Sovereign Metals Limited (the Company or Sovereign) is pleased to announce the results of the initial scoping study (Scoping Study or Study) for the Company’s Kasiya Rutile Project (Kasiya or the Project) in Malawi.
The Scoping Study confirms Kasiya as a globally significant natural rutile project. Kasiya is the largest undeveloped rutile deposit in the world and therefore is highly strategic in a market characterised by extreme supply deficit.
This initial Scoping Study develops the concept for a multi-decade mine providing a stable supply of a highly sought-after rutile (TiO2) and graphite whilst contributing significantly to the economy of Malawi.
• Scoping Study demonstrates globally significant & strategic project with low capital costs & high returns
• Positioned as one of the world’s best undeveloped titanium minerals projects
Positioned for growth
• The life-of-mine inventory covers just 38% of the drill defined mineralised footprint
• Substantial additional resource growth expected in early 2022 to enable the Study to be enhanced
Sustainable and ESG Driven
• Significant contribution to Malawi via fiscal returns, employment, training & social development
• Low carbon footprint operation – hydro & solar power supply
Critical raw materials reducing carbon emissions
• Low carbon – natural rutile can displace carbon, energy & waste intensive alternatives
• Graphite is a major mineral required for lithium-ion batteries for electric vehicles which are key components required for the clean energy transition
Rutile market in structural supply deficit
• Current supply declining with very limited additional production in the pipeline
• The current severe structural supply deficit in natural rutile is forecast to continue to widen in the medium & long term
• Significant support from the government of Malawi for the development of Kasiya
• Highly supportive community to benefit from project development
• Establishing relationships with off-takers with significant interest already received
The Scoping Study demonstrates Kasiya as a globally significant natural rutile project with exceptional economics, including low capital and operating costs, resulting in a high margin operation.
Managing Director, Julian Stephens
“To have achieved this fantastic Scoping Study milestone for the Kasiya Rutile Project within just 20 months of the initial discovery is a huge result for Sovereign and a testament to the dedication and hard work of our Malawi and Australia-based team.
The Kasiya Rutile Project is the largest undeveloped natural rutile resource in the world and is therefore highly strategic in an environment of severe global supply deficit.
We believe that Kasiya is also just the beginning of the story in the new Central Malawi Rutile Province. We will expand our resource significantly early next year with the addition of the Nsaru Rutile Deposit and potentially other regional prospects.
The project benefits from world-class existing infrastructure and natural ESG advantages. Natural rutile has a far lower carbon footprint compared to other titanium feedstocks used in the pigment industry, and the vast majority of power will be supplied by renewable hydro and solar. Furthermore, natural graphite is a significant component in lithium-ion batteries and is an important mineral underpinning the energy transition.
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.”
Dr Julian Stephens (Perth)
+61(8) 9322 6322
Sam Cordin (Perth)
+61(8) 9322 6322
Sapan Ghai (London)
+44 207 478 3900
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