Last checked at 27 Mar 2024 07:00
NEWS RELEASE I 27 MARCH 2024
FOLLOW-UP DRILLING INITIATED NORTH OF KASIYA RESOURCE AREA
· Wide-spaced regional follow-up drilling for the Kasiya Project underway focusing on the region to the north of the current resource footprint, with results from the drill program expected in the coming weeks
· Recently reported reconnaissance drilling to the south identified an 8km extension of mineralisation which remains open along strike and at depth
· Kasiya is already the largest natural rutile deposit and second-largest flake graphite deposit in the world
· Kasiya's current MRE of 1.8 Billion tonnes at 1.0% rutile and 1.4% graphite comprises broad and contiguous zones of high-grade rutile and graphite that occur across an area of over 201km2
· Optimisation program for the Kasiya Project continues in conjunction with our strategic investor, Rio Tinto
Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is pleased to report that the Company has initiated a follow-up 400 metre spaced drill program at its tier one Kasiya Rutile-Graphite Project (Kasiya) in Malawi. The program will focus on determining the boundaries and extent of mineralisation north of the known Mineral Resource Estimate (MRE) area.
The 70+ hole hand-auger drill program has been designed to target areas where mineralisation was identified in earlier wide-spaced regional hand-auger drilling. The target area is up to 20km north of the current MRE boundary. Drilling is currently underway and will be completed in the coming weeks. Four hand-auger teams have been deployed under the supervision of Sovereign's in-country technical team.
Samples will be initially processed in the Company's Lilongwe own lab facility and then shipped for final analysis at certified international laboratories. Results from the drill program are expected in the coming weeks.
SOUTHERN EXTENSION
In February 2024, the Company announced regional hand-auger drilling south of the Kasiya MRE footprint had identified significant strike extensions of approximately 8km across a number of parallel mineralised zones ranging from 400m to 2km in width.
All newly defined mineralisation in the south remains open at depth due to the limitations of the hand-auger drilling method but are expected to continue to the saprock boundary normally between 20 and 30 vertical metres from surface. The multiple mineralised zones identified remain open along strike both to the north and south.
These results indicate the potential to expand the already significant, high-grade rutile and graphite MRE at Kasiya.
Figure 1: Southern mineralised extensions at Kasiya
ENQUIRIES
Frank Eagar (South Africa/Malawi)Managing Director +61(8) 9322 6322 | Sam Cordin (Perth)+61(8) 9322 6322 | Sapan Ghai (London)+44 207 478 3900
|
Nominated Adviser on AIM and Joint Broker |
|
SP Angel Corporate Finance LLP | +44 20 3470 0470 |
Ewan Leggat Charlie Bouverat Harry Davies-Ball | |
|
|
Joint Brokers |
|
Stifel | +44 20 7710 7600 |
Varun Talwar |
|
Ashton Clanfield |
|
|
|
Berenberg | +44 20 3207 7800 |
Matthew Armitt |
|
Jennifer Lee |
|
|
|
Buchanan | + 44 20 7466 5000 |
Competent Person Statement
The information in this announcement that relates to the Exploration Results is extracted from the announcement dated 1 February 2024 entitled 'Extensions to Rutile & Graphite Mineralisation at Kasiya'. which is available to view at www.sovereignmetals.com.au. Sovereign confirms that a) it is not aware of any new information or data that materially affects the information included in the original announcement; b) all material assumptions included in the original announcement continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons' findings are presented in this announcement have not been materially changed from the original announcement.
The information in this announcement that relates to the Mineral Resource Estimate is extracted from an announcement dated 5 April 2023 entitled 'Kasiya Indicated Resource Increased by over 80%' which is available to view at www.sovereignmetals.com.au and is based on, and fairly represents information compiled by Mr Richard Stockwell, a Competent Person, who is a fellow of the Australian Institute of Geoscientists (AIG). Mr Stockwell is a principal of Placer Consulting Pty Ltd, an independent consulting company. The original announcement is available to view on www.sovereignmetals.com.au. Sovereign confirms that a) it is not aware of any new information or data that materially affects the information included in the original announcement; b) all material assumptions included in the original announcement continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons' findings are presented in this announcement have not been materially changed from the original announcement.
The information in this announcement that relates to Production Targets, Ore Reserves, Processing, Infrastructure and Capital Operating Costs, Metallurgy (rutile and graphite) is extracted from an announcement dated 28 September 2023 entitled 'Kasiya Pre-Feasibility Study Results' which is available to view at www.sovereignmetals.com.au and is based on, and fairly represents information compiled by . Sovereign confirms that: a) it is not aware of any new information or data that materially affects the information included in the original announcement; b) all material assumptions and technical parameters underpinning the Production Target, and related forecast financial information derived from the Production Target included in the original announcement continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons' findings are presented in this presentation have not been materially modified from the original announcement.
Ore Reserve for the Kasiya Deposit |
| ||||||
Classification | Tonnes(Mt) | Rutile Grade(%) | Contained Rutile(Mt) | Graphite Grade (TGC) (%) | Contained Graphite(Mt) | RutEq. Grade* (%) | |
Proved | - | - | - | - | - | - | |
Probable | 538 | 1.03% | 5.5 | 1.66% | 8.9 | 2.00% | |
Total | 538 | 1.03% | 5.5 | 1.66% | 8.9 | 2.00% | |
* RutEq. Formula: Rutile Grade x Recovery (100%) x Rutile Price (US$1,484/t) + Graphite Grade x Recovery (67.5%) x Graphite Price (US$1,290/t) / Rutile Price (US$1,484/t). All assumptions are taken from the PFS ** Any minor summation inconsistencies are due to rounding
Kasiya Total Indicated + Inferred Mineral Resource Estimate at 0.7% rutile cut-off grade | |||||
Classification | Resource(Mt) | Rutile Grade(%) | Contained Rutile(Mt) | Graphite Grade (TGC) (%) | Contained Graphite(Mt) |
Indicated | 1,200 | 1.0% | 12.2 | 1.5% | 18.0 |
Inferred | 609 | 0.9% | 5.7 | 1.1% | 6.5 |
Total | 1,809 | 1.0% | 17.9 | 1.4% | 24.4 |
Forward Looking Statement
This release may include forward-looking statements, which may be identified by words such as "expects", "anticipates", "believes", "projects", "plans", and similar expressions. These forward-looking statements are based on Sovereign's expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Sovereign, which could cause actual results to differ materially from such statements. There can be no assurance that forward-looking statements will prove to be correct. Sovereign makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.