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#SVML Sovereign Metals – Equity Research

Sovereign Metals #SVML – Kasiya Expanded Scoping Study Presentation

Sovereign Metals Limited (Company) is pleased to advise that an the Kasiya Expanded Scoping Study Presentation is available to download from the Company’s website at: http://sovereignmetals.com.au/company-presentations/ .

ENQUIRIES

 

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

 

Bhavesh Patel / Andrew Thomson

+44 20 3440 6800

 

 

Joint Brokers

 

Berenberg

+44 20 3207 7800

Matthew Armitt

 

Jennifer Lee

 

 

 

Optiva Securities

+44 20 3137 1902

Daniel Ingram

 

Mariela Jaho

 

Christian Dennis

 

#SVML Sovereign Metals – Kasiya Expanded Scoping Study Results

Sovereign Metals Limited (the Company or Sovereign) is pleased to announce the results of the Expanded Scoping Study (Scoping Study or Study) for the Company’s Kasiya Rutile Project (Kasiya or the Project) in Malawi.

In April 2022, Sovereign announced a new JORC Mineral Resource Estimate (MRE) for Kasiya which confirmed the Project as the world’s largest rutile (titanium dioxide) deposit and one of the world’s largest flake graphite deposits.

The Expanded Scoping Study based on the April 2022 MRE confirms that Kasiya will be one of the world’s largest and lowest cost producers of natural rutile and natural graphite with a carbon-footprint substantially lower than current alternatives while significantly contributing to the social and economic development of Malawi.

 

KEY EXPANDED SCOPING STUDY HIGHLIGHTS

·    Significant increase in NPV and EBITDA from the 2021 Initial Scoping Study with lower operating costs for a relatively small increase in Capex to first production

US$1,537M

36%

US$12,038M

After Tax NPV8

After Tax IRR

LOM Revenue

(↑79%)

(No change)

(92%)

 

US$323M

US$320/t

US$372M

Ave. Annual EBITDA

Operating Cost
per tonne of product

Capex to 1st Production

(↑101%)

(↓10%)

(↑12%)

·    Potential to become a major producer in both the natural rutile and graphite markets with steady state  production of 265,000 rutile and 170,000 tonnes of graphite with a 25-year mine life

·    Low capital costs to first production due to exceptional existing available infrastructure offering significant cost reductions and providing optionality and scalability

·    Low operating cost and high margins due to deposit size, zero strip ratio of soft, friable high-grade mineralisation from surface, amenability to hydro-mining, conventional processing, deposit location and low transport costs

·    Extremely favourable market fundamentals as rutile (titanium) and natural graphite deemed critical raw materials for the US and EU based on economic importance and supply risk

·    Natural rutile market in structural deficit with current global supply estimated to decline 45% in the next three years with graphite demand set to soar as electric vehicle production is forecast to increase 12-fold by 2040

·    Natural ESG benefits for Kasiya:

 Substantially reduced CO2 emissions for both rutile and graphite compared to current alternatives, including substantial Scope 3 emissions reductions for pigment production from rutile compared to alternative feedstocks

 Significant social and economic benefits for Malawi including job creation, fiscal returns, training and continued community social initiatives

·    Study based on conservative commodity price estimates. Long-term rutile price (real) of US$1,254/t versus current spot price of +US$2,200/t1 and long-term natural graphite basket price (real) of US$1,085/t versus current equivalent spot price of US$1,223/t2

 

Managing Director, Dr Julian Stephens commented

“The Expanded Scoping Study demonstrates Kasiya is a Tier 1 minerals project being the largest natural rutile resource and one of the largest graphite resources in the world. Both minerals are classified on the Critical Minerals lists of the US and EU and rutile is in extreme market supply deficit. In light of these factors, Kasiya is seen as a highly strategic project with the potential to be a major supplier in both rutile and graphite markets.

The project benefits from existing high-quality infrastructure and has inherent ESG advantages. Natural rutile has a far lower carbon footprint compared to other titanium feedstocks used in the pigment industry, and natural graphite is a key component in lithium-ion batteries – crucial to de-carbonising the global economy. Further, the vast majority of power for the planned Kasiya mining operation will be supplied by renewable hydro and solar – giving the mine itself a very low carbon footprint.

The future development of the Kasiya Rutile Project will bring substantial benefits to Malawi in terms of GDP, royalties, taxes, employment and training, local business opportunities and community development.”

 

ENQUIRIES

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

 

Bhavesh Patel / Andrew Thomson

+44 20 3440 6800

 

 

Joint Brokers

 

Berenberg

+44 20 3207 7800

Matthew Armitt

 

Jennifer Lee

 

Varun Talwar

 

 

 

Optiva Securities

+44 20 3137 1902

Daniel Ingrams

 

Mariela Jaho

 

Christian Dennis

 

To view the announcement in full including all illustrations and figures, please refer to the announcement at http://sovereignmetals.com.au/announcements/.

Sovereign Metals #SVML – ASX Trading Halt Pending Kasiya Announcement

Sovereign Metals Limited (ASX:SVM; AIM:SVML) (Sovereign or the Company) advises that today the Company requested an immediate voluntary trading halt in its shares on the Australian Securities Exchange (ASX), pending an announcement regarding an expanded scoping study at Kasiya.

The Company has requested that the trading halt remain until the earlier of an announcement to the market regarding the above or the opening of trade on ASX on 16 June 2022.

Trading in the Company’s ordinary securities will continue to trade as normal on AIM during this period.

ENQUIRIES

 

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

 

Bhavesh Patel / Andrew Thomson

+44 20 3440 6800

 

 

Joint Brokers

 

Berenberg

+44 20 3207 7800

Matthew Armitt

 

Jennifer Lee

 

Varun Talwar

 

 

 

Optiva Securities

+44 20 3137 1902

Daniel Ingrams

 

Mariela Jaho

 

Christian Dennis

Sovereign Metals #SVML – Institutional Placement to Raise $15m

Sovereign Metals Limited (Sovereign or the Company) (ASX:SVM, AIM:SVML) is pleased to announce it has secured commitments for A$15 million (gross proceeds) from UK, European and North American institutional investors to subscribe for 22,210,268 new ordinary shares of the Company at an issue price of A$0.67 plus a one-for-two unlisted option with an exercise price of A$0.80 and 12 month expiry (Placement).

Highlights:

·    

Firm commitments received for A$15 million

·    

Placement cornerstoned by Thematica Future Mobility UCITS Fund, a European green energy fund which offers exposure to companies to benefit from the transition to clean and sustainable energy solutions

·    

Funds to be used to further the development of Sovereign’s Kasiya Project, the world’s largest natural rutile deposit and one of the world’s largest flake graphite resources

Thematica Future Mobility UCITS Fund, a Luxembourg-based green energy fund with a strong emphasis on Critical Raw Materials and ESG, were the cornerstone participant in the well-supported Placement which will fund exploration and development activities at the Company’s flagship Kasiya Project (Kasiya).

Kasiya is the world’s largest natural rutile deposit and one of the largest natural graphite deposits globally underpinning its potential to be a major source of sustainable critical raw materials to contribute to decarbonisation and the energy transition. An enhanced Scoping Study for Kasiya is advancing and is expected to be completed by mid-2022.

Sovereign’s Managing Director, Dr Julian Stephens commented: “We are extremely pleased that prominent green energy investors such as Thematica see the enormous potential of Kasiya, not only to be a major world supplier of low carbon footprint natural rutile, but also a supplier of low carbon footprint flake graphite which is a vital component in lithium-ion batteries used in electric vehicles. ESG and green energy are now prominent investment themes, particularly in Europe and North America. Thematica’s investment represents a significant endorsement of Sovereign’s ESG credentials and the potential for Kasiya to deliver critical raw materials vital for the world’s energy transformation. Our focus will now turn to the updated Scoping Study which is targeted for completion in the coming months and will incorporate the significant Kasiya resource increase announced in April.”

Total Voting Rights

Sprott Capital Partners LP acted as financial advisor in connection with the Placement. The Company’s joint corporate broker, Joh. Berenberg, Gossler & Co. KG. provided financial advice in Europe. A fee of 6% is payable on amounts placed by the financial advisors.

The Company will issue the shares and options under Listing Rule 7.1. 

 

ENQUIRIES

Dr Julian Stephens (Perth)
Managing Director

+61(8) 9322 6322

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

Ben Stoikovich (London)

Chairman
+44 207 478 3900

 

Sapan Ghai (London)
+44 207 478 3900

 

 

Nominated Adviser on AIM

RFC Ambrian

Bhavesh Patel / Andrew Thomson

+44 20 3440 6800

Joint Brokers

Berenberg

+44 20 3207 7800

Matthew Armitt

Jennifer Lee

Varun Talwar

Optiva Securities

+44 20 3137 1902

Daniel Ingrams

Mariela Jaho

Christian Dennis

Share Issue, Settlement and Dealings

The Company will issue 22,210,268 Ordinary Shares of no par value at a price of A$0.67 per Ordinary Share (Placing Shares) at completion of the Placement. Additionally, the Company will issue plus a one-for-two unlisted option with an exercise price of A$0.80 and 12 month expiry.  

Application will be made for the Placing Shares to be admitted to trading on AIM (Admission) and it is expected that Admission will become effective on or around 19 May 2022. The Placing Shares will rank pari passu with the Company’s existing issued Ordinary Shares.

Total Voting Rights

For the purposes of the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules (DTRs), following Admission of the Placing Shares, Sovereign will have 463,281,023 Ordinary Shares in issue with voting rights attached. The figure of 463,281,023 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.

Not for release to US wire services or distribution in the United States

This announcement has been prepared for publication in Australia and may not be released in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any securities described in this announcement have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or sold in the United States except in transactions exempt from, or not subject to, the registration of the US Securities Act and applicable US state securities laws.

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.

Sovereign Metals #SVML – March 2022 Quarterly Report

HIGHLIGHTS

MRE upgrade confirmed Kasiya as the largest rutile deposit ever discovered

  • 1.8 Billion tonnes @ 1.01% rutile and 1.32% graphite (Indicated + Inferred) equating to 18 million tonnes contained rutile and 23 million tonnes contained graphite
  • The updated Mineral Resource Estimate (MRE) confirmed Kasiya as the world’s largest rutile deposit and one of the largest flake graphite deposits globally
  • High global resource grade @ 1.64% RutEq.* (recovered rutile + recovered graphite)
  • 662 Mt (37%) of the total MRE reports to the Indicated category with remainder in Inferred category

Updated Scoping Study underway

  • Updated Scoping Study to build on initial study reflecting the substantial MRE scale increase and to examine the impact of higher grades, increased production volumes and increased mine-life
  • Industry defining independent LCA studies shows Sovereign’s ability to reduce the carbon footprint
  • Scope 1, 2 and 3 benchmark Life Cycle Assessment (LCA) studies for natural rutile and graphite produced from Kasiya have the potential for a substantially reduced carbon footprint compared to other titanium feedstocks and flake graphite products in the market, with results including:
    • Each tonne of natural rutile produced at Kasiya is expected to have a Global Warming Potential (GWP) of only 0.1 tonnes CO2 eq., which equates to a 95% to 97% reduction in total greenhouse gas emissions (20 to 33 times less) compared to production of titania slag and synthetic rutile respectively – both of which are alternative titanium pigment feedstocks produced by upgrading ilmenite via energy and carbon intensive processes
    • Each tonne of graphite produced from Kasiya is expected to have a GWP of only 0.2 tonnes CO2e which represents ~80% lower greenhouse gas emissions compared to natural graphite produced in China

Offtake MoU for premium priced rutile sales to the welding sector

  • MoU (non-binding) signed for supply of 25,000 tonnes of natural rutile per annum to Hascor, a market leading global processor and distributor of rutile products for the welding industry
  • Hascor to provide Sovereign with strategic advice on marketing and product development
  • Pricing of rutile for welding generally attracts significant premiums to bulk rutile prices in the titanium pigment sector

Former Rio Tinto executive joins Sovereign board

  • Leading international mining executive, Mr Nigel Jones, appointed as Non-Executive Director of Sovereign Metals and Chairman of the ESG Committee
  • Mr Jones has over 30 years of mining industry experience with 22 years in a number of senior roles at Rio Tinto Group including most recently as Managing Director of Rio Tinto’s Simandou iron ore project, one of the world’s largest proposed mining developments

Joined UK’s Critical Minerals Association 

  • During the quarter, Sovereign became 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
  • Presentation at UK Houses of Parliament on the potential for Sovereign to become an important supplier of low carbon footprint natural graphite

Rutile market remains strong and robust

  • Demand for high-grade titanium dioxide feedstocks continued to remain strong, and along with supply shortages has led to continued rutile price appreciation, with major producer Iluka Resource commenting that the current rutile spot price is at ten year highs.

ENQUIRIES

 

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

Bhavesh Patel / Andrew Thomson

+44 20 3440 6800

Joint Brokers

Berenberg

+44 20 3207 7800

Matthew Armitt

Jennifer Lee

Varun Talwar

Optiva Securities

+44 20 3137 1902

Daniel Ingrams

Mariela Jaho

Christian Dennis

Sovereign Metals #SVML – 1.8 billion tonne JORC Resource confirms Kasiya as the largest Rutile deposit ever discovered

Sovereign Metals #SVML – 1.8 billion tonne JORC Resource confirms Kasiya as the largest Rutile deposit ever discovered

·

Updated mineral resource estimate (MRE) confirms Kasiya as the world’s largest rutile depositand second largest graphite deposit

·

Contained rutile at the Kasiya mega-deposit now stands at 18 Mt – tripling the previous MRE

·

Contained flake graphite by-product now stands at 23 Mt

·

High global resource grade @ 1.64% RutEq.* (recovered rutile + recovered graphite)

·

662 Mt (37%) of the total MRE reports to the Indicated category with remainder in Inferred category

·

Scoping Study to be updated to reflect the substantial MRE scale increase to examine the impact of higher grades, increased production volumes and increased mine-life

 

Table 1:  Kasiya Mineral Resource Estimate at 0.7% Rutile Cut-off

Mineral Resource Category

Material Tonnes (millions)

Rutile
(%)

Rutile Tonnes (millions)

TGC
(%)

TGC Tonnes (millions)

RutEq. Grade*
(%)

Indicated

662

1.05%

6.9

1.43%

9.5

1.73%

Inferred

1,113

0.99%

11.0

1.26%

14.0

1.59%

Total

1,775

1.01%

18.0

1.32%

23.4

1.64%

Sovereign’s Managing Director Dr Julian Stephens commented: It is a really remarkable achievement by our team to have made the largest natural rutile discovery ever in just two years since initial identification. The JORC MRE of this scale and grade is clearly highly strategic, Tier 1 and of global significance in a market where natural rutile is in extreme supply deficit.

The step-change in scale will now allow us to examine potentially higher-grade throughput, increased production levels and a longer mine life in the upcoming Scoping Study update. The Company is targeting a large-scale, low carbon-footprint and environmentally sustainable natural rutile and graphite operation which will also positively impact the environmental footprint of titanium pigment and other industries, and provide a significant contribution to the economy of Malawi.”

ENQUIRIES

 

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

Bhavesh Patel / Andrew Thomson

+44 20 3440 6800

Joint Brokers

Berenberg

+44 20 3207 7800

Matthew Armitt

Jennifer Lee

Varun Talwar

Optiva Securities

+44 20 3137 1902

Daniel Ingrams

Mariela Jaho

Christian Dennis

*Formula: Rutile Grade x Recovery (97%) x Rutile Price (US$1,346/t) + Graphite Grade x Recovery (62%) x Graphite Price (US$1,085/t) / Rutile Price (US$1,346/t). All assumptions taken from the Company’s 2021 Scoping Study released 16 December 2021

To view the announcement in full including all illustrations and figures, please refer to the full announcement at http://sovereignmetals.com.au/announcements/. 

KASIYA – THE LARGEST RUTILE DEPOSIT IN THE WORLD 

Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is pleased to announce its updated Mineral Resource Estimate (MRE) for Kasiya confirming it as a Tier 1 natural rutile deposit and a potential major source of low CO2 footprint critical minerals natural rutile and graphite.

The updated MRE now places Kasiya as the largest rutile deposit in the world with more than double the contained rutile as its nearest rutile peer, Sierra Rutile (Tables 1, 2 & 3). Additionally, the graphite by-product MRE at Kasiya places it as the second largest flake graphite deposit in the world.

The MRE has broad zones of very high-grade rutile which occurs contiguously across a very large area of over 180km2. Rutile mineralisation lies in laterally extensive, near surface, flat “blanket” style bodies in areas where the weathering profile is preserved and not significantly eroded.

Overall, the new MRE shows a number of new large, but generally discrete high grade rutile zones, particularly in the southern parts and eastern parts of the resource area. The discovery and delineation of these new high grade mineralised zones has been the dominant factor in the tripling of the resource base.

A Total of 662 Mt (37%) of the total MRE reports to the Indicated category @ 1.05% rutile and 1.43% TGC, with a recovered grade of 1.73% RutEq.

The deposit is expansive with high-grade rutile mineralisation commonly grading 1.2% to 2.0% in the top 3-5m from surface. Moderate grade mineralisation generally grading 0.5% to 1.2% rutile commonly extends from 5m to end of hole where it remains open at depths >10m in numerous drill-defined, N to NE-striking zones.

Graphite is generally depleted near surface in the top 3-5m with grades commonly in the 0.1% to 0.5% total graphitic carbon (TGC) range. Graphite grades generally increase with depth to about 8m, then remain constant ranging from 1% to 8% TGC. A number of higher-grade graphite zones at depth have been identified which are generally associated with higher grade rutile at surface. Some of these zones have graphite grades at depth >8m in the 4% to 8% TGC range and represent very significant coarse flake graphite tonnages.

The highlighted cut-off of 0.70% presents 1.8 billion tonnes at a rutile grade of 1.01% with high-grade components providing over 352 Mt at a rutile grade of 1.44% at a 1.20% cut-off (Table 2). The overall recovered rutile equivalent grade for the MRE at the global 0.7% cut-off is 1.64% RutEq. (Table 1).

Table 2:  Kasiya Total Indicated + Inferred Mineral Resource Estimate at various rutile cut-offs

Cut-off (rutile)

Resource
(Mt)

Rutile Grade
(%)

Contained Rutile
(Mt)

Graphite Grade (%)

Contained Graphite
(Mt)

0.40%

 2,825

0.84%

23.8

1.26%

35.5

0.50%

 2,503

0.89%

22.4

1.30%

32.5

0.60%

 2,155

0.95%

20.4

1.33%

28.6

0.70%

 1,775

1.01%

18.0

1.32%

23.4

0.80%

 1,391

1.09%

15.1

1.24%

17.3

0.90%

 1,024

1.17%

12.0

1.09%

11.2

1.00%

 727

1.26%

9.2

0.92%

6.7

1.10%

 516

1.35%

7.0

0.76%

3.9

1.20%

 352

1.44%

5.1

0.55%

1.9

1.30%

 241

1.53%

3.7

0.46%

1.1

1.40%

 165

1.62%

2.7

0.43%

0.7

 

GLOBAL SIGNIFICANCE – RUTILE

Natural rutile is a genuinely scarce commodity, with no other known large rutile dominant deposits being discovered in over half a century. Kasiya is now shown to be the largest single rutile deposit in the world (Table 3), with central Malawi now hosting the largest known rutile province in the world.

Current sources of natural rutile are in decline as several operations’ reserves are depleting concurrently with declining ore grades. These include Iluka Resources’ (Iluka) Sierra Rutile and Base Resources’ Kwale operations in Sierra Leone and Kenya respectively. Additionally, there are limited new deposits forecast to come online, meaning supplies of natural rutile are likely to remain in extreme structural deficit.

Table 3: Summary of major rutile dominant resources1

Company

Project

Resource

(Mt)

In-situ Grade

Contained Rutile
(Mt)

Rutile
(%)

Ilmenite

(%)

Zircon
(%)

TGC
(%)

Sovereign Metals

Kasiya

1,775

1.01%

1.32%

18.0

Iluka Resources

Sierra Rutile

752

1.10%

0.90%

0.10%

8.1

Iluka Resources

Balranald2

53

3.68%

19.34%

3.38%

2.0

Base Resources

Kwale

194

0.37%

1.31%

0.17%

0.7

Sources: Refer to Appendix 1

Notes:

1.    Projects selected with rutile contributing over 30% of the in-situ value

2.    The Balranald Project is being investigated for underground mining by Iluka

As demonstrated in the December 2021 initial Scoping Study, the Kasiya operation will primarily employ conventional hydro-mining to produce a slurry that is pumped to a Wet Concentration Plant (WCP) where the material is sized. A Heavy Mineral Concentrate (HMC) is produced via processing the sand fraction through a series of gravity spirals. The HMC is transferred to the dry Mineral Separation Plant (MSP) where premium quality rutile is produced via electrostatic and magnetic separation. Test work has been very successful and has resulted in conventional flowsheets proving highly efficient for producing premium quality rutile and graphite products.

World-class rutile product chemical specifications are reported at 95.0% to 97.2% TiO2 with low impurities and stand-out metallurgical recoveries ranging from 94% to 100%. For the Scoping Study and rutile equivalent (RutEq.) grade calculation, a product grade of 96% TiO2 and recovery of 97% are assumed for rutile.

GRAPHITE – A VALUABLE BY-PRODUCT

The 23.4 Mt of contained graphite in the Kasiya MRE now places it as the second largest flake graphite deposit in the world (Table 4).

Table 4: Summary of major flake graphite resources

Resource
(Mt)

Syrah Resources

Balama

1,421

10.3%

146.3

Sovereign Metals

Kasiya

1,775

1.3%

23.4

Volt Resources

Bunyu

461

4.9%

22.6

Black Rock Mining

Mahenge

213

7.8%

16.6

Mason Graphite

Lac Gueret

83

17.6%

14.7

Magnis Energy

Nachu

174

5.4%

9.3

NextSource Materials

Molo

141

6.1%

8.7

Graphite One

Graphite One

103

8.0%

8.2

Focus Graphite

Lac Tetepisca

74

10.6%

7.9

Sources: Refer to Appendix 1

Graphite rich mineral pre-concentrate will be produced from the light fraction of the gravity spiral tails and processed in a separate graphite flotation plant to produce a high-quality flake graphite by-product. Because graphite will be a by-product from rutile production, it will have a very low production cost compared to graphite-only projects, as shown in the initial Kasiya Scoping Study.

A very coarse-flake and high-grade graphite product at 96% TGC can be produced via this simple flowsheet. This product has over 60% in the large to super-jumbo fractions (+180μm) with overall graphite recovery from the raw sample to product of 62%.

As well as being very coarse flake, the Kasiya graphite is also highly crystalline and of high purity. These are both important features required for use in lithium-ion battery anodes. The high crystallinity means that the graphite will have high electrical conductivity – a key requirement. High purity means the material will be easier to upgrade to 99.95% TGC, the minimum requirement for lithium-ion battery anodes.

NEXT STEPS

The updated MRE confirms Kasiya as a Tier 1 mineral project, being the largest deposit of natural rutile in the world and the second largest flake graphite deposit in the world. The strong economics of the project were confirmed in the initial Scoping Study based on the previous resource estimate which was released in December 2021.

Sovereign is rapidly continuing its work programs with the following near and medium-term targets and developments:

·      An updated Scoping Study is targeted for completion Q2 2022 to build on the 2021 Scoping Study. This will be driven by the significant increase in the MRE, providing the opportunity to assess higher grade throughput, increased production rates and longer mine life.

·      Initial Pre-feasibility Study (PFS) activities are commencing and include metallurgical programs and hydrogeological studies. Other study elements will commence shortly with major technical consultant site visits commencing in April. The PFS is targeted for completion in early 2023.

·       Drilling programs are planned to continue, testing depth and lateral extensions at Kasiya. These include:

–     An air-core drilling rig is set to be mobilise to Kasiya in mid-May, with a planned 300 hole/10,000m program with the aim of deepening the better high-grade areas in order to add to the next MRE upgrade

–      Continued infill and step-out hand-auger drilling expand the overall mineralised footprint with drill teams to mobilise in April

·     The Company continues to work with potential offtakers and strategic partners in the pigment, welding and titanium metal industries to secure further agreements regarding future offtakes.

·      Continued strong focus on ESG and sustainability – initial ESIA activities to commence shortly including environmental and community baseline surveys, which will inform the upcoming PFS, with continued focus on developing low carbon-footprint operations taking advantage of renewable power supply and soft-friable saprolite mineralisation to produce natural rutile and graphite with far lower Global Warming Potential than alternative products.

KASIYA MRE TECHNICAL DETAILS

The Kasiya MRE has been prepared by independent consultants, Placer Consulting Pty Ltd (Placer) and is reported in accordance with the JORC Code (2012 Edition).

Rutile mineralisation lies in laterally extensive, near surface, flat “blanket” style bodies in areas where the weathering profile is preserved and not significantly eroded. The high-grade zones appear to be geologically continuous with limited variability along and across strike.

SUMMARY OF RESOURCE ESTIMATE REPORTING CRITERA

As per ASX Listing Rule 5.8 and the 2012 JORC reporting guidelines, a summary of the material information used to estimate the MRE is detailed below.

Geology

Regional Geology

The greater part of Malawi is underlain by crystalline Precambrian to lower Paleozoic rocks referred to as the Malawi Basement Complex. In some parts these rocks have been overlain unconformably by sedimentary and volcanic rocks ranging in age from Permo-triassic to Quaternary. The Basement complex has undergone a prolonged structural and metamorphic history dominated by uplift and faulting resulting in the formation of the Malawi Rift Valley.

Kasiya is located on the Lilongwe Plain which is underlain by the Basement Complex paragneisses and orthogneisses which are part of the Mozambique Belt. The bulk of the gneisses are semi-pelitic but there are bands of psammitic and calcareous rocks that have been metamorphosed under high pressure and temperature conditions to granulite facies. Interspersed within the paragneiss units are lesser orthogneisses, often cropping-out as conspicuous tors, as well as amphibolites, pegmatites and minor mafic to ultramafic intrusions.  Foliation and banding in the gneisses have a broad north-south strike over the general area. Thick residual soils and pedolith with some alluvium overlie the gneisses and include sandy, lateritic and dambo types.

Project Geology

Sovereign’s tenure covers 1,892km2 over an area to the north, west and south of Malawi’s capital city covering the Lilongwe Plain. The topography is generally flat to gently undulating and the underlying geology is dominated by paragneiss with pelitic, psammitic and calcareous units.

A particular paragneiss unit is rich in rutile and graphite and is the primary source of both of these minerals in the area. This area was deeply weathered during the Tertiary and rutile concentrated in the upper part of the weathering profile forming residual placers, such as the Kasiya Deposit. Once this material is incised and eroded, it is transported and deposited into wide, regional braided river systems forming alluvial heavy mineral placers such as the Bua Channel.

Kasiya Deposit Geology

The high-grade rutile deposit at Kasiya is best described as a residual placer, or otherwise known as eluvial heavy mineral deposit. It is formed by weathering of the primary host rock and concentration in place of heavy minerals, as opposed to the high-energy transport and concentration of heavy minerals in a traditional placer.

The presence of abundant kyanite and graphite in the host material suggest a meta-sedimentary protolith. The protolith likely started with a 0.5-1.5Ga basin that also experienced consistent influx of titanium minerals.

These sedimentary rocks were subject to granulite facies metamorphism under reduced conditions in the Pan-African Orogeny at circa 0.5-0.6Ga. The reduced environment, relatively high titanium content and low iron content, resulted in rutile being the most stable titanium mineral under these conditions. Slow exhumation and cooling then resulted in crystallisation of paragneisses containing coarse rutile and graphite.

The final and most important stage of enrichment came as tropical weathering during the Tertiary depleted the top ~10m of physically and chemically mobile minerals. This caused significant volume loss and concurrent concentration of heavy resistate minerals including rutile and kyanite.

Rutile mineralisation lies in laterally extensive, near surface, flat “blanket” style bodies in areas where the weathering profile is preserved. The Kasiya deposit continues to confirm widespread, high-grade mineralisation commonly grading 1.2% to 2.0% rutile in the top 3-5m from surface. Moderate grade mineralisation generally grading 0.5% to 1.2% rutile commonly extends from 5m to end of hole where it remains open at depths >10m in numerous drill-defined, NE and N striking zones.

Graphite generally occurs in broad association with rutile. However, it is depleted in the top 3-5m and therefore can often show an inverse grade relationship with rutile in the near-surface zones. At depths generally greater than 5m, graphite is not depleted, and rutile is not particularly enriched, so a more consistent grade relationship exists.

Metallurgical results show that a very coarse-flake graphite by-product can be recovered from rutile gravity-separation tails.

Drilling Techniques

Spiral hand-auger (HA) drilling and Push-tube core (PT) drilling has been used extensively at the Kasiya Deposit by Sovereign to define mineralisation and to obtain quantitative rutile and graphite (TGC) assay information.

A total of 1,205 HA holes for 11,360m were drilled at the Kasiya Rutile Deposit to obtain samples for quantitative determination of recoverable rutile and TGC.

An initial 30 PT core holes, for 359.4m, were drilled at the Kasiya Rutile Deposit to obtain samples for validation of hand auger drilling results and for bulk density test work.

The subsequent infill drilling programme, designed to support the resource estimate update, was completed by push tube coring. A total of 234 core holes for 2,368.5m are included in the updated MRE.

The drilling programs to date show a mineralised envelope, defined nominally by >0.5% rutile, of approximately 187km2 with numerous areas of high-grade rutile defined.

HA drilling was executed by Sovereign field teams using a manually operated enclosed-flight Spiral Auger (SP / SOS) system produced by Dormer Engineering in Queensland, Australia. The HA bits are 62mm and 75mm in diameter with 1m long steel rods. Each 1m of drill advance is withdrawn and the contents of the auger flight removed into bags and set aside. An additional 1m steel rod is attached and the open hole is re-entered to drill the next metre. This is repeated until the drill hole is terminated often due to the water table being reached, and more rarely due to bit refusal (2% of the resource HA drill database). The auger bits and flights are cleaned between each metre of sampling to avoid contamination.

PT drilling is undertaken using a drop hammer Dando Terrier MK1 and a drop hammer DL650. The drilling generated 1m runs of 83mm PQ core in the first 2m and then transitioned to 72mm core for the remainder of the hole. Core drilling is oriented vertically by spirit level.

The HA collars are spaced at nominally 400m along the 400m spaced drill-lines with the push-tube holes similarly spaced at an offset, infill grid. The resultant 200m by 200m drill spacing (to the strike orientation of the deposit) is deemed to adequately define the mineralisation in the MRE.

There is no apparent bias arising from the orientation of the drill holes, with respect to the orientation of the deposit.

The PT twin and density sample holes are selectively placed throughout the deposit to ensure a broad geographical and lithological coverage for the analysis.

Placer has reviewed SOPs for HA and PT drilling and found them to be fit for purpose and support the resource classifications as applied to the MRE.

Sampling Techniques

HA samples are obtained at 1m intervals generating on average approximately 2.5kg of drill sample. HA samples are manually removed from the auger bit and sample recovery is visually assessed in the field. As samples become wet at the water table and recovery per metre declines, the drill hole is terminated.

HA samples are collected in 1m increments. Each 1m sample is sun dried, logged, weighed and pXRF analysed. HA samples are composited based on regolith boundaries and sample chemistry, generated by hand-held XRF analysis. Each 1m of sample is dried and riffle-split to generate a total sample weight of 3kg for analysis, generally at 2 – 5m intervals (average 2.8m for the total resource drill database). This primary sample is then split again to provide a 1.5kg sample for both rutile and graphite analyses.

PT samples are predominantly HQ. Half core 1m samples are sun dried, logged, weighed and pXRF analysed. Samples are then composited over 2m intervals. An equal mass is taken from each contributing metre to generate a 1.5kg composite sample.  Individual recoveries of core samples are recorded on a quantitative basis. Core recovery is >95%.

This sampling and compositing method is considered appropriate and reliable based on accepted industry practice.

Sample analysis methodology

Rutile

Heavy mineral concentrates (HMC) are generated onsite via wet-tabling. Heavy Liquid Separation (HLS) was trialled at Diamantina Laboratories in Perth but was superseded by wet table separation on account of substantial near-density, gangue material reporting to the HM sink.

The Malawi onsite laboratory sample preparation methods are considered quantitative to the point where a wet-tabled HMC is generated.

The HMC is then subject to magnetic separation at Allied Mineral Laboratories Perth (AML) in Perth by Carpco magnet @ 16,800G (2.9Amps) into a magnetic (M) and non-magnetic (NM) fraction.

The NM fractions are sent to either ALS Perth or Intertek Perth for quantitative XRF analysis. Intertek samples received the standard mineral sands suite FB1/XRF72. ALS Samples received XRF_MS.

QEMSCAN of the NM fraction shows dominantly clean and liberated rutile grains and confirms rutile is the only titanium species in the NM fraction. Recovered rutile is therefore defined and reported here as: TiO2 recovered in the +45 to -600um range to the NM concentrate fraction as a % of the total primary, dry, raw sample mass divided by 95% (to represent an approximation of final product specifications). i.e recoverable rutile within the whole sample.

Graphite

A split of each raw sample is dissolved in dilute hydrochloric acid to liberate carbonate carbon. The solution is filtered using a filter paper and the collected residue is then dried to 425°C in a muffle oven to drive off organic carbon. The dried sample is then combusted in an Eltra CS-800 induction furnace infra-red CS analyser to yield total graphitic or elemental carbon (TGC).

QAQC

Accuracy monitoring is achieved through submission of certified reference materials (CRM’s). Sovereign uses internal and externally sourced wet screening reference material inserted into samples batches at a rate of 1 in 20. The externally sourced, certified standard reference material for HM and Slimes assessment is provided by Placer Consulting.

ALS and Intertek both use internal CRMs and duplicates on XRF and TGC analyses. Sovereign also inserts CRMs into all sample batches at a rate of 1 in 20.

An external laboratory raw sample check duplicate is sent to laboratories in Perth, Australia as an external check of the full workflow. These duplicates are produced at a rate of 1 in 20.

Analysis of sample duplicates is undertaken by standard geostatistical methodologies (Scatter, Pair Difference and QQ Plots) to test for bias and to ensure that sample splitting is representative. Standards determine assay accuracy performance, monitored on control charts, where failure (beyond 3SD from the mean) may trigger re-assay of the affected batch.

Precision and accuracy assessment has been completed on all alternate workflow methodologies and a consistent method has been decided, in consultation with Placer Resource Geologists. Examination of the QA/QC sample data indicates satisfactory performance of field sampling protocols and assay laboratories providing acceptable levels of precision and accuracy. Rutile determination by alternate methods showed no observable bias.

Acceptable levels of accuracy and precision are displayed in geostatistical analyses to support the resource classifications as applied to the estimate.

Classification

The HA collars are spaced at nominally 400m along the 400m spaced drill-lines with the PT holes similarly spaced at an offset, infill grid. The resultant 200m by 200m drill spacing (to the strike orientation of the deposit) is deemed to adequately define the mineralisation in the MRE.

The PT twin and density sample holes are selectively placed throughout the deposit to ensure a broad geographical and lithological spread for the analysis.

Variography and kriging neighbourhood analysis completed using Supervisor software informs the optimal drill and sample spacing for the MRE. Based on these results and the experience of the Competent Person, the data spacing and distribution is considered adequate for the definition of mineralisation and adequate for the MRE.

For the latest MRE, a regional trend analysis was performed for all drilling across Kasiya, designed to supplement and extend previous variography analysis completed using Datamine Supervisor software. The trend analysis involved the following key steps:

1.   Generating intercepts files (no bottom cut applied) as follows:

a)   SOIL+FERP (~upper domain)

b)   MOTT+PSAP+SAPL (~lower domain)

2.   Gridding RUT95 intercept XY collar points for both zones using Micromine with multiple interpolation methods.

3.   Variogram Mapping (using Micromine) to investigate interpreted trend orientations against semi-variance.

Drilling methods applied to define the Kasiya Deposit (HA and PT) are not able to retrieve reliable samples below the water table. Mineralisation remains open and a substantial resource is anticipated beneath current drill depths.

High grade sample results are constrained tightly by the search and estimation parameters applied to the interpolation. High grades are expected to be contiguous upon application of closer-spaced drilling.

Regolith stratigraphy is uniform and rutile and graphite mineralisation is broadly consistent across the Kasiya Deposit. Open-hole drilling and infill core drilling techniques have been expertly applied and data collection procedures, density assessments, QA protocols and interpretations conform to industry best practice.

Assay, mineralogical determinations and metallurgical test work conform to industry best practice and demonstrate a rigorous assessment of product and procedure. These and the development of a conventional processing flowsheet and marketability studies support the classification of the Kasiya Resource.

Estimation Methodology

Datamine Studio RM, Micromine and Supervisor software are used for the data analysis, variography, geological interpretation and resource estimation with key fields being interpolated into the volume model using the Inverse Distance weighting (power 2) method. Dynamic Anisotropy search ellipses, informed by variography, kriging neighbourhood analysis and gridding of rutile abundance, were used to search for data during the interpolation. Suitable limitations on the number of samples and the impact of those samples, was maintained.

Interpolation was constrained by hard boundaries (domains) that result from the geological interpretation. The construction of an upper (Soil/Ferp) domain reduces the dilution of resource grade from the underlying, less mineralised (Mott/Sap) domain. A Topsoil horizon has been defined at 0.3m thickness throughout the Indicated Resource area to support anticipated ore reserve calculation and mining studies. Topsoil is disclosed separately but remains in the MRE in recognition of advanced investigations by SVM on synthetic topsoil generation for rehabilitation.

The average parent cell size used is equivalent to the average drill hole spacing within the Indicated Resource (200m*200m).  Cell size in the Z-axis was established to cater for the composite sample spacing and definition of the Topsoil domain. This resulted in a parent cell size of 200m x 200m x 3m for the volume model with 5 sub-cell splits available in the X and Y axes and 10 in the Z axis to smooth topographical and lithological transitions.

Both parent and sub-cell interpolations were completed and reconciled spatially against each other. The parent cell and sub cell interpolations produced near identical global tonnages and grades. The sub-cell interpolation was seen to provide a better graduation of informing drill hole data through intermediate model cells and to conform more sympathetically to the geological interpretation. In this instance, the sub-cell interpolation was applied to the MRE.

The resource model has been volumetrically constrained generally as a buffer of one parent cell dimension. That is: A 200m buffered model boundary around drilling in the XY plan. Vertically the model is constrained by both the topography DTM and a ‘basement’ wireframe that seeks to buffer ‘effective depth’ drilling depths by 2.7m (a little less than the average sample interval for the drill database). This ‘basement’ surface does not represent the base of mineralisation, which is anticipated to be deeper within the weathered profile, at the saprolite/saprock horizon.

Extreme grade values were not identified by statistical analysis, nor were they anticipated in this style of deposit. No top cut is applied to the resource estimation.

Validation of grade interpolations was done visually in Datamine by loading model and drill hole files and annotating, colouring and using filtering to check for the appropriateness of interpolations.

Statistical distributions were prepared for model zones from both drill holes and the model to compare the effectiveness of the interpolation. Model-drilling reconciliation was performed by generating swath plots to measure drilling support against interpolation performance in all three primary orientations. The resource model has effectively averaged informing drill hole data and is considered suitable to support the resource classifications as applied to the estimate.

Density is calculated by the measurements of wet and dry weights using core from geographically and lithologically diverse sample sites throughout the project. This methodology delivers an accurate density result that is interpolated in the MRE for each host material type.

Density data are interpolated into the resource estimate by geological domain. An average density of 1.39 t/m3 for the soil (SOIL) domain, 1.60 t/m3 for the ferruginous pedolith (FERP) domain, 1.65 t/m3 for the mottled (MOTT) domain, 1.68 t/m3 for the pallid saprolite (PSAP) domain, 1.63 t/m3 for the saprolite (SAPL) domain, and 1.93 t/m3 for the laterite (LAT) domain were calculated. Density data are interpolated into the resource estimate by the nearest neighbour method.

Cut-off Grades

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. No graphite top or bottom cuts are applied.

Mining and Metallurgy Factors

Hydro-mining has been determined as the optimal method of mining for the Kasiya Rutile deposit. The material is loose, soft, fine and friable with no cemented sand or dense clay layers rendering it amenable to hydro-mining. It is considered that the strip ratio would be zero or near zero.

Dilution is considered to be minimal as mineralisation commonly occurs from surface and mineralisation is generally gradational with few sharp boundaries.

Recovery parameters have not been factored into the estimate. However, the valuable minerals are readily separable due to their SG differential and are expected to have a high recovery through the proposed conventional wet concentration plant, as demonstrated by metallurgical test work.

Sovereign have announced three sets of metallurgical results to the market (24 June 2019, 9 September 2020 and 7 December 2021), relating to the Company’s ability to produce a high-grade rutile product with a high recovery via simple conventional processing methods. Sovereign engaged AML to conduct the metallurgical test work and develop a flowsheet for plant design considerations. The work has shown a premium quality rutile product ranging from 95.0% to 97.2% TiO2 with low impurities could be produced with recoveries of about 94% to 100% and with favourable product sizing at d50 of 118µm (97.2% product).

Gravity separation was effective at concentrating graphite to a “light mineral pre-concentrate” due to its low specific gravity (~2.2 t/m³) at circa 6.3% TGC.

A program at SGS Lakefield in Canada was undertaken in order to confirm that the graphite gravity pre-concentrate can be upgraded into a coarse flake graphite by-product via a conventional graphite flotation flowsheet.

The test-work was extremely successful, and a very coarse-flake graphite concentrate at 96.3% TGC was produced. Greater than 60% of the graphite concentrate is in the large to super-jumbo fractions, suggesting a high combined basket value. The overall graphite recovery from the raw sample to product was 62%.

MRE TABLES

Table 5: Indicated MRE at various rutile cut-offs

Cut-off (rutile)

Resource
(Mt)

Rutile Grade
(%)

Contained Rutile
(Mt)

Graphite Grade (%)

Contained Graphite
(Mt)

0.40%

 924

0.91

 8.4

1.39

 12.9

0.50%

 854

0.95

 8.1

1.42

 12.1

0.60%

 768

0.99

 7.6

1.44

 11.1

0.70%

 662

1.05

 6.9

1.43

 9.5

0.80%

 534

1.12

 6.0

1.36

 7.2

0.90%

 416

1.20

 5.0

1.24

 5.1

1.00%

 314

1.28

 4.0

1.06

 3.3

1.10%

 228

1.36

 3.1

0.85

 1.9

1.20%

 158

1.46

 2.3

0.63

 1.0

1.30%

 113

1.54

 1.7

0.52

 0.6

1.40%

 82

1.62

 1.3

0.47

 0.4

Table 6: Inferred MRE at various rutile cut-offs

Cut-off (rutile)

Resource
(Mt)

Rutile Grade
(%)

Contained Rutile
(Mt)

Graphite Grade (%)

Contained Graphite
(Mt)

0.40%

 1,901

0.81

 15.4

1.19

 22.6

0.50%

 1,649

0.86

 14.2

1.23

 20.4

0.60%

 1,388

0.92

 12.8

1.26

 17.5

0.70%

 1,113

0.99

 11.0

1.26

 14.0

0.80%

 856

1.06

 9.1

1.18

 10.1

0.90%

 608

1.15

 7.0

0.99

 6.0

1.00%

 413

1.25

 5.1

0.81

 3.4

1.10%

 288

1.34

 3.8

0.69

 2.0

1.20%

 194

1.43

 2.8

0.49

 1.0

1.30%

 128

1.52

 2.0

0.41

 0.5

1.40%

 83

1.61

 1.3

0.38

 0.3

Table 7: Inferred & Indicated MRE at various rutile cut-offs

Cut-off (rutile)

Resource
(Mt)

Rutile Grade
(%)

Contained Rutile
(Mt)

Graphite Grade (%)

Contained Graphite
(Mt)

0.40%

 2,825

0.84%

23.8

1.26%

35.5

0.50%

 2,503

0.89%

22.4

1.30%

32.5

0.60%

 2,155

0.95%

20.4

1.33%

28.6

0.70%

 1,775

1.01%

18.0

1.32%

23.4

0.80%

 1,391

1.09%

15.1

1.24%

17.3

0.90%

 1,024

1.17%

12.0

1.09%

11.2

1.00%

 727

1.26%

9.2

0.92%

6.7

1.10%

 516

1.35%

7.0

0.76%

3.9

1.20%

 352

1.44%

5.1

0.55%

1.9

1.30%

 241

1.53%

3.7

0.46%

1.1

1.40%

 165

1.62%

2.7

0.43%

0.7

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.

Competent Persons Statement

The information in this announcement that relates to Mineral Resources 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. Mr Stockwell has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity 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’. Mr Stockwell consents to the inclusion of the matters based on his information in the form and context in which it appears.

The information in this announcement that relates to Exploration Results is based on information, and fairly represents, 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, unlisted options and performance rights in Sovereign. 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 Metallurgical test-work Results – Rutile & Graphite is extracted from the announcement dated 24 June 2019, 9 September 2020 and 7 December 2021. The 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 announcement; b) all material assumptions included in the 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 report have not been materially changed from the announcement.

Qualified Person

Information disclosed in this announcement has been reviewed by Dr Julian Stephens (B.Sc (Hons), PhD, MAIG), Managing Director, a Qualified Person for the purposes of the AIM Rules for Companies.

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.

Sovereign Metals #SVML – Kasiya’s Natural Rutile to Significantly Reduce Pigment Industry Carbon Footprint

Sovereign Metals Limited (ASX:SVM; AIM:SVML) (Sovereign or the Company) is pleased to announce the results of an expanded Life Cycle Assessment Study (LCA or Study) assessing the Global Warming Potential (GWP) of natural rutile produced at the Company’s Kasiya Rutile Project (Kasiya) in Malawi.

Highlights

·

– Industry defining independent Life Cycle Assessment Study shows the potential for Sovereign’s natural rutile to significantly reduce the carbon footprint of the titanium pigment industry

 

Each tonne of natural rutile produced at Kasiya is expected to have a Global Warming Potential of only 0.1 tonnes CO2 eq., which equates to a 95% to 97% reduction in total greenhouse gas emissions (20 to 33 times less) compared to production of titania slag and synthetic rutile respectively – both of which are alternative titanium feedstocks produced by upgrading ilmenite via energy and carbon intensive processes

·

Lowest Scope 3 emissions – Study further confirms producing titanium dioxide pigment in the EU from Sovereign’s natural rutile has the lowest global warming potential versus ilmenite-upgraded alternative feedstocks

·

Paint produced from Sovereign’s natural rutile is estimated to have up to 35% lower carbon footprint than that produced from ilmenite-upgraded alternatives

The Study concludes that Sovereign’s natural rutile product is expected to have substantially lower GWP (Scope 1, 2 and 3 scope emissions) when compared to other titanium feedstock alternatives produced by upgrading ilmenite (i.e., synthetic rutile and titania slag). Using natural rutile from Kasiya as titanium feedstock for the chloride pigment process would significantly reduce Scope 1, 2 and 3 greenhouse gas emissions. Titanium feedstock is a key component of various industrial and consumer products. Therefore, utilising natural rutile such as from Kasiya, as direct use titanium feedstock could hold the solution to developing low-carbon footprint products including low carbon paints.

Sovereign’s Managing Director, Julian Stephens commented: “We knew from the previous work done by Minviro that natural rutile has a lower carbon footprint than its upgraded substitutes produced from ilmenite. The expanded study now highlights the significant reduction in greenhouse gas emissions the titanium pigment industry could achieve by utilising natural rutile produced at Kasiya. This has direct economic benefits to end users in jurisdictions such as the EU, where industry pays for carbon dioxide emissions via the EU’s Emissions Trading System and the proposed Carbon Border Adjustment Mechanism.”

Sovereign’s Chair of the ESG Committee, Nigel Jones commented: “Since its discovery, the Kasiya rutile project has been designed to help decarbonise the myriad of uses of titanium pigment in industrial and consumer products. This LCA is another step towards providing a solution to an industry targeting material reduction in its global carbon footprint while wholly encompassing values of sustainability.”

ENQUIRIES

 

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

Bhavesh Patel / Andrew Thomson

+44 20 3440 6800

Joint Brokers

Berenberg

+44 20 3207 7800

Matthew Armitt

Jennifer Lee

Varun Talwar

Optiva Securities

+44 20 3137 1902

Daniel Ingrams

Mariela Jaho

Christian Dennis

 

LCA SUMMARY

The Company appointed Minviro Ltd (Minviro) to conduct a cradle-to-gate life cycle assessment on the production of natural rutile using methods and parameters in the 2021 initial Kasiya Scoping Study.

This expanded LCA builds on the Company’s LCA study completed last year which demonstrated the substantial environmental benefits possible by utilising natural rutile (TiO2) versus beneficiated high-grade titanium feedstocks made from the lower quality mineral ilmenite (~FeTiO3) such as synthetic rutile and titania slag, with this latest study extending the scope to include the positive environmental attributes of the Kasiya operation.

In assessing each GWP, Scope 1, 2 and 3 greenhouse gas emissions were included. The Greenhouse Gas Protocol supplies the world’s most widely used greenhouse gas (GHG) accounting standards and establishes comprehensive global standardised frameworks to measure and manage GHG emissions from private and public sector operations, value chains and mitigation actions. The Protocol identifies three “scopes” of GHG emissions which were included in this study.

The scopes of emissions for the mining industry can broadly be defined as:

Scope 1: Direct GHG emissions from operations (e.g., combustion of fuels in mining fleet i.e., bulldozers)

Scope 2: Indirect GHG emissions from consumption of purchased electricity, heat, or steam (e.g., emissions embodied in grid power)

Scope 3: Emissions created by end-users utilising its products (e.g., a chloride pigment plant using titanium feedstock to produce pigment, or a blast furnace using iron ore to make steel) and other indirect emissions that generally are out of control of the mining industry.

Rio Tinto plc and Rio Tinto Limited combined (Rio Tinto) have defined their emissions boundaries for their titanium dioxide business in their “Scope 1, 2 and 3 Emissions Calculation Methodology 2021” report.

In calculating Scope 1, 2 and 3 emissions, Rio Tinto treat emissions from mining, mineral processing, smelting and refining titanium dioxide feedstock as Scope 1 and 2 emissions. Rio Tinto’s Scope 3 emissions estimate incorporates the emissions associated with the conversion of titanium feedstocks to titanium dioxide pigment.

In the context of titanium feedstock for the chloride pigment process, the LCA Study similarly estimates Scope 3 emissions by accounting for the emissions associated with the production of titanium dioxide pigment from either direct use natural rutile or other high grade titanium feedstocks derived from upgrading ilmenite.

The Kasiya project is designed considering both the Equator Principles and Scope 1, 2 and 3 emissions under the Green House Gas protocol so that the design meets high standards for ESG from the outset. Access to hydro-generated grid power and solar system to be installed on site will ensure low carbon power supply for the project. The use of predominantly rail rather than road transport for products will also reduce the carbon footprint of the Kasiya project.

BENCHMARKING SOVEREIGN’S NATURAL RUTILE AGAINST ALTERNATIVES

The Study benchmarked the GWP of Sovereign’s 96% TiO2 natural rutile product versus alternative titanium feedstocks produced from upgrading ilmenite, namely:

·      Titania slag (85% TiO2) produced from ilmenite via smelting in electric furnaces in South Africa; and

·      Synthetic rutile (88-95% TiO2) produced from ilmenite via the Becher Process in Australia.

These alternatives were chosen as comparison points as they are two of the largest production routes for titanium feedstocks. South African titania slag operations account for a significant proportion of global titania slag production, and the majority of the synthetic rutile is produced via the Becher process.

Titanium Feedstock Production – Scope 1 & 2 Emissions

Natural rutile produced at Kasiya has a fraction of the GWP of the alternative feedstocks. The GWP for natural rutile concentrate from Kasiya (0.1 t CO2e per tonne) is significantly lower than producing titania slag in South Africa (2.0 t CO2e per tonne) and producing synthetic rutile via the Becher process in Australia (3.3 t CO2e per tonne).

The results comparing the three production routes can be seen in the full announcement on the Company’s website. The higher result for synthetic rutile is mainly due to the use of coal and other reagents for the upgrading of lower grade ilmenite to the final synthetic rutile feedstock product.

Titanium Dioxide Pigment Production Benchmarking – Scope 3 Emissions

Using Sovereign’s natural rutile as feedstock for producing titanium dioxide pigment via the well-established chloride route provides a lower GWP for the production of one tonne of titanium dioxide pigment compared to using either titania slag or synthetic rutile.

The pigment production was assumed to be located in the European Union. The transport of the feedstocks from the site of production to the titanium dioxide pigment production plant is included in the comparison. For Sovereign’s natural rutile, this was Kasiya; the production of synthetic rutile was assumed at a plant in Australia; the production of titania slag was assumed at a plant in South Africa.

Higher scope 3 GWP of the ilmenite derived titanium feedstocks led to higher results for the use of synthetic rutile or titania slag in producing pigment. Using Sovereign Metal’s natural rutile instead of the titania slag would give a scope 3 GWP reduction of 2.2 t CO2e per tonne of titanium dioxide pigment. Furthermore, using Sovereign’s natural rutile concentrate instead of the synthetic rutile would give a scope 3 GWP reduction of 3.7 t CO2e per tonne titanium dioxide pigment.

Scope 3 emissions usually account for the highest proportion of greenhouse gases from the mining industry, with estimates as high as 95% of total mining sector emissions. The average scope 3 emissions of the five largest diversified miners are 26 times their scopes 1 and 2 emissions combined (source – company disclosures).

Paint Production Benchmarking

Minviro evaluated how using the different feedstocks affects the GWP of paint production. Using Sovereign’s natural rutile provides the lowest GWP, at 3.3 t CO2e per tonne of alkyd paint, which represents up to a 35% reduction in carbon footprint compared to paint produced from synthetic rutile.

SUMMARY OF HEADLINE GWP REDUCTIONS FROM USING NATURAL RUTILE

 

Emission Category

GWP

Potential Emissions Reduction

Production of a tonne of natural rutile from Kasiya – Global Warming Potential

0.1 t CO2e

3.2 t CO2e

97% emissions reduction

Production of a tonne of titanium pigment using natural rutile from Kasiya – Scope 3

4.0 t CO2e

3.7 t CO2e

48% emissions reduction

Production of a tonne of alkyd paint using titanium pigment produced from natural rutile

3.3 t CO2e

1.8 t CO2e

35% emissions reduction

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.

Competent Persons Statement

The information in this announcement that relates to Sovereign’s Scoping Study at Kasiya is extracted from an announcement dated 16 December 2021 which is available to view at Sovereign’s website 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 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 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 report have not been materially changed from the announcement.

The information in this announcement that relates to Sovereign’s Mineral Resource Estimate is extracted from an announcement dated 16 December 2021 which is available to view at Sovereign’s website 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 announcement; b) all material assumptions included in the 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 report have not been materially changed from the announcement.

To view this announcement in full, including all illustrations and figures, please refer to www.sovereignmetals.com.au.

Sovereign Metals #SVML – Half-year Report

The Directors of Sovereign Metals Limited present their report on Sovereign Metals Limited (“Sovereign” or “the Company” or “Parent”) and the entities it controlled at the end of, or during, the half year ended 31 December 2021 (“Consolidated Entity” or “Group”).

Review of Operations:

Sovereign Metals Limited (ASX: SVM & AIM: SVML) is an ASX and AIM-listed company focussed on the exploration and development of its Kasiya rutile project (Kasiya) in Malawi.

Kasiya is a strategic and globally significant natural rutile deposit with substantial additional resource growth expected. Kasiya’s Mineral Resource Estimate is 605Mt at 0.98% rutile (0.7% cut-off, indicated + inferred).

Sovereign is aiming to develop an environmentally and socially sustainable large-scale operation to supply highly sought-after natural rutile and graphite to global markets. Kasiya has excellent surrounding infrastructure including bitumen roads, a high-quality rail line connecting to the deep-water port of Nacala on the Indian Ocean and hydro-sourced grid power.

Natural 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. The rutile market fundamentals are robust with current and forecast pricing remaining very strong. In 2021, the market has rebounded strongly with pigment plant utilisation rates returning to pre-pandemic levels. Major producers have noted that very strong demand in the welding market is outstripping supply.

Natural rutile supply is tight with limited new projects coming online in the short to medium term. A resurgence in demand for titanium pigment and from the welding sector combined with concurrent supply shortages has led the CIF China spot prices sharply upwards to over US$2,100 per tonne (Ruidow).

Highlights

Initial Scoping Study confirms Kasiya as a globally significant natural rutile project

· The initial Scoping Study confirmed a multi-decade operation providing a stable supply of highly sought-after rutile (TiO2) and graphite whilst contributing significantly to the economy of Malawi

· Kasiya is the largest undeveloped rutile deposit in the world and is highly strategic in a market characterised by extreme supply deficit. The Scoping Study demonstrated outstanding results including:

a 12Mtpa operation producing 122kt rutile and 80kt graphite per annum over a 25 year mine life

exceptional economics including a post-tax NPV8 of US$861m and post-tax IRR of 36%

a large-scale operation with a low-cost profile resulting from the deposit’s near surface nature, grade and excellent existing infrastructure 

a low carbon operation with the project to be powered by 100% renewables (hydro and solar)

· The Project is positioned for substantial growth with the current life-of-mine inventory covering only 38% of the drill-defined mineralised footprint. Substantial additional resource growth is expected in early 2022 to enable the Study to be enhanced

· Sovereign is aiming to develop an environmentally and socially sustainable operation to supply natural rutile that can displace carbon, energy & waste intensive alternatives like synthetic rutile and titania slag

Offtake MOU For Premium Priced Rutile Sales to the Welding Sector

· Subsequent to the end of the period, the Company signed an MOU for supply of 25,000 tonnes of natural rutile per annum to Hascor, a market leading global processor and distributor of rutile products for the welding industry 

· Pricing of rutile for welding generally attracts significant premiums to bulk rutile prices in the titanium pigment sector

Mineral Resource Estimate (MRE) upgrade to support Scoping Study

· The Company reported a MRE upgrade with over 50% now in the higher confidence Indicated category 

· The MRE upgrade was underpinned by results from core drilling, which confirmed the thick, continuous and high-grade nature of the deposit

· The upgraded MRE contains ~3.1Mt of rutile in the Indicated category and ~2.8Mt of rutile in the Inferred category

Outstanding metallurgy

· Bulk scale metallurgy test-work demonstrated very high recoveries of premium quality rutile products and a high-grade, coarse flake graphite by-product

· World-class specification rutile products ranging from 95.0% to 97.2% TiO2 with low impurities and stand-out recoveries ranging from 100% to 94%

View the full report here

Sovereign Metals #SVML – Spectacular Rutile Drill Results See Mineralised Footprint Increase By 28%

Sovereign Metals Limited (ASX:SVM; AIM:SVML) (Sovereign or the Company) is pleased to report results from its H2 2021 drilling program at Kasiya-Nsaru, the Company’s flagship, very large, high-grade rutile deposit in Malawi.

The results, including numerous spectacular intercepts, will underpin the pending Mineral Resource Estimate (MRE) upgrade which is expected to significantly increase in both the Indicated and Inferred categories.

The most recent core and auger drilling has now expanded the total mineralised envelope to 165km2, up 28%. The previous MRE included just 49km2 of the mineralised envelope, hence significant resource tonnage growth can be expected.

Sovereign’s Managing Director Dr Julian Stephens commented : “The results of the latest drilling program have surpassed all of our expectations. Not only did we encounter the highest rutile grades to date, but the coalescing of the Kasiya and Nsaru deposits supports our belief that we have the single largest rutile deposit in the world on our hands.  We are looking forward to announcing the updated Mineral Resource Estimate in the coming weeks.”

Spectacular Rutile Drill Results See Mineralised Footprint Increase By 28%

·

Latest drill results increase the drill-defined rutile mineralised envelope by 28% to 165km2

·

Kasiya and Nsaru deposits have now coalesced into the Kasiya-Nsaru rutile deposit – a single, very large, coherent, high-grade body of near surface rutile and graphite mineralisation

·

New drilling has encountered the highest-grade rutile results to date at Nsaru and at a new extension east of Kasiya. Highlights include:

 

·

11m @ 1.34% inc. 2m @ 3.00% rutile

·

12m @ 1.27% inc. 3m @ 2.16% rutile

·

8m @ 1.36% inc. 2m @ 2.66% rutile

·

7m @ 1.84% inc. 4m @ 2.71% rutile

·

12m @ 1.46% inc. 4m @ 2.42% rutile

·

13m @ 1.48% inc. 5m @ 2.23% rutile

 

·

Discovery of numerous extensions and new blocks of mineralisation expected to add substantially to upcoming Mineral Resource Estimate update

·

Results affirm the strategic and global significance of Kasiya as the largest undeveloped natural rutile project in the world and first major rutile discovery in over half a century

·

Updated Scoping Study underway focused on incorporating the growing resource base

ENQUIRIES

 

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

Bhavesh Patel / Andrew Thomson

+44 20 3440 6800

Joint Brokers

Berenberg

+44 20 3207 7800

Matthew Armitt

Jennifer Lee

Varun Talwar

Optiva Securities

+44 20 3137 1902

Daniel Ingrams

Mariela Jaho

Christian Dennis

KASIYA-NSARU

Sovereign now has a total of ~165km2 of drilled, high-grade rutile mineralisation with the latest results succeeding in joining Kasiya and Nsaru into a single deposit.

Rutile mineralisation lies in laterally extensive, near surface, flat “blanket” style bodies in areas where the weathering profile is preserved and not significantly eroded. The Kasiya-Nsaru deposit is expansive with high-grade mineralisation commonly grading 1.2% to 2.0% rutile in the top 3-5m from surface. Moderate grade mineralisation generally grading 0.5% to 1.2% rutile commonly extends from 5m to end of hole where it remains open at depths >10m in numerous areas.

Kasiya-Nsaru is a strategic and globally significant natural rutile deposit with substantial additional resource growth expected. Kasiya’s current Mineral Resource Estimate is 605Mt at 0.98% rutile (0.7% cut-off, Indicated + Inferred, Table 1).

The core and auger drilling program at the Kasiya-Nsaru rutile deposit was completed from July to September 2021. This very large and expansive drilling program targeted significant MRE expansion as well as infill core drilling designed to bring known high-grade areas into the Indicated resource category. A total of 712 drill-holes for 6,832m are reported. Of these, 96 were core holes for 999m, and 616 are hand-auger holes for 5,833m.

SPECTACULAR RESULTS

Results from significant new extensions including the eastern portion of Kasiya as per below, with full results listed in Table 2:

· 11m @ 1.34% inc. 2m @ 3.00% rutile

· 8m @ 1.36% inc. 2m @ 2.66% rutile

· 12m @ 1.46% inc. 3m @ 2.42% rutile

· 12m @ 1.27% inc. 3m @ 2.16% rutile

· 12m @ 1.26% inc. 5m @ 1.67% rutile

· 12m @ 1.34% inc. 5m @ 1.65% rutile

Results from 400m x 400m core and auger resource drilling at the large and high-grade Nsaru deposit including those listed below, with full results listed in Table 2:

· 7m @ 1.84% inc. 4m @ 2.71% rutile

· 12m @ 1.44% inc. 3m @ 2.47% rutile

· 10m @ 1.28% inc. 2m @ 2.36% rutile

· 13m @ 1.48% inc. 5m @ 2.23% rutile

· 10m @ 1.49% inc. 4m @ 2.01% rutile

· 10m @ 1.44% inc. 4m @ 2.01% rutile

· 13m @ 1.29% inc. 4m @ 1.94% rutile

· 12m @ 1.35% inc. 4m @ 1.90% rutile

· 12m @ 1.38% inc. 6m @ 1.83% rutile

· 13m @ 1.35% inc. 4m @ 1.81% rutile

· 11m @ 1.35% inc. 4m @ 1.74% rutile

· 9m @ 1.35% inc. 4m @ 1.71% rutile

DRILLING RESULTS

The Kasiya and Nsaru rutile deposits have now coalesced into one very large, coherent, high-grade zone of near surface rutile and graphite mineralisation believed to be the single largest rutile deposit in the world.

The drilled mineralised footprint has now grown to 165km2, an increase overall of 28% from previously. Importantly, the drilling has also substantially increased the area of mineralisation drilled at 400 x 400m or greater density and thus it is expected that substantial tonnages will be able to be added in the upcoming MRE, due to be reported in the coming weeks. For reference, the previous MRE covered just 49km2 of the mineralised footprint.

Numerous new areas have also received drilling at 400 x 400m or greater density and are expected to be able to be incorporated into the upcoming the MRE upgrade.

In many of the high-grade zones identified by drilling rutile mineralisation persists and remains open at depth, at the limit of the current drilling. It is therefore considered likely that rutile mineralisation should occur down to approximately the base of the saprolite zone, which is estimated to lie at about 25m vertical depth. These deeper zones represent the key targets for the planned 2022 air-core drilling program.

Coarse flake graphite is present in all holes in broad association with rutile mineralisation. Graphite grades average about 1% TGC through the mineralised area.

CONCLUSION

The significant 2021 H2 drilling program at Kasiya and Nsaru accomplished the following;

· Achieved a substantial 28% increase in the overall mineralised envelope to 165km2

· Brought a significant portion of the mineralised envelope to 400 x 400m drill spacing or greater density in order to be considered for the upcoming MRE update

· Identified numerous new areas of high-grade rutile mineralisation not previously known or not previously included in the prior MRE

The updated JORC MRE is due in the coming weeks and will serve as the basis for an updated Scoping Study targeted for completion in Q2 2022. This updated Study will build on the December 2021 Study, with the new MRE likely to allow higher grades to be mined, or increased production rates or increased mine life, or a combination.

Competent Persons Statement

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 options 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 Sovereign’s Mineral Resource Estimate is extracted from the ASX announcement dated 16 December 2021 which is available to view at Sovereign’s website 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 ASX announcement; b) all material assumptions included in the ASX 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 report have not been materially changed from the ASX announcement.

Table 1: Kasiya Mineral Resource Estimate at 0.7% Rutile Cut-off

Mineral Resource Category

Material Tonnes (millions)

Rutile (%)

Rutile Tonnes (millions)

TGC (%)

TGC Tonnes (millions)

Indicated

304

1.02

3.1

1.31

4.0

Inferred

301

0.93

2.8

1.16

3.5

Total

605

0.98

5.9

1.24

7.5

Cut-off: 0.7% rutile, TGC = total graphitic carbon

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.

Qualified Person

Data disclosed in this press release have been reviewed and verified by Sovereign’s Qualified Person, Dr Julian Stephens, B.Sc (Hons), PhD, MAIG, Maning Director, for the purposes of the AIM Rules for Companies.  

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