REG - Sovereign Metals Ltd - Extensions To Rutile & Graphite Mineralisation
01/02/2024 07:00
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RNS Number : 6080B Sovereign Metals Limited 01 February 2024
NEWS RELEASE I 1 FEBRUARY 2024
EXTENSIONS TO RUTILE & GRAPHITE MINERALISATION AT KASIYA
· Wide-spaced regional reconnaissance drilling, outside the
current JORC (2012) compliant Mineral Resource Estimate (MRE) area, identifies
a 8km extension of mineralisation to the south which remains open along strike
and at depth
· Results are testament to the world-class scale of the Kasiya
deposit and demonstrate potential for a future increase of the Kasiya's MRE,
which is already the largest natural rutile deposit and second largest flake
graphite deposit in the world
· Kasiya's current MRE of 1.8 Billion tonnes at 1.0% rutile and
1.4% graphite comprises broad and contiguous zones of high-grade rutile and
graphite that occur across an area of over 201km(2)
· Current focus at Kasiya remains the ongoing Optimisation Study
alongside strategic investor Rio Tinto and permitting work streams working
with the Malawian Interministerial Committee
Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is
pleased to report southern extensions to the mineralised area at Kasiya.
Hand-auger drilling has identified a number of zones ranging from ~400m to 2km
wide over a strike length of approximately 8km. These results indicate
potential to expand the already significant, high-grade rutile and graphite
Mineral Resource Estimate at Kasiya.
Results of the Pre Feasibility Study (PFS) released in late 2023 demonstrated
Kasiya's potential to become the world's largest rutile producer at an average
of 222kt per annum and one of the world's largest natural graphite producers
outside of China at an average of 244kt per annum based on an initial 25 year
life-of-mine (LOM).
The Kasiya PFS delivered compelling economics with a post-tax NPV(8) of US$1.6
Billion and post-tax IRR of 28%. This long-life, multi-generational operation
was modelled to initially generate over US$16 Billion of revenue and provide
an average annual EBITDA of US$415 Million per annum.
The PFS modelling was limited to only 25 years with an initial Probable Ore
Reserves declared of 538Mt, only representing 30% of the total Mineral
Resource Estimate.
Managing Director, Frank Eagar commented: "These drilling results re-confirm
the significant scale of the Kasiya deposit with the strike now stretching
over 37km long. Sovereign continues to test the extent of regional
mineralisation via low-cost hand-auger drilling, which has the potential to
increase the already very large Kasiya Resource."
Classification 2.2: This announcement includes Inside Information
ENQUIRIES
Frank Eagar (South Africa/Malawi) Sam Cordin (Perth) Sapan Ghai (London)
Managing Director
+61(8) 9322 6322
+44 207 478 3900
+61(8) 9322 6322
Nominated Adviser on AIM and Joint Broker
SP Angel Corporate Finance LLP +44 20 3470 0470
Ewan Leggat
Charlie Bouverat
Harry Davies-Ball
Joint Brokers
Berenberg +44 20 3207 7800
Matthew Armitt
Jennifer Lee
Buchanan + +44 20 7466 5000
REGIONAL DRILLING PROGRAM
Regional hand-auger drilling south of the Kasiya MRE footprint has identified
significant strike extensions of approximately 8km across a number of parallel
mineralised zones ranging from 400m to 2km in width.
All newly defined mineralisation remains open at depth, due to the limitations
of the hand-auger drilling method but are expected to continue to the saprock
boundary normally between 20 and 30m vertical metres from surface. The
multiple mineralised zones identified remain open along strike both to the
north and south.
Figure 1: Southern newly defined mineralised extensions at Kasiya
Highlight drill results include;
· 14m @ 1.03% incl. 2m @ 1.35% rutile from surface
· 17m @ 1.01% incl. 2m @ 1.42% rutile from surface
· 9m @ 0.93% incl. 2m @1.58% rutile from surface
· 12m @ 1.31% incl. 3m @ 1.97% rutile from surface
· 13m @ 1.02% incl. 3m @ 1.16% rutile from surface
· 12m @ 1.02% rutile & 4.5% graphite incl. 2m @ 1.41% rutile from
surface
Competent Person 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 performance rights in Sovereign Metals Limited. Mr Moyle
has sufficient experience that is relevant to the style of mineralisation and
type of deposit under consideration and to the activity being undertaken, to
qualify as a Competent Person as defined in the 2012 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves' and as a Qualified Person under the AIM Rules. Mr Moyle consents
to the inclusion in the report of the matters based on his information in the
form and context in which it appears.
The information in this announcement that relates to the Mineral Resource
Estimate is extracted from an announcement dated 5 April 2023 entitled 'Kasiya
Indicated Resource Increased by over 80%' which is available to view at
www.sovereignmetals.com.au (http://www.sovereignmetals.com.au) and is based
on, and fairly represents information compiled by Mr Richard Stockwell, a
Competent Person, who is a fellow of the Australian Institute of Geoscientists
(AIG). Mr Stockwell is a principal of Placer Consulting Pty Ltd, an
independent consulting company. The original announcement is available to view
on www.sovereignmetals.com.au. Sovereign confirms that a) it is not aware of
any new information or data that materially affects the information included
in the original announcement; b) all material assumptions included in the
original announcement continue to apply and have not materially changed; and
c) the form and context in which the relevant Competent Persons' findings are
presented in this announcement have not been materially changed from the
original announcement.
The information in this announcement that relates to Production Targets, Ore
Reserves, Processing, Infrastructure and Capital Operating Costs, Metallurgy
(rutile and graphite) is extracted from an announcement dated 28 September
2023 entitled 'Kasiya Pre-Feasibility Study Results' which is available to
view at www.sovereignmetals.com.au (http://www.sovereignmetals.com.au) .
Sovereign confirms that: a) it is not aware of any new information or data
that materially affects the information included in the original announcement;
b) all material assumptions and technical parameters underpinning the
Production Target, and related forecast financial information derived from the
Production Target included in the original announcement continue to apply and
have not materially changed; and c) the form and context in which the relevant
Competent Persons' findings are presented in this presentation have not been
materially modified from the Announcement.
Ore Reserve for the Kasiya Deposit
Classification Tonnes Rutile Grade Contained Rutile Graphite Grade (TGC) (%) Contained Graphite RutEq. Grade*
(Mt)
(%)
(Mt)
(Mt)
(%)
Proved - - - - - -
Probable 538 1.03% 5.5 1.66% 8.9 2.00%
Total 538 1.03% 5.5 1.66% 8.9 2.00%
* RutEq. Formula: Rutile Grade x Recovery (100%) x Rutile Price (US$1,484/t) +
Graphite Grade x Recovery (67.5%) x Graphite Price (US$1,290/t) / Rutile Price
(US$1,484/t). All assumptions are taken from this Study ** Any minor summation
inconsistencies are due to rounding
Kasiya Total Indicated + Inferred Mineral Resource Estimate at 0.7% rutile
cut-off grade
Classification Resource Rutile Grade Contained Rutile Graphite Grade (TGC) (%) Contained Graphite
(Mt)
(%)
(Mt)
(Mt)
Indicated 1,200 1.0% 12.2 1.5% 18.0
Inferred 609 0.9% 5.7 1.1% 6.5
Total 1,809 1.0% 17.9 1.4% 24.4
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.
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.
This announcement has been approved and authorised for release by the
Company's Managing Director & CEO, Frank Eagar.
Appendix I - DRILL RESULTS - Table 2
Rutile and graphite drilling results from Kasiya are shown below in Table 2.
Hole ID Interval Thickness Rutile % TGC % From (m) Downhole Hole Type
KYHA1273 8.0 1.52 0.7 9.0 HA
incl 5.0 2.08 0.3 12.0
KYHA1274 9.0 0.93 2.0 0.0 HA
incl 2.0 1.58 0.5 0.0
KYHA1275 3.0 0.96 1.0 0.0 HA
KYHA1276 6.0 0.83 0.9 0.0 HA
incl 2.0 1.25 0.3 0.0
KYHA1277 10.0 0.74 2.0 0.0 HA
incl 2.0 1.32 0.3 0.0
KYHA1278 2.0 0.95 0.3 0.0 HA
KYHA1279 7.0 0.78 0.8 0.0 HA
incl 3.0 1.02 0.3 0.0
KYHA1280 12.0 0.85 0.8 0.0 HA
incl 3.0 1.27 0.2 0.0
KYHA1281 3.0 0.78 0.2 0.0 HA
KYHA1282 14.0 1.03 1.6 0.0 HA
incl 2.0 1.35 0.3 0.0
KYHA1283 5.0 0.80 0.3 0.0 HA
incl 2.0 1.26 0.3 0.0
KYHA1284 2.5 0.65 4.8 7.0 HA
incl 2.0 1.09 0.8 0.0
KYHA1285 2.0 1.03 0.3 0.0 HA
KYHA1286 7.0 0.73 0.3 0.0 HA
incl 2.0 1.21 0.4 0.0
KYHA1287 10.0 0.91 3.2 0.0 HA
incl 2.0 1.54 0.5 0.0
KYHA1288 2.0 1.30 0.4 0.0 HA
KYHA1289 2.0 0.67 0.2 0.0 HA
KYHA1290 3.0 0.59 0.0 0.0 HA
KYHA1291 2.0 0.70 0.2 0.0 HA
KYHA1292 5.0 0.91 0.4 0.0 HA
incl 2.0 1.28 0.3 0.0
KYHA1293 11.0 0.71 3.3 0.0 HA
incl 2.0 1.18 0.3 0.0
KYHA1294 7.0 0.74 0.4 0.0 HA
incl 3.0 1.01 0.4 0.0
KYHA1295 3.0 0.71 0.1 0.0 HA
KYHA1296 13.0 0.76 2.7 0.0 HA
KYHA1297 NSR HA
KYHA1298 4.0 0.84 0.2 0.0 HA
incl 2.0 1.11 0.2 0.0
KYHA1299 4.0 0.85 0.4 0.0 HA
incl 2.0 1.15 0.4 0.0
KYHA1300 14.0 0.78 4.2 0.0 HA
incl 2.0 1.00 0.4 0.0
KYHA1301 6.0 0.74 0.3 0.0 HA
KYHA1302 4.0 0.99 0.2 0.0 HA
incl 2.0 1.30 0.1 0.0
KYHA1303 13.0 1.02 2.4 0.0 HA
incl 3.0 1.16 0.3 0.0
incl 2.0 1.22 4.1 8.0
KYHA1304 4.0 0.84 0.3 0.0 HA
incl 2.0 1.13 0.3 0.0
KYHA1305 17.0 1.01 1.3 0.0 HA
incl 2.0 1.42 0.3 0.0
incl 4.0 1.43 3.2 13.0
KYHA1306 6.0 0.79 0.3 0.0 HA
incl 3.0 1.08 0.3 0.0
KYHA1307 11.0 0.77 2.7 0.0 HA
incl 2.0 1.31 0.4 0.0
KYHA1308 12.0 0.81 0.9 0.0 HA
incl 3.0 1.27 0.2 0.0
KYHA1309 2.0 0.56 0.0 0.0 HA
KYHA1310 8.0 0.86 2.0 0.0 HA
incl 2.0 1.35 0.3 0.0
KYHA1311 3.0 1.07 0.3 0.0 HA
incl 3.0 1.07 0.3 0.0
KYHA1312 NSR HA
KYHA1313 6.0 0.77 0.5 0.0 HA
incl 2.0 1.19 0.2 0.0
KYHA1314 12.0 1.02 4.5 0.0 HA
incl 2.0 1.41 0.5 0.0
incl 3.0 1.05 6.9 6.0
KYHA1315 12.0 1.31 1.6 0.0 HA
incl 3.0 1.97 0.4 0.0
incl 6.0 1.14 2.3 6.0
KYHA1316 6.0 1.16 1.5 0.0 HA
incl 2.0 1.49 0.3 0.0
incl 2.0 1.12 3.6 4.0
KYHA1317 10.0 0.75 3.2 0.0 HA
incl 2.0 1.02 0.5 0.0
KYHA1318 10.0 0.90 0.9 0.0 HA
incl 2.0 1.75 0.2 0.0
KYHA1319 NSR HA
KYHA1320 6.0 0.94 4.2 3.0 HA
incl 3.0 1.15 5.6 6.0
KYHA1321 2.0 0.68 0.1 0.0 HA
KYHA1322 15.0 0.66 2.0 0.0 HA
KYHA1323 2.0 0.66 0.6 3.0 HA
KYHA1324 6.0 0.92 1.1 0.0 HA
incl 2.0 1.35 0.6 0.0
KYHA1324 4.0 0.76 3.7 8.0 HA
KYHA1325 5.0 0.81 0.4 0.0 HA
incl 5.0 1.32 0.4 12.0
APPENDIX II: DRILL HOLE COLLAR DATA - TABLE 3
Hole ID Easting Northing RL Depth Hole ID Easting Northing RL Depth
KYHA1273 548398 8452800 1209 17.0 KYHA1300 549400 8457202 1207 14.0
KYHA1274 548397 8452407 1205 9.0 KYHA1301 541997 8463199 1151 10.0
KYHA1275 548798 8452405 1207 12.0 KYHA1302 542401 8463198 1158 11.0
KYHA1276 548796 8453205 1209 13.0 KYHA1303 542819 8463208 1159 13.0
KYHA1277 548799 8452800 1208 10.0 KYHA1304 548999 8457201 1210 19.0
KYHA1278 548399 8453201 1209 13.0 KYHA1305 548598 8457197 1207 17.0
KYHA1279 541598 8465602 1156 12.0 KYHA1306 548198 8457199 1198 6.0
KYHA1280 542001 8465598 1151 12.0 KYHA1307 542000 8462801 1151 11.0
KYHA1281 542402 8465601 1146 12.0 KYHA1308 542401 8462800 1158 12.0
KYHA1282 548800 8454400 1215 15.0 KYHA1309 542806 8462792 1158 10.0
KYHA1283 549201 8454401 1225 11.0 KYHA1310 542003 8462400 1149 8.0
KYHA1284 549603 8454397 1218 9.5 KYHA1311 542402 8462400 1153 8.0
KYHA1285 550004 8454400 1205 12.0 KYHA1312 542800 8462401 1154 7.0
KYHA1286 550000 8454801 1209 15.0 KYHA1313 546399 8463199 1182 14.0
KYHA1287 549597 8454801 1219 10.0 KYHA1314 546000 8462801 1183 12.0
KYHA1288 549198 8454801 1219 17.0 KYHA1315 546398 8462803 1184 12.0
KYHA1289 548799 8454801 1211 13.0 KYHA1316 546002 8463201 1183 13.0
KYHA1290 548800 8455196 1208 13.0 KYHA1317 545999 8462402 1182 10.0
KYHA1291 549199 8455199 1212 16.0 KYHA1318 546399 8462403 1185 10.0
KYHA1292 549601 8455199 1214 16.0 KYHA1319 543198 8462401 1156 10.0
KYHA1293 550005 8455196 1208 15.0 KYHA1320 543198 8462803 1155 9.0
KYHA1294 548200 8456800 1204 14.0 KYHA1321 543201 8463199 1154 6.0
KYHA1295 548600 8456801 1213 12.0 KYHA1322 542800 8465593 1141 15.0
KYHA1296 549003 8456803 1217 13.0 KYHA1323 543198 8465598 1138 5.0
KYHA1297 549399 8456797 1209 14.0 KYHA1324 541193 8465601 1160 12.0
KYHA1298 549800 8456801 1200 12.0 KYHA1325 548398 8452801 1209 17.0
KYHA1299 549800 8457199 1199 11.0
Appendix III: JORC Code, 2012 Edition - Table 1
SECTION 1 - SAMPLING TECHNIQUES AND DATA
Criteria JORC Code explanation Commentary
Sampling Techniques Nature and quality of sampling (e.g. cut channels, random chips, or specific A total of 53 hand-auger holes for 639m were drilled at the Kasiya Project to
specialised industry standard measurement tools appropriate to the minerals obtain samples for quantitative mineralogical determination.
under investigation, such as down hole gamma sondes, or handheld XRF
instruments, etc). These examples should not be taken as limiting the broad
meaning of sampling.
Hand-Auger 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 1m-4m intervals. This primary sample is then
split again to provide a 1.5kg sample for both rutile and graphite analyses.
Include reference to measures taken to ensure sample representivity and the Drilling and sampling activities are supervised by a suitably qualified
appropriate calibration of any measurement tools or systems used. Company geologist who is present at all times. All drill samples are
geologically logged by the geologist at the drill site/core yard.
Each sample is sun dried and homogenised. Sub-samples are carefully
riffle split to ensure representivity. The 1.5kg composite samples are then
processed.
An equivalent mass is taken from each sample to make up the composite. A
calibration schedule is in place for laboratory scales, sieves and field XRF
equipment.
Placer Consulting Pty Ltd (Placer) Resource Geologists have reviewed Standard
Operating Procedures (SOPs) for the collection and processing of drill samples
and found them to be fit for purpose. The primary composite sample is
considered representative for this style of rutile mineralisation.
Aspects of the determination of mineralisation that are Material to the Public Logged mineralogy percentages and lithology information is used to determine
Report. In cases where 'industry standard' work has been done this would be compositing intervals. Care is taken to ensure that only samples with similar
relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m geological characteristics are composited together.
samples from which 3 kg was pulverised to produce a 30 g charge for fire
assay'). In other cases more explanation may be required, such as where there
is coarse gold that has inherent sampling problems. Unusual commodities or
mineralisation types (e.g. submarine nodules) may warrant disclosure of
detailed information.
Drilling Techniques Drill type (e.g. core, reverse circulation, open‐hole hammer, rotary air A total of 53 hand-auger holes for 639m were drilled at the Kasiya Project to
blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or obtain samples for quantitative determination of recoverable rutile and Total
standard tube, depth of diamond tails, face‐sampling bit or other type, Graphitic Carbon (TGC).
whether core is oriented and if so, by what method, etc).
Hand-auger drilling with 75mm diameter enclosed spiral bits with 1-metre-long
steel rods. Each 1m of drill sample is collected into separate sample bags
and set aside. The auger bits and flights are cleaned between each metre of
sampling to avoid contamination.
Placer has reviewed SOPs for hand-auger drilling and found them to be fit for
purpose and support the resource classifications as applied to the MRE.
Drill Sample Recovery Method of recording and assessing core and chip sample recoveries and results Samples are assessed visually for recoveries. The configuration of drilling
assessed. and nature of materials encountered results in negligible sample loss or
contamination.
Samples are assessed visually for recoveries. Overall, recovery is good.
Drilling is ceased when recoveries become poor once the water table has been
reached.
Auger drilling samples are actively assessed by the geologist onsite for
recoveries and contamination.
Measures taken to maximise sample recovery and ensure representative nature of The Company's trained geologists supervise drilling on a 1 team 1 geologist
the samples. basis and are responsible for monitoring all aspects of the drilling and
sampling process.
Hand-auger drilling samples are retrieved and placed into large plastic bags.
The bags are clearly labelled and delivered back to the laydown at the end of
shift for processing.
Whether a relationship exists between sample recovery and grade and whether No relationship is believed to exist between grade and sample recovery. The
sample bias may have occurred due to preferential loss/gain of fine/coarse high percentage of silt and absence of hydraulic inflow from groundwater at
material. this deposit results in a sample size that is well within the expected size
range.
No bias related to preferential loss or gain of different materials is
observed.
Logging Whether core and chip samples have been geologically and geotechnically logged Geologically, data is collected in detail, sufficient to aid in Mineral
to a level of detail to support appropriate Mineral Resource estimation mining Resource estimation.
studies and metallurgical studies.
All individual 1-metre intervals are geologically logged, recording relevant
data to a set log-chief template using company codes. A small representative
sample is collected for each 1-metre interval and placed in appropriately
labelled chip trays for future reference.
Whether logging is qualitative or quantitative in nature. Core (or costean, All logging includes lithological features and estimates of basic mineralogy.
channel, etc.) photography. Logging is generally qualitative.
The total length and percentage of the relevant intersection logged 100% of samples are geologically logged.
Sub-sampling techniques and sample preparation If core, whether cut or sawn and whether quarter, half or all core taken. N/A
If non-core, whether riffled, tube sampled, rotary split, etc. and whether Hand-auger samples from the 53 holes drilled are dried, riffle split and
sampled wet or dry. composited. Samples are collected and homogenised prior to splitting to ensure
sample representivity. ~1.5kg composite samples are processed.
An equivalent mass is taken from each primary sample to make up the composite.
The primary composite sample is considered representative for this style of
mineralisation and is consistent with industry standard practice.
For all sample types, the nature, quality and appropriateness of the sample Techniques for sample preparation are detailed on SOP documents verified by
preparation technique. Placer Resource Geologists.
Sample preparation is recorded on a standard flow sheet and detailed QA/QC is
undertaken on all samples. Sample preparation techniques and QA/QC protocols
are appropriate for mineral determination.
Quality control procedures adopted for all sub-sampling stages to maximise The sampling equipment is cleaned after each sub-sample is taken.
representivity of samples.
Field duplicate, laboratory replicate and standard sample geostatistical
analysis is employed to manage sample precision and analysis accuracy.
Measures taken to ensure that the sampling is representative of the in situ Sample size analysis is completed to verify sampling accuracy. Field
material collected, including for instance results for field duplicates are collected for precision analysis of riffle splitting. SOPs
duplicate/second-half sampling. consider sample representivity. Results indicate a sufficient level of
precision for the resource classification.
Whether sample sizes are appropriate to the grain size of the material being The sample size is considered appropriate for the material sampled.
sampled.
Quality of assay data and laboratory tests The nature, quality and appropriateness of the assaying and laboratory Rutile
procedures used and whether the technique is considered partial or total.
The Malawi onsite laboratory sample preparation methods are considered
quantitative to the point where a non-magnetic mineral concentrate (NM) is
generated.
Final results generated are for recovered rutile i.e. the % mass of the sample
that is rutile that can be recovered to the non-magnetic component of a HMC.
The HMC is prepared via wet-table, gravity separation at the Lilongwe
Laboratory which provides an ideal sample for subsequent magnetic separation
and XRF.
All samples (incl. QA) included in this announcement received the following
workflow undertaken on-site in Malawi;
· Dry sample in oven for 1 hour at 105℃
· Soak in water and lightly agitate
· Wet screen at 5mm, 600µm and 45µm to remove oversize and slimes
material
· Dry +45µm -600mm (sand fraction) in oven for 1 hour at 105℃
· Pass +45µm -600mm (sand fraction) across wet table to generate a
heavy mineral concentrate (HMC)
· Pan HMC to remove retained light minerals
· Dry HMC in oven for 30 minutes at 105℃
· Magnetic separation of the HMC by Carpco magnet @ 16,800G
(2.9Amps) into a magnetic (M) and non-magnetic (NM) fraction.
Bag NM fraction and send to Perth, Australia for quantitative chemical and
mineralogical determination.
· The NM fractions were sent to ALS Metallurgy Perth for
quantitative XRF analysis. Samples received XRF_MS.
Graphite
All samples are initially checked in and processed to pulp at
Intertek-Genalysis Johannesburg.
The pulp samples are then dispatched to Intertek-Genalysis Perth where they
undergo TGC assay via method C72/CSA.
A portion of each test sample is dissolved in dilute hydrochloric acid to
liberate carbonate carbon. The solution is filtered using a filter paper and
the collected residue is the dried to 425°C in a muffle oven to drive off
organic carbon. The dried sample is then combusted in a Carbon/ Sulphur
analyser to yield total graphitic or elemental carbon (TGC).
The graphitic carbon content is determined by eliminating other carbon forms
from the total carbon content. The addition of acid to the sample liberates
carbon dioxide thus removing carbonate carbon. Soluble organic carbon will
also be removed. Insoluble organic carbon is removed by heating the samples at
425°C in an oxidising environment. The "dried" carbon-bearing sample that is
analysed in the resistance furnace is considered to contain only graphitic
carbon.
An Eltra CS-800 induction furnace infra-red CS analyser is then used to
determine the remaining carbon which is reported as Total Graphitic Carbon
(TGC) as a percentage.
For geophysical tools, spectrometers, handheld XRF instruments, etc., the Acceptable levels of accuracy and precision have been established. No handheld
parameters used in determining the analysis including instrument make and XRF methods are used for quantitative determination.
model, reading times, calibrations factors applied and their derivation, etc.
Nature of quality control procedures adopted (e.g. standards, blanks, Sovereign uses internal and externally sourced wet screening reference
duplicate, external laboratory checks) and whether acceptable levels of material inserted into samples batches at a rate of 1 in 20. The externally
accuracy (i.e. lack of bias) and precision have been established. sourced, certified standard reference material for HM and Slimes assessment is
provided by Placer Consulting.
Accuracy monitoring is achieved through submission of certified reference
materials (CRM's).
ALS and Intertek both use internal CRMs and duplicates on XRF analyses.
Sovereign also inserts CRMs into the sample batches 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.
Examination of the QA/QC sample data indicates satisfactory performance of
field sampling protocols and assay laboratories providing acceptable levels of
precision and accuracy.
Acceptable levels of accuracy and precision are displayed in geostatistical
analyses.
Verification of sampling & assaying The verification of significant intersections by either independent or Results are reviewed in cross-section using Micromine software and any
alternative company personnel. spurious results are investigated. The deposit type and consistency of
mineralisation leaves little room for unexplained variance. Extreme high
grades are not encountered.
The use of twinned holes. Twinned holes are not reported here.
Documentation of primary data, data entry procedures, data verification, data All geological field logging data is collected in LogChief logging software.
storage (physical and electronic) protocols. This data is then imported to Datashed5 and validated automatically and then
manually.
Sovereigns' laboratory data is captured onto paper templates or excel and
transferred manually to the database.
Discuss any adjustment to assay data. 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: TiO(2) 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.
Location of data points Accuracy and quality of surveys used to locate drill holes (collar and A Trimble R2 Differential GPS is used to pick up the collars. Daily capture at
down-hole surveys), trenches, mine workings and other locations used in a registered reference marker ensures equipment remains in calibration.
Mineral Resource estimation.
No downhole surveying is completed. Given the vertical nature and shallow
depths of the holes, drill hole deviation is not considered to significantly
affect the downhole location of samples.
Specification of the grid system used. WGS84 UTM Zone 36 South.
Quality and adequacy of topographic control. DGPS pickups are considered to be high quality topographic control measures.
Data spacing & distribution Data spacing for reporting of Exploration Results. The hand-auger holes are spaced on a on a regular grid which is deemed to
adequately define the mineralisation under investigation.
Whether the data spacing and distribution is sufficient to establish the The drill spacing and distribution is considered to be sufficient to establish
degree of geological and grade continuity appropriate for the Mineral Resource a degree of geological and grade continuity appropriate for further future
and Ore Reserve estimation procedure(s) and classifications applied. Mineral Resource estimation.
Whether sample compositing has been applied. Individual 1m intervals have been composited, based on lithology for the 53
hand-auger holes.
Orientation of data in relation to geological structure Whether the orientation of sampling achieves unbiased sampling of possible Sample orientation is vertical and approximately perpendicular to the
structures and the extent to which this is known considering the deposit type orientation of the mineralisation, which results in true thickness estimates,
limited by the sampling interval as applied. Drilling and sampling are carried
out on a regular square grid. There is no apparent bias arising from the
orientation of the drill holes with respect to the orientation of the deposit.
If the relationship between the drilling orientation and the orientation of There is no apparent bias arising from the orientation of the drill holes with
key mineralised structures is considered to have introduced a sampling bias, respect to the orientation of the deposit.
this should be assessed and reported if material.
Sample security The measures taken to ensure sample security Samples are stored in secure storage from the time of drilling, through
gathering, compositing and analysis. The samples are sealed as soon as site
preparation is complete.
A reputable international transport company with shipment tracking enables a
chain of custody to be maintained while the samples move from Malawi to
Australia or Malawi to Johannesburg. Samples are again securely stored once
they arrive and are processed at Australian laboratories. A reputable domestic
courier company manages the movement of samples within Perth, Australia.
At each point of the sample workflow the samples are inspected by a company
representative to monitor sample condition. Each laboratory confirms the
integrity of the samples upon receipt.
Audits or reviews The results of any audits or reviews of sampling techniques and data Richard Stockwell (resource CP) has reviewed and advised on all stages of data
collection, sample processing, QA protocol and mineral resource estimation.
Methods employed are considered industry best-practice.
Malawi Field and Laboratory visits have been completed by Richard Stockwell in
May 2022. A high standard of operation, procedure and personnel was observed
and reported.
SECTION 2 - REPORTING OF EXPLORATION RESULTS
Criteria Explanation Commentary
Mineral tenement & land tenure status Type, reference name/number, location and ownership including agreements or The Company owns 100% of the following Exploration Licences (ELs) and
material issues with third parties such as joint ventures, partnerships, Retention Licence (RL) under the Mines and Minerals Act (No 8. of 2019), held
overriding royalties, native title interests, historical sites, wilderness or in the Company's wholly-owned, Malawi-registered subsidiaries: EL0609,
national park and environment settings. EL0582, EL0492, EL0528, EL0545, EL0561, and EL0657.
A 5% royalty is payable to the government upon mining and a 2% of net profit
royalty is payable to the original project vendor.
No significant native vegetation or reserves exist in the area. The region is
intensively cultivated for agricultural crops.
The security of the tenure held at the time of reporting along with any known The tenements are in good standing and no known impediments to exploration or
impediments to obtaining a licence to operate in the area. mining exist.
Exploration done by other parties Acknowledgement and appraisal of exploration by other parties. Sovereign Metals Ltd is a first-mover in the discovery and definition of
residual rutile and graphite resources in Malawi. No other parties are
involved in exploration.
Geology Deposit type, geological setting and style of mineralisation The rutile deposit type is considered a residual placer formed by the intense
weathering of rutile-rich basement paragneisses and variable enrichment by
eluvial processes.
Rutile occurs in a mostly topographically flat area west of Malawi's capital,
known as the Lilongwe Plain, where a deep tropical weathering profile is
preserved. A typical profile from top to base is generally soil ("SOIL" 0-1m)
ferruginous pedolith ("FERP", 1-4m), mottled zone ("MOTT", 4-7m), pallid
saprolite ("PSAP", 7-9m), saprolite ("SAPL", 9-25m), saprock ("SAPR", 25-35m)
and fresh rock ("FRESH" >35m).
The low-grade graphite mineralisation occurs as multiple bands of graphite
gneisses, hosted within a broader Proterozoic paragneiss package. In the
Kasiya areas specifically, the preserved weathering profile hosts significant
vertical thicknesses from near surface of graphite mineralisation.
Drill hole information A summary of all information material to the understanding of the exploration All collar and composite data are provided in the body and appendices of this
results including a tabulation of the following information for all Material report.
drill holes: easting and northings of the drill hole collar; elevation or RL
(Reduced Level-elevation above sea level in metres of the drill hole collar);
dip and azimuth of the hole; down hole length and interception depth; and hole
length
If the exclusion of this information is justified on the basis that the No information has been excluded.
information is not Material and this exclusion does not detract from the
understanding of the report, the Competent Person should clearly explain why
this is the case
Data aggregation methods In reporting Exploration Results, weighting averaging techniques, maximum All results reported are of a length-weighted average of in-situ grades. The
and/or minimum grade truncations (e.g. cutting of high-grades) and cut-off results reported in the body of the report are on a nominal lower cut-off of
grades are usually Material and should be stated. 0.5% Rutile and exclude bottom of hole samples where saprock has been
geologically logged.
Where aggregate intercepts incorporate short lengths of high-grade results and No data aggregation was required.
longer lengths of low-grade results, the procedure used for such aggregation
should be stated and some typical examples of such aggregations should be
shown in detail.
The assumptions used for any reporting of metal equivalent values should be No metal equivalent values are used in this report.
clearly stated.
Relationship between mineralisation widths & intercept lengths These relationships are particularly important in the reporting of Exploration The mineralisation has been released by weathering of the underlying, layered
Results. gneissic bedrock that broadly trends NE-SW. It lies in a laterally extensive
superficial blanket with high-grade zones reflecting the broad bedrock strike
orientation of ~045°.
If the geometry of the mineralisation with respect to the drill hole angle is The mineralisation is laterally extensive where the entire weathering profile
known, its nature should be reported. is preserved and not significantly eroded. Minor removal of the mineralised
profile has occurred in alluvial channels. These areas are adequately defined
by the drilling pattern and topographical control.
If it is not known and only the down hole lengths are reported, there should Downhole widths approximate true widths limited to the sample intervals
be a clear statement to this effect (e.g. 'down hole length, true width not applied. Graphite results are approximate true width as defined by the sample
known'. interval and typically increase with depth.
Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts Refer to figures in the body of this report.
should be included for any significant discovery being reported. These should
include, but not be limited to a plan view of the drill collar locations and
appropriate sectional views.
Balanced reporting Where comprehensive reporting of all Exploration Results is not practicable, All results are included in this report.
representative reporting of both low and high-grades and/or widths should be
practiced to avoid misleading reporting of exploration results.
Other substantive exploration data Other exploration data, if meaningful and material, should be reported Rutile has been determined, by QEMSCAN, to be the major TiO(2)-bearing mineral
including (but not limited to: geological observations; geophysical survey at and around several rutile prospects within Sovereign's ground package. The
results; geochemical survey results; bulk samples - size and method of Company continues to examine areas within the large tenement package for
treatment; metallurgical test results; bulk density, groundwater, geotechnical rutile and graphite by-product mineralisation.
and rock characteristics; potential deleterious or contaminating substances.
Further work The nature and scale of planned further work (e.g. test for lateral extensions No further exploration is planned at this stage.
or depth extensions or large-scale step-out drilling).
Diagrams clearly highlighting the areas of possible extensions, including the Refer to diagrams in the body of this report.
main geological interpretations and future drilling areas, provided this
information is not commercially sensitive.
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