
|
KYHA1301 |
6.0 |
0.74 |
0.3 |
0.0 |
HA |
|
KYHA1302 |
4.0 |
0.99 |
0.2 |
0.0 |
HA |
|
incl |
2.0 |
1.30 |
0.1 |
0.0 |
|
|
KYHA1303 |
13.0 |
1.02 |
2.4 |
0.0 |
HA |
|
incl |
3.0 |
1.16 |
0.3 |
0.0 |
|
|
incl |
2.0 |
1.22 |
4.1 |
8.0 |
|
|
KYHA1304 |
4.0 |
0.84 |
0.3 |
0.0 |
HA |
|
incl |
2.0 |
1.13 |
0.3 |
0.0 |
|
|
KYHA1305 |
17.0 |
1.01 |
1.3 |
0.0 |
HA |
|
incl |
2.0 |
1.42 |
0.3 |
0.0 |
|
|
incl |
4.0 |
1.43 |
3.2 |
13.0 |
|
|
KYHA1306 |
6.0 |
0.79 |
0.3 |
0.0 |
HA |
|
incl |
3.0 |
1.08 |
0.3 |
0.0 |
|
|
KYHA1307 |
11.0 |
0.77 |
2.7 |
0.0 |
HA |
|
incl |
2.0 |
1.31 |
0.4 |
0.0 |
|
|
KYHA1308 |
12.0 |
0.81 |
0.9 |
0.0 |
HA |
|
incl |
3.0 |
1.27 |
0.2 |
0.0 |
|
|
KYHA1309 |
2.0 |
0.56 |
0.0 |
0.0 |
HA |
|
KYHA1310 |
8.0 |
0.86 |
2.0 |
0.0 |
HA |
|
incl |
2.0 |
1.35 |
0.3 |
0.0 |
|
|
KYHA1311 |
3.0 |
1.07 |
0.3 |
0.0 |
HA |
|
incl |
3.0 |
1.07 |
0.3 |
0.0 |
|
|
KYHA1312 |
NSR |
HA |
|||
|
KYHA1313 |
6.0 |
0.77 |
0.5 |
0.0 |
HA |
|
incl |
2.0 |
1.19 |
0.2 |
0.0 |
|
|
KYHA1314 |
12.0 |
1.02 |
4.5 |
0.0 |
HA |
|
incl |
2.0 |
1.41 |
0.5 |
0.0 |
|
|
incl |
3.0 |
1.05 |
6.9 |
6.0 |
|
|
KYHA1315 |
12.0 |
1.31 |
1.6 |
0.0 |
HA |
|
incl |
3.0 |
1.97 |
0.4 |
0.0 |
|
|
incl |
6.0 |
1.14 |
2.3 |
6.0 |
|
|
KYHA1316 |
6.0 |
1.16 |
1.5 |
0.0 |
HA |
|
incl |
2.0 |
1.49 |
0.3 |
0.0 |
|
|
incl |
2.0 |
1.12 |
3.6 |
4.0 |
|
|
KYHA1317 |
10.0 |
0.75 |
3.2 |
0.0 |
HA |
|
incl |
2.0 |
1.02 |
0.5 |
0.0 |
|
|
KYHA1318 |
10.0 |
0.90 |
0.9 |
0.0 |
HA |
|
incl |
2.0 |
1.75 |
0.2 |
0.0 |
|
|
KYHA1319 |
NSR |
HA |
|||
|
KYHA1320 |
6.0 |
0.94 |
4.2 |
3.0 |
HA |
|
incl |
3.0 |
1.15 |
5.6 |
6.0 |
|
|
KYHA1321 |
2.0 |
0.68 |
0.1 |
0.0 |
HA |
|
KYHA1322 |
15.0 |
0.66 |
2.0 |
0.0 |
HA |
|
KYHA1323 |
2.0 |
0.66 |
0.6 |
3.0 |
HA |
|
KYHA1324 |
6.0 |
0.92 |
1.1 |
0.0 |
HA |
|
incl |
2.0 |
1.35 |
0.6 |
0.0 |
|
|
KYHA1324 |
4.0 |
0.76 |
3.7 |
8.0 |
HA |
|
KYHA1325 |
5.0 |
0.81 |
0.4 |
0.0 |
HA |
|
incl |
5.0 |
1.32 |
0.4 |
12.0 |
|
APPENDIX II: DRILL HOLE COLLAR DATA – TABLE 3
|
Hole ID |
Easting |
Northing |
RL |
Depth |
|
Hole ID |
Easting |
Northing |
RL |
Depth |
|
KYHA1273 |
548398 |
8452800 |
1209 |
17.0 |
KYHA1300 |
549400 |
8457202 |
1207 |
14.0 |
|
|
KYHA1274 |
548397 |
8452407 |
1205 |
9.0 |
KYHA1301 |
541997 |
8463199 |
1151 |
10.0 |
|
|
KYHA1275 |
548798 |
8452405 |
1207 |
12.0 |
KYHA1302 |
542401 |
8463198 |
1158 |
11.0 |
|
|
KYHA1276 |
548796 |
8453205 |
1209 |
13.0 |
KYHA1303 |
542819 |
8463208 |
1159 |
13.0 |
|
|
KYHA1277 |
548799 |
8452800 |
1208 |
10.0 |
KYHA1304 |
548999 |
8457201 |
1210 |
19.0 |
|
|
KYHA1278 |
548399 |
8453201 |
1209 |
13.0 |
KYHA1305 |
548598 |
8457197 |
1207 |
17.0 |
|
|
KYHA1279 |
541598 |
8465602 |
1156 |
12.0 |
KYHA1306 |
548198 |
8457199 |
1198 |
6.0 |
|
|
KYHA1280 |
542001 |
8465598 |
1151 |
12.0 |
KYHA1307 |
542000 |
8462801 |
1151 |
11.0 |
|
|
KYHA1281 |
542402 |
8465601 |
1146 |
12.0 |
KYHA1308 |
542401 |
8462800 |
1158 |
12.0 |
|
|
KYHA1282 |
548800 |
8454400 |
1215 |
15.0 |
KYHA1309 |
542806 |
8462792 |
1158 |
10.0 |
|
|
KYHA1283 |
549201 |
8454401 |
1225 |
11.0 |
KYHA1310 |
542003 |
8462400 |
1149 |
8.0 |
|
|
KYHA1284 |
549603 |
8454397 |
1218 |
9.5 |
KYHA1311 |
542402 |
8462400 |
1153 |
8.0 |
|
|
KYHA1285 |
550004 |
8454400 |
1205 |
12.0 |
KYHA1312 |
542800 |
8462401 |
1154 |
7.0 |
|
|
KYHA1286 |
550000 |
8454801 |
1209 |
15.0 |
KYHA1313 |
546399 |
8463199 |
1182 |
14.0 |
|
|
KYHA1287 |
549597 |
8454801 |
1219 |
10.0 |
KYHA1314 |
546000 |
8462801 |
1183 |
12.0 |
|
|
KYHA1288 |
549198 |
8454801 |
1219 |
17.0 |
KYHA1315 |
546398 |
8462803 |
1184 |
12.0 |
|
|
KYHA1289 |
548799 |
8454801 |
1211 |
13.0 |
KYHA1316 |
546002 |
8463201 |
1183 |
13.0 |
|
|
KYHA1290 |
548800 |
8455196 |
1208 |
13.0 |
KYHA1317 |
545999 |
8462402 |
1182 |
10.0 |
|
|
KYHA1291 |
549199 |
8455199 |
1212 |
16.0 |
KYHA1318 |
546399 |
8462403 |
1185 |
10.0 |
|
|
KYHA1292 |
549601 |
8455199 |
1214 |
16.0 |
KYHA1319 |
543198 |
8462401 |
1156 |
10.0 |
|
|
KYHA1293 |
550005 |
8455196 |
1208 |
15.0 |
KYHA1320 |
543198 |
8462803 |
1155 |
9.0 |
|
|
KYHA1294 |
548200 |
8456800 |
1204 |
14.0 |
KYHA1321 |
543201 |
8463199 |
1154 |
6.0 |
|
|
KYHA1295 |
548600 |
8456801 |
1213 |
12.0 |
KYHA1322 |
542800 |
8465593 |
1141 |
15.0 |
|
|
KYHA1296 |
549003 |
8456803 |
1217 |
13.0 |
KYHA1323 |
543198 |
8465598 |
1138 |
5.0 |
|
|
KYHA1297 |
549399 |
8456797 |
1209 |
14.0 |
KYHA1324 |
541193 |
8465601 |
1160 |
12.0 |
|
|
KYHA1298 |
549800 |
8456801 |
1200 |
12.0 |
KYHA1325 |
548398 |
8452801 |
1209 |
17.0 |
|
|
KYHA1299 |
549800 |
8457199 |
1199 |
11.0 |
Appendix III: 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.
|
A total of 53 hand-auger holes for 639m were drilled at the Kasiya Project to obtain samples for quantitative mineralogical determination.
Hand-Auger samples are composited based on regolith boundaries and sample chemistry, generated by hand-held XRF analysis. Each 1m of sample is dried and riffle-split to generate a total sample weight of 3kg for analysis, generally at 1m-4m intervals. This primary sample is then split again to provide a 1.5kg sample for both rutile and graphite analyses.
|
|
Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
|
Drilling and sampling activities are supervised by a suitably qualified Company geologist who is present at all times. All drill samples are geologically logged by the geologist at the drill site/core yard.
Each sample is sun dried and homogenised. Sub-samples are carefully riffle split to ensure representivity. The 1.5kg composite samples are then processed.
An equivalent mass is taken from each sample to make up the composite. A calibration schedule is in place for laboratory scales, sieves and field XRF equipment.
Placer Consulting Pty Ltd (Placer) Resource Geologists have reviewed Standard Operating Procedures (SOPs) for the collection and processing of drill samples and found them to be fit for purpose. The primary composite sample is considered representative for this style of rutile 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.
|
Logged mineralogy percentages and lithology information is used to determine compositing intervals. Care is taken to ensure that only samples with similar geological characteristics are composited together. |
|
|
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).
|
A total of 53 hand-auger holes for 639m were drilled at the Kasiya Project to obtain samples for quantitative determination of recoverable rutile and Total Graphitic Carbon (TGC).
Hand-auger drilling with 75mm diameter enclosed spiral bits with 1-metre-long 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.
|
Samples are assessed visually for recoveries. 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 once the water table has been reached. 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 drilling on a 1 team 1 geologist basis and are responsible for monitoring all aspects of the drilling and sampling process. Hand-auger drilling samples are retrieved and placed into large plastic bags. The bags are clearly labelled and delivered back to the laydown at the end of shift for processing.
|
|
|
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 relationship is believed to exist between grade and sample recovery. The high percentage of silt and absence of hydraulic inflow from groundwater at this deposit results in a sample size that is well within the expected size range.
No bias related to preferential loss or gain of different materials is observed.
|
|
|
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.
|
Geologically, data is collected in detail, sufficient to aid in Mineral Resource estimation.
All individual 1-metre intervals are geologically logged, recording relevant data to a set log-chief template using company codes. A small representative sample is collected for each 1-metre interval and placed in appropriately labelled chip trays for future reference.
|
|
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.
|
N/A
|
|
If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry. |
Hand-auger samples from the 53 holes drilled are dried, riffle split and composited. Samples are collected and homogenised prior to splitting to ensure sample representivity. ~1.5kg composite samples are processed.
An equivalent mass is taken from each primary sample to make up the composite.
The primary composite sample is considered representative for this style of mineralisation and is consistent with industry standard practice.
|
|
|
For all sample types, the nature, quality and appropriateness of the sample preparation technique.
|
Techniques for sample preparation are detailed on SOP documents verified by Placer Resource Geologists.
Sample preparation is recorded on a standard flow sheet and detailed QA/QC is undertaken on all samples. Sample preparation techniques and QA/QC protocols are appropriate for mineral determination.
|
|
|
Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.
|
The sampling equipment is cleaned after each sub-sample is taken.
Field duplicate, laboratory replicate and standard sample geostatistical analysis is employed to manage sample precision and analysis accuracy.
|
|
|
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.
|
Sample size analysis is completed to verify sampling accuracy. Field duplicates are collected for precision analysis of riffle splitting. SOPs consider sample representivity. Results indicate a sufficient level of precision for the resource classification.
|
|
|
Whether sample sizes are appropriate to the grain size of the material being sampled.
|
The sample size is considered appropriate for the material sampled. |
|
|
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. |
Rutile The Malawi onsite laboratory sample preparation methods are considered quantitative to the point where a non-magnetic mineral concentrate (NM) is generated.
Final results generated are for recovered rutile i.e. the % mass of the sample that is rutile that can be recovered to the non-magnetic component of a HMC.
The HMC is prepared via wet-table, gravity separation at the Lilongwe Laboratory which provides an ideal sample for subsequent magnetic separation and XRF.
All samples (incl. QA) included in this announcement received the following workflow undertaken on-site in Malawi; · Dry sample in oven for 1 hour at 105℃ · Soak in water and lightly agitate · Wet screen at 5mm, 600µm and 45µm to remove oversize and slimes material · Dry +45µm -600mm (sand fraction) in oven for 1 hour at 105℃ · Pass +45µm -600mm (sand fraction) across wet table to generate a heavy mineral concentrate (HMC) · Pan HMC to remove retained light minerals · Dry HMC in oven for 30 minutes at 105℃ · Magnetic separation of the HMC by Carpco magnet @ 16,800G (2.9Amps) into a magnetic (M) and non-magnetic (NM) fraction.
Bag NM fraction and send to Perth, Australia for quantitative chemical and mineralogical determination. · The NM fractions were sent to ALS Metallurgy Perth for quantitative XRF analysis. Samples received XRF_MS.
Graphite All samples are initially checked in and processed to pulp at Intertek-Genalysis Johannesburg. The pulp samples are then dispatched to Intertek-Genalysis Perth where they undergo TGC assay via method C72/CSA. A portion of each test sample is dissolved in dilute hydrochloric acid to liberate carbonate carbon. The solution is filtered using a filter paper and the collected residue is the dried to 425°C in a muffle oven to drive off organic carbon. The dried sample is then combusted in a Carbon/ Sulphur analyser to yield total graphitic or elemental carbon (TGC). The graphitic carbon content is determined by eliminating other carbon forms from the total carbon content. The addition of acid to the sample liberates carbon dioxide thus removing carbonate carbon. Soluble organic carbon will also be removed. Insoluble organic carbon is removed by heating the samples at 425°C in an oxidising environment. The “dried” carbon-bearing sample that is analysed in the resistance furnace is considered to contain only graphitic carbon. An Eltra CS-800 induction furnace infra-red CS analyser is then used to determine the remaining carbon which is reported as Total Graphitic Carbon (TGC) as a percentage.
|
|
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 XRF 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.
|
Sovereign uses internal and externally sourced wet screening reference material inserted into samples batches at a rate of 1 in 20. The externally sourced, certified standard reference material for HM and Slimes assessment is provided by Placer Consulting.
Accuracy monitoring is achieved through submission of certified reference materials (CRM’s). ALS and Intertek both use internal CRMs and duplicates on XRF analyses. Sovereign also inserts CRMs into the sample batches at a rate of 1 in 20.
Analysis of sample duplicates is undertaken by standard geostatistical methodologies (Scatter, Pair Difference and QQ Plots) to test for bias and to ensure that sample splitting is representative. Standards determine assay accuracy performance, monitored on control charts, where failure (beyond 3SD from the mean) may trigger re-assay of the affected batch.
Examination of the QA/QC sample data indicates satisfactory performance of field sampling protocols and assay laboratories providing acceptable levels of precision and accuracy.
Acceptable levels of accuracy and precision are displayed in geostatistical analyses.
|
|
|
Verification of sampling & assaying |
The verification of significant intersections by either independent or alternative company personnel.
|
Results are reviewed in cross-section using Micromine software and any spurious results are investigated. The deposit type and consistency of mineralisation leaves little room for unexplained variance. Extreme high grades are not encountered.
|
|
The use of twinned holes. |
Twinned holes are not reported here.
|
|
|
Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. |
All geological field logging data is collected in LogChief logging software. This data is then imported to Datashed5 and validated automatically and then manually.
Sovereigns’ laboratory data is captured onto paper templates or excel and transferred manually to the database.
|
|
|
Discuss any adjustment to assay data.
|
QEMSCAN of the NM fraction shows dominantly clean and liberated rutile grains and confirms rutile is the only titanium species in the NM fraction.
Recovered rutile is therefore defined and reported here as: TiO2 recovered in the +45 to -600um range to the NM concentrate fraction as a % of the total primary, dry, raw sample mass divided by 95% (to represent an approximation of final product specifications). i.e. recoverable rutile within the whole sample.
|
|
|
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. |
The hand-auger holes are spaced on a on a regular grid which is deemed to adequately define the mineralisation under investigation.
|
|
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. |
The drill spacing and distribution is considered to be sufficient to establish a degree of geological and grade continuity appropriate for further future Mineral Resource estimation.
|
|
|
Whether sample compositing has been applied. |
Individual 1m intervals have been composited, based on lithology for the 53 hand-auger holes.
|
|
|
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
|
Sample orientation is vertical and approximately perpendicular to the orientation of the mineralisation, which results in true thickness estimates, limited by the sampling interval as applied. Drilling and sampling are carried out on a regular square grid. There is no apparent bias arising from the orientation of the drill holes with respect to the orientation of the deposit.
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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.
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There is no apparent bias arising from the orientation of the drill holes with respect to the orientation of the deposit. |
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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.
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Audits or reviews |
The results of any audits or reviews of sampling techniques and data
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Richard Stockwell (resource CP) has reviewed and advised on all stages of data collection, sample processing, QA protocol and mineral resource estimation. Methods employed are considered industry best-practice.
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.
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SECTION 2 – REPORTING OF EXPLORATION RESULTS
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Criteria |
Explanation |
Commentary |
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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) and Retention Licence (RL) under the Mines and Minerals Act (No 8. of 2019), held in the Company’s wholly-owned, Malawi-registered subsidiaries: EL0609, EL0582, EL0492, EL0528, EL0545, EL0561, and EL0657. 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. |
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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. |
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Exploration done by other parties
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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 resources in Malawi. No other parties are involved in exploration. |
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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. |
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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 collar and composite data are provided in the body and appendices of this report.
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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. |
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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. |
All results reported are of a length-weighted average of in-situ grades. The results reported in the body of the report are on a nominal lower cut-off of 0.5% Rutile and exclude bottom of hole samples where saprock has been geologically logged.
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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. |
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The assumptions used for any reporting of metal equivalent values should be clearly stated. |
No metal equivalent values are used in this report. |
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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. It lies in a laterally extensive superficial blanket with high-grade zones reflecting the broad bedrock strike orientation of ~045°. |
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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 in alluvial channels. These areas are adequately defined by the drilling pattern and topographical control. |
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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’. |
Downhole widths approximate true widths limited to the sample intervals applied. Graphite results are approximate true width as defined by the sample interval and typically increase with depth. |
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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 the body of this report. |
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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. |
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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. |
Rutile has been determined, by QEMSCAN, to be the major TiO2-bearing mineral at and around several rutile prospects within Sovereign’s ground package. The Company continues to examine areas within the large tenement package for rutile and graphite by-product mineralisation. |
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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). |
No further exploration is planned at this stage. |
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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 the body of this report. |
Sovereign Metals #SVML – September 2023 Quarterly Report
Sovereign Metals Limited (Company or Sovereign) (ASX:SVM & AIM:SVML) is pleased to provide its quarterly report for the period ended 30 September 2023.
HIGHLIGHTS
Pre-Feasibility Study confirms Kasiya’s market leading position in Two Critical Raw Materials
· Natural Rutile – the highest-grade, purest, natural titanium feedstock
o The world’s largest rutile deposit
o Positioned to become the world’s largest rutile producer at 222kt per annum
o Natural rutile facing major global supply deficit over the next 5 years
· Natural Graphite – a key component of an electric vehicle (EV) battery
o The world’s second largest flake graphite deposit
o Potentially one of the world’s largest natural graphite producers outside of China at 244kt per annum
o China recently announces graphite export restrictions at a time when the anode graphite market is moving into deficit with demand rapidly growing in the lithium-ion battery and EV sectors
· Compelling project economics with significant upside potential:
o Post-tax NPV8 of US$1,605m and post-tax IRR of 28%
o Average EBITDA of US$415m per annum
o Initial Probable Ore Reserves declared of 538Mt, representing only 30% of the total Mineral Resource
o Substantial production rate and mine life upside exists as the PFS modelling was limited to only 25 years
· Forecast cash operating costs of US$404/t of product would position Kasiya as the lowest cost producer of rutile and graphite globally
Rio Tinto invests $40.6m to become a 15% Strategic Investor
· Rio Tinto made an investment of A$40.6 million in Sovereign resulting in an initial 15% shareholding plus options to increase their position to potentially 19.99%* within 12 months
· Rio Tinto’s investment represents a significant step towards unlocking a major new supply of low-CO2-footprint natural rutile and flake graphite
· Under the Investment Agreement, Rio Tinto will provide assistance and advice on technical and marketing aspects of Kasiya including with respect to Sovereign’s graphite co-product, with a primary focus on spherical purified graphite for the lithium-ion battery anode market
· The Company is formally establishing the Technical Committee with Rio Tinto following release of the PFS
· Industry redefining best in class social & environmental advantages
o Extremely low CO2-footprint operation incorporating climate-smart attributes including hydro-mining with renewables power solution
o Lifecycle CO2 emissions expected to be lowest in class versus existing and planned operations and versus alternative synthetic products
o Low-impact operation with mineralisation at surface, zero-strip ratio, low reagent usage, simple process flowsheet and progressive land rehabilitation
· The Company advancing into an optimisation phase prior to moving to the Definitive Feasibility Study (DFS) with the Company’s strategic investor, Rio Tinto
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
· Existing Managing Director Dr Julian Stephens has transitioned to Non-Executive Director
· Key technical appointments of experienced African engineering, social and environmental teams to work on project optimisation and advancing the development of the Kasiya Project
Strong Support from the Government of Malawi:
· Government of Malawi has 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
· PFS demonstrates Kasiya’s potential to provide significant socio-economic benefits for Malawi including fiscal returns, job creation, skills transfer and sustainable community development initiatives
· With mining being one of the key pillars for growth under Malawi’s economic development strategy (Agriculture, Tourism, Mining – ATM Policy) and the potential for Kasiya to be a project of national significance, the Government has constituted an Inter-ministerial Project Development Committee to work alongside the Company to assist in the permitting process
ENQUIRIES
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Mr Frank Eagar (South Africa/Malawi) Managing Director and CEO +27 76 753 5377 |
Sam Cordin (Perth) |
Sapan Ghai (London) |
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Nominated Adviser on AIM and Joint Broker |
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SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
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Ewan Leggat Charlie Bouverat Harry Davies-Ball |
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Joint Brokers |
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Berenberg |
+44 20 3207 7800 |
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Matthew Armitt |
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Jennifer Lee |
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Tavistock PR |
+44 20 7920 3150 |