REG - Sovereign Metals Ltd - Kasiya Indicated Resource Increased By Over 80%
05/04/2023 07:15
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RNS Number : 3959V Sovereign Metals Limited 05 April 2023
SOVEREIGN METALS LIMITED
NEWS RELEASE I 5 APRIL 2023
KASIYA INDICATED RESOURCE INCREASED BY OVER 80%
· Kasiya Indicated Resource now stands at 1.2 Billion tonnes at 1.0%
rutile and 1.5% graphite
· Updated Mineral Resource Estimate (MRE) moves over 0.5 Billion
tonnes from Inferred to Indicated - an increase of 81% to the Indicated
category
· Over 66% of total MRE now in the Indicated category
· Kasiya's global MRE over 1.8 Billion tonnes at 1.0% rutile and 1.4%
graphite
· Kasiya remains the world's largest natural rutile deposit and
second largest flake graphite deposit
· Updated MRE to underpin the mining inventory and mine plan for the
forthcoming Pre-feasibility Study (PFS)
Sovereign's Managing Director Dr Julian Stephens commented: "The increase of
over 80% in the Indicated component at a one-for-one conversion from Inferred
is an outstanding outcome. The conversion rate confirms the very consistent
geological and grade continuity and is testament to the high-quality and
robustness of the deposit. Kasiya is poised to become a major long-term
supplier of the critical minerals natural rutile and graphite, with both
forecast to be in near-term and significant supply deficit. The PFS work
program on this highly strategic and globally significant project is
progressing well and approaching its final stages. The Company is looking
forward to presenting the outcomes of the PFS in the coming months."
ENQUIRIES
Dr Julian Stephens (Perth) Sam Cordin (Perth) Sapan Ghai (London)
Managing Director
+61(8) 9322 6322
+44 207 478 3900
+61(8) 9322 6322
Nominated Adviser on AIM
RFC Ambrian
Andrew Thomson +61 8 9480 2500
Joint Brokers
Berenberg +44 20 3207 7800
Matthew Armitt
Jennifer Lee
Optiva Securities +44 20 3137 1902
Daniel Ingrams
Mariela Jaho
Christian Dennis
KASIYA - THE LARGEST RUTILE DEPOSIT IN THE WORLD
Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is
pleased to announce the updated MRE for its world-class Kasiya rutile-graphite
deposit in Malawi. Kasiya is a Tier 1 deposit and a potential major source of
low carbon footprint critical minerals natural rutile (TiO₂) and graphite.
Table 1: 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 updated MRE has further defined broad and contiguous zones of high-grade
rutile and graphite which occur across a very large area of over 201km(2).
Rutile mineralisation is concentrated in laterally extensive, near surface,
flat "blanket" style bodies in areas where the weathering profile is preserved
and not significantly eroded. Graphite is depleted near surface with grades
improving at depths generally >4m to the base of the saprolite zone which
averages about 22m.
Sovereign's 2022 drill program at Kasiya used push tube (PT) core holes to
in-fill and convert Inferred mineralisation into the Indicated category. The
consistency and robustness of the geology allowed for an efficient conversion
of this previously Inferred material on a near-identical one-for-one basis to
the Indicated category.
A total of 66% of the MRE now reports to the Indicated category @ 1.0% rutile
and 1.5% TGC - up from 33% previously. Overall, the new Indicated components
show coherent, broad bodies of mineralisation that have coalesced very well
with the additional infill drilling results.
Further advancement in this MRE update was the application of air-core (AC)
drilling to define the depth of mineralisation in a number of selected
higher-grade areas. As expected, this drilling shows that high-grade rutile
and graphite mineralisation extends to the base of the soft saprolite unit
terminating on the saprock basement averaging about 22m depth. This AC
drilling targeted early-scheduled mining pits mainly in the southern areas of
the MRE footprint.
A number of higher-grade graphite zones at depth were identified which are
generally associated with higher grade rutile at surface. Some of these zones
have graphite grades at depths >6m in the 4% to 8% TGC range and appear to
represent significant contained coarse flake graphite tonnages.
The highlighted cut-off of 0.7% rutile presents 1.8 billion tonnes at a rutile
grade of 1.0%. (Table 2). The overall recovered rutile equivalent grade for
the MRE at the global 0.7% cut-off is 1.65% RutEq*.
Table 2: Kasiya Total Indicated + Inferred Mineral Resource Estimate at
various rutile cut-off grades
Cut-off (rutile) Resource Rutile Grade Contained Rutile Graphite Grade (%) Contained Graphite
(Mt)
(%)
(Mt)
(Mt)
0.40% 3,215 0.80% 25.7 1.30% 41.9
0.50% 2,779 0.85% 23.8 1.35% 37.4
0.60% 2,304 0.92% 21.1 1.37% 31.7
0.70% 1,809 0.99% 17.9 1.35% 24.4
0.80% 1,335 1.08% 14.4 1.25% 16.6
0.90% 934 1.17% 11.0 1.06% 9.9
1.00% 643 1.28% 8.2 0.84% 5.4
1.10% 449 1.38% 6.2 0.65% 2.9
1.20% 324 1.47% 4.7 0.53% 1.7
1.30% 230 1.56% 3.6 0.48% 1.1
1.40% 163 1.64% 2.7 0.45% 0.7
* RutEq. Formula: Rutile Grade x Recovery (98%) x Rutile Price (US$1,308/t) +
Graphite Grade x Recovery (62%) x Graphite Price (US$1,085/t) / Rutile Price
(US$1,308/t). All assumptions are taken from the Expanded Scoping Study (ESS)
released in June 2022.
KASIYA MRE TECHNICAL DETAILS
The Kasiya MRE has been prepared by independent consultants, Placer Consulting
Pty Ltd (Placer) and is reported in accordance with the JORC Code (2012
Edition).
Rutile mineralisation lies in laterally extensive, near surface, flat
"blanket" style bodies in areas where the weathering profile is preserved and
not significantly eroded. The high-grade zones are relatively geologically
consistent with limited variability along and across strike. The
mineralisation style is illustrated best in Figures 5 & 6 in the full
announcement on the website.
SUMMARY OF RESOURCE ESTIMATE REPORTING CRITERA
As per ASX Listing Rule 5.8 and the 2012 JORC reporting guidelines, a summary
of the material information used to estimate the MRE is detailed below.
Geology
Regional Geology
The greater part of Malawi is underlain by crystalline Precambrian to lower
Palaeozoic rocks referred to as the Malawi Basement Complex. In some parts
these rocks have been overlain unconformably by sedimentary and volcanic rocks
ranging in age from Permo-Triassic to Quaternary. The Basement complex has
undergone a prolonged structural and metamorphic history dominated by uplift
and faulting resulting in the formation of the Malawi Rift Valley.
Kasiya is located on the Lilongwe Plain which is underlain by the Basement
Complex paragneisses and orthogneisses which are part of the Mozambique Belt.
The bulk of the gneisses are semi-pelitic but there are bands of psammitic and
calcareous rocks that have been metamorphosed under high pressure and
temperature conditions to granulite facies. Interspersed within the paragneiss
units are lesser orthogneisses, often cropping out as conspicuous tors, as
well as amphibolites, pegmatites and minor mafic to ultramafic intrusions.
Foliation and banding in the gneisses have a broad north-south strike over the
general area. Thick residual soils and pedolith with some alluvium overlie the
gneisses and include sandy, lateritic and dambo types.
Project Geology
Sovereign's tenure covers 1,386km(2) over an area to the north, west and south
of Malawi's capital city covering the Lilongwe Plain. The topography is
generally flat to gently undulating and the underlying geology is dominated by
paragneiss with pelitic, psammitic and calcareous units.
A particular paragneiss unit is rich in rutile and graphite and is the primary
source of both of these minerals in the area. This area was deeply weathered
during the Tertiary and rutile concentrated in the upper part of the
weathering profile forming residual placers, such as the Kasiya Deposit. Once
this material is incised and eroded, it is transported and deposited into
wide, regional braided river systems forming alluvial heavy mineral placers
such as the Bua Channel.
Kasiya Deposit Geology
The high-grade rutile deposit at Kasiya is best described as a residual
placer, or otherwise known as eluvial heavy mineral deposit. It is formed by
weathering of the primary host rock and concentration in place of heavy
minerals, as opposed to the high-energy transport and concentration of heavy
minerals in a traditional placer.
The presence of abundant kyanite and graphite in the host material suggest a
meta-sedimentary protolith. The protolith likely started with a 0.5-1.5Ga
basin that also experienced consistent influx of titanium minerals.
These sedimentary rocks were subject to granulite facies metamorphism under
reduced conditions in the Pan-African Orogeny. The metamorphic facies, reduced
environment, relatively high titanium content and low iron content resulted in
rutile being the most stable titanium mineral under these conditions. Slow
exhumation and cooling then resulted in re-crystallisation as paragneisses
containing coarse rutile and graphite.
The final and most important stage of rutile enrichment came as tropical
weathering during the Tertiary depleted the top ~8m of physically and
chemically mobile minerals. This caused significant volume loss and concurrent
concentration of heavy resistate minerals including rutile and kyanite.
Rutile mineralisation therefore lies in laterally extensive, near surface,
flat "blanket" style bodies in areas where the weathering profile is
preserved. The Kasiya deposit shows widespread, high-grade mineralisation
commonly grading 1.2% to 2.0% rutile in the top 3-5m from surface. Moderate
grade mineralisation generally grading 0.5% to 1.2% rutile commonly extends
from 5m to the base of the soft saprolite unit to generally 20-30m depth where
it terminates on the hard saprock basement.
Graphite generally occurs in broad association with rutile. However, it is
depleted in the top 3-5m and therefore can often show an inverse grade
relationship with rutile in the near-surface zones. At depths generally
greater than 5m, graphite is not depleted, and rutile is not particularly
enriched, so a more consistent grade relationship exists.
Drilling Techniques
Spiral hand-auger (HA) drilling and Push-tube core (PT) drilling has been used
extensively at the Kasiya Deposit by Sovereign to define mineralisation and to
obtain quantitative rutile and graphite (TGC) assay information. For the MRE
update, Aircore (AC) drilling has been applied in some high-grade areas to
determine rutile and graphite grade potential at depth and to establish
basement elevation and composition. Additional HA and PT drilling has been
applied to extend, infill and upgrade resource confidence in more prospective
regions.
A further 152 HA holes for 1,253m were drilled to extend the Kasiya Rutile
Deposit and to obtain samples for quantitative determination of recoverable
rutile and TGC. The total HA dataset incorporated in the MRE update is now
1,357 holes for 12,643m.
HA drilling was executed by Sovereign field teams using a manually operated
enclosed-flight Spiral Auger (SP / SOS) system produced by Dormer Engineering
in Queensland, Australia. The HA bits are 62mm and 75mm in diameter with 1m
long steel rods. Each 1m of drill advance is withdrawn and the contents of the
auger flight removed into bags and set aside. An additional 1m steel rod is
attached and the open hole is re-entered to drill the next metre. This is
repeated until the drill hole is terminated often due to the water table being
reached, and more rarely due to bit refusal (2% of the resource HA drill
database). The auger bits and flights are cleaned between each metre of
sampling to avoid contamination.
The HA collars are nominally spaced at a 400m-by-400m spaced array with the PT
holes similarly spaced at an offset, infill grid. This results in a 200m by
200m drill spacing (to the strike orientation of the deposit).
PT drilling is undertaken using a drop hammer Dando Terrier MK1 and a drop
hammer DL650 by Geo-consult and Thompsons Drilling. A total of 488 holes for
4,669m contribute to the MRE. The drilling generated 1m runs of 83mm PQ core
in the first 2m and then transition to 72mm core for the remainder of the
hole. Core drilling is oriented vertically by spirit level.
A total of 182 AC holes for 4,404m were completed in six locations across the
MRE deemed likely to fall into mining pit areas.
AC drilling was completed by Thompson Drilling utilising a Smith Capital 10R3H
compact track-mounted drill. The drilling is vertical and generates 1m samples
with care taken in the top metres to ensure good recoveries of the high-grade
surface material. To achieve this the bit is initially pushed down ~200mm then
air is slowly introduced with slow rotation rpm, once sample begins flowing
freely air and rpm is increased to full volume as the hole deepens. Whilst
sample size was reduced in surface samples, there was insignificant bias
attributed to the AC method when compared with results from a dedicated
programme of twin PT holes.
The AC sample is collected by the on-board cyclone into heavy-duty RC sample
bags. Drilling continues until bit refusal onto basement ~20-30m. Sample bags
are immediately transported back to Sovereign's field laydown yard where they
are processed.
AC drilling is on a nominal 200m by 200m pattern. The drill spacing is deemed
to adequately define the mineralisation in the MRE. There is no apparent bias
arising from the orientation of the drill holes contributing to the MRE, with
respect to the orientation of the deposit.
The drilling programs to date show a mineralised envelope, defined nominally
by 0.7% rutile cut-off, of approximately 201km(2) with numerous areas of
high-grade rutile and graphite defined.
The PT and AC twin and density sample holes are selectively placed throughout
the deposit to ensure a broad geographical and lithological coverage for the
analysis.
Placer has reviewed Standard Operating Procedures (SOPs) for HA, PT and AC
drilling and found them to be fit for purpose and support the resource
classifications as applied to the MRE.
Sampling Techniques
HA samples are obtained at 1m intervals generating on average approximately
2.5kg of drill sample. HA samples are manually removed from the auger bit and
sample recovery is visually assessed in the field. As samples become wet at
the water table and recovery per metre declines, the drill hole is terminated.
Each 1m sample is sun dried, logged and weighed. HA samples are composited
based on regolith weathering boundaries defined by expert logging. Each 1m of
sample is dried, lightly pressed to remove soft aggregates and riffle-split to
generate a total sample weight of 3kg for analysis, generally at 2 - 5m
intervals (average 2.8m for the total resource drill database). This primary
sample is then riffle split again to provide a 1.5kg sample each for rutile
and graphite analyses.
PT samples are predominantly from HQ sized core (63.5mm diameter). Half core
1m samples are sun dried, logged and weighed. Samples are then lightly pressed
and composited over 2m intervals. An equal mass is taken from each
contributing metre to generate a 1.5kg composite sample. Individual
recoveries of core samples are recorded on a quantitative basis. Core recovery
is very good overall at >95%.
AC samples are collected in 1m increments. AC samples are dried, riffle split,
lightly pressed and composited. Samples are collected and homogenised prior to
splitting to ensure sample representivity. ~1.5kg composite samples defined by
the regolith boundaries are processed. An equivalent mass is taken from each
primary sample to make up the composite.
This sampling and compositing method is considered appropriate and reliable
based on accepted industry practice. Placer completed an on-site audit of
sampling and sample processing and deemed the processes fit for purpose. Minor
suggested sampling and processing adjustments were implemented.
Sample analysis methodology
All samples arrive at Sovereign's Malawi laboratory where they are sorted and
checked in. Graphite samples are identified and prepared for export, while the
equivalent rutile samples begin the sample workflow prior to export to Perth,
Western Australia. Audit of the laboratory premises, staff, sample analysis
and QA procedures were highly commended during the audit by Placer Consulting
in 2022.
Rutile
Samples are dried in a commercial oven for 1 hour at 105℃ and a dry raw
samples mass is recorded.
Samples are soaked in 1% TSPP solution overnight and then lightly agitated
prior to wet screening.
Wet screening occurs at 5mm, 600µm and 45µm to remove oversize and slimes
(-45µm) material. Each +45µm retained fraction is dried, logged and weighed.
The resulting SAND fraction +45µm -600mm is oven dried for 1 hour at 105℃
after which its dry weight is recorded.
The SAND fraction is then passed over a Gemeni wet shaking table at a constant
feed rate to generate a heavy mineral concentrate (HMC).
Heavy Liquid Separation (HLS) at Diamantina Laboratories in Perth was
initially trialled as a preferred separation method but was quickly superseded
(supported by QA analysis) by wet-table separation on account of substantial
near-density gangue material reporting to the HM sink for the HLS technique.
The HLS analyses represent 11% of the MRE assay dataset.
The wet-tabled HMC is then subject to magnetic separation @ 16,800G (2.9Amps)
producing a magnetic (M) and non-magnetic (NM) fraction. The separation is
performed using a Mineral Technologies Reading Pilot IRM (Induced Roll
Magnetic) purchased by Sovereign and located at the Company's laboratory in
Malawi. Pre-2022 this step was completed by Allied Mineral Laboratories Perth
(AML) in Perth, Western Australia.
The Malawi onsite laboratory sample preparation methods are considered
quantitative to the point where the NM concentrate (containing the rutile) is
produced.
The routine NM fractions are air freighted to ALS Metallurgy Perth for
quantitative XRF analysis. The samples receive the XRF_MS sample suite which
includes TiO(2) and common impurities. Check QAQC samples are sent to Intertek
Perth where they receive and equivalent standard mineral sands suite
FB1/XRF72.
Several generations of QEMSCAN analysis of the NM and MAG fractions performed
at ALS Metallurgy show dominantly clean and liberated rutile grains and
confirm rutile is the only titanium species in the NM fraction.
Recovered rutile is defined and reported here as: TiO(2) recovered in the SAND
+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.
Raw rutile results are also available.
Graphite
Once secured samples arrive at Intertek Johannesburg, South Africa, a split of
each raw sample is dissolved in dilute hydrochloric acid to liberate carbonate
carbon. The solution is filtered using a filter paper and the collected
residue is then dried to 425°C in a muffle oven to drive off organic carbon.
The dried sample is transported to Perth, Australia where it is then combusted
in an Eltra CS-800 induction furnace infra-red CS analyser to yield total
graphitic or elemental carbon (TGC).
QAQC
Accuracy monitoring is achieved through submission of certified reference
materials (CRM's). Sovereign uses internal and externally sourced wet
screening reference material inserted into samples batches at a rate of 1 in
20. The externally sourced, certified standard reference material for HM and
Slimes assessment is provided by Placer Consulting.
ALS and Intertek both use internal CRMs and duplicates on XRF and TGC
analyses. Sovereign also inserts its customised CRMs into all 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 2SD
from the mean) initiates investigation and may trigger re-processing of the
affected batch.
Precision and accuracy assessment has been completed on all alternate workflow
methodologies and a consistent method has been decided, in consultation with
Placer Resource Geologists. Examination of the QA/QC sample data indicates
satisfactory performance of field sampling protocols and assay laboratories
providing acceptable levels of precision and accuracy. Rutile determination by
alternate methods showed no observable bias.
Acceptable levels of accuracy and precision are displayed in geostatistical
analyses to support the resource classifications as applied to the estimate.
Classification
A nominal 200m-by-200m-by-2m drill sample array is deemed to adequately define
the Indicated mineralisation for the MRE, with a predictable grade
distribution and consistent host stratigraphy.
The PT twin and density sample holes are selectively placed throughout the
deposit to ensure a broad geographical and lithological spread of material
types for the analysis.
Renewed kriging neighbourhood analysis, completed using Supervisor software,
has confirmed the drill and sample spacing applied to the MRE update.
Variography has also confirmed the optimal search distances and orientations.
Based on these results and the experience of the Competent Person, the data
spacing, and distribution is considered adequate for the definition of
mineralisation classification and adequate for the MRE.
The HA and PT drilling methods applied to define the Kasiya Deposit (HA and
PT) are not able to retrieve reliable samples once the bit is 3 to 5m below
the water table and each terminate at an average depth of about 9.5m in the
resource dataset. Application of AC drilling has confirmed the continuation of
material rutile and graphite grade to depth and defined the basement horizon
at the saprock interface. Elsewhere, mineralisation remains open at depth and
substantial additional tonnages could be anticipated.
High grade sample results are constrained adequately by the search parameters
and interpolation method applied to the MRE. High-grade results are confirmed
by an audit analysis program.
Regolith stratigraphy is uniform and rutile and graphite mineralisation is
predictable across the Kasiya Deposit. Open-hole drilling and infill PT/AC
drilling techniques have been expertly applied and data collection procedures,
density assessments, QA protocols and interpretations conform to industry best
practice.
Assay, mineralogical determinations and metallurgical test work conform to
industry best practice and demonstrate a rigorous assessment of product and
procedure. These and the development of a conventional processing flowsheet
and marketability studies support the classification of the Kasiya Resource.
Estimation Methodology
Datamine Studio RM and Supervisor software are used for the data analysis,
variography, geological interpretation and resource estimation. Key fields are
interpolated into the volume model using a range of parameters and
interpolation methods to establish best fit for the deposit. For the Kasiya
MRE update, the Inverse Distance weighting (power 4) method was seen to
perform a superior interpolation of informing data and replication of the
high-value and thin, surface (SOIL/FERP) grade distribution. This was assisted
by the application of a Dynamic Anisotropy search, informed by the results of
variography. Suitable limitations on the number of samples and the impact of
those samples, was maintained.
Interpolation was constrained by hard boundary domains that result from the
geological interpretation. The construction of an upper soil ("SOIL" 0-1m) and
ferruginous pedolith ("FERP", 1-4m) domain referred to as the Soil/Ferp domain
reduces the dilution of resource grade from the underlying, less mineralised
mottled ("MOTT", 4-7m), pallid saprolite ("PSAP", 7-9m) and saprolite ("SAPL",
9-25m) or collectively the Mott/Sapl domain.
A Topsoil horizon has been defined at 0.3m thickness throughout the Indicated
Resource area to support anticipated ore reserve calculation and mining
studies. Topsoil is disclosed separately but remains in the MRE in recognition
of advanced investigations by SVM on synthetic topsoil generation for
rehabilitation.
The average parent cell size used is equivalent to the average drill hole
spacing within the Indicated Resource (200m*200m). Cell size in the Z-axis
was established to cater for the composite sample spacing and definition of
the Topsoil domain. This resulted in a parent cell size of 200m x 200m x 3m
for the volume model with 5 sub-cell splits available in the X and Y axes and
10 in the Z axis to smooth topographical and lithological transitions.
Both parent and sub-cell interpolations were completed and reconciled
spatially against each other. The parent cell and sub cell interpolations
produced near identical global tonnages and grades. The sub-cell interpolation
was seen to provide a better graduation of informing drill hole data through
intermediate model cells and to conform more sympathetically to the geological
interpretation. Whilst both are available, in this instance and as a
geological resource, the sub-cell interpolation was applied to the MRE.
The resource model has been constrained by the drill array plus one drill
interval. This applies a buffer of 200*200*2.7m in X, Y and Z axes. Only those
areas drilled by AC allow the accurate generation of a basement horizon,
elsewhere the base of the MRE hovers within the saprolite and reflects only
the depth of effective drilling by HA and PT methods where they terminate due
to excess water ingress. Substantial additional mineralisation is anticipated
below this depth in these areas, as demonstrated by the limited AC drilling
to date.
Extreme grade values were not identified by statistical analysis, nor were
they anticipated in this style of deposit. No top cut is applied to rutile or
graphite in the resource estimation.
Validation of each interpolation method and of the reported grade
interpolation was done visually in Datamine by loading model and drill hole
files and annotating, colouring and using filtering to check for the
appropriateness of drill data interpolation.
Statistical distributions were prepared for model zones from both the drill
hole file and the model to assess how well the interpolation represents
informing data. Model-drilling reconciliation was also performed by generating
swath plots to measure drilling support against interpolation performance in
all three primary orientations. Where data population is adequate, the
resource model has effectively averaged informing drill hole data and is
considered suitable to support the resource classifications as applied to the
estimate.
Density is determined on a 10cm segment of complete core through a simple
cylinder volume calculation on both wet in-situ weight and an oven dry weight.
The in-situ state of the core is carefully preserved prior to selection. After
the segment is chosen, it undergoes measurement and weighing. Subsequently, it
is subjected to oven-drying for a specific duration, and its weight is once
again determined. This method is applied to samples that represent different
weathering domains found in various drill holes throughout the project site.
This methodology delivers an accurate density result that is interpolated in
the MRE for each host material type.
Density data are applied to the resource estimate by weathering domain. Minor
adjustments were made for the MRE update on the receipt of additional density
data. Averaged density results of 1.39 t/m(3) for the soil (SOIL) domain, 1.58
t/m(3) for the ferruginous pedolith (FERP) domain, 1.66 t/m(3) for the mottled
(MOTT) domain, 1.69 t/m(3) for the pallid saprolite (PSAP) domain, 1.97 t/m(3)
for the saprolite (SAPL) domain and 1.95 t/m(3) for the laterite (LAT) domain
were calculated. Density data are interpolated into the resource estimate by
the nearest neighbour method.
Cut-off Grades
All results reported are of a length-weighted average of in-situ grades. The
resource is reported at a range of bottom cut-off grades in recognition that
optimisation and financial assessment is in process.
A nominal bottom cut of 0.7% rutile is offered, based on preliminary
assessment of resource product value and anticipated cost of operations. As a
by-product of a rutile operation, graphite is not considered for top or bottom
cuts.
Mining and Metallurgy Factors
Hydro-mining has been determined as the optimal method of mining for the
Kasiya Rutile deposit. The material is loose, soft, fine and friable with no
cemented sand or dense clay layers rendering it amenable to hydro-mining. It
is considered that the strip ratio would be zero or near zero.
Dilution is considered to be minimal as mineralisation commonly occurs from
surface and mineralisation is generally gradational with few sharp boundaries.
Recovery parameters have not been factored into the estimate. However, the
valuable minerals are readily separable due to their SG differential and are
expected to have a high recovery through the proposed conventional wet
concentration plant, as demonstrated by metallurgical test work.
Sovereign has announced three sets of metallurgical results to the market (24
June 2019, 9 September 2020 and 7 December 2021), relating to the Company's
ability to produce a high-grade rutile product with a high recovery via simple
conventional processing methods. Sovereign engaged AML to conduct the
metallurgical test work and develop a flowsheet for plant design
considerations. The work has shown a premium quality rutile product ranging
from 95.0% to 97.2% TiO(2) with low impurities could be produced with
recoveries of about 94% to 100% and with favourable product sizing at d50 of
118µm (Kasiya North) and 128µm (Kasiya South).
Gravity separation was effective at concentrating graphite to a "light mineral
pre-concentrate" due to its low specific gravity (~2.2 t/m³) providing an
upgrade of graphite grade to the flotation circuit to about three times the
run of mine grade.
A program at SGS Lakefield in Canada was undertaken in order to confirm that
the graphite gravity pre-concentrate can be upgraded into a coarse flake
graphite by-product via a conventional graphite flotation flowsheet.
The test-work was extremely successful, and a very coarse-flake graphite
concentrate at 96.3% TGC was produced. Greater than 60% of the graphite
concentrate is in the large to super-jumbo fractions, suggesting a high
combined basket value. The overall graphite recovery from the raw sample to
product was 62%.
Further graphite flotation testwork to define the PFS flowsheet has been
undertaken at ALS in Perth, Western Australia. Test work results are being
finalised, however as with all other Kasiya metallurgical test work to date,
minimal variation is expected from previous results.
MRE TABLES
Table 5: Indicated MRE at various rutile cut-offs
Cut-off (rutile) Resource Rutile Grade Contained Rutile Graphite Grade (%) Contained Graphite
(Mt)
(%)
(Mt)
(Mt)
0.40% 1,840 0.86 15.8 1.48 27.3
0.50% 1,673 0.90 15.0 1.51 25.2
0.60% 1,463 0.95 13.9 1.53 22.3
0.70% 1,200 1.01 12.2 1.50 18.0
0.80% 906 1.10 10.0 1.37 12.4
0.90% 645 1.20 7.7 1.15 7.4
1.00% 452 1.31 5.9 0.88 4.0
1.10% 327 1.41 4.6 0.65 2.1
1.20% 246 1.50 3.7 0.52 1.3
1.30% 185 1.58 2.9 0.47 0.9
1.40% 139 1.66 2.3 0.44 0.6
Table 6: Inferred MRE at various rutile cut-offs
Cut-off (rutile) Resource Rutile Grade Contained Rutile Graphite Grade (%) Contained Graphite
(Mt)
(%)
(Mt)
(Mt)
0.40% 1,375 0.72 9.9 1.06 14.6
0.50% 1,106 0.79 8.7 1.10 12.2
0.60% 841 0.86 7.3 1.11 9.4
0.70% 609 0.94 5.7 1.06 6.5
0.80% 429 1.03 4.4 0.98 4.2
0.90% 290 1.11 3.2 0.86 2.5
1.00% 190 1.20 2.3 0.74 1.4
1.10% 122 1.29 1.6 0.64 0.8
1.20% 78 1.37 1.1 0.56 0.4
1.30% 46 1.45 0.7 0.56 0.3
1.40% 24 1.54 0.4 0.55 0.1
Table 7: Inferred & Indicated MRE at various rutile cut-offs
Cut-off (rutile) Resource Rutile Grade Contained Rutile Graphite Grade (%) Contained Graphite
(Mt)
(%)
(Mt)
(Mt)
0.40% 3,215 0.80 25.7 1.30 41.9
0.50% 2,779 0.85 23.8 1.35 37.4
0.60% 2,304 0.92 21.1 1.37 31.7
0.70% 1,809 0.99 17.9 1.35 24.4
0.80% 1,335 1.08 14.4 1.25 16.6
0.90% 934 1.17 11.0 1.06 9.9
1.00% 643 1.28 8.2 0.84 5.4
1.10% 449 1.38 6.2 0.65 2.9
1.20% 324 1.47 4.7 0.53 1.7
1.30% 230 1.56 3.6 0.48 1.1
1.40% 163 1.64 2.7 0.45 0.7
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.
Competent Persons Statement
The information in this announcement that relates to Mineral Resources 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. Mr Stockwell has sufficient experience,
which is relevant to the style of mineralisation and type of deposit under
consideration, and to the activity he is undertaking, 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'. Mr
Stockwell consents to the inclusion of the matters based on his information in
the form and context in which it appears.
The information in this announcement that relates to Exploration Results is
based on, and fairly represents, 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, unlisted options and performance
rights in Sovereign. 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'. 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 Metallurgical test-work
Results - Rutile & Graphite is extracted from the announcement dated 24
June 2019, 9 September 2020 and 7 December 2021. The 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 announcement; b) all material assumptions included in the
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 report have not been materially changed from the
announcement.
Qualified Person
Information disclosed in this announcement has been reviewed by Dr Julian
Stephens (B.Sc (Hons), PhD, MAIG), Managing Director, a Qualified Person for
the purposes of the AIM Rules for Companies.
To view the announcement in full including all illustrations and figures,
please refer to the full announcement at
http://sovereignmetals.com.au/announcements/
(http://sovereignmetals.com.au/announcements/) .
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.
APPENDIX 1 - 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 Hand Auger (HA) samples are composited based on regolith boundaries and sample
specialised industry standard measurement tools appropriate to the minerals chemistry generated by hand-held XRF (pXRF). Each 1m of sample is dried and
under investigation, such as down hole gamma sondes, or handheld XRF riffle-split to generate a total sample weight of 3kg for analysis, generally
instruments, etc). These examples should not be taken as limiting the broad at 2 - 5m intervals. This primary sample is then split again to create a 3kg
meaning of sampling. composite to provide a 1.5kg sample for both rutile and graphite analyses.
Infill Push-Tube (PT) core drilling is sampled routinely at 2m intervals by
compositing dried and riffle-split half core. A consistent, 1.5kg sample is
generated for both the rutile and graphite determination.
Air-Core (AC) samples are composited based on expertly logged regolith
boundaries. Each 1m of sample is dried and riffle-split to generate a total
sample weight of 3kg for analysis, generally at 2m 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 and support the resource classifications
as applied to the Mineral Resource Estimate (MRE). 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, lithology/regolith information and TiO(2)%
Report. In cases where 'industry standard' work has been done this would be obtained from pXRF are used to assist in determining compositing intervals.
relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m Care is taken to ensure that only samples with similar geological
samples from which 3 kg was pulverised to produce a 30 g charge for fire characteristics are composited together.
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 1,357 HA holes for 12,643m have been drilled to date at the Kasiya
blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or Rutile Deposit to obtain samples for quantitative determination of recoverable
standard tube, depth of diamond tails, face‐sampling bit or other type, rutile and Total Graphitic Carbon (TGC).
whether core is oriented and if so, by what method, etc).
A PT infill drilling programme, designed to support this resource estimate
upgrade, was completed. An additional 234 core holes for 2,368.5m were
included in the updated MRE. The total PT holes contributing to the updated
MRE are 488 for 4,669m.
A total of 182 AC holes for 4,404m were completed in six locations across the
Kasiya deposit deemed likely to fall into mining pit areas. The results are
included in this updated MRE.
Placer has reviewed SOPs for HA, PT and AC drilling and found them to be fit
for purpose and support the resource classifications as applied to the MRE.
Sample handling and preparation techniques are consistent for PT and coring
samples.
Two similar designs of HA drilling equipment are employed. HA drilling with
75mm diameter enclosed spiral bits (SOS) with 1m long steel rods and with 62mm
diameter open spiral bits (SP) with 1m long steel rods. Drilling is oriented
vertically by eye.
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.
Core-drilling is undertaken using a drop hammer, Dando Terrier MK1. The
drilling generated 1m runs of 83mm PQ core in the first 2m and then
transitioned to 72mm core for the remainder of the hole. Core drilling is
oriented vertically by spirit level.
AC drilling was completed by Thompson Drilling utilising a Smith Capital 10R3H
compact track-mounted drill. The drilling is vertical and generates 1m samples
with care taken in the top metres to ensure good recoveries of the high-grade
surface material. Each 1m sample bag is immediately transported back to
Sovereign's field laydown yard where they await processing.
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.
HA and PT drilling is ceased when recoveries become poor once the water table
has been reached. Water table and recovery information is included in
lithological logs.
Core drilling samples are actively assessed by the driller and geologist
onsite for recoveries and contamination.
AC drilling recovery in the top few metres are moderate to good. Extra care is
taken to ensure sample is recovered best as possible in these metres.
Recoveries are recorded on the rig at the time of drilling by the geologist.
Drilling is ceased when recoveries become poor or once Saprock or refusal has
been reached.
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.
For PT drilling, core is extruded into core trays; slough is actively removed
by the driller at the drilling rig and core recovery and quality is recorded
by the geologist.
AC samples are recovered in large plastic bags. The bags are clearly labelled
and delivered back to sovereign's laydown yard 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 1m HA intervals are geologically logged, recording relevant
data to a set log-chief template using company codes. A small representative
sample is collected for each 1m interval and placed in appropriately labelled
chip trays for future reference.
All individual 1m PT core intervals are geologically logged, recording
relevant data to a set log-chief template using company codes.
Half core remains in the trays and is securely stored in the company
warehouse.
All individual AC 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 PT core is photographed dry, after logging and sampling is completed.
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. Due to the soft nature of the material, core samples are carefully cut in half
by hand tools.
If non-core, whether riffled, tube sampled, rotary split, etc. and whether HA, PT and AC hole samples are dried, riffle split and composited. Samples are
sampled wet or dry. 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 and support the resource
classifications as stated.
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 heavy mineral concentrate (HMC) 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.
Heavy liquid separation (HLS) of the HM is no longer required and a HM result
is not reported in the updated MRE. The HMC prepared via wet-table, gravity
separation at the Lilongwe Laboratory provides an ideal sample for subsequent
magnetic separation and XRF.
All 8,855 samples (not incl. QA) included in the MRE update 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℃
7,904 of the 8,855 samples received the following workflow undertaken on-site
in Malawi
· Pass +45µm -600mm (sand fraction) across wet table to generate a
HMC.
· Dry HMC in oven for 30 minutes at 105℃
Bag HMC fraction and send to Perth, Australia for quantitative chemical and
mineralogical determination.
951 of the 8,855 samples received the following workflow undertaken at Perth
based Laboratories (superseded).
· Split ~150g of sand fraction for HLS using Tetrabromoethane (TBE,
SG 2.96g/cc) as the liquid heavy media to generate HMC. Work undertaken at
Diamantina Laboratories.
4,738 of the 8,855 samples received magnetic separation undertaken at Allied
Mineral Laboratories in Perth, Western Australia.
· Magnetic separation of the HMC by Carpco magnet @ 16,800G
(2.9Amps) into a magnetic (M) and non-magnetic (NM) fraction.
4,117 of the 8,855 samples received magnetic separation undertaken on-site in
Malawi.
· Magnetic separation of the HMC by Mineral Technologies Reading
Pilot IRM (Induced Roll Magnetic) @ 16,800G (2.9Amps) into a magnetic (M) and
non-magnetic (NM) fraction.
All 8,855 routine samples received the following chemical analysis in Perth,
Western Australia.
· The routine NM fractions are sent to ALS Metallurgy Perth for
quantitative XRF analysis. Samples receive XRF_MS and are analysed for:
TiO(2,) Al(2)O(3,) CaO, Cr(2)O(3), Fe(2)O(3), K(2)O, MgO, MnO, SiO(2),
V(2)O(5), ZrO(2,) HfO(2.)
Graphite
8,078 graphite samples are processed at Intertek-Genalysis Johannesburg and
Perth 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 TGC.
An Eltra CS-800 induction furnace infra-red CS analyser is then used to
determine the remaining carbon which is reported as TGC as a percentage.
For geophysical tools, spectrometers, handheld XRF instruments, etc., the Acceptable levels of accuracy and precision have been established. No pXRF
parameters used in determining the analysis including instrument make and 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.
An external laboratory raw sample duplicate is sent to laboratories in Perth,
Australia as an external check of the full workflow. These duplicates are
produced at a rate of 1 in 20.
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.
Three Rutile CRMs are used by Sovereign and range from 35% - 95% TiO(2).
Three Graphite CRMs are used by Sovereign and range from 3% - 25% TGC.
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 to support the resource classifications as applied to the estimate.
Verification of sampling & assaying The verification of significant intersections by either independent or Results are reviewed in cross-section using Datamine Studio RM software and
alternative company personnel. any 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 drilled across a geographically dispersed area to determine
short-range geological and assay field variability for the resource
estimation. Twin drilling is applied at a rate of 1 in 20 routine holes.
Twin paired data in all drill methods represent ~4% of the database included
in the updated MRE. Substantial comparative data between different drilling
types and test pit results are also available but not referenced in the MRE.
Documentation of primary data, data entry procedures, data verification, data All data are collected electronically using coded templates and logging
storage (physical and electronic) protocols. software. This data is then imported to a cloud hosted Database and validated
automatically and manually.
A transition to electronic field and laboratory data capture has been
achieved.
Discuss any adjustment to assay data. Assay data adjustments are made to convert laboratory collected weights to
assay field percentages and to account for moisture.
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 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 of any holes 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. The digital terrane model (DTM) was generated by wireframing a 20m-by-20m
lidar drone survey point array, commissioned by SVM in March 2022. Major
cultural features were removed from the survey points file prior to generating
the topographical wireframe for resource model construction. The ultra-high
resolution 3D drone aerial survey was executed utilising a RTK GPS equipped
Zenith aircraft with accuracy of <10cm ground sampling distance (GSD).
Post-processing includes the removal of cultural features that do not reflect
material movements (pits, mounds, etc)
The DTM is suitable for the classification of the resources as stated.
Data spacing & distribution Data spacing for reporting of Exploration Results. The HA collars are spaced at nominally 400m along the 400m spaced drill-lines
with the PT holes similarly spaced at an offset, infill grid. The resultant
200m-by-200m drill spacing (to the strike orientation of the deposit) is
deemed to adequately define the mineralisation in the MRE.
The AC collars are spaced on a 200m x 200m grid which is deemed to adequately
define the mineralisation.
The PT twin and density sample holes are selectively placed throughout the
deposit to ensure a broad geographical and lithological spread for the
analysis.
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 the Mineral
and Ore Reserve estimation procedure(s) and classifications applied. Resource estimation.
Kriging neighbourhood analysis completed using Supervisor software informs the
optimal drill and sample spacing for the MRE. Based on these results and the
experience of the Competent Person, the data spacing and distribution is
considered adequate for the definition of mineralisation and adequate for
mineral resource estimation.
Whether sample compositing has been applied. Individual 1m auger intervals have been composited, based on lithology, at 2 -
5m sample intervals for the 1,357 HA holes. 488 PT core holes have been
sampled at a regular 2m interval to provide greater control on mineralisation
for the Indicated Resource.
Individual 1m intervals have been composited, based on lithology, at a max 2m
sample interval for the 182 AC holes.
The DH Compositing tool was utilised in Supervisor software to define the
optimal sample compositing length. A 2m interval is applied to the MRE.
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. 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 The CP Richard Stockwell 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.
Perth Laboratory visits have been completed by Mr Stockwell. Field and
in-country lab visits have been completed by Mr Stockwell in May 2022. A high
standard of operation, procedure and personnel was observed and reported.
Sovereign Metals Managing Director Julian Stephens and Exploration Manager
Samuel Moyle have been onsite in Malawi numerous times since the discovery of
the Kasiya Deposit.
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 Licence
material issues with third parties such as joint ventures, partnerships, Applications (APLs) under the Mines and Minerals Act 2019, held in the
overriding royalties, native title interests, historical sites, wilderness or Company's wholly-owned, Malawi-registered subsidiaries: EL0561, EL0492,
national park and environment settings. EL0609, EL0582, EL0545, EL0528, EL0657 and APL0404.
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, or
have been, 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
elluvial 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 intercepts relating to the Kasiya Deposit have been included in public
results including a tabulation of the following information for all Material releases during each phase of exploration and in this report. Releases
drill holes: easting and northings of the drill hole collar; elevation or RL included all collar and composite data and these can be viewed on the Company
(Reduced Level-elevation above sea level in metres of the drill hole collar); website.
dip and azimuth of the hole; down hole length and interception depth; and hole
length There are no further drill hole results that are considered material to the
understanding of the exploration results. Identification of the broad zone of
mineralisation is made via multiple intersections of drill holes and to list
them all would not give the reader any further clarification of the
distribution of mineralisation throughout the deposit.
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 resource is reported at a range of bottom cut-off grades in recognition that
grades are usually Material and should be stated. optimisation and financial assessment is outstanding.
A nominal bottom cut of 0.7% rutile is offered, based on preliminary
assessment of resource product value and anticipated cost of operations.
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 Rutile Equivalent (RutEq)
clearly stated.
Formula: Rutile Grade x Recovery (97%) x Rutile Price (US$1,346/t) + Graphite
Grade x Recovery (62%) x Graphite Price (US$1,085/t) / Rutile Price
(US$1,346/t).
Commodity Prices:
Rutile price: US$1,308/t
Graphite price: US$1,085/t
Metallurgical Recovery:
Rutile Recovery: 98%
Graphite Recovery: 62%
All assumptions taken from the Company's 2022 Expanded Scoping Study released
16 June 2022.
The Modifying Factors included in the JORC Code were assessed as part of the
Scoping Study, including mining, processing, infrastructure, economic,
marketing, legal, environmental, social and government factors. The Company
has received advice from appropriate experts when assessing each Modifying
Factor.
Following an assessment of the results of the Scoping Study, the Company has
formed the view that the next stage of feasibility studies is justified for
Kasiya. Feasibility Studies will provide the Company with far more
comprehensive assessment of a range of options for the technical and economic
viability of Kasiya which by international standards should be sufficient
detail for project development financers to base an investment decision.
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 at Kasiya North and N-S at Kasiya
South. It lies in a laterally extensive superficial blanket with high-grade
zones reflecting the broad bedrock strike orientation of ~045° in the North
of Kasiya and 360° in the South of Kasiya.
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 for the resource estimate.
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. Mineralisation remains open at depth and in areas coincident with
known'. high-rutile grade lithologies in basement rocks, is increasing with depth.
Graphite results are approximate true width as defined by the sample interval
and typically increase with depth.
Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts Refer to figures in the full announcement and in previous releases. These are
should be included for any significant discovery being reported. These should accessible on the Company's webpage.
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 and in previous releases. These are
representative reporting of both low and high-grades and/or widths should be accessible on the Company's webpage.
practiced to avoid misleading reporting of exploration results.
Other substantive exploration data Other exploration data, if meaningful and material, should be reported Limited lateritic duricrust has been variably developed at Kasiya, as is
including (but not limited to: geological observations; geophysical survey customary in tropical highland areas subjected to seasonal wet/dry cycles.
results; geochemical survey results; bulk samples - size and method of Lithological logs record drilling refusal in just under 2% of the HA/PT drill
treatment; metallurgical test results; bulk density, groundwater, geotechnical database, No drilling refusal was recorded above the saprock interface by AC
and rock characteristics; potential deleterious or contaminating substances. drilling.
Slimes (-45 um ) averages 46wt% in the Indicated Resource at a 0.7% rutile
bottom cut. Separation test work conducted at AML demonstrates the success in
applying a contemporary mineral sands flowsheet in treating this material and
achieving excellent rutile recovery.
Sample quality (representivity) is established by geostatistical analysis of
comparable sample intervals.
Several generations of QEMSCAN analysis of the NM performed at ALS Metallurgy
fraction shows dominantly clean and liberated rutile grains and confirms
rutile is the only titanium species in the NM fraction.
Further work The nature and scale of planned further work (e.g. test for lateral extensions Further AC drilling will allow the definition of a more extensive
or depth extensions or large-scale step-out drilling). saprock-interface basement and should continue to deliver additional resources
below the HA/PT-drilled regions.
A greater understanding of the lithological character and extent of those
basement units, where high-grade (>1%) rutile persists at the saprock
interface, may assist in focussing further resource definition and exploration
targeting.
Further metallurgical assessment is suggested to characterise rutile quality
and establish whether any chemical variability is inherent across the deposit.
Trialling drill definition at a 100m spacing is suggested for Measured
Resource assessment.
Diagrams clearly highlighting the areas of possible extensions, including the Refer to diagrams in the body of this report and in previous releases. These
main geological interpretations and future drilling areas, provided this are accessible on the Company's webpage.
information is not commercially sensitive.
SECTION 3 - ESTIMATION AND REPORTING OF MINERAL RESOURCES
Criteria JORC Code explanation Commentary
Database integrity Measures taken to ensure that data has not been corrupted by, for example, Data are manually entered into database tables according to SOP's and
transcription or keying errors, between its initial collection and its use for conforming to company field names and classifications. These are then migrated
Mineral Resource estimation purposes. to Datashed5 cloud-hosted database managed internally by the Company with
validation and quarantine capability. Relevant tables from the database are
exported to csv format and forwarded to Placer for independent review.
Data validation procedures used. Validation of the primary data include checks for overlapping intervals,
missing survey data, missing assay data, missing lithological data, missing
and mis-matched (to Lithology) collars.
Statistical, out-of-range, distribution, error and missing data validation is
completed by Placer on data sets before being compiled into a de-surveyed
drill hole file and interrogated in 3D using Datamine Studio RM software.
All questions relating to the input data are forwarded to the client for
review and resolution prior to resource estimation.
Site visits Comment on any site visits undertaken by the Competent Person and the outcome Perth Laboratory visits have been completed by the Competent Person, Mr
of those visits. Richard Stockwell. Field and in-country lab visits were complete over a 1-week
period in May 2022. A high standard of operation, procedure and personnel was
observed and reported.
If no site visits have been undertaken indicate why this is the case. From the discovery of Kasiya in late 2019 through to early 2022, the
Australian and Western Australian Governments restricted unnecessary
international travel due to the global Covid19 pandemic.
During this time the company endeavoured to increase its site photography and
drone footage library to satisfy the competent person that best practice
procedures are being employed in country.
Geological interpretation Confidence in (or conversely, the uncertainty of) the geological There is a high degree of repeatability and uniformity in the geological
interpretation of the mineral deposit. character of the Kasiya Deposit demonstrated by lithological logging of AC, PT
core and HA samples. Satellite imagery and airborne geophysical data provided
guidance for interpreting the strike continuity of the deposit.
Drill hole intercept logging and assay results (AC, PT and HA), stratigraphic
interpretations from drill core and geological logs of drill data have formed
the basis for the geological interpretation. The drilling exclusively targeted
the SOIL, FERP, MOTT and SAPL weathering horizons, with no sampling of the
SAPR and below the upper level of the fresh rock (FRESH) domain.
Nature of the data used and of any assumptions made. No assumptions were made.
The effect, if any, of alternative interpretations on Mineral Resource No alternative interpretations on mineral resource estimation are offered.
estimation.
The use of geology in guiding and controlling Mineral Resource estimation. The mineral resource is constrained by the drill array plus one interval in
each of the X, Y and Z axes.
The topographical DTM constrains the vertical extent of the resource. Rutile,
enriched at surface by deflation and elluvial processes, is constrained
internally by a hard boundary at the base of the SOIL and FERP horizons that
overly the (generally less-mineralised) MOTT and SAPL horizons. In this way,
continuity of rutile, observed in surface drilling results, is honoured
between drill lines rather than being diluted by averaging with underlying,
lower-grade material.
The base to mineralisation is arbitrarily designated at effective drill depth
plus one (average sample width) interval in the Z orientation in HA/PT
drilling. The effective drill depth is where HA drilling intersects the static
water table, rather than being a true depth to un-mineralised basement. Deeper
drilling using the AC method has shown rutile enrichment persists to bedrock
and a material resource increase is anticipated upon application of this
method to a broader area.
A base to mineralisation of BOH plus 2.7m (-2.7 RL) is retained for this
estimate, where drilled by HA/PT methods. This basement horizon is interpreted
on 200m north sections and accounts for artifacts of ineffective drilling
terminating in soil or ferp horizons. It is applied consistently to both
Indicated and Inferred resource areas.
AC drilling has accurately defined depth to basement at the saprock interface,
which has been modelled where intersected in the updated MRE.
The factors affecting continuity both of grade and geology. Rutile grade is generally concentrated in surface regolith horizons. Deposit
stratigraphy and weathering is consistent along and across strike. Rutile
grade is oriented at 45 degrees at Kasiya North and 360 degrees at Kasiya
South, which mimics the underlying basement source rocks and residual
topography. Rutile varies across strike as a result of the layering of
mineralised and non-mineralised basement rocks.
Dimensions The extent and variability of the Mineral Resource expressed as length (along The Kasiya mineralised footprint strikes NE - SW and currently occupies an
strike or otherwise), plan width, and depth below surface to the upper and area of about 201km(2).
lower limits of the Mineral Resource.
Depth to basement is described previously.
Estimation and modelling techniques The nature and appropriateness of the estimation technique(s) applied and key Datamine Studio RM and Supervisor software are used for the data analysis,
assumptions, including treatment of extreme grade values, domaining, variography, geological interpretation and resource estimation. Key fields are
interpolation parameters and maximum distance of extrapolation from data interpolated into the volume model using a range of parameters and
points. If a computer assisted estimation method was chosen include a interpolation methods to establish best fit for the deposit. For the Kasiya
description of computer software and parameters used. MRE update, the Inverse Distance weighting (power 4) method was seen to
perform a superior interpolation of informing data and replication of the
high-value and thin, surface (SOIL/FERP) grade distribution. This was assisted
by the (customary) application of a Dynamic Anisotropy search, informed by the
results of variography, Suitable limitations on the number of samples and the
impact of those samples, was maintained.
Extreme grade values were not identified by statistical analysis, nor were
they anticipated in this style of deposit. No top cut is applied to the
resource estimation.
Interpolation was constrained by hard boundaries (domains) that result from
the geological interpretation.
The availability of check estimates, previous estimates and/or mine production This is the fourth MRE for the Kasiya Deposit.
records and whether the Mineral Resource estimate takes appropriate account of
such data.
Pilot plant-scale test work has been completed and results support the view of
the Competent Person that an economic deposit of readily separable,
high-quality rutile is anticipated from the Kasiya Deposit. The recovery of a
coarse-flake graphite by-product was achieved by the test work.
The assumptions made regarding recovery of by-products. A graphite by-product was modelled as recoverable TGC.
Estimation of deleterious elements or other non-grade variables of economic No significant deleterious elements are identified. A selection of assay,
significance (e.g. sulphur for acid mine drainage characterisation). magnetic separation and XRF results are modelled and are reported.
In the case of block model interpolation, the block size in relation to the The average parent cell size used is equivalent to the average drill hole
average sample spacing and the search employed. spacing within the Indicated Resource (200m*200m). Cell size in the Z-axis
is established to cater for the composite sample spacing and definition of the
Topsoil domain. This resulted in a parent cell size of 200m x 200m x 3m for
the volume model with 5 sub-cell splits available in the X and Y axes and 10
in the Z axis to smooth topographical and lithological transitions. Both
parent cell and sub-cell interpolations were completed and reported. The
sub-cell interpolation was again applied to this MRE as it better reflected
the geological interpretation and a reasonable graduation of informing data
through intermediate cell areas.
A Topsoil horizon has been defined at 0.3m thickness throughout the Indicated
Resource area to support anticipated ore reserve calculation and mining
studies. Topsoil is disclosed separately but remains in the MRE in recognition
of advanced investigations by SVM on synthetic topsoil generation for
rehabilitation.
Any assumptions behind modelling of selective mining units. No assumptions were made regarding the modelling of selective mining units.
The resource is reported at an Indicated level of confidence and is suitable
for optimisation and the calculation of a Probable Reserve.
Any assumptions about correlation between variables. No assumptions were made regarding the correlation between variables.
Description of how the geological interpretation was used to control the Interpolation was constrained by hard boundaries (domains) that result from
resource estimates. the geological interpretation.
Discussion of basis for using or not using grade cutting or capping. Extreme grade values were not identified by statistical analysis, nor were
they anticipated in this style of deposit. No top cut is applied to the
resource estimation.
The process of validation, the checking process used, the comparison of model Validation of grade interpolations was done visually In Datamine by loading
data to drill hole data, and use of reconciliation data if available. model and drill hole files and annotating, colouring and using filtering to
check for the appropriateness of interpolations.
Statistical distributions were prepared for model zones from both drill holes
and the model to compare the effectiveness of the interpolation. Distributions
of section line averages (swath plots) for drill holes and models were also
prepared for each zone and orientation for comparison purposes.
The resource model has effectively averaged informing drill hole data and is
considered suitable to support the resource classifications as applied to the
estimate.
Moisture Whether the tonnages are estimated on a dry basis or with natural moisture, Tonnages are estimated on a dry basis. No moisture content is factored.
and the method of determination of the moisture content.
Cut-off parameters The basis of the adopted cut-off grade(s) or quality parameters applied. The resource is reported at a range of bottom cut-off grades in recognition
that optimisation and financial assessment is outstanding.
A nominal bottom cut of 0.7% rutile is offered, based on preliminary
assessment of resource value and anticipated operational cost.
Mining factors or assumptions Assumptions made regarding possible mining methods, minimum mining dimensions Hydro-mining has been determined as the optimal method of mining for the
and internal (or, if applicable, external) mining dilution. It is always Kasiya Rutile deposit. The materials competence is loose, soft, fine and
necessary as part of the process of determining reasonable prospects for friable with no cemented sand or dense clay layers rendering it amenable to
eventual economic extraction to consider potential mining methods, but the hydro-mining. It is considered that the strip ratio would be zero or near
assumptions made regarding mining methods and parameters when estimating zero.
Mineral Resources may not always be rigorous. Where this is the case, this
should be reported with an explanation of the basis of the mining assumptions
made.
Dilution is considered to be minimal as mineralisation commonly occurs from
surface and mineralisation is generally gradational with few sharp boundaries.
Recovery parameters have not been factored into the estimate. However, the
valuable minerals are readily separable due to their SG differential and are
expected to have a high recovery through the proposed, conventional wet
concentration plant.
Metallurgical factors or assumptions The basis for assumptions or predictions regarding metallurgical amenability. Sovereign have announced three sets of metallurgical results to the market (24
It is always necessary as part of the process of determining reasonable June 2019, 9 September 2020 and 7 December 2021), relating to the company's
prospects for eventual economic extraction to consider potential metallurgical ability to produce a high-grade rutile product with a high recovery via simple
methods, but the assumptions regarding metallurgical treatment processes and conventional processing methods. Sovereign engaged AML to conduct the
parameters made when reporting Mineral Resources may not always be rigorous. metallurgical test work and develop a flowsheet for plant design
Where this is the case, this should be reported with an explanation of the considerations.
basis of the metallurgical assumptions made.
An initial sighter metallurgical test-work program was undertaken in June 2019
on a 180kg sample of saprolite-hosted rutile from an area representative of
the style of mineralisation at the Wofiira prospect. This test work focused on
generating saleable product specifications and demonstrated that a
high-quality commercial Rutile product can be produced using conventional
mineral sands processing methods. The recovered, in-situ rutile grade was
1.16% produced in a +38µm to -250µm size fraction with a produced rutile
product grade of 96.0% TiO(2).
A follow-up test work program was then commissioned on a mineralised sample of
approximately 1,000kg composited from a number of drill holes across the
Kasiya deposit. The sample had a head grade of 0.96% recoverable rutile. The
test-work focussed on producing a rutile product.
The test work was based on the flowsheet previously developed with AML with
minor improvements. The work showed a premium quality rutile product of 96.3%
TiO(2) with low impurities could again be produced with favourable product
sizing at d50 of 145µm. Recoveries were about 98%.
A scoping study test work program was then undertaken on a 1,600kg mineralised
sample to confirm and improve on the previous bulk metallurgy program
completed in late 2020. Results again confirmed premium grade rutile can be
produced via a simple and conventional process flow sheet and are consistent
with previous results. World-class product chemical specifications are
reported at 95.0% to 97.2% TiO2 with low impurities and stand-out
metallurgical recoveries ranging from 94% to 100%.
The product characteristics are considered by the Competent Person (industrial
minerals) to be favourable for product marketability.
Environmental factors or assumptions Assumptions made regarding possible waste and process residue disposal A large portion of the Mineral Resource is confined to the SOIL, FERP and MOTT
options. It is always necessary as part of the process of determining weathering domains, and any sulphide minerals have been oxidised in the
reasonable prospects for eventual economic extraction to consider the geological past. Therefore, acid mine-drainage is not anticipated to be a
potential environmental impacts of the mining and processing operation. While significant risk when mining from the oxidised domain.
at this stage the determination of potential environmental impacts,
particularly for a greenfields project, may not always be well advanced, the
status of early consideration of these potential environmental impacts should
be reported. Where these aspects have not been considered this should be No major water courses run through the resource area.
reported with an explanation of the environmental assumptions made.
The Kasiya deposit is located within a farming area and has villages located
along the strike of the deposit. Sovereign holds regular discussions with
local landholders and community groups to keep them well informed of the
status and future planned directions of the project. Sovereign has benefited
from maintaining good relations with landowners and enjoys strong support from
the community at large.
Kasiya is in a sub-equatorial region of Malawi and is subject to heavy
seasonal rainfall, with rapid growth of vegetation in season. Substantial
vegetation or nature reserve is absent in the area.
Bulk density Whether assumed or determined. If assumed, the basis for the assumptions. If Density was calculated from 310 full core samples taken from geographically
determined, the method used, whether wet or dry, the frequency of the and lithologically-diverse sites across the deposit. Density is calculated
measurements, the nature, size and representativeness of the samples. using a cylinder volume wet and dry method performed by Sovereign in Malawi
and calculations verified by Placer Consulting.
Density data was loaded into an Excel file, which was flagged against
weathering horizons and mineralisation domains. These results were then
averaged, by domain and applied to the MRE.
The bulk density for bulk material must have been measured by methods that As above.
adequately account for void spaces (vughs, porosity, etc.), moisture and
differences between rock and alteration zones within the deposit.
Discuss assumptions for bulk density estimates used in the evaluation process An average density of 1.65 t/m(3) was determined for the total weathering
of the different materials. profile.
This incorporates and average density of 1.39 t/m(3) for the SOIL domain, 1.58
t/m(3) for the FERP domain, 1.66 t/m(3) for the MOTT domain, 1.69 t/m(3) for
the PSAP domain, 1.97 t/m(3) for the SAPL domain, and 1.95 t/m(3) for the LAT
domain. Density data are interpolated into the resource estimate by the
nearest neighbour method.
Classification The basis for the classification of the Mineral Resources into varying Classification of the MRE is at an Indicated and Inferred category. Minor
confidence categories. regions of unclassified material occur in sparsely drilled, typically
extraneous regions of the resource area. These are excluded from the resource
inventory.
Whether appropriate account has been taken of all relevant factors (i.e. All available data were assessed and the competent person's relative
relative confidence in tonnage/grade estimations, reliability of input data, confidence in the data was used to assist in the classification of the Mineral
confidence in continuity of geology and metal values, quality, quantity and Resource.
distribution of the data).
Whether the result appropriately reflects the Competent Person's view of the Results appropriately reflects a reasonable and conservative view of the
deposit deposit.
Audits or reviews The results of any audits or reviews of Mineral Resource estimates. Independent audit of the MRE construction was contracted to Datamine Australia
by Placer prior to delivery to SVM. A third party is engaged by SVM for a
further verification of the MRE.
Discussion of relative accuracy/ confidence Where appropriate a statement of the relative accuracy and confidence level in Substantial additional resource material is expected to occur below the
the Mineral Resource estimate using an approach or procedure deemed effective depth of drilling (water table).
appropriate by the Competent Person. For example, the application of
statistical or geostatistical procedures to quantify the relative accuracy of
the resource within stated confidence limits, or, if such an approach is not
deemed appropriate, a qualitative discussion of the factors that could affect A high-degree of uniformity exists in the broad and contiguous lithological
the relative accuracy and confidence of the estimate. and grade character of the deposit. Drilling technique have been expertly
applied and data collection procedures, density assessments, QA protocols and
interpretations conform to industry best practice with few exceptions.
Assay, mineralogical determinations and metallurgical test work conform to
industry best practice and demonstrate a rigorous assessment of product and
procedure. The development of a conventional processing flowsheet and
marketability studies support the classification of the Kasiya Resource.
The statement should specify whether it relates to global or local estimates, The estimate is global.
and, if local, state the relevant tonnages, which should be relevant to
technical and economic evaluation. Documentation should include assumptions
made and the procedures used.
These statements of relative accuracy and confidence of the estimate should be No production data are available to reconcile model results.
compared with production data, where available.
Glossary
Abbreviation Description
°C Degrees Celsius
µm Micrometre or Micron
AACE American Association of Cost Engineering
AC Air-core
ALS ALS Metallurgical Laboratory
amsl Above Mean Sea Level
ARD Acid Rock Drainage
AS Australian Standard
ASNZS Australian and New Zealand Standard
ASX Australian Stock Exchange
AUD Australian Dollar
ave Average
BCM Bulk Cubic Meter
BOO Build Own Operate
Capex Capital Expenditure
CFR Cost and Freight
CEAR Central East African Railways
cm Centimetre
CPR Competent Persons Report
CRM Certified Reference Material
CSR Corporate Social Responsibility
d Day
D Discharge
d/y Days Per Year
DAP Delivered at Place
dB Decibel
DD Diamond-core Drilling
DFS Definitive Feasibility Study
DL Detection Limit
dmt Dry Metric Tonne
DRA DRA Pacific
EAD Environmental Affairs Department (of Malawi)
EAP Employee Assistance Program
EBITDA Earnings Before Interest, Taxes, Depreciation And Amortisation
EHS Environment, Health, And Safety
EIA Environmental Impact Assessment
EL Exploration Licence
EMP Environmental Management Plan
EPC Engineering, Procurement, Construction
EPCM Engineering, Procurement & Construction Management
ERP Emergency Response Plan
ESIA Environmental And Social Impact Assessment
ESR Environmental Scoping Report
ESS Expanded Scoping Study
FEED Front End Engineering And Design
FEL Front End Loader
FOB Free on Board
FS Feasibility Study
G&A General & Administration
GEL Generally Expected Levels
GHG Greenhouse Gas(es)
GISTM Global Industry Standards on Tailings Management
h Hour
h/d Hours Per Day
h/y Hours Per Year
HA Hand-auger or Spiral Hand-auger
ha Hectare
HR Human Resources
HRMP Human Resources Management Plan
HSE Health, Safety and Environment
HSEMS Health Safety and Environmental Management System
HSMP Health and Safety Management Plan
HV High Voltage
IBC Intermediate Bulk Container
ICP-MS Inductively Coupled Plasma Mass Spectrometer
ICP-OES Inductively Coupled Plasma Optical Emission Spectrometry
ID Internal Diameter
IDW Inverse-Distance Weighted Algorithm
IFC International Finance Corporation
IRR Internal Rate of Return
IT Information Technology
IUCN International Union for Conservation of Nature
IVI Important Value Index
J Joule (Energy)
JECFA Joint FAO/WHO Expert Committee on Food Additive
JHA Job Hazard Analysis
JORC Australasian Joint Ore Reserves Committee
k Kilo or Thousand
kg Kilogram
km Kilometre
KPI Key Performance Indicator
KRW Korean Won
kt Kilo Tonne (Thousand Metric Tonne)
kW Kilowatt (Power)
kWh Kilowatt Hour
L Litre
LCT Locked Cycle Testwork
LME London Metals Exchange
LoM Life of Mine
LSE London Stock Exchange
LTI Lost Time Injury
LV Low Voltage
m Metre
M Million
m(2) Square Metre
m(3) Cubic Metre
Ma Mega annum (million years)
MCC Motor Control Centre
MG Mine Gate
ML Metal Leaching
mm Millimetre
MNREM Ministry of Natural Resources, Energy and Mining
MPA Maximum Potential Acidity
MPN Most Probably Number (Count of Coliforms and E. coli)
MRA Malawi Revenue Authority
MRE Mineral Resource Estimate
mRL Metre Reduced Level
MRMR Mining Rock Mass Rating
Msal Meters Above Sea Level
MSDS Material Safety Data Sheet
Mt Million Tonnes (Metric)
Mt/y Million Tonnes Per Year
MTI Medical Treatment Injury
MTO Material Take-Off
MW Megawatt
N/A Not Applicable
NA Not Available
NAF Non-Acid Forming
NAG Net Acid Generation
NAPP Net Acid Producing Potential
ND Not Detected
NOH&SC National Occupational Health and Safety Commission (Australia)
NPI Non Process Infrastructure
NPV Net Present Value
NR Not Regulated
NT Near Threatened
NTU Normalised Turbidity Unit
OHS&E Occupational Health, Safety & Environment
PEA Preliminary Economic Assessment
PFD Process Flow Diagram
PFS Pre-Feasibility Study
PPE Personal Protective Equipment
PS Performance Standard
PSU Practical Salinity Unit
PWTP Potable Water Treatment Plant
QA/QC Quality Assurance And Quality Control
RAP Resettlement Action Plan
ROM Run-Of-Mine
RRT Resource Rent Tax
s Second
SG Specific Gravity
SGS SGS Metallurgical Laboratory
SO2 Sulphur Dioxide
SOP Standard Operating Procedure
ST Total Sulphur
SVM Sovereign Metals Limited
t Tonne (Metric)
t/h Tonnes Per Hour
t/m3 Tonnes Per Cubic Metre
t/y Tonnes Per Year
ta Comminution Test Parameter
TARP Trigger, Action, Responsibility, Procedure
TBC To Be Confirmed
TC Total Carbon
TC Treatment Charge
TDS Total Dissolved Solids
TGC Total Graphitic Carbon
TSF Tailings Storage Facility
TSP Total Suspended Particulates
TSS Total Suspended Solids
UFD Utility Flow Diagram
UOM Unit of Measure
URTI Upper Respiratory Tract Infection
US EPA The United States Environmental Protection Agency
US$ United States Dollar
USD United States Dollar
UTM Universal Transverse Mercator
V Volt
VAT Value Added Tax
VSD Variable Speed Drive
VTEM Versatile Time Domain Electromagnetic
VU Vulnerable
w/v Weight/Volume
w/w Weight/Weight
WBG World Bank Group
WBS Work Breakdown Schedule
WHO World Health Organization
XRD X-Ray Diffraction
XRF X-Ray Fluorescence
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