Sovereign Metals Limited (Company or Sovereign) (ASX:SVM & AIM:SVML) is pleased to provide its quarterly report for the period ended 31 December 2021.
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:
o a 12Mtpa operation producing 122kt rutile and 80kt graphite per annum over a 25 year mine life
o exceptional economics including a post-tax NPV8 of US$861m and post-tax IRR of 36%
o a large-scale operation with a low-cost profile resulting from the deposit’s near surface nature, grade and excellent existing infrastructure
o 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
Mineral Resource Estimate (MRE) upgrade to support Scoping Study
· During the quarter, the Company reported a MRE upgrade with over 50% now in the higher confidence Indicated category
· The MRE upgrade was underpinned by results from the core drilling program completed during the quarter, 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%
Commencement of trading on the AIM Market
· On 14 December 2021, the Company’s shares were admitted to the AIM market of the London Stock Exchange
· The dual listing has increased the Company’s profile in the northern hemisphere and facilitated the participation of UK and other European investors in Sovereign’s growth
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
To view the announcement in full including all illustrations and figures, please refer to the full announcement at http://sovereignmetals.com.au/announcements/
