REG - Sovereign Metals Ltd - Infill Drilling Program Complete

Sovereign MetalsAnnouncement

22/10/2024 07:00

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RNS Number : 0511J  Sovereign Metals Limited  22 October 2024

NEWS RELEASE I 22 OCTOBER 2024

INFILL DRILLING PROGRAM COMPLETE

·    Infill drilling program designed to upgrade Kasiya's Mineral Resource
Estimate and convert Ore Reserves from Probable to Proven category now
complete

·    Total of 281 holes drilled over 5,607 metres using aircore drilling
supported by 339 hand auger, push tube and diamond core drill holes over 1,940
metres

·    Program focused on southern Kasiya, which is the area intended to
supply ore feed for first eight years of production

·    All drill samples will have both rutile and graphite assayed by
offsite laboratories in South Africa and Australia

·    Results of drilling program and Resource upgrade anticipated in early
2025

 

Sovereign Metals Limited (ASX:SVM, AIM:SVML, OTCQX:SVMLF) (Sovereign or the
Company) is pleased to announce that it has completed an infill drilling
program at its Kasiya Rutile-Graphite Project (Kasiya or Project) to support
ongoing technical studies.

 

Aircore drilling, supported by hand auger, push tube and diamond core
drilling, has now been completed in the southern part of Kasiya. The drilling
was focused on the designated pits proposed to provide ore feed in the first
eight years of the Project's production schedule. Ore Reserves in these areas
are expected to convert from the Probable to Proven category with an upgrade
of the current Mineral Resource Estimate (MRE) from Indicated to the Measured
category under the JORC (2012) Code.

 

Managing Director and CEO Frank Eagar commented: "Completing the infill
drilling program on schedule will assist us in upgrading our Mineral Resource
Estimate and will feed into our future technical studies as part of ongoing
pre-development activities at the Kasiya Project being overseen by the
Sovereign-Rio Tinto Technical Committee."

 

Offsite laboratories in South Africa and Australia will assay all samples for
rutile and graphite. The drilling program's results and subsequent Resource
upgrade are expected in early 2025.

 

Kasiya is already the world's largest rutile deposit and second-largest flake
graphite deposit, with over 66% of the current MRE in the Indicated category.

 

Infill Drilling Program Overview

 

An offset 200x200 metre program was designed (see Figure 1), resulting in an
average drill spacing of 142 metres. The offset spacing had the advantage of
allowing analysis of geology and grade continuity in both orthogonal and
diagonal directions.

 

The drilling program consisted of:

 

1.   281 aircore holes drilled over 5,607m, with an average depth of 20
metres

2.   309 hand auger holes drilled over 1,280m, with an average depth of 4
metres

3. 30 push tube and diamond core holes drilled over 663m, providing samples
for verification twinning and geotechnical sampling with an average depth of
22 metres

 

The current MRE identifies broad and continuous high-grade rutile and graphite
zones, extending over a vast area of more than 201 km². Rutile mineralisation
is concentrated in laterally extensive, near-surface, flat "blanket" deposits
in areas where the weathering profile remains intact and largely uneroded.
Graphite is largely depleted near the surface, with grades generally improving
at depths greater than 4 metres, down to the base of the saprolite zone, which
averages around 22 metres.

 

Figure 1: Plan view of aircore MRE infill drilling program

Figure 2: Plan view of push tube / diamond drill MRE twin and geotechnical
holes

Figure 3: Air Core site at Kasiya, with sample collection and logging

 

Figure 4: Commencement of a new hole using aircore drilling

Figure 5: Push tube / diamond core site setup at Kasiya

Figure 6: Push tube / diamond core showing stainless Shelby tubes for
geotechnical samples and PVC casing for collection of push tube samples in
foreground

 

 Enquires

 Frank Eagar, Managing Director & CEO      Sapan Ghai, CCO

 South Africa / Malawi                     London

 +27 21 065 1890                           +44 207 478 3900

 

 Nominated Adviser on AIM and Joint Broker
 SP Angel Corporate Finance LLP             +44 20 3470 0470
 Ewan Leggat

 Charlie Bouverat

 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 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. 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.

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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