{"id":96336,"title":"Sovereign Metals (ASX:SVM; AIM:SVML) marks largest titanium rutile deposit ever discovered in Q1","publisher":"Share Talk","author":"sharetalk","published":"2022-04-30T09:59:21+00:00","modified":"2022-04-30T13:45:31+00:00","canonical_url":"https://www.share-talk.com/sovereign-metals-asxsvm-aimsvml-marks-largest-titanium-rutile-deposit-ever-discovered-in-q1/","markdown_url":"https://www.share-talk.com/sovereign-metals-asxsvm-aimsvml-marks-largest-titanium-rutile-deposit-ever-discovered-in-q1.md","json_url":"https://www.share-talk.com/sovereign-metals-asxsvm-aimsvml-marks-largest-titanium-rutile-deposit-ever-discovered-in-q1.json","category":"Blogs","categories":["Blogs","Mining"],"tags":["batteries","Ben Stoikovich","Carbon","Critical","deposit","footprint","Graphite","Julian Stephens","Kasiya","Kasiya Rutile","lithium-ion","Malawi","minerals","northern hemisphere","Project","rutile","Sapan Ghai","Sovereign Metals","SVLM","SVM","SVML","titanium","UK Parliament"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2023/11/Stencil-Google-Chrome-2023-04-19-at-2.47.43-PM.jpeg?fit=1231%2C615&quality=89&ssl=1","format":"news","language":"en-GB","content":"**Sovereign Metals announced its Q1 2022 report on Friday where the company said their recent Mineral Resource Estimate (MRE) upgrade confirmed Kasiya in Malawi is the largest rutile deposit ever discovered,**\n\nBy [Anshula Kumar](https://ukinvestormagazine.co.uk/author/a-kumarukinvestormagazine-co-uk/)\n\nSovereign Metals shares rose as much as 4% on Friday following the release of their Q1 update.\n\nKasiya is now a Tier 1 mineral project, with the [world’s largest natural rutile deposit](https://ukinvestormagazine.co.uk/sovereign-metal-kasiya-is-the-largest-rutile-deposit-ever-found/) and second-largest flake graphite deposit, according to the updated MRE.\n\nThe project’s good economics was reaffirmed in the initial Scoping Study, which was based on a prior resource estimate issued in December 2021.\n\nIn the quarterly results, Sovereign reported finding 1.8bn tonnes @ 1.01% rutile and 1.32% graphite (Indicated + Inferred) equating to 18m tonnes contained rutile and 23m tonnes contained graphite.\n\n[Kasiya was confirmed as the world’s largest rutile deposit](https://www.miningweekly.com/article/sovereign-metals-discovers-largest-natural-rutile-deposit-in-malawi-2022-04-05) and one of the world’s largest flake graphite deposits in the revised MRE.\n\nA total of 662m tonnes which was 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 and the high global resource grade was @ 1.64% RutEq.\n\nAn updated Scoping Study to expand on the earlier study and analyse the influence of higher grades, larger production volumes, and increased mine life on the MRE scale is underway.\n\n### Rutile Market\n\nThe rutile market remains robust and current rutile spot prices, according to Iluka Resources, are at ten-year highs.\n\nDemand for high-grade TiO2 feedstocks climbed during the quarter, according to major producers Base Resources and Iluka Resources, as western TiO2 pigment makers raised their production volumes and the welding consumable and titanium metal industries continued to expand.\n\nA lack of titanium feedstock is restricting production rates and hampering the ability of major western pigment producers to meet demand from their end clients, according to reports.\n\nRutile prices grew dramatically during the quarter, and price increases for the June quarter have been negotiated.\n\nThe [conflict in Ukraine has wreaked havoc on the titanium feedstock](https://www.miningnews.net/resource-definition/news/1429785/rutile-behemoth-on-sovereign%E2%80%99s-hands-in-malawi) and finished goods supply chains, with bulk exports of ilmenite for pigment production and rutile for welding consumables being particularly hard hit. Ukrainian rutile producers in aggregate supply the world’s welding market with the most rutile.\n\nTitanium metal manufacturing and export have also been harmed as continued disruptions to “mining and processing of titanium feedstock and finished goods” would further restrain supply in an already competitive industry.\n\n![](https://www.share-talk.com/wp-content/uploads/2022/04/stensvml12422cil.default-300x200.jpg)\n\n### Sovereign Metals Life Cycle Assessment\n\nSovereign’s potential to reduce carbon footprint is demonstrated by industry-leading independent Life Cycle Assessment (LCA).\n\nWhen compared to other titanium feedstocks and flake graphite products on the market, Scope 1, 2 and 3 benchmark LCA studies for natural rutile and graphite produced from Kasiya offer the potential for a significantly reduced carbon footprint.\n\nThe LCA study found that each tonne of natural rutile produced at Kasiya is predicted to have a [Global Warming Potential (GWP) of only 0.1 tonnes CO2 eq](https://ukinvestormagazine.co.uk/sovereign-metals-presents-low-carbon-kasiya-graphite-at-uk-houses-of-parliament/)., which corresponds to a 95% to 97% decrease in total greenhouse gas emissions.\n\nThe total greenhouse gas emissions produced at Kasiya are 20 to 33 times less than that of titania slag and synthetic rutile, which are both alternative titanium pigment feedstocks produced by upgrading ilmenite using energy and carbon-intensive processes.\n\nWhen compared to natural graphite produced in China, each tonne of graphite produced from Kasiya is predicted to have a GWP of only 0.2 tonnes of CO2e, representing an 80% reduction in greenhouse gas emissions.\n\n### MoU with Hascor\n\nSovereign Metals and international ferroalloy and metal powder supplier Hascor signed a non-binding memorandum of understanding in March for the possible supply of 25,000 tonnes of natural rutile per annum from Kasiya to Hascor’s processing units and clients on five continents.\n\nThe [MoU with Hascor envisions a five-year supply arrangement for up to 25,000 tonnes](https://newsnreleases.com/2022/03/03/sovereign-metals-signs-offtake-mou-for-rutile-sales-to-the-welding-sector/) per annum of natural rutile to the group and their existing clients, starting from the start of nameplate production.\n\nVolumes can be increased or decreased by mutual agreement. Pricing will be based on market rates in the welding sector at the start, with agreed-upon price fluctuations over the supply period.\n\nWith production and distribution centres on five continents, the company is a major processor and global distributor of natural rutile products for the welding industry.\n\nThis first MoU is part of Sovereign’s product marketing strategy, as natural rutile demand and pricing are both high, and the global structural supply shortage continues to increase.\n\nKasiya’s natural rutile has superior chemical properties, indicating that it is suited for all main end-use markets, including welding, TiO2 pigment feedstock, and titanium metal.\n\n### Sovereign Metals appointment\n\nMr Nigel Jones, a well-known international mining executive, has been named Non-Executive Director of Sovereign Metals and Chairman of the ESG Committee.\n\nMr Jones has over 30 years of mining industry expertise, including 22 years in senior management roles such as the Managing Director of Rio Tinto’s Simandou iron ore project, amongst the world’s largest projected mining developments.\n\n### UK’s Critical Minerals Association\n\nDuring the quarter, Sovereign joined the Critical Minerals Association in the UK, which aims to improve supply chain self-sufficiency in support of the UK’s industrial policy.\n\nSovereign Metals made a presentation before the UK Houses of Parliament about its potential to become a major producer of low-carbon natural graphite.\n\n![](https://www.share-talk.com/wp-content/uploads/2022/04/Anshula-Kumar-Author-at-UK-Investor-Magazine-Google-Chrome-2022-04-30-at-10.37.33-AM-300x291.jpeg)\n\nBy[Anshula Kumar](https://ukinvestormagazine.co.uk/author/a-kumarukinvestormagazine-co-uk/)\n\nAnshula covers companies and markets for the UK Investor Magazine. Anshula has a Masters in Finance and Management."}