Sovereign Metals Regulatory News (SVML)

Dr Julian Stephens (Perth)Managing Director

+61(8) 9322 6322

Sam Cordin (Perth)+61(8) 9322 6322

Sapan Ghai (London)+44 207 478 3900

Nominated Adviser on AIM

RFC Ambrian

Andrew Thomson

+61 8 9480 2500

Joint Brokers

Berenberg

+44 20 3207 7800

Matthew Armitt

Jennifer Lee

Optiva Securities

+44 20 3137 1902

Daniel Ingram

Mariela Jaho

Christian Dennis

Sampling Techniques

Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

Metallurgical Composite Sample: Graphite product test work was completed on a composited sample from raw primary 1-metre reserve material from the Kasiya Deposit.

The sample was a composite of 13 Hand Auger (HA) holes reserve material drilled in 2020 and 2021.

Samples were selected based on rutile grade, weathering, and location within pit areas 13, 15 and 16. The weathering units contributed the following percentages, SOIL/FERP 42%, MOTT 39% and PSAP 19%.

Specifically, the composite sample consisted of selected rutile mineralised zones from holes, NSHA0004, 0009, 0035, 0055, 0056, 0095, 0119, 0200, 0222, 0224, 0225, 0261 and 0262. These holes are located in the southern area of the mineralised footprint.

The reserve 1-metre raw samples were used to create a composite sample of mass circa ~237kg with a grade of 1.16% TGC modelled from the mineral resource sample assays as a weighted average.

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

Placer Consulting (Placer) Resource Geologists have reviewed Standard Operating Procedures (SOPs) for the collection of drill samples and found them to be fit for purpose.

Drilling and sampling activities are supervised by a suitably qualified Company geologist who is present at all times. All bulk 1-metre drill samples are geologically logged by the geologist at the drill site.

Each 1m of sample is dried and riffle-split to generate a total sample weight of 3kg for analysis, generally at 2 - 5m intervals. This primary sample is then split again to create a 3kg composite to provide a 1.5kg sample for both rutile and graphite analyses. The excess material is then stored as reserve.

The primary metallurgical composite sample is considered representative for this style of mineralisation.

Aspects of the determination of mineralisation that are Material to the Public Report. In cases where 'industry standard' work has been done this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.

HA drilling was used to obtain 1-metre samples. The bulk metallurgical sample was a composite of selected reserve samples from routine resource drilling.

Existing rutile exploration results were used to determine the 1-metre intervals suitable to contribute to the 237kg bulk sample composite.

Drilling Techniques

Drill type (e.g. core, reverse circulation, open‐hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face‐sampling bit or other type, whether core is oriented and if so, by what method, etc).

Placer has reviewed SOPs for HA drilling and found them to be fit for purpose.

HA drilling with 75mm diameter enclosed spiral bits (SOS) with 1-metre long steel rods and with 62mm diameter open spiral bits (SP) with 1-metre long steel rods. Drilling is oriented vertically by eye.

Each 1m of drill sample is collected into separate sample bags and set aside. The auger bits and flights are cleaned between each metre of sampling to avoid contamination.

Drill Sample Recovery

Method of recording and assessing core and chip sample recoveries and results assessed.

Samples are assessed visually for recoveries. Overall, recovery is very good. Drilling is ceased when recoveries become poor once the water table has been reached.

Measures taken to maximise sample recovery and ensure representative nature of the samples.

The Company's trained geologists supervise auger drilling on a 1 team 1 geologist basis and are responsible for monitoring all aspects of the drilling and sampling process.

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

No bias related to preferential loss or gain of different materials has occurred.

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.

All individual 1-metre auger intervals are geologically logged, recording relevant

data to a set template using company codes.

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.

All logging includes lithological features and estimates of basic mineralogy. Logging is generally qualitative.

The total length and percentage of the relevant intersection logged

100% of samples are geologically logged.

Sub-sampling techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all core taken.

Not applicable - no core drilling conducted.

If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.

Primary individual 1-metre samples from all HA holes drilled were sun dried and homogenised. The 1-metre raw sample not used in the generation of a primary assay composite are stored as reserve.

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

Metallurgical Composite Sample: 1-metre intervals selected for the 237kg metallurgical sample were divided into weathering units.

MOTT and PSAP material were combined and homogenised in preparation for dispatch to Australian laboratory Intertek for TGC assay.

Per Australian import quarantine requirements ~100kg of the contributing SOIL/FERP material from within 2m of surface was kept separate to undergo quarantine heat treatment at Intertek Laboratory on arrival into Australia.

The two sub samples (SOIL/FERP and MOTT/PSAP) were then dispatched from Intertek to AML Laboratory (AML). AML sub-sampled and assayed the individual lithologies prior to combining and homogenising the sample in preparation for test-work.

Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

The sample preparation techniques and QA/QC protocols are considered appropriate for the nature of this test-work.

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.

The sampling best represents the material in situ.

Whether sample sizes are appropriate to the grain size of the material being sampled.

The sample size is considered appropriate for the nature of the test-work.

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.

Metallurgical Composite Sample:

The following workflow was used to generate a pre-concentrate graphite feed at AML:

· Wet screen at 2mm to remove oversize

· Two stage cyclone separation at a cut size of 45µm to remove -45µm material

· Pass +45µm -2mm (sand) fraction through Up Current Classifier (UCC)

· Pass UCC O/F through cyclone at cut point of 45µm

· Pass UCC O/F cyclone U/F (fine) over MG12 Mineral Technologies Spiral

· Pass UCC U/F (coarse) over MG12 Mineral Technologies Spiral

· Spiral cons are combined for further processing.

Fine and coarse gravity tailing samples contain approximately 75%-80% of the graphite present in the feed sample. The majority of the graphite lost is contained in the -45µm fines.

Coarse and fine gravity tailings are sent to ALS for graphite flotation testwork.

The following workflow at ALS was used to generate a graphite product;

· The gravity tail from AML underwent the following processing at ALS in two differing flowsheets;

· Flowsheet 1 (ALS tests AM3358 and AM3359)

o Separate coarse and fine rougher graphite flotation

o Separate polishing grind of coarse and fine rougher graphite concentrate

o Separate cleaner flotation of coarse and fine graphite

o Cleaner concentrate sizing at 180µm

o Regrind of separate +180µm/-180µm fractions

o Separate three stage recleaner flotation of +180µm/-180µm fractions

· Flowsheet 2 (ALS tests AM3360, AM3361, AM3362 and AM3359)

o Combined coarse and fine rougher graphite flotation

o Combined polishing grind of rougher graphite concentrate

o Combined cleaner flotation

o Floatation of cleaner concentrate sizing at 180µm

o regrind of separate +180µm/-180µm fractions

o Separate three stage recleaner flotation of +180µm/-180µm fractions

The grade of the concentrate was 94.3% TGC (ALS). A 506.7 gram sample of this concentrate was provided to Dorfner Anzaplan for the downstream testwork

For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

Acceptable levels of accuracy and precision have been established. No handheld methods are used for quantitative determination.

Nature of quality control procedures adopted (e.g. standards, blanks, duplicate, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

Accuracy monitoring is achieved through submission of certified reference materials (CRM's).

Intertek uses internal CRMs and duplicates and SVM inserts randomized certified bespoke graphite CRMs at 1 in 20.

Verification of sampling & assaying

The verification of significant intersections by either independent or alternative company personnel.

No drilling intersections are being reported.

The use of twinned holes.

No twin holes complete.

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

All data was collected initially on paper logging sheets and codified to the Company's templates. This data was hand entered to spreadsheets and validated by Company geologists. This data was then imported to a Microsoft Access Database then validated automatically and manually.

Discuss any adjustment to assay data.

No adjustment to assay data has been made.

Location of data points

Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

A Trimble R2 Differential GPS was used to pick up the hand auger collars.

No downhole surveying of auger holes is completed. Given the vertical nature and shallow depths of the auger holes drill hole deviation is not considered to significantly affect the downhole location of samples.

Specification of the grid system used.

WGS84 UTM Zone 36 South.

Quality and adequacy of topographic control.

DGPS pickups are considered to be high quality topographic control measures.

Data spacing & distribution

Data spacing for reporting of Exploration Results.

Metallurgical Composite Sample: The hand-auger holes contributing to this metallurgical were selected from pit area, 13, 15 and 16 (as per the Expanded Scoping Study mine plan) and broadly represent the early years of mining.

It is deemed that these holes should be broadly representative of the

mineralisation style in the general area.

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.

Not applicable, no Mineral Resource or Ore Reserve estimations are covered by new data in this report. 

Whether sample compositing has been applied.

Metallurgical Composite Sample: Raw primary 1-metre sample reserve from 13 hand auger holes drilled for the purpose of mineral exploration have been composited together to create a circa 237kg sample for metallurgical analysis.

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

No bias attributable to orientation of sampling has been identified.

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.

All holes were drilled vertically as the nature of the mineralisation is horizontal. No bias attributable to orientation of drilling has been identified.

Sample security

The measures taken to ensure sample security

Samples were stored in secure storage from the time of drilling, through gathering, compositing and analysis. The samples were sealed as soon as site preparation was completed, and again securely stored during shipment and while at Australian laboratories.

Audits or reviews

The results of any audits or reviews of sampling techniques and data

It is considered by the Company that industry best practice methods have been employed at all stages of the exploration.

Mineral tenement & land tenure status

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environment settings.

The Company owns 100% of the following Exploration Licences (ELs) and Licence Applications (APLs) under the Mines and Minerals Act 2019, held in the Company's wholly-owned, Malawi-registered subsidiaries: EL0561, EL0492, EL0609, EL0582, EL0545, EL0528, EL0657 and APL0404.

A 5% royalty is payable to the government upon mining and a 2% of net profit royalty is payable to the original project vendor.

No significant native vegetation or reserves exist in the area. The region is intensively cultivated for agricultural crops.

The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

The tenements are in good standing and no known impediments to exploration or mining exist.

Exploration done by other parties

Acknowledgement and appraisal of exploration by other parties.

Sovereign Metals Ltd is a first-mover in the discovery and definition of residual rutile and graphite resources in Malawi. No other parties are, or have been, involved in exploration.

Geology

Deposit type, geological setting and style of mineralisation

The rutile deposit type is considered a residual placer formed by the intense weathering of rutile-rich basement paragneisses and variable enrichment by elluvial processes.

Rutile occurs in a mostly topographically flat area west of Malawi's capital, known as the Lilongwe Plain, where a deep tropical weathering profile is preserved. A typical profile from top to base is generally soil ("SOIL" 0-1m) ferruginous pedolith ("FERP", 1-4m), mottled zone ("MOTT", 4-7m), pallid saprolite ("PSAP", 7-9m), saprolite ("SAPL", 9-25m), saprock ("SAPR", 25-35m) and fresh rock ("FRESH" >35m).

The low-grade graphite mineralisation occurs as multiple bands of graphite gneisses, hosted within a broader Proterozoic paragneiss package. In the Kasiya areas specifically, the preserved weathering profile hosts significant vertical thicknesses, from near surface, of graphite mineralisation.

Drill hole information

A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: easting and northings of the drill hole collar; elevation or RL (Reduced Level-elevation above sea level in metres of the drill hole collar); dip and azimuth of the hole; down hole length and interception depth; and hole length

All intercepts relating to the Kasiya Deposit have been included in public releases during each phase of exploration and in this report. Releases included all collar and composite data and these can be viewed on the Company website.

There are no further drill hole results that are considered material to the understanding of the exploration results. Identification of the broad zone of mineralisation is made via multiple intersections of drill holes and to list them all would not give the reader any further clarification of the distribution of mineralisation throughout the deposit.

If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case

No information has been excluded.

Data aggregation methods

In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high-grades) and cut-off grades are usually Material and should be stated.

All results reported are of a length-weighted average of in-situ grades. The resource is reported at a range of bottom cut-off grades in recognition that optimisation and financial assessment is outstanding.

A nominal bottom cut of 0.7% rutile is offered, based on preliminary assessment of resource product value and anticipated cost of operations.

Where aggregate intercepts incorporate short lengths of high-grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

No data aggregation was required.

The assumptions used for any reporting of metal equivalent values should be clearly stated.

Not applicable

Relationship between mineralisation widths & intercept lengths

These relationships are particularly important in the reporting of Exploration Results.

The mineralisation has been released by weathering of the underlying, layered gneissic bedrock that broadly trends NE-SW at Kasiya North and N-S at Kasiya South. It lies in a laterally extensive superficial blanket with high-grade zones reflecting the broad bedrock strike orientation of ~045° in the North of Kasiya and 360° in the South of Kasiya.

If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

The mineralisation is laterally extensive where the entire weathering profile is preserved and not significantly eroded. Minor removal of the mineralised profile has occurred in alluvial channels. These areas are adequately defined by the drilling pattern and topographical control for the resource estimate.

If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. 'down hole length, true width not known'.

Downhole widths approximate true widths limited to the sample intervals applied. Mineralisation remains open at depth and in areas coincident with high-rutile grade lithologies in basement rocks, is increasing with depth. Graphite results are approximate true width as defined by the sample interval and typically increase with depth.

Diagrams

Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of the drill collar locations and appropriate sectional views.

Refer to figures in previous releases. These are accessible on the Company's webpage.

Balanced reporting

Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high-grades and/or widths should be practiced to avoid misleading reporting of exploration results.

All results are included in this report and in previous releases. These are accessible on the Company's webpage.

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.

Limited lateritic duricrust has been variably developed at Kasiya, as is customary in tropical highland areas subjected to seasonal wet/dry cycles. Lithological logs record drilling refusal in just under 2% of the HA/PT drill database, No drilling refusal was recorded above the saprock interface by AC drilling.

Sample quality (representivity) is established by geostatistical analysis of comparable sample intervals.

Further work

The nature and scale of planned further work (e.g. test for lateral extensions or depth extensions or large-scale step-out drilling).

Further AC drilling will allow the definition of a more extensive saprock-interface basement and should continue to deliver additional resources below the HA/PT-drilled regions.

A greater understanding of the lithological character and extent of those basement units, where high-grade (>1%) rutile persists at the saprock interface, may assist in focussing further resource definition and exploration targeting. 

Further metallurgical assessment is suggested to characterise rutile quality and establish whether any chemical variability is inherent across the deposit.

Trialling drill definition at a 100m spacing is suggested for Measured Resource assessment.

Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

Refer to diagrams in previous releases. These are accessible on the Company's webpage.