Quoted Micro 20 May 2024

AQUIS STOCK EXCHANGE

Digital assets investor KR1 (KR1) reported a decline in 2023 revenues from £20.2m to £8.65m, but larger gains on digital assets mean that the reported profit was not down as much at £14.7m, from £19.5m. The introduction of the bitcoin ETF has helped the valuation of digital assets in the diversified portfolio. NAV was 132.05p/share at the end of March 2024, which is higher than the figure at the end of 2023. The company has been buying back shares at a discount to the NAV.

Aquaculture technology developer OTAQ (OTAQ) plans to raise up to £2m from a convertible loan note issue. The conversion price will be 3p/share. A reduced loss is expected for 2023, even after exceptional costs. The 2023 results should be announced by the end of June. First quarter revenues are 19% ahead. The live plankton analysis system has been launched.

Brewer Adnams (ADB) increased annual sales by 11% with growth in on-trade and off-trade business. Management is still exploring ways of funding growth.

All Things Considered (ATC) has acquired 55% of music management company Raw Power, whose artists include The Damned, for £1.41m in cash. This takes the artists managed by the combined group to 80. The existing shareholders will retain the rest of the shares. Some of these were involved with Sanctuary Group, which was quoted two decades ago. In the year to February 2023, Raw Power made a pre-tax profit of £326,000 on revenues of £2.27m. Phantom Music Management holds loan notes in the acquired business and is subscribing £200,000 for shares in All Things Considered, which had net cash of £10m at the endo of 2023. Last year. All Things Considered increased revenues by 156% to £24.1m, but there was a swing from profit to loss, although there was a one-off profit in the previous year.  There was also a larger loss from the minority interest in livestreaming company Driift.

Clarify Pharma (PSYC) reported a reduced loss in the year to November 2023. NAV fell from £1.41m to £597,000, including cash of £167,000. Investments were valued at £706,000.

EPE Special Opportunities (EO.P) had net assets of 347.96p/share at the end of April 2024.

Res Privata has increased its stake in WeCap (WCAP) from 7.28% to 9.69%. Silverwood Brands (SLWD) director Andrew Gerrie invested £20,000 in shares at just over 26p each. Newbury Racecourse (NYR) director Dominic Burke has bought 1,125 shares at 5.449p each. Tap Global Group chief executive Arsen Torosian acquired 33.75 million shares at 0.681481p each.

Secured Property Developments has changed its name to Mollyroe (MOY).

AIM

Nexus Infrastructure (NEXS) reported a decline in revenues in the six months to March 2024, but the order book is improving. Revenues generated by the infrastructure services provider fell from £51m to £25.8m and the company slipped into loss. The interim dividend is maintained at 1p/share. There was a cash outflow, but cash is still £9.3m, which is not much less than the market capitalisation. The order book is worth £72m, but the recovery in revenues may not happen until next year.

B90 Holdings (B90) has refocused on business to business gaming operations. This will enable a reduction in costs and could move the company into profit in 2024. Net cash was Euro800,000 at the end of 2023 and the cash outflow should end in the second half. There is an experienced management team. In the medium-term the company should become a consolidator in the sector.

Cerillion (CER) continues to win significant orders and there was a major win following the end of the first half. Revenues grew 10% to £22.5m in the first half. The software company is on course to improve pre-tax profit from £16.8m to £17.3m in the year to September 2024. Net cash could rise to £30.4m.

Semiconductors designer Sondrel (SND) is raising £5.63m at 10p/share and plans to cancel the AIM quotation. ROX Equity Partners is subscribing for the shares and its loans will be converted into a further 28.7 million shares, taking its stake to 49.3%. This requires government and shareholder approval. Miles Woodhouse will be ROX Equity Partners’ representative on the board. A new chief executive is being sought. Sondrel recognises it needs to manage projects better.

Orchard Funding Group (ORCH) believes that it is not worth being quoted on AIM and the insurance premium finance provider intends to cease paying dividends. The cash can then be used to make a tender offer to shareholders when appropriate.

Active Energy Group (AEG) says that its audit may not be completed by June, which would lead to a suspension of trading in the shares. Cash is running out and management may have to consider liquidating the company. This depends on whether the CoalSwitch assets are sold. There is currently $500,000 in the bank. There is also a 4.1% stake in green technology investor Alpha Prospects, but whether this is really worth the £680,000 book value is questionable.

A trading update from professional services provider FRP Advisory (FRP) shows revenues 23% ahead at £128m and much higher than forecast EBITDA of £37m. Work on corporate administrations is rising, but all five of the divisions grew. Net cash was around £30m at the end of March 2024. Cavendish has raised its 2023-24 pre-tax forecast to £33m with a further improvement to £34.2m in 2024-25.

Phoenix Copper (PXC) says that it has conditionally raised $80m from a bond issue to fund the construction of the Empire copper-gold mine in Idaho. The cash will be drawn down in tranches. The arrangement fee is paid for by the issue of 33.9 million shares. NIU invest is acquiring the bond and it will have the right to subscribe for a 25% stake in Phoenix Copper over a five-year period.

Lower gold production meant that Anglo Asian Mining (AAZ) revenues fell from $84.7m to $45.9m, which meant that it swung from pre-tax profit of $7.5m to a loss of $32m. There were $18m of non-cash impairment charges of capitalised exploration costs and the value of the Libero Copper and Gold investment. All-in sustaining cost of gold production jumped from $1,064/ounce to $1,510/ounce. Total production was 31,821 ounces.

Retail software provider itim Group (ITIM) has secured a five-year contract renewal with Majestic Wine. This is a multi-million pounds contract. This follows the publication earlier in the week of 2023 figures showing revenues 15% higher at £16.1m. Annual recurring revenues were £13.2m. Revenues are expected to increase to £17m this year, but itim will still lose money before a potential move into profit in 2025.

Kohlberg Kravis Roberts has made a recommended bid of 480p/share for IQGeo (IQG), which values the geospatial software company at £333m. KKR believe it can accelerate the growth of IQGeo.

Revolution Bars (RBG) says that it has not received any takeover bid or offer for assets as a whole as part of the formal sale process. There are offers for certain assets, but none would result in any return to shareholders. A restructuring and fundraising plan is still possible, and the board is still open to other plans, possibly by Nightcap (NGHT).

E-commerce firm Huddled (HUD) reported a 2023 pre-tax profit of £13m, but that was due to gains on the disposals of Immotion and Uvisan. The underlying pre-tax loss was £2.29m. Cash of £12.7m was returned to shareholders out of the disposal proceeds, but there was still £4.27m in the bank at the end of 2023. The new core business Discount Dragon was acquired in October, so the figures do not provide a good indication of ongoing operations. Discount Dragon generated revenues of £2.1m in the first quarter of 2024.

Horizonte Minerals (HZM) has appointed FRP Advisory as administrator. The nominated adviser has resigned.

MAIN MARKET

Flavourings supplier Treatt (TET) reported a dip in interim revenues to £72.1m because of destocking, but underlying pre-tax profit improved from £7.3m to £7.6m. There is good momentum in the second half.

Standard list shell Sivota (SIV) has ended acquisition talks with an online technology platform in the travel sector.

Andrew Hore

Alan Green covers Kavango Resources #KAV, ONDO Insurtech #ONDO & Brave Bison #BBSN – The Mission Group #TMG on this week’s Stockbox Research Talks

Alan Green covers Kavango Resources #KAV, ONDO Insurtech #ONDO & Brave Bison #BBSN – The Mission Group #TMG on this week’s Stockbox Research Talks

#SVML Sovereign Metals LTD – Downstream Testwork Shows High Quality Graphite

DOWNSTREAM TESTWORK DEMONSTRATES HIGH QUALITY GRAPHITE FOR LITHIUM-ION BATTERIES

·       Spherical Purified Graphite (SPG) with world-leading specifications successfully produced from Kasiya

·    Kasiya’s spherical graphite purification demonstrated exceptionally low levels of residual impurities achieving a 99.99% loss-on-ignition (LOI)

·     Kasiya SPG demonstrated all required parameters within industry standards with spheronisation yields of up to 68% with further scope to optimise in future testwork

·     Testwork was undertaken as part of the Company’s graphite strategy to qualify and commercialise graphite concentrate for use in the lithium-ion battery sector

Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is pleased to announce the results of downstream testwork conducted at leading, independent consultancy ProGraphite GmbH (ProGraphite) in Germany.

Sovereign provided Kasiya graphite concentrate to ProGraphite to produce and characterise coated spherical purified graphite (CSPG) active anode material for lithium-ion batteries. The overall program includes shaping and purification to produce SPG, coating of the material to produce CSPG and evaluation of the electrochemical performance of Kasiya CSPG in a battery. The initial steps of shaping and purification to produce SPG have now been completed with the results showing Kasiya SPG has world-leading specifications.

This SPG material is now undergoing coating and electrochemical testing to characterise CSPG active anode material for lithium-ion batteries.

Table 1: Spherical Graphite Purification Results

 

SVM Spherical graphite

<180 µm concentrate

SVM Spherical graphite

>180 µm concentrate

Chinese
Standard 1

LOI Purity (%)

99.99%

99.99%

>99.95%

Fe

4.4 ppm

3.3 ppm

<30 ppm

Na

<1.0 ppm

<1.1 ppm

<10 ppm

Cr

1.1 ppm

0.4 ppm

<10 ppm

Cu

0.7 ppm

0.2 ppm

<10 ppm

Ni

<0.3 ppm

<0.4 ppm

<10 ppm

Al

6.6 ppm

8.8 ppm

<10 ppm

Mo

<0.3 ppm

<0.3 ppm

<10 ppm

Si

7 ppm

10 ppm

<30 ppm

Ca

4.3 ppm

8.4 ppm

<10 ppm

1.     National Standard of China – Spherical Graphite (GB/T 38887-2020)

The micronisation and spheronisation of Kasiya graphite concentrates achieved excellent yields to spherical graphite for the coarse concentrate and typical yields to spherical graphite for the fines concentrate, with room for further optimisation. The spherical graphite from the fine graphite concentrate in particular exhibited a narrow particle size distribution (D90/D10) ratio and both spherical graphite have reasonable Tap Density and typical BET for uncoated graphite. Coating of the graphite is expected to improve (increase) the tap density and improve (lower) the BET specific surface area. 

Table 2: Concentrate Shaping into Spherical Graphite Results

Kasiya Concentrate
(<180 µm)

Kasiya Concentrate
(>180 µm)

D50 (microns)

16.53

17.74

D90/D10 Ratio

2.29

2.96

Yield to Spherical Graphite

40%

68%

Tap Density (g/cm3)

0.93

0.93

BET Specific Surface Area (m2/g)

7.73

6.72

The spherical graphite products were purified with commercially proven acids purification and achieved excellent results with an exceptionally high LOI purity of 99.99%. Assays on key trace elements (Fe, Na, Cr, Cu, Al, Mo) show very low levels.

Further, the low Si and Ca results highlight that high quality Kasiya graphite is well-suited to single stage acids purification. Aggressive dosing in acids purification can result in elevated Ca levels due to precipitation of CaF2, necessitating multiple stages of purification to reduce both Si and Ca impurities. These initial purification results indicate that a single purification stage is sufficient for Kasiya graphite concentrate.

The SPG samples will undergo coating and electrochemical tests to provide baseline data for offtake discussions. The results of these tests are expected in the coming weeks.

Managing Director Frank Eagar commented: “These results clearly demonstrate that Kasiya has the potential to disrupt the China dominated graphite supply chain as a long term, secure source of high quality graphite ex-China. We believe Kasiya graphite will have industry low operating costs and is also one of the largest graphite resources globally holding a significant advantage over its graphite peers. We are very pleased to achieve these outstanding results at this stage of the program and will continue fast tracking our graphite product development and qualification campaign.”

Classification 2.2: This announcement includes Inside Information

ENQUIRIES

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

 

 

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 report that relates to Metallurgical Testwork is based on information compiled by Dr Surinder Ghag, PhD., B. Eng, MBA, M.Sc., who is a Member of the Australasian Institute of Mining and Metallurgy (MAusIMM). Dr Ghag is engaged as a consultant by Sovereign Metals Limited. Dr Ghag has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Ghag consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Exploration Results is based on information compiled by Mr Samuel Moyle, a Competent Person who is a member of The Australasian Institute of Mining and Metallurgy (AusIMM). Mr Moyle is the Exploration Manager of Sovereign Metals Limited and a holder of ordinary shares and unlisted performance rights in Sovereign Metals Limited. Mr Moyle has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Moyle consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Forward Looking Statement

This release may include forward-looking statements, which may be identified by words such as “expects”, “anticipates”, “believes”, “projects”, “plans”, and similar expressions. These forward-looking statements are based on Sovereign’s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Sovereign, which could cause actual results to differ materially from such statements. There can be no assurance that forward-looking statements will prove to be correct. Sovereign makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (‘MAR’). Upon the publication of this announcement via Regulatory Information Service (‘RIS’), this inside information is now considered to be in the public domain.

Anglesey Mining #AYM – Following assay results for hole NCZ003, WH Ireland maintains fair value at 5.4p per share

The Northern Copper Zone is shaping up to underpin enhanced mine plans and project economics for Parys Mountain Anglesey recently reported the assay results for the third drill hole completed at its’ Parys Mountain project. Drilling has confirmed the continuity and scale of the Northern Copper Zone (NCZ) which we believe is likely to contribute significant volumes of high-grade ore to mine plans in on-going feasibility studies. Surging metal prices and increased volumes will, we believe, contribute to significantly enhanced project economics once feasibility studies are reported.

The Parys Mountain drill programme has successfully demonstrated the continuity of mineralisation at the NCZ, and it has improved confidence in the Garth Daniel and Central zones. Drilled intervals from the NCZ extend over at least 700m of strike and 400m down-dip, mineralisation is recorded in intervals over 10’s of meters. It is our belief that the drilled intervals lend themselves to low-cost bulk-mining methods and that this will significantly enhance the economic projections for Parys Mountain once feasibility studies are reported. We expect Anglesey will report an updated resource for Parys Mountain that we anticipate will include higher confidence resource categories as well as boosting contained metal. We maintain our fair value at 5.4p per share.

Sharepickers – Alan Green discusses Trufin #TRU, Anglesey Mining #AYM & Zoo Digital #ZOO

Sharepickers – Alan Green discusses Trufin #TRU, Anglesey Mining #AYM & Zoo Digital #ZOO with Justin Waite

Introduction from new Anglesey Mining #AYM CEO Rob Marsden

An introduction from new Anglesey Mining #AYM CEO Rob Marsden from Parys Mountain  

  • Rob provides an overview of his CV, along with a brief overview of Parys Mountain mine and the surrounding area
  • A brief overview of today’s assay results that “demonstrate good continuity, supporting the integrity of the geological model”
  • Litho geochemical results from all three holes due in the coming weeks
  • Targeting a resource update on the Northern Copper Zone

Anglesey Mining #AYM – Further drilling results confirm scale of Northern Copper Zone at Parys Mountain

Anglesey Mining plc (AIM:AYM), is pleased to announce that assay results have been received for the recently completed drill hole NCZ003. Drill hole NCZ003 was the third hole to be completed from the infill drilling program of the Northern Copper Zone (NCZ) and Garth Daniel Zone (GDZ) at the Company’s Parys Mountain Cu-Zn-Pb-Ag-Au VMS project on the Isle of Anglesey in North West Wales.

Consistent both with historical drilling and the recently completed NCZ001 and NCZ002 holes, the assays confirm NCZ003 intersected a significant zone of mineralisation across the NCZ with 90m @ 0.57% CuEq (including internal dilution). Drill hole NCZ003 was terminated prematurely at a depth of 535m due to a large, potentially fault-related void. The last 6 metres of core prior to the 4m void assayed 1.16% CuEq and coincides with previous high-grade assays from historic drilling.

As with the previous two holes in the program, NCZ003 intersected both broad zones of mineralisation and multiple higher-grade zones. Importantly, the drilling is demonstrating good continuity and further supports the integrity of the geological model and drill targeting, with indications of greater mineralised volumes overall.

Key intersections within the broad zone of mineralisation are detailed below:

Northern Copper Zone – Hole NCZ003

  • 0m @ 0.51% Cu, 0.06% Zn, 0.03% Pb, 2.16g/t Ag and 0.14g/t Au (0.57% CuEq) from a depth of 389m, including:
  • 0m @ 0.80% Cu, 2.19g/t Ag and 0.16g/t Au (0.82% CuEq) from 427.0m
  • 0m @ 0.99% Cu, 4.33g/t Ag and 0.15g/t Au (1.08% CuEq) from 449.0m
  • 0m @ 0.47% Cu, 1.53g/t Ag and 0.07g/t Au (0.49% CuEq) from 490.0m, including 4.0m @ 0.48% Cu, 2.48g/t Ag and 0.13g/t Au (0.53% CuEq)
  • 0m @ 1.20% Cu, 1.10g/t Ag and 0.01g/t Au (1.16% CuEq) from 529m (hole stopped in mineralisation)

***CuEq grades are based on recovery factors and commodity prices as detailed after the tabulated reported assays of this release***

The third drill hole, NCZ003, concludes the on-site portion of the current exploration and infill drilling program and we are expecting litho-geochemical analysis results, from each of the three holes, to be back from the laboratory in Canada in the coming weeks. Subsequently, on the strength of all the data collected and the interpretation thereof, the Company is targeting a resource update on the NCZ, with the aim of converting a significant portion of the Inferred Resource into the higher confidence Indicated category. Based on the Joint Ore Reserve Committee (JORC) guidelines, only Indicated and Measured category Mineral Resources can be converted into Ore Reserves.

Andrew King, Interim Chairman of Anglesey Mining, commented: “Once again, we are very pleased to see the Parys Mountain project delivering some very strong drilling results. It is worth reminding investors that Parys Mountain is demonstrably the largest and most advanced copper project in the UK with substantial resource upside still evident. In addition, the project is favourably located on a previously permitted, brownfield development site with significant existing infrastructure already in place.“

“All three holes in the current program; NCZ001 NCZ002 and NCZ003 have delivered some exceptional high-grade copper intersections within broad thicknesses of mineralisation up to 100m wide. The results continue to support our view that the NCZ provides significant upside for the Parys Mountain project, over and above the 5 million tonne contribution included within the 2021 Preliminary Economic Assessment.”

NCZ – Cross Section 4600mE

Section 4600mE below highlights the position of the recently completed drill hole NCZ002 and NCZ003.

The interpreted outline of the NCZ in the cross-section does not imply an economic outcome, it simply highlights where sulphides have been identified within the Northern Shales with a 0.5% CuEq cut-off. A significant number of the drill holes within this zone have returned consistent zones of higher-grade material, which was a key target of the program. The recognition of a shear zone along the hanging wall of the NCZ could imply a structural emplacement, or thickening of the sequence within the mine environment and will greatly assist with future targeting and drilling.

Importantly, every hole drilled into the interpreted position of the NCZ has intersected broad zones of sulphides; the drilling has demonstrated the predictability of the mineralised zone from the detailed geological model that has been constructed and refined over several years.

The most recent drill hole, NCZ003, targeted the up-dip area above historical hole H17A and has provided important additional information relating to the key lithology Rhyolite B – the emplacement of this unit is closely associated to the mineralising event. This additional information will now be incorporated into the geological model and the resource block model of the NCZ.

Drill hole NCZ003 ended prematurely at a depth of 535m due to faulted ground conditions and the intersection of a 4m void. The last metre of core prior to the void assayed 1.3% Cu and 1.22% CuEq. The location of the void correlates to the contact position of Rhyolite B and the host northern shale unit, which has traditionally been a zone related to higher grade intersections – drill hole A15 intersected 1.6m @ 3.7% CuEq approximately 100m up-dip from NCZ003 and NCZ001 intersected 22.0m @ 3.2% CuEq on section 4800mE (200m along strike).

NCZ – Cross Section 4800mE

Section 4800mE below highlights the position of drill hole NCZ001.

As per section 4600mE, this section also highlights the continuity of sulphide mineralisation across the NCZ. With the completion of NCZ003, the Company has gained a greater understanding of the influence from Rhyolite B on the higher-grade zones of mineralisation.

Section 4800mE also highlights the potential related to the Central Zone with significant intersections from historical 1970’s drilling, including 3.8m @ 8,6% Cu and 6.7m @ 2.4% Cu. The Company believes potential exists for these intersections to link to the 22m @ 3.2 % CuEq (including 4.0m @ 5.2% Cu) in NCZ001.

Drill hole details:

Hole ID Co-ordinates

        (E)                    (N)

Elevation

(m)

Azimuth

(°)

Dip (°) End of Hole (m)
NCZ003 243806.92 390948.57 73.09 165 -72 535

Reported Assays (results >0.5 CuEq in bold):

Hole Number From To Sample Length Assays
  (m) (m) (m) Cu

(%)

Zn

 (%)

Pb

(%)

Ag (g/t) Au (g/t) CuEq

(%)*

NCZ003 264.4 264.8 0.4 0.02 1.34 0.26 3.6 0.11 0.42%
NCZ003 339.8 340.3 0.5 0.00 0.00 0.01 0.5 0.01 0.01%
NCZ003 340.3 340.8 0.5 0.00 0.00 0.01 0.5 0.01 0.01%
NCZ003 340.8 341.3 0.5 0.00 0.00 0.01 0.5 0.01 0.01%
NCZ003 385 386 1 0.12 0.00 0.01 0.5 0.02 0.12%
NCZ003 386 387 1 0.38 0.00 0.01 0.7 0.02 0.37%
NCZ003 387 388 1 0.50 0.02 0.05 1.9 0.12 0.54%
NCZ003 388 389 1 0.36 0.01 0.09 1.1 0.12 0.42%
NCZ003 389 390 1 0.50 0.01 0.05 1.4 0.11 0.53%
NCZ003 390 391 1 0.25 0.00 0.03 1.0 0.18 0.32%
NCZ003 391 392 1 0.27 0.01 0.05 1.0 0.05 0.29%
NCZ003 392 393 1 0.44 0.01 0.04 1.5 0.41 0.60%
NCZ003 393 394 1 1.90 0.00 0.09 2.2 0.12 1.85%
NCZ003 394 395 1 0.04 0.00 0.01 0.5 0.06 0.07%
NCZ003 395 396 1 0.67 0.00 0.01 1.1 0.11 0.68%
NCZ003 396 397 1 0.33 0.00 0.00 1.1 0.32 0.45%
NCZ003 397 398 1 0.10 0.02 0.06 0.8 0.16 0.18%
NCZ003 398 399 1 0.18 0.01 0.02 0.8 0.06 0.20%
NCZ003 399 400 1 0.02 0.00 0.01 0.5 0.06 0.05%
NCZ003 400 401 1 0.32 0.01 0.01 1.2 0.18 0.38%
NCZ003 401 402 1 0.33 0.01 0.01 1.7 0.20 0.40%
NCZ003 402 403 1 0.34 0.00 0.01 1.1 0.10 0.37%
NCZ003 403 404 1 0.29 0.01 0.01 1.2 0.08 0.31%
NCZ003 404 405 1 2.80 0.02 0.01 4.2 0.28 2.75%
NCZ003 405 406 1 0.26 0.02 0.01 1.5 0.10 0.30%
NCZ003 406 407 1 0.27 0.01 0.01 2.6 0.25 0.37%
NCZ003 407 408 1 0.32 0.00 0.01 1.0 0.07 0.33%
NCZ003 408 409 1 0.23 0.00 0.01 0.8 0.14 0.28%
NCZ003 409 410 1 0.08 0.00 0.01 0.5 0.11 0.13%
NCZ003 410 411 1 0.62 0.01 0.01 2.0 0.49 0.79%
NCZ003 411 412 1 0.11 0.00 0.01 0.5 0.03 0.11%
NCZ003 412 413 1 0.19 0.01 0.01 0.9 0.12 0.24%
NCZ003 413 414 1 0.17 0.02 0.01 1.3 0.16 0.24%
NCZ003 414 415 1 0.29 0.00 0.00 0.8 0.10 0.31%
NCZ003 415 416 1 0.33 0.00 0.01 0.7 0.15 0.37%
NCZ003 416 417 1 1.14 0.01 0.02 1.8 0.15 1.14%
NCZ003 417 418 1 0.09 0.01 0.01 0.5 0.09 0.12%
NCZ003 418 419 1 0.50 0.01 0.01 1.8 0.09 0.52%
NCZ003 419 420 1 0.66 0.02 0.01 2.4 0.18 0.70%
NCZ003 420 421 1 0.25 0.01 0.01 1.0 0.08 0.28%
NCZ003 421 422 1 0.56 0.01 0.01 2.4 0.19 0.61%
NCZ003 422 423 1 0.76 0.01 0.01 2.6 0.24 0.83%
NCZ003 423 424 1 0.16 0.01 0.01 1.5 0.06 0.19%
NCZ003 424 425 1 0.05 0.01 0.01 1.2 0.11 0.10%
NCZ003 425 426 1 0.41 0.01 0.04 1.1 0.05 0.43%
NCZ003 426 427 1 0.17 0.00 0.01 0.7 0.08 0.20%
NCZ003 427 428 1 0.92 0.02 0.01 2.8 0.13 0.93%
NCZ003 428 429 1 0.86 0.00 0.01 1.5 0.10 0.86%
NCZ003 429 430 1 1.82 0.01 0.01 2.8 0.13 1.77%
NCZ003 430 431 1 1.41 0.04 0.01 4.2 0.19 1.43%
NCZ003 431 432 1 0.48 0.01 0.01 1.5 0.10 0.50%
NCZ003 432 433 1 0.07 0.00 0.00 0.6 0.05 0.09%
NCZ003 433 434 1 0.27 0.01 0.01 2.0 0.43 0.44%
NCZ003 434 435 1 0.53 0.01 0.00 2.1 0.15 0.57%
NCZ003 435 436 1 0.29 0.06 0.21 4.5 0.30 0.49%
NCZ003 436 437 1 0.12 0.01 0.01 2.2 0.15 0.19%
NCZ003 437 438 1 0.11 0.00 0.01 1.1 0.14 0.17%
NCZ003 438 439 1 0.21 0.02 0.00 1.7 0.09 0.25%
NCZ003 439 440 1 0.04 0.01 0.01 1.4 0.10 0.09%
NCZ003 440 441 1 0.05 0.00 0.00 0.9 0.08 0.09%
NCZ003 441 442 1 0.09 0.00 0.00 1.0 0.07 0.12%
NCZ003 442 443 1 0.80 0.01 0.00 2.4 0.19 0.84%
NCZ003 443 444 1 0.37 0.01 0.00 2.0 0.19 0.43%
NCZ003 444 445 1 0.38 0.04 0.04 4.3 0.36 0.55%
NCZ003 445 446 1 0.18 0.01 0.01 1.6 0.13 0.24%
NCZ003 446 447 1 0.31 0.01 0.00 2.0 0.14 0.36%
NCZ003 447 448 1 0.53 0.09 0.27 4.8 0.16 0.68%
NCZ003 448 449 1 0.24 0.01 0.17 1.6 0.10 0.32%
NCZ003 449 450 1 2.10 0.02 0.03 7.1 0.40 2.17%
NCZ003 450 451 1 0.51 0.01 0.02 2.3 0.18 0.57%
NCZ003 451 452 1 1.60 0.28 0.80 7.1 0.13 1.87%
NCZ003 452 453 1 0.95 0.03 0.26 5.3 0.21 1.08%
NCZ003 453 454 1 0.49 0.06 0.20 3.1 0.08 0.58%
NCZ003 454 455 1 0.14 0.01 0.02 1.0 0.06 0.16%
NCZ003 455 456 1 0.29 0.12 0.22 5.9 0.06 0.42%
NCZ003 456 457 1 0.30 0.08 0.08 2.1 0.13 0.38%
NCZ003 457 458 1 2.55 0.07 0.16 5.1 0.09 2.50%
NCZ003 458 459 1 0.28 0.06 0.12 3.0 0.16 0.39%
NCZ003 459 460 1 0.70 0.04 0.09 5.4 0.19 0.79%
NCZ003 460 461 1 0.76 0.03 0.02 3.5 0.17 0.80%
NCZ003 461 462 1 0.64 0.01 0.01 1.7 0.14 0.67%
NCZ003 462 463 1 0.39 0.01 0.01 1.7 0.08 0.40%
NCZ003 463 464 1 0.13 0.26 0.53 2.9 0.06 0.36%
NCZ003 464 465 1 0.13 0.06 0.19 1.8 0.03 0.21%
NCZ003 465 466 1 1.10 0.12 0.04 5.4 0.10 1.13%
NCZ003 466 467 1 0.42 0.04 0.08 3.9 0.10 0.48%
NCZ003 467 468 1 0.18 0.00 0.07 0.7 0.02 0.20%
NCZ003 468 469 1 0.31 0.02 0.05 1.9 0.03 0.33%
NCZ003 469 470 1 0.14 0.09 0.18 1.9 0.08 0.24%
NCZ003 470 471 1 0.10 0.03 0.14 1.1 0.02 0.16%
NCZ003 471 472 1 1.71 0.05 0.09 6.4 0.05 1.68%
NCZ003 472 473 1 0.12 0.01 0.01 0.8 0.06 0.14%
NCZ003 473 474 1 0.15 0.01 0.01 0.9 0.04 0.16%
NCZ003 474 475 1 0.71 0.02 0.05 1.7 0.13 0.74%
NCZ003 475 476 1 0.58 0.02 0.01 3.2 0.17 0.63%
NCZ003 476 477 1 0.07 0.01 0.06 0.8 0.04 0.11%
NCZ003 477 478 1 0.82 0.04 0.05 3.5 0.16 0.87%
NCZ003 478 479 1 1.37 0.02 0.04 3.5 0.08 1.34%
NCZ003 479 480 1 0.10 0.01 0.05 0.8 0.04 0.12%
NCZ003 480 481 1 0.04 0.03 0.06 0.7 0.03 0.07%
NCZ003 481 482 1 0.13 0.01 0.02 0.5 0.03 0.14%
NCZ003 482 483 1 0.38 0.01 0.02 1.3 0.05 0.39%
NCZ003 483 484 1 0.07 0.00 0.01 0.5 0.01 0.08%
NCZ003 484 485 1 0.02 0.00 0.01 0.5 0.01 0.03%
NCZ003 485 486 1 0.40 0.00 0.01 0.6 0.03 0.39%
NCZ003 486 487 1 0.03 0.00 0.01 0.5 0.02 0.04%
NCZ003 487 488 1 0.02 0.13 0.06 0.8 0.02 0.07%
NCZ003 488 489 1 0.19 0.01 0.02 0.5 0.03 0.19%
NCZ003 489 490 1 0.15 0.00 0.01 0.5 0.02 0.15%
NCZ003 490 491 1 0.63 0.03 0.01 4.1 0.19 0.69%
NCZ003 491 492 1 0.51 0.07 0.02 4.0 0.26 0.63%
NCZ003 492 493 1 0.13 0.01 0.07 0.9 0.04 0.16%
NCZ003 493 494 1 0.66 0.00 0.01 0.9 0.02 0.63%
NCZ003 494 495 1 0.09 0.06 0.05 1.0 0.04 0.13%
NCZ003 495 496 1 0.01 0.01 0.01 0.5 0.02 0.03%
NCZ003 496 497 1 0.31 0.01 0.01 1.2 0.06 0.32%
NCZ003 497 498 1 0.83 0.02 0.01 1.7 0.04 0.81%
NCZ003 498 499 1 0.63 0.01 0.01 1.1 0.05 0.61%
NCZ003 499 500 1 0.03 0.00 0.01 0.5 0.01 0.04%
NCZ003 500 501 1 0.47 0.00 0.01 1.2 0.03 0.46%
NCZ003 501 504 3 0.64 0.04 0.14 1.5 0.08 0.69%
NCZ003 504 505 1 0.78 0.09 0.15 1.4 0.03 0.81%
NCZ003 505 506 1 0.08 0.00 0.01 0.5 0.01 0.08%
NCZ003 506 507 1 0.04 0.00 0.01 0.5 0.01 0.05%
NCZ003 507 508 1 0.00 0.00 0.01 0.5 0.01 0.01%
NCZ003 508 509 1 0.00 0.00 0.02 0.5 0.01 0.02%
NCZ003 509 510 1 0.00 0.00 0.01 0.5 0.01 0.01%
NCZ003 510 511 1 0.02 0.00 0.01 0.5 0.02 0.03%
NCZ003 511 512 1 0.19 0.00 0.05 0.5 0.01 0.20%
NCZ003 512 513 1 0.00 0.00 0.01 0.5 0.01 0.01%
NCZ003 513 514 1 0.00 0.00 0.01 0.5 0.01 0.01%
NCZ003 514 515 1 0.01 0.00 0.01 0.6 0.03 0.03%
NCZ003 515 516 1 0.07 0.00 0.01 0.5 0.01 0.08%
NCZ003 516 517 1 0.04 0.01 0.02 0.5 0.01 0.05%
NCZ003 517 518 1 0.83 0.00 0.01 0.8 0.01 0.78%
NCZ003 518 519 1 0.14 0.01 0.02 0.8 0.01 0.14%
NCZ003 519 520 1 0.15 0.00 0.02 0.5 0.01 0.15%
NCZ003 520 521 1 0.06 0.00 0.02 0.5 0.01 0.07%
NCZ003 521 522 1 0.10 0.00 0.02 0.5 0.01 0.11%
NCZ003 522 523 1 0.03 0.00 0.01 0.5 0.01 0.04%
NCZ003 523 524 1 0.25 0.00 0.02 0.5 0.01 0.24%
NCZ003 524 525 1 0.01 0.00 0.01 0.5 0.01 0.02%
NCZ003 525 526 1 0.21 0.00 0.01 0.5 0.01 0.20%
NCZ003 526 527 1 0.08 0.00 0.01 0.5 0.01 0.08%
NCZ003 527 528 1 0.00 0.00 0.01 0.5 0.01 0.01%
NCZ003 528 529 1 0.24 0.00 0.01 0.5 0.01 0.23%
NCZ003 529 531 2 1.15 0.01 0.19 1.2 0.01 1.13%
NCZ003 534 535 1 1.30 0.01 0.02 0.9 0.01 1.22%
Total     148.90            

* Copper Equivalent (CuEq %) = Cu grade % * Cu Recovery + (Zn grade % * Zn Recovery * (Zn price $/t /Cu price $/t)) + (Pb grade % * Pb Recovery * (Pb price $/t /Cu price $/t)) + (Ag grade g/t / 31.103 * Ag recovery * (Ag price $/oz /Cu price $/t)) + (Au grade g/t / 31.103 * Au recovery * (Au price $/oz /Cu price $/t))

Cu Equivalent calculated using following commodity prices: Zn – US$3350/t, Cu – US$9523/t, Pb – US$2292/t, Ag – US$25.50/oz and

Au – US$1850/oz

Cu Equivalent calculated using following recovery assumptions for Northern Copper Zone: Zn – 82%, Cu – 93%, Pb – 78%, Ag – 72% and  Au – 65%

Sample analysis and QA/QC

All samples generated from the drilling were dispatched to ALS Loughrea, Ireland.

Samples were assayed for multi-element data analysis using their ME-ICP61 package, which includes Ag, Cu, Pb and Zn. The samples were also assayed for gold using their Au-AA23 analysis package. Overlimit assays were then analysed using their Ag-OG62, Cu-OG62, Pb-OG62, Zn-OG62 and ME-OG62 analysis packages.

For QA/QC purposes, Anglesey Mining used the industry standard of inserting 5% Certified Reference Material (CRM) samples, 2.5% Certified Blank Samples (Blanks) and 5% duplicate samples at source. The CRMs were sourced from OREAS Australia.

Competent Person

The information in this announcement which relates to Drilling Results has been approved by Mrs. Liz de Klerk, M.Sc., Pr.Sci.Nat., FIMMM who is a professional registered with the South African Council for Natural Scientific Professionals (SACNASP: 400090/08) and independent consultant to the Company. Mrs. de Klerk is the Senior Geologist & Managing Director of Micon International Co Limited and has over 20 continuous years of exploration and mining experience in a variety of mineral deposit styles. Mrs. de Klerk has sufficient experience which is relevant to the style of exploration, mineralisation and type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for reporting of Exploration Results, Exploration Targets, Mineral Resources and Ore Reserves” (JORC Code). Mrs. de Klerk consents to inclusion in the announcement of the matters based on this information in the form and context in which it appears.

About Anglesey Mining plc:

Anglesey is traded on the AIM market of the London Stock Exchange and currently has 420,093,017 ordinary shares in issue.

Anglesey is developing the 100% owned Parys Mountain Cu-Zn-Pb-Ag-Au VMS deposit in North Wales, UK with a reported resource of 5.3 million tonnes at over 4.0% combined base metals in the Measured and Indicated categories and 10.8 million tonnes at over 2.5% combined base metals in the Inferred category.

Anglesey also holds a 49.75% interest in the Grängesberg iron ore project in Sweden and 12% of Labrador Iron Mines Holdings Limited, which through its 52% owned subsidiaries, is engaged in the exploration and development of direct shipping iron ore deposits in Labrador and Quebec.

For further information, please contact:

Anglesey Mining plc

Rob Marsden, Chief Executive Officer – Tel: +44 (0)7531 475111

Andrew King, Interim-Chairman – Tel: +44 (0)7825 963700 

Davy

Nominated Adviser & Joint Corporate Broker

Brian Garrahy / Daragh O’Reilly – Tel: +353 1 679 6363

WH Ireland

Joint Corporate Broker

Katy Mitchell / Harry Ansell – Tel: +44 (0)207 220 1666 

Brand Communications

Public & Investor Relations

Alan Green – Tel: +44 (0)7976 431608

Quoted Micro 10 May 2024

AQUIS STOCK EXCHANGE

Time to ACT is planning to join the Aquis Stock Exchange later this month and it has launched a fundraising ahead of the flotation. The flotation will take place even if there is no money raised. Time to ACT plans to develop a group of engineering-based energy transition businesses. Middlesborough-based Time to ACT has two subsidiaries. Diffusion Alloys is a long-established diffusion coating business. The technology provides an intermetallic layer that protects metal components at high temperatures. GreenSpur is a much newer business that is developing direct drive generator technology for use in wind power that does not require rare earths for magnets. The Winterflood Retail Access Platform is being used to raise up to £1m. The issue price and closing date have yet to be announced. Investors have to apply for shares via a broker. The minimum subscription is £100.

Cykel AI (CYK) has agreed a bid from standard listed Mustang Energy (MUST). The offer is 1.911 Mustang Energy shares for each Cykel AI share. Both companies’ shares have been suspended since 17 January. The Mustang Energy suspension price was 30.6p, but the bid is based on a much lower share price valuing the company, which has net liabilities, at £1m. That values the bid at 9.37p/share and Cykel AI is valued at £19.2m. Cykel AI is developing artificial intelligence products.

Newbury Racecourse (NYR) increased 2023 revenues by 9% to £19m and reported pre-tax profit improved from £130,000 to £720,000. However, there was a £700,000 exceptional gain relating to the release of a provision included. Cost increases reduced underlying profit. Raceday attendances fell from 141,000 to 130,000. The nursery has increased capacity by 18%. Shaun Hinds will become chief executive on 3 June.

Silverwood Brands (SLWD) executive director acquired 100,000 shares at 20p following the restoration of trading at the beginning of May. The share price recovered by 48.5% to 24.5p, but it is still not back to its suspension price.

Marula Mining (MARU) has appointed a new mine manager at the Larisoro manganese mine in Kenya. Bernard Kiprotich has five years of mining experience in Kenya. Marula Mining is investing in the established Larisoro manganese mining operation by securing a 60% commercial interest with an option to increase it to 70%. There are three shallow open pits. The purchase price is £300,000 satisfied by the issue of 2.4 million shares. Marula Mining will provide investment of $1.5m for equipment to enable production to be increased.

Essentially Group (ESSN) has completed the acquisition of Best Latin Foodstuff Trading for £1.945m in shares at 52.5p each. Catalina Onate, who founded the food importer, has been appointed as an executive director.

Shareholders passed resolutions at the AGM of Supernova Digital Assets (SOL), including a cancelation of the share premium account and authority to buy back shares.

TruSpine Technologies (LON: TSP) chief executive Laurence Strauss has resigned. He was appointed in April 2023.

RentGuarantor Holdings (RGG) raised £35,000 at 274p/share.

AIM

Metallurgical coal company Bens Creek (BEN) says a further court hearing related to the three US operations that are in Chapter 11 bankruptcy protection will be held on 6 June. The court has accepted the proposed Avanti debtor in possession financing and $2m has been drawn down. This provides enough cash until the end of May. The final terms of the facility are being negotiated.

Genedrive (GDR) has raised £2.1m in a placing at 1.5p. This follow’s yesterday evening’s announcement of a fundraising, where the point of care pharmacogenetic testing company wanted to raise £2.5m via a placing. There is also a REX retail offer for up to £3.5m, which closes on 17 May, and a one-for-one open offer that could raise up to £2.1m. If the total amount raised is not at least £6m the fundraising will not go ahead, so a further £3.9m is required. The company’s tests are being commercialised and a direct to consumer strategy pursued in the UK, while there will be distributors in other countries. There will also be investment to improve manufacturing efficiency and to fund regulatory approvals.

Plant Health Care (PHC) generated a 72% increase in revenues to $4.3m in the first four months of 2024. There is cash of $2.3m. The loss could be reduced from $3m to less than $1m this year. A profit is possible in 2025.

Third quarter driver management systems units produced by Seeing Machines (SEE) have gone into 313,662 vehicles, which is 51% higher than the previous quarter. This is more than treble the number in the same period two years and 80% higher than one year previously with more contracts set to contribute. Monitored connections of the Guardian fleet units were 5% higher on the quarter at 59,706.

Push-to-talk and workplace management technology developer Mobile Tornado (MBT) has won a contract through its regional partner to supply technology for a mobile network in the Middle East and Africa, which has more than 50 million customers. Management believes that there should be increasing sales momentum following the deal.

Healthcare services provider Totally (TLY) reassured the market with its latest trading statement. Full year EBITDA was £2.3m, down from £6.9m, and net debt was £800,000 at the end of March 2024. Revenues fell 22% to £106m because of the loss of a contract. Cost reductions and efficiency improvements have offset the tough market. Annualised cost savings of £3.5m are expected.

Bushveld Minerals (BMN) has agreed the conditional disposal of Vanchem to Southern Point Resources Fund 1 for up to $40.6m. The initial consideration is $20.6m. This requires shareholder approval. Southern Point Resources is increasing the interim working capital facility it is providing that is secured on production at Vanchem. This, and a $9m working capital facility, will be offset against the initial consideration and be used to pay creditors. This will leave a cash payment to Bushveld Minerals of $3.5m when the disposal happens. The deferred consideration is based on 25% of distributable free cash flow with a minimum of $1.25m paid for each quarter of the three-year period.

Mothercare (MTC) reported a 13% decline in global system sales last year due to poor trading in the Middle East. Destocking is a problem. There was better trading in the UK and Indonesia. The retailer will improve EBITDA, but Cavendish reduced its forecast EBIDA by 9% to £7m, compared to £6.7m in 2022-23. Refinancing talks continue and a conclusion should reduce the interest bill.

Battery technology developer Ilika (IKA) is raising up to £3.4m at 28p/share to spend on the Goliath solid-state battery. This cash should last at least 12 months. A placing and subscription raised £1.7m and a one-for-26 open offer could raise up to £1.7m more. The open offer closes on 28 May. There will be £750,000 earmarked for the development of the Goliath battery and this supplements the grant assistance obtained. A further £750,000 will be used to increase testing capacity to 0.75MWh/a and for upgrading dry room facilities. Additional cash raised will support further capital expenditure and working capital for Goliath and the Stereax miniature battery.

MAIN MARKET

Packaging manufacturer and distributor Macfarlane Group (MACF) disappointed with its AGM trading statement and lost the majority of the share price gain this year. Prices are falling, but this reflects lower costs, so margins are being maintained. First quarter sales were 9.5% lower, which does reflect a reduction in volumes. There should be improvement in the second half.

Oxford Cannabinoid Technologies (LON: OCTP) plans to cancel the standard listing. Management believes that stockmarket uncertainty is making it difficult to raise cash at an acceptable share price. The development of the drug pipeline will continue. The cancelation date is 6 June.

Andrew Hore

Alan Green covers Electric Guitar #ELEG, Thor Energy #THOR & Golden Metal Resources #GMET on this week’s Stockbox Research Talks

Alan Green covers Electric Guitar #ELEG, Thor Energy #THOR & Golden Metal Resources #GMET on this week’s Stockbox Research Talks

#SVML Sovereign Metals Ltd – Testwork Delivers Superior Quality Graphite

  Graphite circuit feed prepared at Sovereign’s existing Lilongwe laboratory facility has produced high quality concentrates in benchtop and pilot-scale flotation and cleaning

·    Four independent laboratories all successfully produced high-grade graphite concentrate averaging over 97% Total Graphite Content (TGC) with flotation recoveries exceeding 90%

·   Flotation results demonstrated 1.44% TGC run-of-mine Kasiya ore upgrades to more than 55% TGC rougher concentrate without crushing or milling, process steps typically required for producing graphite concentrates from hard-rock deposits; contributing to the unique low cost characteristics of Kasiya’s saprolite hosted graphite

·   Graphite concentrates indicate exceptionally low levels of sulphur compared to typical hard-rock graphite peers – a key metric to qualify as active anode material for lithium-ion batteries

·   Results are part of ongoing testwork being undertaken as part of the Company’s graphite marketing and active anode qualification strategy, supervised by Dr Surinder Ghag

·  Downstream testwork to produce and characterise Coated Spherical Purified Graphite (CSPG) active anode material continues at German graphite consultancy ProGraphite GmbH

Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is pleased to announce the results of graphite testwork completed at multiple independent laboratories in Australia, Canada and South Africa.

Graphite flotation and cleaning testwork was conducted on graphite circuit feed from Sovereign’s Kasiya Rutile-Graphite Project (Kasiya or Project) at four different laboratories, which all successfully produced high-grade graphite concentrate (94.9%-97.8% TGC) at high flotation recoveries (91.2%-97.2%).

The testwork demonstrated excellent results using a conventional flowsheet that was consistent across all laboratories, thus confirming Sovereign’s ability to produce a high quality graphite concentrate.  

Managing Director Frank Eagar commented: “Our ability to upgrade Kasiya ore at 1.4% graphite to a 55% rougher concentrate without any crushing or milling, highlights more of the unique qualities of Kasiya. There are very limited other graphite projects with these characteristics. The pilot-scale results also confirm that Kasiya produces high-grade concentrates with very low sulphur levels at high recoveries. Simply put, Kasiya will be a standout producer of high-quality graphite concentrate at industry low operating costs.”

Classification 2.2: This announcement includes Inside Information

ENQUIRIES

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

 

 

Joint Brokers

 

Stifel

+44 20 7710 7600

Varun Talwar

 

Ashton Clanfield

 

 

 

Berenberg

+44 20 3207 7800

Matthew Armitt

 

Jennifer Lee

 

 

 

Buchanan

+ 44 20 7466 5000

The graphite circuit feed provided to the various laboratories was produced at the Company’s existing laboratory facility in Lilongwe, Malawi, where it was screened and separated over a wet shaking table.

Figure 1: Holman Wilfley 2000 wet shaking table in action demonstrating clear separation between Rutile HM, waste and Graphite

The graphite feed grades of 3.5%-4.0% TGC to the graphite circuit are significantly higher than the Mineral Resource Grade of 1.44%, highlighting the ~2.4-2.8-fold upgrading of graphite grades when ROM ore passes through the front-end rutile gravity separation circuit.

This demonstrates the ease of separating the rutile heavy mineral and graphite streams from the front end of the Kasiya Pre-feasibility Study process flowsheet. Subsequently, the two product streams pass into distinct, industry-standard, final product flowsheets. This further highlights the commercial benefits of having both rutile and graphite mineralisation co-existent in the same soft saprolite-hosted orebody.

The first stage of upgrading the graphite feed, rougher flotation, achieved very high rejection (>90%) of waste materials to rougher tails, producing a rougher concentrate with more than 55% TGC and very high recoveries (94%-98%) in laboratory scale testing consistently across all four laboratories. Upgrading the graphite feed at very high recoveries and rejection of non-graphitic minerals without run-of-mine milling is another of Kasiya’s significant advantages, supporting the lowest cost graphite production.

The rougher concentrate was further upgraded through laboratory scale flotation, cleaning and polishing stages, producing high-grade concentrates at high graphite circuit recoveries.

A diagram of a graphite circuit Description automatically generated

Figure 2: High-level process flowsheet for rutile and graphite production at Kasiya

Pilot-scale testwork confirmed the laboratory-scale results with >90% TGC recovery to high-grade graphite concentrates (<180-micron concentrate at 96.9% TGC and >180-micron concentrate at 97.2% TGC).

A machine with yellow valves Description automatically generated with medium confidence

Figure 3: Graphite flotation test work at Australia-based ALS Global

HIGHLY FAVOURABLE IMPURITY PROFILE

Kasiya concentrates have very low levels of sulphur. Sulphur can be difficult to remove in the purification processes required to produce anode materials. Other major impurities important for anode material purification processes are iron (Fe), silicon (Si) and aluminium (Al). The Kasiya material has exceptionally low levels of all of these impurities. Benchmarked against the Chinese Standard (China dominates the supply of graphite for battery anodes) this could potentially lead to significant commercial advantages during purification and Kasiya’s potential as a long term secure source of graphite ex-China.  

 

Kasiya

Benchmarks

 

Concentrate
<180 µm

Concentrate
>180 µm

Combined

China
Standard 1

Example Chinese Product 2

Graphite (TGC%)

96.9%

97.2%

97.0%

>94%

96.0%

Sulphur (S) (%)

<0.02%

<0.02%

<0.02%

<0.5%

0.23%

Iron (Fe) (%)

0.48%

0.46%

0.47%

<1.00%

0.55%

Silicon (Si) (%)

0.60%

0.80%

0.68%

n/d

1.25%

Aluminium (Al) (%)

0.24%

0.28%

0.26%

n/d

0.38%

1.      National Standard of China – Flake Graphite (GB/T 3518-2023)

2.    Asbury Carbons – A Study Comparing the Performance of Natural Flake Graphite from Two Different Geographical Regions (https://asbury.com/media/1170/a-study-comparing-the-performance-of-natural-flake-graphite.pdf)

CONTINUING DOWNSTREAM TEST WORK

Kasiya concentrate has been sent for downstream testwork at respected graphite consultancy ProGraphite to produce and characterise CSPG active anode material for lithium-ion batteries. ProGraphite is conducting shaping, purification, and coating testwork to produce CSPG and evaluate the electrochemical performance of Kasiya CSPG. This will provide baseline data for further optimisation and engagement with off-takers. Initial outcomes of this test work are expected to be released in the coming weeks.

Competent Person Statement

The information in this report that relates to Metallurgical Testwork is based on information compiled by Dr Surinder Ghag, PhD., B. Eng, MBA, M.Sc., who is a Member of the Australasian Institute of Mining and Metallurgy (MAusIMM). Dr Ghag is engaged as a consultant by Sovereign Metals Limited. Dr Ghag has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Ghag consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Exploration Results is based on information compiled by Mr Samuel Moyle, a Competent Person who is a member of The Australasian Institute of Mining and Metallurgy (AusIMM). Mr Moyle is the Exploration Manager of Sovereign Metals Limited and a holder of ordinary shares and unlisted performance rights in Sovereign Metals Limited. Mr Moyle has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Moyle consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this announcement that relates to the Mineral Resource Estimate is extracted from an announcement dated 5 April 2023 entitled ‘Kasiya Indicated Resource Increased by over 80%’ which is available to view at www.sovereignmetals.com.au and is based on, and fairly represents information compiled by Mr Richard Stockwell, a Competent Person, who is a fellow of the Australian Institute of Geoscientists (AIG). Mr Stockwell is a principal of Placer Consulting Pty Ltd, an independent consulting company. The original announcement is available to view on www.sovereignmetals.com.au. Sovereign confirms that a) it is not aware of any new information or data that materially affects the information included in the original announcement; b) all material assumptions included in the original announcement continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons’ findings are presented in this announcement have not been materially changed from the original announcement.

The information in this announcement that relates to Production Targets, Ore Reserves, Processing, Infrastructure and Capital Operating Costs, Metallurgy (rutile and graphite) is extracted from an announcement dated 28 September 2023 entitled ‘Kasiya Pre-Feasibility Study Results’ which is available to view at www.sovereignmetals.com.au. Sovereign confirms that: a) it is not aware of any new information or data that materially affects the information included in the original announcement; b) all material assumptions and technical parameters underpinning the Production Target, and related forecast financial information derived from the Production Target included in the original announcement continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons’ findings are presented in this presentation have not been materially modified from the original announcement.

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.

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.

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