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Sovereign Metals #SVML #SVM – Kasiya – Optimised PFS Results
Sovereign Metals Limited (ASX:SVM; AIM:SVML; OTCQX: SVMLF) (Sovereign or the Company) is
pleased to announce the results of an Optimised Pre-feasibility Study (OPFS) for its Kasiya RutileGraphite Project (Kasiya or the Project) undertaken following a strategic investment by Rio Tinto Mining and Exploration Limited (Rio Tinto) in 2023, which established a joint Technical Committee to advance the development of Kasiya.
Following input from various organisations, including world-class consultancies, the Company’s owner’s team, and subject matter experts from Rio Tinto, the OPFS has reconfirmed Kasiya as a leading global future supplier of strategic critical minerals outside of China.
The OPFS proposes a large-scale, long-life operation to deliver substantial volumes of natural rutile and graphite while generating significant returns.
Table 1 summarises the key findings from the OPFS and includes a comparison to the PreFeasibility Study (PFS) results released 16 months ago, in September 2023. It is important to note that the results for the 2023 PFS in Table 1 have not been updated or adjusted for inflation since their release in September 2023.
SUMMARY OF OPTIMISATIONS
The OPFS optimises seven key areas compared to the 2023 PFS as summarised below.
Mining Method
The PFS proposed a 25-year initial LOM based on a hydraulic mining process where slurry material would be screened and pumped overland to processing plants.
Based on findings from the mining trials undertaken as part of the Pilot Mining and Land Rehabilitation (Pilot Phase), the OPFS proposes a large-scale open-pit dry mining operation using draglines and trucking of material to the processing plants. The change in mining method has not changed the initial mine life of 25 years.
Operating Model
The 2023 PFS envisaged mining would take place on a contractor basis.
During the OPFS, Sovereign undertook a trade-off analysis between the following operating options:
• Fully owner-operated mine with draglines and trucks purchased by the owner
• Owner-operated mine with draglines and trucks leased by the owner
• Mining contractor operation using excavators and trucks
Due to the preference for draglines and maintaining flexibility, an owner-operated mine with leased equipment is selected as the preferred operating model.
Plant Configuration
Dry mining Kasiya means the material received at the plant is not pre-wet and pre scrubbed. Therefore, the OPFS proposes a process plant front end consisting of two scrubbers and two oversize screens per 12Mt plant. No further changes are proposed to the processing plant flowsheet.
Plant Location
Per the 2023 PFS, mining would commence in the southern area of the Kasiya deposit, ramping up to 12Mt per annum and then scaling up to 24Mt per annum in Year 5 by constructing a second plant module in the same area, reaching nameplate capacity by the end of the year.
In Year 10 of production, another new 12Mt per annum plant module would be built and commissioned in the northern area of Kasiya, supported by the relocation to the north of one of the southern plants to maintain a steady state of 24Mt per annum.
However, the OPFS has determined the most efficient plant locations to be an initial 12Mtpa South Kasiya plant followed by the construction of another 12Mtpa North Kasiya plant in year 5 of production, negating any relocation requirements in later years.
The OPFS maintains the ROM schedule with operations commencing with 12Mt per annum of throughput during the first four years of production (Stage 1) and expanding to 24Mt per annum in year 5, with full capacity reached by end of year 5 (Stage 2).
Tailings Management
Per the PFS, a conventional process would be used to produce rutile and graphite concentrate with tailings in separate sand and fines streams being pumped to a conventional TSF. Mined out pit areas would be backfilled as part of a rehabilitation process.
The OPFS proposes maximising backfilling of pits as undertaken during the Pilot Phase and the introduction of mud farming on the TSF to accelerate dewatering. This approach has reduced tailings volumes in the TSF by 44% from 187 Mm³ to 105 Mm³.
Mud farming is a technique used by Rio Tinto at operations such as its 100%-owned Weipa bauxite operations in Queensland, Australia, which has been in production since 1963 and produced 35.1Mt of bauxite in 2023.
Water Management
The PFS proposed that the primary water supply for the Kasiya mining complex would be created by building a dam and collecting run-off water from the greater catchment area. Following the introduction of dry mining and mud farming, the size of the water dam proposed in the PFS has been significantly reduced, with less process water required and more process water recovered.
The OPFS mining trials and material deposition tests indicated a water demand of 10.2 Mm³ per annum, almost a 40% decrease in water requirement from the PFS (16.7 Mm³). The effect on the raw water dam wall could be a reduction in volume from 0.79 Mm³ to 0.57 Mm³ and a reduction in dam wall height from 20 metres to 17 metres.
Power
The 2023 PFS envisaged a hybrid hydro-generated grid power plus solar power system solution.
The Malawi grid reliability has improved since completion of the PFS and is expected to further improve considerably with the commissioning of the country’s first HV transmission interconnector to Mozambique in Q2 2025.
This will provide the Project with sufficient power and therefore the OPFS proposes to connect the Project’s power system to the hydro-sourced grid network only. This mitigates any risks associated with commissioning a new solar power project and reducing the overall power tariff by eliminating the need for an Independent Power Producer as per the 2023 PFS.
OPTIMISATION MAINTAINS KASIYA’S GLOBAL LEADER POTENTIAL
Kasiya, located in central Malawi, is the world’s largest known natural rutile deposit and second largest flake graphite deposit.
Natural Rutile is the purest, highest-grade form of naturally occurring titanium feedstock.
Natural Graphite is required for various technological and industrial applications.
Both titanium and graphite have been designated “Critical Minerals” by the USA and the EU.
In December 2024, NATO designated both titanium and graphite as defence-critical, strategic minerals essential for the Allied defence industry.
Over the 25-year LOM, Kasiya is set to produce an average of 222kt of natural rutile and 233kt of natural flake graphite per annum. At steady state throughput of 24 million tonnes of ore per annum the Project is anticipated to produce approximately 246kt of natural rutile and 265kt of natural graphite per annum, positioning Sovereign as potentially the world’s largest producer of natural rutile and natural flake graphite.
Further, the depletion of rutile reserves at Lenoil Company Limited’s Area 1 Mine1 in the coming 2-3 years and the recent cessation of mining activities at Energy Fuels Inc.’s Kwale Operations2 in Kenya means that Sovereign could potentially become the world’s only primary natural rutile producer of scale (see Appendix 2).
The incremental cost of producing a tonne of graphite from Kasiya under the OPFS is US$241/t3. Based on public disclosures by listed graphite companies that have undertaken project studies up to a pre-feasibility stage or later, an incremental graphite cost of production of US$241/t would make Sovereign the world’s lowest-cost graphite producer outside of China (see Appendix 3).
The rutile-graphite-rich mineralisation will be extracted from surface and trucked to the process plant front end to scrub and screen ROM before it enters a Wet Concentration Plant (WCP) where a low-energy requirement, chemical-free process using gravity spirals produces a Heavy Mineral Concentrate (HMC). The HMC is transferred to the dry Mineral Separation Plant (MSP) where premium quality rutile (+95% TiO2) is produced via electrostatic and magnetic separation.
The high quality Kasiya rutile product will be amenable for use in high-end titanium products including aerospace and defence applications.
Graphite rich concentrate is collected from the gravity spirals and processed in a separate graphite flotation plant, producing a high purity, high crystallinity and high value coarse-flake graphite product.
1 In 2024, the previous owner of the Area 1 Mine, Sierra Rutile Limited, was acquired by Lenoil Company Limited, a private company based in Sierra Leone. 2 In 2024, the previous owner of the Kwale Operations, Base Resources Limited was acquired by Energy Fuels Inc., a US-based uranium and critical minerals company.
3 Incremental cost of graphite production is calculated with the following costs attributed to rutile production: all mining costs, all G&A, all material handling costs except for graphitic fines reclamation and graphite concentrate transport, and approximately half of total processing costs. Incremental cost of graphite production therefore includes only those costs incurred on top of primary rutile production to produce an incremental tonne from the process plant and transport the graphite to market. Unit cost of rutile production under this scenario would be US$628/t (FOB Nacala)).
Kasiya’s graphite has been confirmed to produce outstanding anode materials suitable for battery production as well as demonstrating suitability for traditional industrial uses such as the production of refractory materials.
The Project has excellent surrounding infrastructure including sealed roads, a high quality rail line connecting to the deep-water port of Nacala on the Indian Ocean and hydro-sourced grid power.
For the duration of the operation, Kasiya’s highly sought-after rutile and graphite products will be railed directly from a purpose-built rail dry port at the mine site eastward via the Nacala Logistics Corridor (NLC) to the port of Nacala. The southern port of Beira, connecting Kasiya via the recently refurbished Sena Rail Line, offers a secondary export route.
Enquiries
Frank Eagar, Managing Director & CEO
South Africa / Malawi
+27 21 065 1890
Sapan Ghai, CCO
London
+44 207 478 3900
Link here to view full OPFS and Appendices
#GRX GreenX Metals Ltd – High Grade Antimony Identified at Eleonore North
GreenX Metals Limited (GreenX or the Company) is pleased to announce that high grade antimony mineralisation has been identified at the Company’s Eleonore North project (Eleonore North or ELN) in Greenland, based on historical results recently released by the Geological Survey of Denmark and Greenland (GEUS). The historical results indicate the potential for a high-grade antimony-gold mineral system at ELN. Antimony prices have been on a rapid uptrend since China announced antimony export controls from 15 September 2024, with antimony prices in the US having rocketed to US$37,500/t from US$18,300/t1 in the past week.
HIGH GRADE ANTIMONY IDENTIFIED AT ELEONORE NORTH PROJECT
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· |
GreenX receives outstanding antimony results at Eleonore North project in Greenland. |
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Antimony price now US$37,500/t from historical prices of ~US$5,000 to 10,000/t. |
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Critical mineral crisis escalating – China has now restricted export of critical and strategic antimony, graphite, gallium, germanium, tungsten, titanium and rare earths. |
· Historical results from GEUS 2008 fieldwork at ELN have been made available and include grab samples from outcropping mineralised veins with individual specimens grading up to 23% antimony (Sb), and other samples up to 4g/t gold (Au).
· Previously reported historical data confirmed the presence of gold and high-grade antimony in outcropping veins at ELN including:
o 14m long chip sample grading 7.2% Sb and 0.53g/t Au2
o 40 m chip line with a length weighed average of 0.78g/t Au2
· Antimony mineralisation has been identified along a ~4km trend in veins and structures, that broadly aligns with previously identified gold veining at surface within a 15km trend.
Figure 1: Newly released GEUS assay results show evidence for high-grade antimony and gold mineralisation above the interpreted Noa Pluton.
· Significantly, GEUS geologist’s identified stibnite (Sb2S3) as the antimony mineral. Stibnite is well-understood and the predominant ore mineral for commercial antimony production.
· Antimony is designated a Critical Raw Material by both the EU and the US, with China being the world’s major antimony ore producer and major exporter of refined antimony oxides and metallic antimony.
· Global strategic interest in antimony has significantly increased in 2024 due to several factors:
o China controls ~50% of global antimony mining, most downstream processing and 32% of global resources according to the Lowy Institute.
o China’s recent export ban on antimony, effective from 15 September 2024, has caused market disruption3.
o Antimony is a crucial material in the defence supply chain, used in various military applications including ammunition, flame retardants, and smart weaponry.
o Antimony is essential in renewable energy technologies including more-energy-efficient solar panel glass and in preventing thermal runaway in batteries.
· The antimony market is expected to grow by 65% between 2024 and 20324. However, the supply side, declining antimony grades and depleting resources for existing mines are becoming increasingly relevant.
o In terms of new deposits, antimony is harder to find than most metals because stibnite has no geophysical electrical or magnetic response
· To aid the Company’s exploration targeting and fieldwork planning for ELN, GreenX’s technical team intend to locate, analyse, and study further historical samples and data within GEUS’s archives in the coming weeks.
GreenX Metals’ Chief Executive Officer, Mr Ben Stoikovich, commented: “Antimony is of critical importance in multiple defence applications and for the energy transition. Antimony features on both the EU and US critical raw materials lists due to China’s dominance of global antimony supply. Whilst we had previously focussed on the ELN project primarily for gold mineralisation, the newly published historical results with out-cropping vein samples grading up to 23% antimony, indicate the potential for ELN to host viable antimony mineralisation. We plan to now re-focus our exploration program at ELN on both gold and antimony targets.“
The Announcement Contains Inside Information
Figure 2: Noa Pluton prospect area within the Eleonore North Licence.
ANTIMONY RESULTS FROM NEWLY PUBLISHED GEOLOGICAL SURVEY ARCHIVE MATERIAL
GEUS’s archives host an extensive collection of rock samples (with and without assays), maps, as well as government and company reports going back many decades. A sub-set of the archive material is available in digital format. GEUS is continuously digitising and publishing its archive material. The newly released data covers 2008 field work at the Noa Dal valley within the Company’s ELN project. Government geologists collected mineralised samples from outcropping veins and scree near to the interpreted Noa Pluton. Selected highlights are presented in Table 1 below.
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Table 1: Selected antimony and gold results from 2008 GEUS fieldwork |
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Sample # |
Sb (%) |
Au (g/t) |
Field description |
|
469506 |
23.40 |
0.00 |
Quartz vein with stibnite. Sample from boulder or scree |
|
496901 |
22.20 |
0.44 |
Massive stibnite from mineralised zone |
|
496918 |
15.10 |
0.54 |
Quartz vein + galena + chalcopyrite |
|
469504 |
6.65 |
0.83 |
Shale with stibnite |
|
496912 |
0.10 |
4.10 |
Clay alteration: hanging wall |
|
496904 |
0.11 |
4.70 |
Clay alteration: footwall |
|
496910 |
0.04 |
2.20 |
Intense clay alteration |
These newly released results conform with previously released historical results from the Noa Dal area (previously reported in ASX announcement dated 10 July 2023).
GEOLOGICAL SIGNIFICANCE OF ANTIMONY
GreenX is targeting Reduced Intrusion-related Gold Systems (RIRGS) at ELN. The hypothesised blind-to-the-surface Noa Pluton forms the basis for the RIRGS exploration model. Antimony-gold veins at surface were considered to be supporting evidence for RIRGS at ELN. With the favourable shift in the antimony market, the outcropping veins have become a potentially viable and attractive target.
The antimony-gold mineralisation at ELN could be analogous to Perpetua Resources’ Stibnite Gold Project in Idaho, USA. There, RIRGS and orogenic gold mineralisation styles overprint each other. Prior to the RIRGS model at ELN, the gold-bearing veins at Noa Dal were thought to be of orogenic origin. It is relatively common in gold deposits which are proximal to intrusions to feature characteristics of RIRGS and orogenic gold mineralisation styles.
The scale and potential of the antimony-gold veins will be evaluated with a follow-up investigation in the next phase of fieldwork.
GEUS is in the process of releasing results from regional mapping and sampling surveys from field seasons in 2022 and 2023 across East Greenland. GreenX plans to use the soon-to-be-released data as part of ongoing evaluation of the antimony and gold potential at ELN and the region.
Given recent developments in the antimony market, GreenX’s exploration strategy at the ELN project in East Greenland will continue with a renewed focus on the known Sb-Au mineral systems at the Noa pluton.
ENQUIRIES
Ben Stoikovich Sapan Ghai
Chief Executive Officer Business Development
+44 207 478 3900 +44 207 478 3900
-ENDS-
COMPETENT PERSONS STATEMENT
Information in this announcement that relates to Exploration Results is based on information compiled by Mr Joel Burkin, a Competent Person who is a member of the Australian Institute of Geoscientists. Mr Burkin is a consultant engaged by GreenX. Mr Burkin 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 Burkin consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.
FORWARD LOOKING STATEMENTS
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 GreenX’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 GreenX, 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. GreenX 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.
Sources:
1 Source: SP Angel 22/11/24 & Asianmetals.com
2 Previously reported – refer to ASX announcement dated 10 July 2023
3 https://chemical.chemlinked.com/news/chemical-news/china-restricts-export-of-antimony-and-related-products
4 https://www.fortunebusinessinsights.com/antimony-market-104295
Appendix 1: Exploration results and JORC Tables
Table 1: Historical GEUS rock samples from 2008
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Sample ID |
Easting |
Northing |
Sb (ppm) |
Au (g/t) |
Field Description |
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469501 |
-25.0093 |
73.29184 |
85,100 |
0 |
Silicified quartzite with stibnite |
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469502 |
-25.0078 |
73.29173 |
39,600 |
0.55 |
Silicified quartzite with stibnite |
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469503 |
-25.0054 |
73.29182 |
96,500 |
0 |
Silicified quartzite with stibnite |
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469504 |
-24.9471 |
73.2908 |
66,500 |
0.83 |
Shale with stibnite |
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469505 |
-25.0675 |
73.30148 |
129,000 |
0 |
Quartzite with stibnite |
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469506 |
-25.0675 |
73.30148 |
234,000 |
0 |
Vein quartz with stibnite, Sample from boulder or scree |
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469507 |
-25.0669 |
73.30519 |
987 |
Vein quartz with galena and chalcopyrite |
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469508 |
-24.925 |
73.29301 |
577 |
Silicified limestone breccia |
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496901 |
-25.0063 |
73.29178 |
222,000 |
0.44 |
Massive stibnite from mineralised zone |
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496902 |
-25.0063 |
73.29178 |
50,900 |
0 |
Quartzite breccia + stibnite |
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496903 |
-25.0015 |
73.28947 |
274 |
Footwall quartzite |
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496904 |
-25.0064 |
73.29182 |
1,130 |
4.7 |
Clay alteration: footwall |
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496905 |
-25.0063 |
73.29178 |
451 |
1.1 |
Clay alteration: footwall |
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496906 |
-25.0063 |
73.29178 |
184 |
0.07 |
Quartzite breccia |
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496907 |
-25.0062 |
73.29173 |
62 |
0 |
Quartzite breccia + stibnite |
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496908 |
-25.0061 |
73.29168 |
78 |
2 |
Stibnite-rich breccia + heavy alteration |
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496909 |
-25.0062 |
73.29166 |
143 |
2.4 |
Clay alteration: hanging wall |
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496910 |
-25.0064 |
73.29171 |
383 |
2.2 |
Intense clay alteration: hanging wall |
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496911 |
-25.0065 |
73.29166 |
58 |
0.18 |
Quartzite hanging wall |
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496912 |
-25.0075 |
73.29166 |
1,080 |
4.1 |
Clay alteration: hanging wall |
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496913 |
-24.9465 |
73.29073 |
1,180 |
4 |
Quartzite breccia + alteration |
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496914 |
-24.9471 |
73.29088 |
267 |
0.28 |
Quartzite breccia + quartz-veining |
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496915 |
-24.947 |
73.29084 |
65,100 |
0.66 |
Quartzite breccia + stibnite |
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496916 |
-24.9474 |
73.29085 |
63,700 |
0.65 |
Wall rock quartzite |
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496917 |
-25.0657 |
73.30175 |
10,000 |
Stibnite-rich breccia in quartzite. Sample from boulder or scree |
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|
496918 |
-25.0658 |
73.30178 |
151,000 |
0.54 |
Quartz-vein + galena + chalcopyrite |
Note: Coordinates are in WGS 84 decimal degree format.
10,000ppm = 1%
JORC Code, 2012 Edition – Table 1 Report
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
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Criteria |
JORC Code explanation |
Commentary |
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Sampling techniques |
Nature and quality of sampling (eg 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. |
GEUS collected grab samples of in situ and loose rocks. |
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Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. |
No QAQC was reported. |
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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 (eg ‘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 (eg submarine nodules) may warrant disclosure of detailed information. |
Work was not conducted to modern industry standards. |
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Drilling techniques |
Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg 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). |
N/A |
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Drill sample recovery |
Method of recording and assessing core and chip sample recoveries and results assessed.
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N/A |
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Measures taken to maximise sample recovery and ensure representative nature of the samples. |
N/A |
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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. |
N/A |
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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. |
Rock grab samples were described in the field and are not used in any estimates or studies. |
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Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. |
The logging of rock grab samples was qualitative/descriptive in nature. If photos of the samples exist, they have not been released by GEUS. |
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The total length and percentage of the relevant intersections logged. |
N/A |
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Sub-sampling techniques and sample preparation |
If core, whether cut or sawn and whether quarter, half or all core taken. |
N/A |
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If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. |
N/A |
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For all sample types, the nature, quality and appropriateness of the sample preparation technique. |
N/A |
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Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. |
N/A
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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. |
N/A |
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Whether sample sizes are appropriate to the grain size of the material being sampled. |
N/A |
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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. |
All samples are historical in nature and do not comply with modern QAQC protocols. |
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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. |
N/A |
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Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established. |
N/A |
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Verification of sampling and assaying |
The verification of significant intersections by either independent or alternative company personnel.
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No verification carried out. |
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The use of twinned holes. |
N/A |
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Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. |
N/A |
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Discuss any adjustment to assay data. |
N/A |
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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. |
Location of samples was collected with a handheld GPS unit. No Mineral Resource estimate is given. |
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Specification of the grid system used. |
Location data is provided in the World Geodetic System 1984 (WGS 84) in decimal degrees. |
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Quality and adequacy of topographic control. |
N/A |
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Data spacing and distribution |
Data spacing for reporting of Exploration Results. |
The samples GEUS collected in 2008 are select rock grab samples. They did not attempt to collect data at regular spacings. |
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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. |
N/A |
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Whether sample compositing has been applied. |
N/A |
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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. |
The grab samples are point data and were likely collected biased to visible mineralisation. They were collected within and adjacent to mineralised veins and fault structures. |
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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. |
No sampling bias. |
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Sample security |
The measures taken to ensure sample security. |
The practices of GEUS in 2008 are unknown to GreenX, but are not considered material for the present potential of Eleonore North. |
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Audits or reviews |
The results of any audits or reviews of sampling techniques and data. |
GreenX is unaware if any audits or reviews were performed but has no concerns about their absence. |
Section 2 Reporting of Exploration Results
(Criteria in the preceding section also apply to this section.)
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Criteria |
JORC Code explanation |
Commentary |
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Mineral tenement and 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 environmental settings. |
The Eleonore North Project is a result of a scientific and systematic reduction of Greenfield Exploration’s (GEX) ‘Frontier’ Project. Eleonore North comprises two Exploration Licences (MEL2023-39 and MEL 2018-19). The combined spatial area of licences is 1,220.81 km2. The boundaries of Eleonore North Project are defined by the points:
MEL2023-39 (two polygons: 1,189.77 km2) 73.98333 °N 25.30000 °W 73.98333 °N 25.13333 °W 73.95000 °N 25.13333 °W 73.95000 °N 25.01667 °W 73.91667 °N 25.01667 °W 73.91667 °N 24.86667 °W 73.88333 °N 24.86667 °W 73.88333 °N 24.51667 °W 73.86667 °N 24.51667 °W 73.86667 °N 24.48333 °W 73.85000 °N 24.48333 °W 73.85000 °N 24.43333 °W 73.70000 °N 24.43333 °W 73.70000 °N 24.48333 °W 73.68333 °N 24.48333 °W 73.68333 °N 25.01667 °W 73.70000 °N 25.01667 °W 73.70000 °N 25.05000 °W 73.71667 °N 25.05000 °W 73.71667 °N 25.08333 °W 73.73333 °N 25.08333 °W 73.73333 °N 25.21667 °W 73.75000 °N 25.21667 °W 73.75000 °N 25.26667 °W 73.76667 °N 25.26667 °W 73.76667 °N 25.33333 °W 73.78333 °N 25.33333 °W 73.78333 °N 25.38333 °W 73.80000 °N 25.38333 °W 73.80000 °N 25.48333 °W 73.91667 °N 25.48333 °W 73.91667 °N 25.25000 °W 73.95000 °N 25.25000 °W 73.95000 °N 25.30000 °W
73.41667 °N 25.31667 °W 73.41667 °N 25.03333 °W 73.43333 °N 25.03333 °W 73.43333 °N 24.60000 °W 73.23333 °N 24.60000 °W 73.23333 °N 25.60000 °W 73.26667 °N 25.60000 °W 73.26667 °N 25.53333 °W 73.30000 °N 25.53333 °W 73.30000 °N 25.45000 °W 73.31667 °N 25.45000 °W 73.31667 °N 25.31667 °W
MEL 2018-19 (two polygons: 31.04 km2) 73.16667 °N 25.11667 °W 73.16667 °N 25.01667 °W 73.15000 °N 25.01667 °W 73.15000 °N 25.05000 °W 73.13333 °N 25.05000 °W 73.13333 °N 25.15000 °W 73.15000 °N 25.15000 °W 73.15000 °N 25.11667 °W
73.23333 °N 25.05000 °W 73.23333 °N 24.76667 °W 73.21667 °N 24.76667 °W 73.21667 °N 25.01667 °W 73.20000 °N 25.01667 °W 73.20000 °N 25.05000 °W The licences are currently in credit due to previous expenditure. Expenditure above the minimum regulatory requirement is carried forward for a maximum of three years. Eleonore North is in good standing and GreenX owns 100% of the licences following conclusion of a revised option agreement as announced on 15 July 2024..
GreenX will issue a 1.5% NSR for Eleonore North. |
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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 licences are in good standing. |
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Exploration done by other parties |
Acknowledgment and appraisal of exploration by other parties. |
1953 – lead, copper and zinc bearing veins were discovered in Noa Valley as part of a regional mapping program by Nordisk Mineselskab A/G (‘Nordisk’).
1974 – 1976: Nordisk mapped the Holmesø copper-antimony prospect in Brogetdal, Strindbergland. Geophysical surveying was performed. The outcropping mineralisation was blasted a 100kg bulk sample was retrieved, of which 35kg was sent for analysis. Finally, an attempt was made to drill the mineralisation, and only the top 1.4m of a targeted 17m mineralised horizon was sampled before the rig broke down. Nordisk concluded that the Holmesø mineralisation is epigenetic.
1981 – 1983: Nordisk discovered the two small, high-grade tungsten and antimony-tungsten deposits on Ymer Island. These are respectively known as South Margeries Dal and North Margeries Dal. These deposits were drilled Historical Estimates were made. Economic studies were performed but concluded that more mineralised material was needed. The drilled mineralisation is open at depth and along strike. The historical work on the tungsten and antimony is not material to the understanding of the project’s gold potential.
1984 – 1986: As part of Nordisk’s search for more tungsten mineralisation, a large gold bearing vein was discovered in the southern cliff face of Noa Valley. The mineralisation in the scree was sampled. Geochemical sampling was also performed which identified a 10 to 15 km long multielement anomaly dominated by arsenic and antimony, which have a positive correlation with gold. Nordisk had a strategic shift towards petroleum exploration after this point in time.
1992: With the demise of Nordisk in 1991, the Greenland state owned enterprise, NunaOil A/S in collaboration with Australia’s Pasminco Ltd did additional sampling of the Noa gold veins. The program was successful in finding additional veins in the valley floor and extending the known mineralisation. However, the corporate mandate was for ‘high grade gold’ which it was unsuccessful in locating. This result is unsurprising given that the veins are above the hornfels and correspondingly yield high-grade antimony and low-gold content. GEX expects the gold content to increase, and antimony to decrease at depth towards the causative pluton.
2008 – 2009: GEUS visited Ymer Island and took various rock grab samples in the Noa Dal area. Assay results from these samples were recently made publicly available on the Greenland Portal.
2009: NunaMinerals A/S, a public-private spinout from NunaOil A/S, conducted a heliborne magnetic survey over Margeries Valley and Noa Valley. The purpose of this survey was to directly detect tungsten, and antimony deposits. Neither of the known deposits were detectable using this method, however a distinct circular magnetic feature was identified in Noa Valley. This magnetic feature was interpreted to be a granitic/intermediate intrusion. During this time, samples from the South Margeries Dal deposit were sent for metallurgical analysis, which determined that the material was potentially suited to direct-shipping-ore, and amendable to basic beneficiation methods.
2011: Avannaa Resources Ltd (‘Avannaa’) conducted a basin-wide helicopter supported reconnaissance program. This included visits to the Holmesø mineralisation. Avannaa concluded that the Holmesø mineralisation was epigenetic and likely related to the mineralisation observed on Ymer Island.
2018-2019: Independence Group Ltd (subsequently rebranded as IGO Ltd (‘IGO’) through a joint-venture agreement with GEX, conducted three field programs that were focussed on the sedimentary-hosted copper deposit model. During this time, IGO managed all geological aspects of the program while GEX managed the logistics in 2018 and 2019. IGO visited Noa Valley in 2018 and 2019 but focussed on the north slope away from Noa Pluton, and on areas typified by magnetic highs rather than the lows which define Noa Pluton’s circular magnetic signature. Despite this, quartzite mineralisation reminiscent of Holmesø was identified but no mineralogy is recorded in the documentation. While in the field with IGO in 2019, GEX alerted IGO to the presence of antimony and gold in the south side of the valley, but no commensurate sampling was performed. During the IGO earn-in period, GEX located the historical drillhole collars at North and South Margeries Dal tungsten/antimony deposits.
The Holmesø prospect was visited by IGO in 2018, 2019 and 2022. IGO’s Holmesø sampling did not replicate Nordisk’s high-grade blast/bulk sample, or the drill results. Regional sampling identified diagenetic copper, as well as remobilised epigentic copper that expresses as course blebs of chalcocite within porous, bed-cutting, vuggy conduits.
2022: IGO conducted a structural and geochemical sampling program in Strindbergland (no activity on Ymer Island). This program correctly concluded that the ‘sediment-hosted copper deposit model’ is not a suitable analogy. IGO returned to GEX the licences that were in good standing, with the indebted licences being relinquished by IGO. The remaining licences became the ‘Eleonore North’ project, which is a subset of the original ‘Frontier’ project area.
2023: In May, GEX installed an array of passive seismic nodes on Ymer Island within the licence area. Passive seismic nodes record ambient noise in the crust and accumulate data over many weeks. In September 2023, GEX collected the nodes from Ymer Island. The nodes were returned to the Institute of Mine Seismology (IMS) for data download and processing. IMS produced a 3D velocity model. |
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Geology |
Deposit type, geological setting and style of mineralisation. |
Eleonore North licences, for the most part, cover Neoproterozoic-aged sediments belonging to the Eleonore Bay Supergroup. These sediments trend from clastics up to carbonates. The lithology of the sediments is not a primary consideration in the targeting of reduced intrusion related gold systems. These sediments are intruded by granites and intermediate intrusives that are somewhat shallowly sourced due the Caledonian Orogenic event. However, geochronology of the South Margeries Dal tungsten indicates that post-orogenic fluid flow occurred. Post-orogenic granitic intrusions are consistent with RIRGS mineralisation, as the decompression allows for the fluidisation of gold in the mantle while providing conduits to surface. Elsewhere, such post-orogenic emplacement is associated with deeply sourced lamprophyres, like those mapped in Noa Valley and Brogetdal. GEX identified for the first time, that ~373 Ma post-orogenic mineralisation event is related to the 385 Ma Kiffaanngissuseq hydrothermal event some 1,000 km to the north. In the north at Kiffaanngissuseq the post-orogenic event was characterised by an east-west fluid flow. In the south in the Frontier region that hosts Elenore North, the post orogenic event was dominated by magmatic intrusions and little hydrothermal activity. Separating the two areas is the poorly understood, high-metamorphic grade Eclogite Province where peak metamorphism is of similar age to the Frontier and Kiffaanngissuseq processes. |
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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 northing 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 hole length. |
No drilling is reported with these results. |
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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 was excluded from the announcement. |
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Data aggregation methods |
In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. |
No data aggregation has been undertaken. |
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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 has been undertaken. |
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The assumptions used for any reporting of metal equivalent values should be clearly stated. |
No metal equivalent results have been reported. |
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Relationship between mineralisation widths and intercept lengths |
These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. |
No drilling is reported with these results. The reported results are grab samples from within or adjacent to mineralised veins and structures. They do not characterise the geometry of the mineralisation. |
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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 (eg ‘down hole length, true width not known’). |
N/A |
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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 drill hole collar locations and appropriate sectional views. |
Appropriate maps and tables are included in the main body of this announcement. |
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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 reported in Appendix 1: Table 1. |
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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. |
All substantive data are reported. |
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Further work |
The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). |
In Noa Valley, the target pluton(s) is constrained by seismic, magnetic and geochemical data. The depth to the pluton is thought to be around 150m below surface based on the seismic results. Field confirmation of potential host structures is warranted ahead of a subsequent drilling program. Future fieldwork will be planned and/or undertaken in conjunction with expert consultant(s).
At the South and North Margeries Dal prospects, a higher resolution digital terrain model should be obtained prior to generating Exploration Targets based on the historical drilling.
Bulk sampling at the prospects will also be considered. |
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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. |
These diagrams are included in the main body of this release. |
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#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.
#SVML Sovereign Metals – Issue of Equity on Exercise of Unlisted Options
Sovereign Metals Limited (Sovereign or the Company) (ASX:SVM, AIM:SVML) advises that it has issued 150,000 fully paid ordinary shares (Shares) upon the exercise of 150,000 unlisted options exercisable at A$0.18 each on or before 30 June 2022.
An application will be made for the Shares to be admitted to trading on AIM (Admission) and it is expected that Admission will become effective on or around 13 July 2022.
Total Voting Rights
For the purposes of the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules (DTRs), following Admission of the Shares, Sovereign will have 470,875,023 Ordinary Shares in issue with voting rights attached. The figure of 470,875,023 may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company, under the ASX Listing Rules or the DTRs.
Following the issue of Shares, Sovereign has the following securities on issue:
· 470,875,023 ordinary fully paid ordinary shares;
· 11,105,125 unlisted options exercisable at A$0.80 each on or before 13 May 2023;
· 5,120,000 performance rights subject to the “Feasibility Study Milestone” expiring on or before 31 December 2023; and
· 7,320,000 performance rights subject to the “Decision to Mine Milestone” expiring on or before 31 October 2025.
ENQUIRIES
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Dr Julian Stephens (Perth) +61(8) 9322 6322 |
Sam Cordin (Perth) |
Sapan Ghai (London)
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Nominated Adviser on AIM |
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RFC Ambrian |
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Bhavesh Patel / Andrew Thomson |
+44 20 3440 6800 |
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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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Optiva Securities |
+44 20 3137 1902 |
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Daniel Ingram |
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Mariela Jaho |
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Christian Dennis |
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#SVML Sovereign Metals – Offtake & Marketing Alliance with Japanese Trader
RUTILE OFFTAKE AND MARKETING ALLIANCE WITH MAJOR JAPANESE TRADING HOUSE
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MoU signed with global trading and investment firm for rutile offtake, marketing and product development for the Kasiya Rutile Project |
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MoU covers offtake and marketing rights for 30,000 tonnes per annum of natural rutile from Kasiya |
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Marketing alliance will focus on Asia, a key and established growth market for high-grade titanium feedstocks |
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Key Asian customers have confirmed premium chemical parameters of Kasiya’s natural rutile as part of product quality assessments |
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Asian titanium metal producers have confirmed the suitability of the Kasiya rutile product |
Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is pleased to announce that it has entered into a non-binding Memorandum of Understanding (MoU) with Mitsui & Co Ltd (Mitsui), one of the largest global trading and investment companies in Japan. The MoU establishes a marketing alliance and offtake for 30,000 tonnes of natural rutile per annum from the Company’s world-class Kasiya Rutile Project (Kasiya) in Malawi.
This MoU creates a marketing alliance between the two parties to jointly market Sovereign’s rutile across Asia and other markets. The alliance will allow Sovereign to leverage off Mitsui’s extensive network and their market-leading understanding of the titanium industry and global logistics.
Mitsui has shared samples of rutile product from Kasiya with Asian end-users that have confirmed its premium chemical specifications should be suitable for use in their titanium sponge and pigment processes, as a precursor for high-grade, high-specification titanium metal and pigment production.
Sovereign’s Managing Director, Dr Julian Stephens commented: “The Asia region is a key natural rutile market with all major end-use sectors well established and further strong growth forecast. We expect expanding technology developments and increasing environmental awareness to drive greater demand for natural rutile. This marketing alliance with a very high-calibre partner in Mitsui will assist Sovereign to penetrate these ever-growing markets.
The MoU is non-exclusive and non-binding with no pricing terms which remains subject to negotiation and execution of a definitive agreement. The MoU will expire on 31 December 2023 but can be extended by agreement by both parties should a definitive agreement not have been reached by that time.
ENQUIRIES
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Dr Julian Stephens (Perth) +61(8) 9322 6322 |
Sam Cordin (Perth) |
Sapan Ghai (London)
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Nominated Adviser on AIM |
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RFC Ambrian |
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Bhavesh Patel / Andrew Thomson |
+44 20 3440 6800 |
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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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Optiva Securities |
+44 20 3137 1902 |
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Daniel Ingram |
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Mariela Jaho |
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Christian Dennis |
Airbus seeks titanium sources beyond Russia to safeguard production ramp-up – Sovereign Metals #SVML
Airbus SE is searching for alternative sources of titanium to ensure a lack of access to the lightweight metal doesn’t interfere with the planemaker’s plan to increase production.
The planned ramp-up to a rate of 65 A320-family narrow-bodies per month by mid-2023 is the number one priority for the group, European sales chief Wouter Van Wersch said in an interview. Airbus relies on Russia for about half its supply, creating the potential for disruption if shipments are interrupted.
“We are looking into it very closely to see how we can ensure it doesn’t impact our supply chain and our ramp-up,” Van Wersch said on the sidelines of the Airlines for Europe meeting in Brussels. “For now, there’s no issue.”
Link here to full Mining.com story (Sovereign Metals #SVML)
This Is Money – SMALL CAP SHARE IDEAS: Sovereign Metals owns potentially the largest rutile deposit in the world
In fact, it could have the largest rutile deposit anywhere in the world, if the results of ongoing exploration work go its way.
For anyone not familiar, rutile is a significant source of titanium, a metal widely used in aerospace, clean-tech and medical applications, but which is mainly an essential component in paint pigments.
You can get titanium from ilmenite too, and in some cases rutile and ilmenite are found together.
But the kicker is that it’s much more carbon and energy intensive to extract titanium from ilmenite than it is to extract it from rutile.
In other words, rutile is a big tick in the green energy box..
Link here to read the full This Is Money article
#SVML Sovereign Metals – Sovereign Joins UK Critical Minerals Association
SOVEREIGN JOINS UK CRITICAL MINERALS ASSOCIATION
TITANIUM METAL MARKETS CONTINUE TO SEE TIGHTENING SUPPLY
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Sovereign has become a member of the UK’s Critical Minerals Association which works to increase the self-sufficiency of supply chains for the UK’s industrial strategy |
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Discussions with governmental groups are ongoing as Sovereign’s Chairman attended the UK Government’s Critical Minerals Strategy Roundtable |
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Sovereign’s Kasiya project in Malawi will produce rutile – the purest natural source of titanium, and natural graphite as a by-product – both designated Critical Raw Materials for the US and the EU |
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Importance of robust supply chains and security of supply for titanium metal and feedstocks highlighted by recent instability in Eastern Europe |
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Rutile market fundamentals including current and forecast pricing remaining very strong |
Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is pleased to announce that it has become a member of the UK’s Critical Minerals Association (CMA). Sovereign’s Kasiya Rutile Project (Kasiya) is the world’s largest undeveloped rutile deposit, the purest natural form of titanium, as well as containing a natural graphite by-product. Titanium and natural graphite have already been identified as Critical Raw Materials by the United States, the European Union and Australia.
Recent developments in Eastern Europe have highlighted the importance of robust supply chains and security of supply for critical raw materials. Sovereign’s membership of the CMA is part of the Company’s ambition of supporting sustainable, socially responsible, and environmentally beneficial supply of natural rutile and natural graphite. With an urgency to identify new sources of critical minerals, the CMA’s objectives include increasing the self-sufficiency of supply chains for the UK’s low-carbon, sustainability-driven industrial strategy. To this end, the CMA will provide a direct line of communication between Industry and Government.
Last week, Sovereign’s Chairman Ben Stoikovich attended the Critical Minerals Strategy Roundtable held by the UK’s Department for Business, Energy and Industrial Strategy. Sovereign’s attendance follows a number of discussions between the Company and the UK’s Department of International Trade focussing on Sovereign’s potential to supply high purity titanium feedstocks and natural graphite as critical raw materials required by the UK. .
Sovereign’s Chairman Ben Stoikovich commented: “The world’s economies are rightly focusing on developing sustainable and secure supply chains of raw materials deemed critical based on their economic, environmental, and social importance. In this regard, Sovereign’s Kasiya project in Malawi is well positioned to potentially supply two critical raw materials to economies across the globe over several decades.”
ENQUIRIES
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Dr Julian Stephens (Perth) +61(8) 9322 6322 |
Sam Cordin (Perth) |
Sapan Ghai (London)
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Nominated Adviser on AIM |
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RFC Ambrian |
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Bhavesh Patel / Andrew Thomson |
+44 20 3440 6800 |
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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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Varun Talwar |
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Optiva Securities |
+44 20 3137 1902 |
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Daniel Ingrams |
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Mariela Jaho |
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Christian Dennis |
#SVML Sovereign Metals – Spott Equity Research Report
Today’s news that Sovereign has secured a 25ktpa (20% of total 122ktpa) premium priced offtake into the welding sector is a great positive as most rutile globally normally goes into pigment with a preference for >75µm material. Key here is that Sovereign’s rutile is among the coarsest globally with d50 of 118µm (~same as Rio / Tronox African ops and much larger than Australian developers), including 94% > 75um. With 28% <150µm, this is saleable into pigment but wouldn’t typically attract a premium—unlike today’s deal. Looking ahead, investors should see MRE coming close to doubling soon as Nsaru ‘next one’ sees maiden resource, followed by a scoping study update. Better still, Sovereign remains a massively high conviction ESG name here not the least given they have 80ktpa graphite byproduct to come. As such, we maintain our BUY rating and our A$1.40/sh PT based on a 0.5xNAV multiple for Kasiya. Our estimates for a fully-funded and fully-diluted NAV at first production of ~A$2.75/sh demonstrate the upside here. That this asset is so far ahead of not just low-value or politically difficult peers, as well as producing assets in Africa, adds a valuable M&A angle. The key to our investment thesis is that investors are exposed to resource growth while this is underway, starting with a 1H22 maiden Nsaru MRE and revised scoping study around mid year.
Premium pricing offtake to welding supply company secured for 25ktpa (20% of total 122ktpa)
Sovereign has signed a Memorandum of Understanding (MoU) for offtake of 25,000tpa of natural rutile (vs. high CO2 synthetic rutile converted from ilmenite by the likes of Rio) to Hascor International Group™, a globally leading distributor to the welding industry. Rutile for the welding industry typically attracts a premium to pigment sales. Sovereign notes bagged rutile’s sales are expected to be priced at a US$500- 600/tonne premium over the bulk market in 2022, leading price growth due to limited alternatives within the welding end-use sector.
Why we like Sovereign Metals
1. Existing 605Mt @ 0.98% rutile comes from just 49km2 of Kasiya
2. Kasiya drilling over 89km2 plus 40km2 at Nsaru points to >1Bt global potential
3. Pure rutile + graphite credits lowers CO2 and adds EV credits addressing ESG agenda
4. On hydropower, hydro mineable, on modern rail to deep-water port with allocation
5. PFS-level Malingunde graphite project adds diversification and second pillar to value
Catalysts
1. 1Q22: Nsaru MRE
2. Mid 2022: Expanded PEA to including Nsaru
3. 2022: Ore to pigment CO2 study
Research
Brock Salier (London) M: +44 7400 666 913 bsalier@sprott.com
Justin Chan (London) M: +44 7554 784 688 jchan@sprott.com
Brandon Gaspar (Toronto) M: +1 437 533 3142 bgaspar@sprott.com
Eleanor Magdzinski (Toronto) M: +1 705 669 7456 emagdzinski@sprott.com
