REG - Sovereign Metals Ltd - Follow-Up Drilling Initiated North of Kasiya

Sovereign MetalsAnnouncement

27/03/2024 07:00

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RNS Number : 4362I  Sovereign Metals Limited  27 March 2024

NEWS RELEASE I 27 MARCH 2024

FOLLOW-UP DRILLING INITIATED NORTH OF KASIYA RESOURCE AREA

·      Wide-spaced regional follow-up drilling for the Kasiya Project
underway focusing on the region to the north of the current resource
footprint, with results from the drill program expected in the coming weeks

·      Recently reported reconnaissance drilling to the south identified
an 8km extension of mineralisation which remains open along strike and at
depth

·      Kasiya 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)

·      Optimisation program for the Kasiya Project continues in
conjunction with our strategic investor, Rio Tinto

 

Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is
pleased to report that the Company has initiated a follow-up 400 metre spaced
drill program at its tier one Kasiya Rutile-Graphite Project (Kasiya) in
Malawi. The program will focus on determining the boundaries and extent of
mineralisation north of the known Mineral Resource Estimate (MRE) area.

The 70+ hole hand-auger drill program has been designed to target areas where
mineralisation was identified in earlier wide-spaced regional hand-auger
drilling. The target area is up to 20km north of the current MRE boundary.
Drilling is currently underway and will be completed in the coming weeks. Four
hand-auger teams have been deployed under the supervision of Sovereign's
in-country technical team.

Samples will be initially processed in the Company's Lilongwe own lab facility
and then shipped for final analysis at certified international laboratories.
Results from the drill program are expected in the coming weeks.

SOUTHERN EXTENSION

In February 2024, the Company announced regional hand-auger drilling south of
the Kasiya MRE footprint had 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 in the south 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 30 vertical metres from surface.
The multiple mineralised zones identified remain open along strike both to the
north and south.

These results indicate the potential to expand the already significant,
high-grade rutile and graphite MRE at Kasiya.

Figure 1: Southern mineralised extensions at Kasiya

 

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
 Stifel                                     +44 20 7710 7600
 Varun Talwar
 Ashton Clanfield

 Berenberg                                  +44 20 3207 7800
 Matthew Armitt
 Jennifer Lee

 Buchanan                                   + 44 20 7466 5000

 

Competent Person Statement

The information in this announcement that relates to the Exploration Results
is extracted from the announcement dated 1 February 2024 entitled 'Extensions
to Rutile & Graphite Mineralisation at Kasiya'. 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 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 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) and is
based on, and fairly represents information compiled by . 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 original 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 the PFS ** 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

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.

 

 

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