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Sovereign Metals #SVML – Positive Initial Test Results For Use of Kasiya Graphite In Refractories
Sovereign Metals Limited (ASX:SVM; AIM:SVML; OTCQX: SVMLF) (Sovereign or the Company) is pleased to announce that traditional market downstream testwork conducted at leading independent consultancy ProGraphite GmbH (ProGraphite) in Germany has delivered very positive initial test results. Preliminary tests confirm that graphite concentrate produced from the Company’s Kasiya Rutile-Graphite Project (Kasiya or the Project) in Malawi exhibits prerequisite characteristics required for graphite sales into the refractory materials sector.
Highlights:
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Testwork to confirm the suitability of Kasiya graphite for traditional applications is underway with an initial focus on the refractory materials sector |
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Refractory materials production accounts for 24% of global graphite demand and requires large flake graphite with high oxidation resistance |
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Initial independent tests confirm that Kasiya’s course flake (>180-micron) graphite concentrate exhibits high oxidation resistance |
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No oxidation below 400°C |
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Only 6.4% mass loss after 4 hours at 650°C |
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Very low oxidation rate of 1.6% per hour at 650°C |
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These initial results coincide with news that China plans further export restrictions of items used in civilian and military applications, including graphite and titanium alloys |
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Results will form the basis for ongoing and future discussions with potential traditional graphite off-takers; previous testwork has confirmed that Kasiya graphite can produce outstanding anode materials suitable for battery production |
Managing Director and CEO, Frank Eagar commented: “These initial test results for traditional graphite applications are very promising. High resistance to oxidation and low levels of sulphur are two key attributes required to produce a premium graphite product for traditional refractory and foundry applications. Combining these attributes with the > 50% large flakes of the Kasiya resource provides Sovereign with multiple marketing options.
Our evaluation of coarse Kasiya concentrate for traditional applications will continue in the coming months, complementing the optimisation work on the fine (<180 micron) fraction for anode materials1, where we have also had excellent initial results. We are very pleased that our testwork program continues highlighting Kasiya’s graphite’s premium quality.
Keeping in mind that graphite is a co-product for Kasiya, when combining these excellent results with one of the largest graphite resources globally, industry-low operating costs and lowest industry comparable greenhouse gas emissions, Kasiya presents significant advantages over its graphite peers as a long-term secure source of supply.”
Initial Test Results for Kasiya Graphite use in Refractory Materials
Flake graphite for refractory applications should have high oxidation resistance, low levels of impurities and low loss on ignition at moderate temperatures. Sample characterisation (see Table 1) showed high fixed carbon and low volatiles, confirming prior results regarding the purity of Kasiya flake graphite.
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Table 1: Coarse (>180-micron) Flake Characterisation |
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Loss on Ignition (LOI %) |
Moisture (%) |
Volatiles (%) |
Fixed Carbon (%) |
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97.5 |
0.11 |
0.29 |
97.1 |
Source: ProGraphite
The oxidation behaviour of Kasiya coarse flake (>180 microns) was assessed by a standard method known as Thermogravimetric Analysis (TGA). TGA measures the weight loss of a sample at a controlled rate of increasing temperatures, with each increase in temperature held for specified time intervals (to measure weight loss at constant temperature).
TGA performed by an independent laboratory on a sample of >180-micron (µm) concentrate demonstrated no mass loss below 400°C, including the one-hour hold at 400°C (see Figure 1). Minimal weight loss occurred in the ramp-up to 650°C, with only a 6.37% mass loss for the four-hour hold at 650°C, which equates to a very-low Oxidation Rate (OR) of 1.6% per hour.
Figure 1: TGA Analysis of >180 micron Kasiya Concentrate (furnace temperature profile: purple;
absolute weight loss: red; weight loss per minute: blue)
(Source: ProGraphite)
Oxidation resistance of graphite is a critical attribute for its use in refractory applications, where the refractory bricks are exposed to high furnace temperatures. Kasiya coarse flake also has very low levels of sulphur impurities (<0.02%), which is also advantageous for refractory applications.
Additional evaluation of Kasiya coarse flake for traditional and expandable applications is underway with results expected in the coming months.
This will complement the optimisation program for anode materials, generating the information required for offtake agreements for Kasiya graphite concentrate.
Graphite and Titanium Alloy Export Restrictions
On 16 November 2024, Japan-based Nikkei Asia correspondents reported that China plans to tighten export controls on key “dual-use” technologies and items, including graphite and titanium alloys, in December 2024. China’s Commerce Ministry had detailed specifications of technologies and items used in both civilian and military applications that would fall under the export controls with graphite on the list. Nikkei Asia was the first news company to announce China’s antimony export restrictions in August 2024.
On 20 October 2023, Reuters reported, effective 1 December 2023, that China would require export permits for some graphite products, including natural graphite and natural graphite products critical to EV production. China is the world’s top graphite producer and exporter. According to Benchmark Mineral Intelligence, currently 75% of the world’s flake graphite and 96% of spherical graphite (used in battery anodes) come from China.
The reported restrictions further highlight the globally and geopolitically strategic nature of the Company’s Kasiya Project, which aims to become the world’s largest producer of high-grade titanium feedstock in the form of rutile and natural flake graphite.
Industrial uses of Graphite
Traditional demand for natural graphite is primarily tied to the steel industry where it is used as a component in bricks that line both blast and electric arc furnaces (“refractories”) and as a liner for ladles and crucibles. In the automotive industry, it is used in brake linings, gaskets and clutch materials. Graphite also has many other industrial uses in lubricants, carbon brushes for electric motors, fire retardants, and insulation and reinforcement products.
Figure 2: Uses of Graphite (Source: European Advanced Carbon and Graphite Association)
Kasiya Graphite Flake Size Distribution Provides Optionality
The size of the flakes typically determines a graphite product’s use. Typically, large flake graphite is used in refractory applications, while smaller flake sizes are used in battery applications. Very small graphite flakes tend to have limited usefulness, mainly for lubricants.
The flake size distribution of Kasiya’s current graphite Mineral Reserve indicates that Kasiya’s graphite could be used for several applications. This provides the Company with optionality over offtake discussions and future supply chains to maximise revenues generated by Kasiya’s graphite co-product.
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Table 2: Flake Size Distribution |
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Flake Graphite Type |
Typical Use / Target Industry |
Flake Size |
2024 Price |
Sovereign Metals |
Syrah Resources* |
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Kasiya (PFS Stage) |
Balama* (In Production) |
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Super-Jumbo |
Aerospace, nuclear and other |
>500 |
1,841 |
29.8% |
8.5% |
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Jumbo |
Crucibles and foundry |
300-500 |
1,491 |
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Large |
Refractories and foundries |
180-300 |
1,191 |
27.1% |
12.0% |
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Medium |
Batteries and refractories |
105-180 |
1,115 |
23.9% |
34.0% |
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Small |
Batteries and niche products |
75-105 |
659 |
19.4% |
45.5% |
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Very Small |
Lubricants |
<75 |
609 |
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*Source: Fastmarkets; Syrah Resources Limited company disclosures: see ASX Announcement “Syrah Finalises Balama Graphite Feasibility Study and Declares Maiden Ore Reserve” here: https://announcements.asx.com.au/asxpdf/20150529/pdf/42yw7f27bc6j4d.pdf
Syrah Resources is the world’s largest listed graphite producer outside China.
Graphite in Refractory Materials
Graphite additives are used to produce refractory materials for high-temperature environments, such as the linings for furnaces, kilns, incinerators and nuclear reactors. Graphite’s key properties for use in refractory applications are its resistance to oxidation, chemical inertness, and good thermal conductivity.
Specifically, graphite is used to increase the effectiveness of the final refractory product by:
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increasing thermal conductivity for efficient heat transfer, |
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decreasing thermal gradient between the hot and cold faces of the product, thereby reducing expansion, |
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increasing the resistance to thermal shock which would otherwise lead to cracking or breakage of the refractory, |
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low thermal expansion, reducing the ricks of structural damage, |
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repelling molten slag, |
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reducing wettability to molten metals so they do not affect the end product, and |
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increasing the working life of the product. |
1 Refer to Sovereign’s ASX Announcement “Downstream Testwork Demonstrates High Quality Graphite” dated 15 May 2024
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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 |
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 – 2024 Annual Report
2024 ANNUAL REPORT
Sovereign Metals Limited (ASX: SVM, AIM: SVML, OTCQX: SVMLF) (Sovereign or the Company) advises its 2024 Annual Report has been published today at https://sovereignmetals.com.au/company-reports/ and is attached as a PDF to this news release.
The Company has also published an Appendix 4G (Key to Disclosures: Corporate Governance Council Principles and Recommendations) and 2024 Corporate Governance Statement today which are available at https://sovereignmetals.com.au/corporate-governance/ and are attached as a PDF to this news release.
Further, the Company advises that its Annual General Meeting (AGM) will be held on Friday, 22 November 2024.
An item of business at the AGM will be the re-election of Directors. In accordance with clause 6.2(f) of the Company’s Constitution, the closing date for receipt of nominations from persons wishing to be considered for election as a Director is Friday, 4 October 2024. Any nominations must be received at the Company’s registered office no later than 5.00pm (Perth time) on Friday, 4 October 2024.
Further information about the AGM, including the Notice of AGM, will be provided to shareholders in October 2024.
2024 OPERATING AND FINANCIAL REVIEW
KASIYA RUTILE-GRAPHITE PROJECT
Sovereign is focused on the development of its Kasiya rutile-graphite project (Kasiya or the Project) in Malawi where a Pilot Mining and Land Rehabilitation Program (Pilot Phase) is in progress as part of an ongoing PFS Optimisation Study.
The Company’s objective is to develop a large-scale, long life rutile-graphite operation, focusing on developing an environmentally and socially responsible, sustainable operation.
Figure 1: Sovereign’s Kasiya project displaying location in South-East Africa
Kasiya is the largest rutile deposit in the world with more than double the contained rutile as its nearest rutile peer, Sierra Rutile. The Kasiya Mineral Resource Estimate (MRE) is 1.8 Billion tonnes (Bt) at 1.0% rutile resulting in 17.9 Million tonnes (Mt) tonnes of contained natural rutile and 24.4Mt of contained graphite. The MRE has broad zones of very high-grade rutile which occurs contiguously across a very large area of over 200km2. Rutile mineralisation lies in laterally extensive, near surface, flat “blanket” style bodies in areas where the weathering profile is preserved and not significantly eroded.
HIGHLIGHTS
Highlights during and subsequent to the end of the financial year were as follows:
Rio Tinto investment to become a 19.9% Strategic Investor
· Rio Tinto has invested ~$60 million since July 2023 to become a 19.9% strategic investor in Sovereign
· Investment proceeds used to continue advancing the Kasiya Project in Malawi
· Pilot Mining and Land Rehabilitation Program (Pilot Phase) and infill drilling program at Kasiya has been overseen by the Rio Tinto-Sovereign Technical Committee
· Rio Tinto’s investment represents a significant step towards unlocking a major new supply of low-CO2 natural rutile and flake graphite
· The Government of Malawi applauded the timely investment by Rio Tinto and marked it as a milestone towards realising the country’s aspirations of growing the mining sector as a priority industry
Kasiya Optimisation Advances to Pilot Phase
· Sovereign commenced the Pilot Phase at Kasiya as part of the ongoing PFS Optimisation Study
· In July 2024, the dry mining component of the Pilot Phase was successfully completed, confirming Kasiya can be efficiently mined using standard mobile excavators and trucks, demonstrating operational alternatives as part of ongoing PFS Optimisation Study
· Hydraulic mining trial has since commenced at the Kasiya Pilot Site which is expected to take approximately three months to complete and includes backfilling of the main trial pit, deposition and rehabilitation testwork
· Results from the Pilot Phase, in particular the analysis of dry-mining versus hydraulic mining, will be fundamental for the ongoing Optimisation Study
· Significant field activities and a number of test work programs are ongoing in order to provide data for the PFS Optimisation Study
· Government of Malawi demonstrated strong support for with all required approvals and community permissions for the Pilot Phase obtained within three months
Figure 2: Kasiya Pilot Phase Test Pit mined to 20 metres depth
Key Management Appointments to Drive Project Optimisation and Development at Kasiya
· Appointment of experienced African based mining executive, Mr Frank Eagar, as the new Managing Director and CEO
· Previous Managing Director Dr Julian Stephens transitioned to Non-Executive Director
· Key technical appointments of experienced African engineering, social, environmental and legal teams to work on project optimisation and advancing the development of the Kasiya Project
Infill Drilling Program To Upgrade Kasiya Resource
· Infill drilling has commenced with focus on the southern part of the MRE, which intends to provide ore feed for the first eight years of production
· Program aims to upgrade the MRE in this area from Indicated to Measured category, allowing conversion of Ore Reserves from Probable to Proven category
· Resource upgrade expected in early 2025
Pre-Feasibility Study Confirms Kasiya as a Major Critical Minerals Project
· “Market Leader” Position in Two Critical Minerals:
– Positioned to become the world’s largest rutile producer and potentially one of the world’s largest natural graphite producers outside of China
– Extremely low CO2-footprint operation incorporating climate-smart attributes with renewables power solutions
– Initial Probable Ore Reserves declared of 538Mt, representing only 30% of the total Mineral Resource
– Substantial production rate and mine life upside exists as the PFS modelling was limited to only 25 years
Outstanding Battery Anode Material Produced from Kasiya Graphite
· Kasiya graphite concentrate confirmed to be an excellent feedstock for natural graphite anode materials suitable for lithium-ion battery production
· Kasiya natural graphite presents a unique, low-cost opportunity to develop lithium-ion battery supply chains outside of China
· Very high quality Coated Spherical Purified Graphite (CSPG) anode material produced from Kasiya graphite concentrate has performance characteristics comparable to the highest quality natural graphite battery material produced by dominant Chinese anode manufacturers
o Electrochemical testing achieved very high first cycle efficiencies of 94.2% to 95.8% supporting long battery life
o Excellent initial discharge capacities greater than 360mAh/g as required for highest quality natural graphite anode materials
o Very low specific surface areas (known as BET) of ≤2.0m2/g minimising the loss of lithium in the first cycle
o Excellent tap densities of 1.11 to 1.18g/cm3 meaning higher electrical storage
· Outstanding anode material results are attributed to the unique geological setting of the highly weathered Kasiya orebody compared to fresh rock hosted graphite deposits, including:
o high purity of the natural flake,
o near perfect crystallinity, and
o very low levels of sulphur and other impurities.
· Further optimisation testwork to commence using additional concentrate being generated at pilot-scale facility in South Africa
· Results will form the basis for ongoing and future discussions with potential offtakers
Commencement of Trading on OTCQX Markets
· In July 2024, Sovereign upgraded to the OTCQX Market, the top tier of the OTC Markets, providing access to a broader eligible U.S. investor base
· OTCQX quotation follows increased U.S. investor and strategic interest in Sovereign and its Kasiya Rutile-Graphite Project in Malawi
Key Appointments
· Appointment of highly experienced environmental and social specialist Mr Marco Da Cunha, as its new Lead Environmental, Social and Governance Officer. Mr Da Cunha has almost 20 years of experience in environmental and social management and more recently was part of Rio Tinto’s Simandou iron ore project team in Guinea
· Highly experienced, Africa-based social specialist consultancy, SocialEssence were appointed to the Company’s owners team to lead social and community development programs in Malawi. SocialEssence has a strong and successful track record of implementing social responsibility programs across southern Africa, including at First Quantum Minerals’ Zambian project
· Three senior appointments and promotions across Sovereign’s key legal, permitting and technical functions in Malawi, strengthening the Company’s in-country capabilities
· In July 2024, appointment of consultant Dr Surinder Ghag to Sovereign’s owner’s team as Chief Technology Officer – Graphite. Dr Ghag will assist Sovereign’s graphite strategy in product qualification the for the lithium-ion battery industry
Commissioning of Sustainable Farming Initiative in Malawi
· Sovereign initiated and progressed with its Conservation Farming Program (Farming Program) in Malawi as part of its sustainability initiatives related to the development of Kasiya
· The Program is aimed at improving the livelihoods of local communities through the creation of successful smallholder farmers.
· During the year, the Company announced that it is estimated the Farming Program has tripled crop yields in a season that is predicted to have 20% lower yields due to El Niño weather.
Figures 3 & 4 – Left: planted field using traditional techniques & Right: Field farmed under the Program showing substantially more crop growth
Partnering with International Development Organisation in Malawi
· During the year, Sovereign entered into a Memorandum of Understanding (MoU) with The Palladium Group – a US-based international development entity operating in Malawi
· Palladium implements several development projects, including the Feed the Future Malawi Growth Poles Project, which invests in local rural communities to advance sustainable, climate-smart, and inclusive wealth creation
· Sovereign and Palladium will collaborate around Sovereign’s Kasiya Project to provide key agricultural inputs, training, technologies, and financing to develop and integrate smallholder farmers into the emerging high growth agriculture value chains
Figure 5: Kasiya Pilot Phase Test Pit mined to 20 metres depth
Results of Operations
The net loss of the Group for the year ended 30 June 2024 was $18,600,894 (2023: $5,819,873). Significant items included in the year end loss are the following:
· Interest income of $1,821,876 (2023: $268,967) earned on term deposits held by the Group.
· Exploration and evaluation expenses of $14,831,671 (2023: $10,627,458) in relation to the Group’s projects in Malawi. This is attributable to the Group’s accounting policy of expensing exploration and evaluation expenditure incurred by the Group subsequent to acquisition of the rights to explore and up to the completion of feasibility studies;
· Non-cash share-based payments expenses totalling $2,303,201 (2023: $2,083,592) relating to performance rights. The fair value of incentive options and rights is measured at grant date and recognised over the period during which the option and rights holders become unconditionally entitled to the incentive securities;
· Business development expenses of $2,340,819 (2023: $2,096,822) which includes the Group’s investor and shareholder relations activities including but not limited to public relations costs, marketing and digital marketing, broker and advisor fees, travel costs, conference fees, business development consultant fees and costs of the Group’s ASX and AIM listings; and
· A one-off gain of in 2023 of $9,480,980 (2024: nil) from the demerger of NGX Limited (NGX) and its graphite projects relating to the difference between the fair value of the in-specie distribution of NGX shares to existing Sovereign shareholders and the carrying value of the net assets demerged, less costs.
Financial Position
As at 30 June 2024, the Group had cash and cash equivalents of $31,564,130 as at 30 June 2024 (2023: $5,564,376) and no debt (2023: nil). The Group had net assets of $34,358,774 at 30 June 2024 (2023: $9,672,569), an increase of $24,686,205 or approximately 72% compared with the previous year. This is largely attributable to the increase in cash reserves following the investment made by Rio Tinto in the year.
Following the additional $19.1 million invested by Rio Tinto since 30 June 2024, Sovereign remains in strong financial position with cash at bank of approximately $43 million and no debt.
ENQUIRIES
Frank Eagar (South Africa/Malawi)
CEO & Managing Director
+27 21 065 1890
Sapan Ghai (London)
CCO
+44 207 478 3900
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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 |
MIDAS SHARE TIPS: Give your portfolio a power boost with mineral miner Sovereign Metals #SVML
by Joanne Hart
Sovereign Metals #SVML has rights over a 600 square mile site, which contains the world’s largest rutile deposit
Electric car sales have been bumpy of late. Consumer enthusiasm has been muted and forecasters have been forced to dampen expectations for this year.
Over time, however, these vehicles are still predicted to become a major feature of our roads, as car-makers increasingly move away from traditional motors and ramp up production of their electric equivalents.
Lithium is a critical ingredient of the batteries that power most electric vehicles. But they also need graphite, and today, more than 80 per cent of the world’s graphite is mined and processed in China. This is a problem.
Sovereign Metals #SVML – Spiral Plant Successfully Installed
Sovereign Metals Limited (ASX: SVM; AIM: SVML; OTCQX: SVMLF) (Sovereign or the Company) is pleased to announcethat it has successfully installed and commissioned an industrial-scale spiral concentrator plant at the Company’s laboratory and testing facility in Lilongwe, Malawi.
The plant enables Sovereign to process material from the test pit mined as part of the Pilot Mining and Land Rehabilitation (Pilot Phase) at its Kasiya Rutile-Graphite Project (Kasiya or Project).
Highlights:
- Industrial scale spiral concentrator plant successfully installed and commissioned at Sovereign’s expanded laboratory and testing facility in Lilongwe, Malawi
- Graphite pre-concentrate from spiral plant will facilitate ongoing testwork and offtake discussions with lithium-ion battery makers and traditional graphite markets
- Spiral plant commissioning commenced with material from the Pilot Phase test pit being processed at a throughput rate of up to 3 tonnes per hour for continuous sample preparation
- The spiral installed and commissioned is the identical model selected for the Wet Concentrator Plant per the simple 2023 Kasiya pre-feasibility study (PFS) process flowsheet
- Commissioning and subsequent use of spiral plant also provides Malawian employee training in industrial scale processing prior to full-scale operations
- Sovereign is targeting a market-leading position as the world’s largest and lowest-cost producer of rutile for the titanium industry and flake graphite for the lithium-ion battery market
Managing Director Frank Eagar commented: “The new infrastructure allows Sovereign to deliver large-scale graphite pre-concentrate for qualification by its future potential customers. With a simple and conventional process flowsheet, Kasiya ore is processed at a throughput rate of up to 3 tonnes per hour for continuous sample preparation. Our PFS optimisation continues to advance as planned with oversight from the Sovereign-Rio Tinto Technical Committee.“
The spiral plant will prepare a graphite gravity concentrate from the Pilot Phase test pit’s run of mine at a bulk scale. The concentrate will then be sent to specialised laboratories where flotation, purification, spheronisation and coating testwork for the battery anode segment in line with Sovereign’s strategy to commercialise Kasiya’s graphite by-product.
This follows the Company’s recent announcement that downstream testwork performed by a leading independent consultancy had demonstrated that Coated Spherical Purified Graphite (CSPG) produced from Kasiya natural flake graphite has performance characteristics comparable to leading Chinese natural graphite anode materials manufacturers (See Company Announcement dated 4 September 2024).
Graphite concentrate will also be provided to traditional industrial graphite users, including refractories, foundries, expandable graphite, graphite foil, brake lining pads, and lubrication.
Figure 1: Installed Spiral plant at Sovereign’s Lilongwe facility
Figure 2: Commencement of spiral commissioning
Kasiya Process Flowsheet
The Kasiya process flowsheet is separated into distinct simple processing areas.
Wet Concentrator Plant (WCP)
The WCP will receive mined material pre-screened at 2mm to remove oversize. Simple gravity separation through spirals will produce a Heavy Mineral Concentrate (HMC) and a separate gravity tailings stream enriched in graphite. The spiral installed and commissioned is the identical model selected for the Wet Concentrator Plant per the 2023 Kasiya PFS process flowsheet. It will have the same throughput capacity as a spiral in the designed plant.
Mineral Separation Plant (MSP)
At the MSP, the HMC will initially undergo electrostatic separation to separate heavy minerals into electrically conductive minerals including rutile, and non-conductive minerals. Magnetic separation will then isolate rutile, which is non-magnetic, from other conductive minerals. Sovereign recently installed and is commissioning a CoronaStat Electric Separator at its facility in Lilongwe. This unit has been supplied by OreKinetics Pty Ltd which has also supplied the majority of electrostatic separators to the mineral sands industry over the last 20 years.
Figure 3: CoronaStat Electric Separator at Sovereign’s Lilongwe facility clearly showing non-conductive material on left-hand-side and conductive minerals including rutile on right-hand-side
Figure 4: Bench-scale magnetic separator at Sovereign’s Lilongwe facility separating non-magnetic rutile from other conductive minerals
Graphite Plant
The graphite tailings stream collected from the gravity spirals will be processed through froth flotation, including polishing and stirred media mills, producing a coarse-flake graphite concentrate and tailings.
Tailings storage and management will be further refined as part of the ongoing Kasiya PFS Optimisation Study.
ENQUIRIES
Frank Eagar (South Africa/Malawi)
CEO & Managing Director
+27 21 065 1890
Sapan Ghai (London)
CCO
+44 207 478 3900
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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 |
MST Access – Sovereign Metals #SVML Charging Up a World-Leading Rutile & Graphite Operation
#SVML #SVM Sovereign Metals – MST Financial Access note by Michael Bentley: Charging up a World Leading Rutile & Graphite Operation
✅ Kasiya project hosts the world’s largest #rutile deposit and world’s 2nd largest flake #graphite deposit
✅ SVML to become world’s largest scale, lowest cost rutile producer as supply shortfall emerges
✅ Low cost, large scale, attractive end markets | Rio Tinto getting set (now owns 19.9%)
✅ MST Access currently values SVML at £0.72 (A$1.41) – currently £0.30
Sovereign Metals #SVML – Quarterly report for the period ended 30 June 2024
Sovereign Metals Limited (Company or Sovereign) (ASX:SVM & AIM:SVML) is pleased to provide its quarterly report for the period ended 30 June 2024.
HIGHLIGHTS
Rio Tinto Invests Additional A$18.5m via Option Exercise
· In July 2024, Rio Tinto invested a further A$18.5 million via the exercise of options, to increase its shareholding in Sovereign to 19.76%
· Investment proceeds to be used to continue advancing the Kasiya Rutile-Graphite Project in Malawi
· Rio Tinto’s further investment represents another significant step towards unlocking a major new supply of low-CO2-footprint natural rutile and flake graphite. Under the Investment Agreement between Sovereign and Rio Tinto, Rio Tinto continues to provide assistance and advice on technical and marketing aspects of Kasiya
· Following the additional A$18.5 million invested by Rio Tinto, Sovereign remains in strong financial position with cash at bank of approximately A$50.0 million and no debt
Mining Development Agreement signed by the Malawi Government
· In July 2024, Sovereign notes that Mkango Resources Limited (Mkango) signed a Mining Development Agreement with the Malawi Government on terms similar to assumptions used in the Company’s Pre-Feasibility Study
· Mkango announced that the Malawi Government would receive a 5% royalty of gross revenues and 10% non-diluting equity interest in the project, while Mkango will be exempt from customs and excise duties and pay a 30% corporate tax rate
Kasiya Optimisation Advances to Pilot Phase
· During the quarter, Sovereign commenced a pilot mining and land rehabilitation program (Pilot Phase) at Kasiya as part of the ongoing PFS Optimisation Study
· At the end of July 2024, the dry mining component of the Pilot Phase was successfully completed, confirming Kasiya can be efficiently mined using standard mobile excavators and trucks, demonstrating operational alternatives as part of ongoing PFS Optimisation Study
· Test pit mined as planned and on schedule to a depth of 20 metres, excavating approximately 170,000 bench cubic metres
· Empirical data generated from the Pilot Phase will assist towards determining optimal excavation, material handling, processing, backfilling and rehabilitation approaches
· Demonstrates strong support for mining projects in Malawi with all required approvals and community permissions for the Pilot Phase obtained within three months
· The test pit will be backfilled, and multiple rehabilitation strategies will be implemented to demonstrate successful restoration of agricultural land
· Excavated material will be processed through cyclones on-site for tailings deposition testwork as well as at Sovereign’s laboratory in Malawi to generate additional bulk samples for graphite product qualification
Downstream Testwork Demonstrates High-Quality Graphite for Lithium-Ion Batteries
· During the quarter, Spherical Purified Graphite (SPG) with world-leading specifications successfully produced from Kasiya demonstrating all required parameters within industry standards with spheronisation yields of up to 68% with further scope to optimise in future testwork
· Kasiya’s spherical purified graphite (SPG) showed exceptionally low levels of residual impurities achieving a 99.99% loss-on-ignition (LOI)
· 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
Testwork Delivers Superior Quality, Low Impurity Graphite for Battery Anodes
· During the quarter, 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 show 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
Commencement of Trading on OTCQX Markets
· Subsequent to the quarter, Sovereign upgraded to the OTCQX Market, the top tier of the OTC Markets, providing access to a broader eligible U.S. investor base
· OTCQX quotation follows increased U.S. investor and strategic interest in Sovereign and its Kasiya Rutile-Graphite Project in Malawi
Partnering with International Development Organisation in Malawi
· During the quarter, Sovereign has entered into an MoU with The Palladium Group – a US-based international development entity operating in Malawi
· Palladium implements several development projects, including the Feed the Future Malawi Growth Poles Project, which invests in local rural communities to advance sustainable, climate-smart, and inclusive wealth creation
· Sovereign and Palladium will collaborate around Sovereign’s Kasiya Project to provide key agricultural inputs, training, technologies, and financing to develop and integrate smallholder farmers into the emerging high growth agriculture value chains
Classification 2.2: This announcement includes Inside Information
ENQUIRIES
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Mr Frank Eagar (South Africa/Malawi) +27 21 065 1890 |
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 |
Alan Green covers Altona Rare Earths #REE, Sovereign Metals #SVML & Metals One #MET1 on this week’s Stockbox Research Talks
Alan Green covers Altona Rare Earths #REE, Sovereign Metals #SVML & Metals One #MET1 on this week’s Stockbox Research Talks