REG - Sovereign Metals Ltd - Tariff Enviro Underscores Kasiya’s Significance
Mon 07:00
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RNS Number : 7693S Sovereign Metals Limited 28 July 2025
NEWS RELEASE I 28 JULY 2025
NEW GRAPHITE TARIFF ENVIRONMENT UNDERSCORES KASIYA'S GLOBAL SIGNIFICANCE
· Strategic positioning enhanced as new tariff environment highlights
Kasiya's potential as world's largest and lowest-cost non-Chinese graphite
producer with industry-leading US$241/t incremental cost of production
· Market dynamics impacted by new U.S. Commerce Department 93.5%
anti-dumping duties on Chinese graphite imports
· Kasiya offers supply chain diversification opportunity as battery
manufacturers seek alternatives amid 160% effective tariffs on Chinese-sourced
graphite
· Latest coating optimisation testwork achieves successful CSPG
production characteristics with superior performance metrics to support
advancing offtake discussions
Sovereign Metals Limited (ASX:SVM; AIM:SVML; OTCQX: SVMLF) (Sovereign or the
Company) is pleased to announce that at a time of unprecedented disruption in
global graphite markets, with new U.S. tariffs fundamentally altering supply
chain dynamics, the latest testwork on graphite from the Company's Kasiya
Rutile-Graphite Project (Kasiya or the Project) in Malawi has delivered highly
successful results. The testwork focused on optimising the coating process
for conversion of Kasiya-derived spherical purified graphite (SPG) to coated
spherical purified graphite (CSPG) while maintaining premium performance. The
results will assist with ongoing offtake discussions with anode manufacturers.
Sovereign is developing Kasiya to potentially become the world's largest and
lowest-cost natural graphite producer outside of China.
Figure 1: Natural Flake Graphite Industry Cost Curve For Projects at
Prefeasibility Stage or Later
(Sources: See Appendix 1)
Strategic Market Opportunity
The global graphite supply chain is experiencing fundamental realignment
following the U.S. Commerce Department's 17 July 2025 announcement of 93.5%
preliminary anti-dumping duties on Chinese graphite imports. Combined with
existing tariffs, this creates an effective 160% barrier on Chinese graphite,
fundamentally altering the economics for battery manufacturers seeking secure,
cost-competitive supply chains. China currently controls approximately 75% of
global graphite production and 97% of anode material processing, creating
critical supply chain vulnerabilities that major battery manufacturers are now
actively addressing.
Tesla, Inc. (Tesla) and Panasonic were among companies that opposed the new US
tariffs, with Tesla's submission to the U.S. Government stating that U.S.
graphite producers have yet to demonstrate the "technical ability to produce
commercial quantities" of graphite at the quality and purity required by Tesla
and other battery cell manufacturers.
Once developed, Kasiya has the potential to become the world's largest and
lowest-cost natural flake graphite producer, offering battery manufacturers a
strategic alternative to Chinese supply chains for anode material feedstock.
The latest successful coating testwork is a further demonstration of Kasiya's
increasing strategic importance.
Latest Testwork Validates Kasiya Graphite's World-Class Quality to Anode
Manufacturers
Optimisation testwork conducted by Prographite GmbH (Prographite) has once
again demonstrated the exceptional characteristics of Kasiya graphite for CSPG
production. The optimisation process successfully achieved target coating
specifications and optimised inputs into the coating process while maintaining
the premium performance metrics that position Kasiya graphite among the
highest-quality sources globally (refer to Announcement "Outstanding Battery
Anode Material Produced From Kasiya Graphite" dated 4 September 2024 for
previously announced premium performance metrics).
Managing Director and CEO Frank Eagar commented: "Kasiya remains a primary
rutile project, but our ability to also produce exceptional CSPG with
world-class performance characteristics from our natural graphite concentrate
is a further demonstration of the geopolitically strategic nature of Kasiya.
These new U.S. tariffs on Chinese graphite highlight the urgent need for
reliable, high-quality alternatives. Kasiya's resource scale, long life,
potentially lowest-cost non-Chinese producer, combined with our demonstrated
technical excellence, positions us perfectly to serve battery manufacturers
seeking secure supply chain diversification."
Pitch coating is a standard refinement process where carbon-rich pitch
material is applied to spherical graphite particles to create protective
layers that enhance battery performance and longevity, turning SPG into CSPG.
The latest testwork systematically evaluated pitch content to achieve optimal
performance parameters.
Key achievements from the process include:
· Process Efficiency Demonstrated: Coating requirements optimised while
maintaining superior CSPG characteristics
· Premium Performance Maintained: All target specifications achieved
for discharge capacity (>360mAh/g) and first cycle efficiency (>94%)
· Physical Properties Achieved: Specific surface area (<4m²/g) and
tap density (>1.0 g/cm³) specifications met
The electrochemical test results demonstrate the consistently high quality of
CSPG produced from Kasiya graphite:
Table 1: Electrochemical Half-Cell Testing Results
Pitch Coating Level Initial Charge (mAh/g) Initial Discharge (mAh/g) First Cycle Efficiency (%)
Baseline (100%) 390 369 94.64
Optimised (60%) 388 366 94.36
The data confirms that Kasiya graphite consistently delivers discharge
capacity well above the critical 360mAh/g threshold while achieving first
cycle efficiency above 94% - both key specifications for premium-quality
natural graphite anode materials.
Customer Engagement Advances with Market Dynamics Creating Strategic Advantage
Initial samples of Kasiya fine flake graphite concentrate have been
distributed to leading natural graphite anode producers and anode project
developers. These strategic engagements will support the development of
offtake agreements while validating market demand for Kasiya's high-quality
battery-grade graphite.
The Company continues advancing additional pilot-scale graphite concentrate
processing to supply further concentrate material, with planning underway for
a larger-scale concentrate processing run. These programs will support
expanded customer qualification programs as development advances.
Enquiries
Frank Eagar, Managing Director & CEO
South Africa / Malawi
+ 27 21 140 3190
Sapan Ghai, CCO
London
+44 207 478 3900
Nominated Adviser on AIM and Joint Broker
SP Angel Corporate Finance LLP +44 20 3470 0470
Ewan Leggat
Charlie Bouverat
Joint Broker
Stifel +44 20 7710 7600
Varun Talwar
Ashton Clanfield
Buchanan + 44 20 7466 5000
Competent Person Statement
The information in this report that relates to Metallurgical Testwork is based
on information compiled by Dr Surinder Ghag, PhD., B. Eng, MBA, M.Sc., who is
a Member of the Australasian Institute of Mining and Metallurgy (MAusIMM). Dr
Ghag is engaged as a consultant by Sovereign Metals Limited. Dr Ghag has
sufficient experience, which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity which 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'. Dr Ghag 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 report that relates to Exploration Results is based on
information compiled by Mr Malcolm Titley, a Competent Person who is a member
of The Australasian Institute of Mining and Metallurgy (AusIMM). Mr Titley
consults to Sovereign Metals Limited and is a holder of ordinary shares and
unlisted performance rights in Sovereign Metals Limited. Mr Titley 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 Titley 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 operating costs and
graphite marketing is extracted from an announcement dated 22 January 2025,
which is available to view at www.sovereignmetals.com.au. Sovereign confirms
that: a) it is not aware of any new information or data that materially
affects the information included in the original announcement; b) all material
assumptions and technical parameters underpinning the Production Target, and
related forecast financial information derived from the Production Target
included in the original announcement continue to apply and have not
materially changed; and c) the form and context in which the relevant
Competent Persons' findings are presented in this presentation have not been
materially modified from the original announcement.
Forward Looking Statement
This release may include forward-looking statements, which may be identified
by words such as "expects", "anticipates", "believes", "projects", "plans",
and similar expressions. These forward-looking statements are based on
Sovereign's expectations and beliefs concerning future events. Forward looking
statements are necessarily subject to risks, uncertainties and other factors,
many of which are outside the control of Sovereign, which could cause actual
results to differ materially from such statements. There can be no assurance
that forward-looking statements will prove to be correct. Sovereign makes no
undertaking to subsequently update or revise the forward-looking statements
made in this release, to reflect the circumstances or events after the date of
that release.
The information contained within this announcement is deemed by Sovereign to
constitute inside information as stipulated under the Regulation 2014/596/EU
which is part of domestic law pursuant to the Market Abuse (Amendment) (EU
Exit) Regulations (SI 2019/310) ("UK MAR"). By the publication of this
announcement via a Regulatory Information Service, this inside information (as
defined in UK MAR) is now considered to be in the public domain.
APPENDIX 1: FLAKE GRAPHITE OPERATING COST INFORMATION
1. China weighted average C1 cash cost source: Benchmark Mineral
Intelligence
2. Cumulative Demand & China graphite production source: S&P
Global Market Intelligence
3. Company specific disclosure sources as follows:
Company Project Stage of Development C1 Cash Costs (FOB) Steady State Production Current Production Notes Source
US$/t tpa tpa
Black Rock Mining Mahenge Financing post DFS 466 89,000 - Operating costs are for first 10 years therefore prodcution of first 10 years Company Announcement: Black Rock Completes FEED and eDFS Update (10 October
only shown 2022)
Blencowe Resources Orom-Cross PFS Complete 482 101,000 - - Company Announcement: Major Milestone as Blencowe Delivers US$482M NPV
Pre-Feasibility Study for Orom-Cross Graphite Project (19 July 2022)
Ecograf Epanko BFS Complete 508 73,000 - - Updated Epanko Ore Reserve (25 July 2024)
Epanko Pre-Development Program Delivers Outstanding Results (28 April 2023)
Evion Maniry DFS Complete 657 56,400 - Production of 56.4ktpa is from year 4. Years 1-3 production is 39ktpa BlackEarth Minerals Maniry Graphite Project Definitive Feasibility Study (3
November 2022)
Evolution Energy Chilalo DFS Complete 773 52,000 - Operating costs are for first 9 years of produciton Company Announcement: FEED and updated DFS confirms Chilalo as a standout high
margin, low capex and development-ready graphite project (20 March 2023)
Falcon Energy Materials Lola Updated DFS Complete 588 92,435 - - SEDAR Filing: Lola Graphite Project NI 43-101 Technical Report - Updated
Feasibility Study (7 April 2023)
Focus Graphite Lac Knife FS Complete 413 50,000 - Converted from Canadian Dollars to US Dollars based on exchange rate used in Company Announcement: NI 43-101 Technical Report - Feasibility Study Update
source document of 1.00 CAD / 0.736 USD Lac Knife Graphite Project Québec, Canada (14 April 2023)
Graphite One Graphite Creek PFS Complete 1,394 51,813 - Production and costs relate to Graphite Creek Mine and not the proposed Company Announcement: Graphite One Advances its United States Graphite Supply
graphite manufacturing facility Chain Solution Demonstrating a Pre-tax USD$1.9B NPV (8%), 26.0% IRR and 4.6
Year Payback on its Integrated Project (29 August 2022)
Mineral Commodities Skaaland Production 1,434 10,000 10,000 Production based on annual operating target, costs based on latest reported Quarterly Activities Report: September 2024
(MRC) numbers for September 2024
Mineral Commodities Munglinup DFS Complete 491 54,000 - - Company Announcement: Robust
(MRC) (https://www.mineralcommodities.com/wp-content/uploads/2020/01/Munglinup-DFS-Results-90-ownership.pdf)
Munglinup
(https://www.mineralcommodities.com/wp-content/uploads/2020/01/Munglinup-DFS-Results-90-ownership.pdf)
DFS Results Allow MRC to Move to 90% Ownership of
(https://www.mineralcommodities.com/wp-content/uploads/2020/01/Munglinup-DFS-Results-90-ownership.pdf)
Munglinup
(https://www.mineralcommodities.com/wp-content/uploads/2020/01/Munglinup-DFS-Results-90-ownership.pdf)
Graphite Project (8 January 2020)
(https://www.mineralcommodities.com/wp-content/uploads/2020/01/Munglinup-DFS-Results-90-ownership.pdf)
NextSource Materials Molo Construction 541 150,000 - Figures relate to Molo expansion case. Company Announcement: Nextsource Materials announces robust feasibility study
Operating Costs are US$392.59/t Minesite Operating Cost plus Selling Cost of results for Molo Mine expansion to 150,000 tonnes per annum of Superflake®
US$148.80 graphite concentrate (12 December 2023)
NGX Malingunde PFS Complete 396 52,000 - - Company Presentation: Clean Energy Minerals in Africa (August 2024)
Nouveau Monde Graphite Matawinie Construction 443 103,328 - Exchange rate used as per technical report Technical Report: Feasibility Study for the Matawinie Property
Renascor Siviour DFS Complete 472 150,000 - - Company Announcement: Siviour Battery Anode Material Study Results (8 August
2023)
Syrah Resources Balama Production 455 240,000 - Production based on Company guidance of 20kt per month production rate. Company Quarterly Activities Report September 2024 (30 October 2024)
Operating costs based on midpoint of Balama C1 cost (FOB Nacala/Pemba)
medium-term guidance of US$430-480 per tonne.
Triton Ancuabe DFS Complete 634 60,000 - 2023 updates to DFS do not include updated costs and base case production Company Announcement: Triton Delivers Robust Ancuabe Definitive Feasibility
figures. On 9th December 2024, Triton Minerals announced that it had executed Study and Declares Maiden Ore Reserve (15 December 2017)
a Share Sale and Purchase Agreement with Shandong Yulong Gold Limited for the
sale of at least 70% of its interests in the entities that hold the Ancuabe
Graphite Project
Volt Resources Bunyu Stage 1 FS Complete 670 24,780 - Relates to stage 1 development which has had a feasibility study completed Company Announcement: Feasibility Study Update for Bunyu Graphite Project
Stage 1, Tanzania, delivers significantly improved economics (14 August 2023)
Notes:
1. Blencowe Resources C1 cash costs calculated as US$499/t operating
costs (FOB) less US$17/t royalties as disclosed in the source above
2. South Star Battery Metals Corp.'s Santa Cruz mine not included as
FOB costs not disclosed. For reference, operating costs are disclosed as
US4396/t from source: Technical Report: Updated Resources and Reserves
Assessment and Pre-feasibility Study (18 March 2020)
3. Magnis not included while shares are suspended by the ASX in
December 2023
4. Walkabout's Lindi Project not included following appointment of
voluntary administrators and Receivers in November 2024
5. Leading Edge Materials Woxna Graphite not included as it is
currently under care and maintenance
6. Northern Graphite's Lac des Iles not included due to recent
maintenance
7. Talga Group not shown as latest technical study based on integrated
anode plant strategy
8. Tirupati Graphite not included due to lack of relevant disclosure
APPENDIX 2: PITCH OPTIMISATION TESTWORK DATA
Prographite produced spherical purified graphite (SPG) with a mean diameter of
17 microns from Kasiya graphite concentrate. Pitch coating in the current
testwork was very effective in reducing the Specific Surface Area (SSA) and
increasing the tap density of the CSPG relative to SPG, with samples 3,4 and 5
all below 4m(2)/g SSA and a tap density above 1.0 g/cm(3) - Table 2.
The SSA is a key parameter in determining the first cycle efficiency of the
anode material - a measure of the percentage of lithium ions used to charge
(lithiate) the anode that are discharged (delithiate) from the anode. The rest
of the lithium-ions are consumed to form the solid electrolyte interface (SEI)
and no longer available for charging/discharging. A full-cell lithium-ion
battery (LiB) only has a limited amount of lithium-ions available and
therefore maximising the first cycle efficiency is critical to the longevity
of the LiB.
The SEI forms a protective layer around the graphite particles, facilitating
their use as an effective anode material. Its formation is critical for the
ability to use graphite as an anode material. The SEI is generated from
lithium compounds, and the consumed lithium-ions are no longer available for
charging and discharging a lithium-ion battery. Consequently, excessive SEI
formation reduces the lithium-ions available for use in the cell. As a rule,
the lower the SSA of the anode material, less lithium-ions are consumed in for
ming the SEI and the higher the first cycle efficiency.
Table 2 SPG and CSPG Characteristics
Sample ID Material Pitch Level vs Baseline SSA (BET) Tap Density Particle Size (microns)
(m(2)/g) (g/cm(3))
D10 D50 D90 D90/D10
1 SPG 0 7.53 0.95 11.2 17.1 26.0 2.3
2 CSPG 0.2 4.80 0.94 12.2 18.8 28.8 2.4
3 CSPG 0.4 3.12 1.09 11.5 17.6 26.8 2.3
4 CSPG 0.6 2.36 1.12 11.1 17.6 27.6 2.5
5 CSPG-Baseline 1.0 1.53 1.16 11.6 17.8 27.2 2.3
It is important to note that lithium-ion batteries are complex systems whose
optimisation is dependent on many variables across the cell components. In
contrast, the half-cell tests used in the current program evaluate the
performance of just the anode material in isolation, providing comparative
information on anode materials under standard conditions. This data is useful
for engagement with anode producers and cell manufacturers but does not
describe LiB cell performance, which is more complex.
APPENDIX 3: 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 Metallurgical Composite Sample:
specialised industry standard measurement tools appropriate to the minerals
under investigation, such as down hole gamma sondes, or handheld XRF The sample was a composite of multiple hand anger drill samples drilled in
instruments, etc). These examples should not be taken as limiting the broad 2022 and 2023. Dilling of these samples was within the Kingfisher pit.
meaning of sampling. Clusters of holes were drilled in eight locations.
Block 15 Site 1 - PT15BLK00143 - PT15BLK00152 (Hole ID: NSPT0017 - refer ASX
Announcement dated 15/03/2022)
Block 15 Site 2 - PT15BLK00125 - PT15BLK00142 (Hole ID: KYAC0149 - refer ASX
Announcement dated 30/01/2023)
Block 15 Site 3 - PT15BLK00103 - PT15BLK00124 (Hole ID: KYAC0142 - refer ASX
Announcement dated 30/01/2023)
Block 15 Site 4 - PT15BLK00075 - PT15BLK00094, PT15BLK00124, PT15BLK00134
(Hole ID: KYAC0025 - refer ASX Announcement dated 8/09/2022)
Block 15 Site 5 - PT15BLK00061 - PT15BLK00074, PT15BLK00099 - PT15BLK00102,
PT15BLK00106 - PT15BLK00108 (Hole ID: KYAC0088 - refer ASX Announcement dated
26/10/2022)
Block 15 Site 6 - PT15BLK00035 - PT15BLK00060, PT15BLK00076 - PT15BLK00077,
PT15BLK00095 - PT15BLK00098, PT15BLK00114 - PT15BLK00117 (Hole ID: KYAC0090 -
refer ASX Announcement dated 26/10/2022)
Block 15 Site 7 - PT15BLK00013 - PT15BLK00014, PT15BLK00022 - PT15BLK00034
(Hole ID: KYAC0091 - refer ASX Announcement dated 26/10/2022)
Block 14 Site 8 - PT15BLK00003 - PT15BLK00012, PT15BLK00015 - PT15BLK00021,
PT15BLK00036 - PT15BLK00039 (Hole ID: KYAC0079 - refer ASX Announcement dated
26/10/2022)
All samples within the pit shell were added to the composite resulting in a
sample of 15,767kg.
Samples were processed separately for the eight locations through Sovereign's
Malawi metallurgical laboratory.
The following workflow was used to generate a pre-concentrate graphite feed:
· Wet screen at 2mm to remove oversize
· Wet screen at 1mm to remove oversize
· Wet screen at 600µm
· Wet screen at 45µm to remove -45µm material
· Pass +45µm -600µm (fine sand) fraction over laboratory wet
shaking table to produce a heavy mineral concentrate, light middling and wet
table tailings which is the graphite concentrate.
· The +45µm -600µm (fine sand) graphite concentrate and
<1000µm >600µm screen fraction were combined to provide flotation
feed. The >1000µm fraction was not included.
· Flotation was performed at Maelgwyn in Johannesburg.
· Fine and coarse gravity tailing samples contain approximately
75%-80% of the graphite present in the feed sample. The majority of the
graphite lost is contained in the -45µm fines.
Include reference to measures taken to ensure sample representivity and the Placer Consulting (Placer) Resource Geologists have reviewed Standard
appropriate calibration of any measurement tools or systems used. Operating Procedures (SOPs) for the collection of HA and PT drill samples and
found them to be fit for purpose.
Drilling and sampling activities are supervised by a suitably qualified
Company geologist who is present at all times. All bulk 1-metre drill samples
are geologically logged by the geologist at the drill site.
The primary metallurgical composite sample is considered representative for
this style of mineralisation.
Aspects of the determination of mineralisation that are Material to the Public HA drilling was used to obtain samples. The bulk metallurgical sample was a
Report. In cases where 'industry standard' work has been done this would be composite of selected samples from routine resource drilling.
relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m
samples from which 3 kg was pulverised to produce a 30 g charge for fire Existing rutile and graphite exploration results were used to determine the
assay'). In other cases more explanation may be required, such as where there 1-metre intervals suitable to contribute to the two bulk sample composites.
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 Hand-auger drilling is completed with 75mm diameter enclosed spiral bits with
blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or 1-metrelong steel rods. Each 1m of drill sample is collected into separate
standard tube, depth of diamond tails, face‐sampling bit or other type, sample bags and set aside. The auger bits and flights are cleaned between
whether core is oriented and if so, by what method, etc). each metre of sampling to avoid contamination.
Placer has reviewed SOPs for hand-auger drilling and found them to be fit for
purpose and support the resource classifications as applied to the MRE.
Drill Sample Recovery Method of recording and assessing core and chip sample recoveries and results The configuration of drilling and nature of materials encountered results in
assessed. negligible sample loss or contamination.
Samples are assessed visually for recoveries. Overall, recovery is good.
Drilling is ceased when recoveries become poor generally once the water table
has been encountered.
Auger drilling samples are actively assessed by the geologist onsite for
recoveries and contamination.
Measures taken to maximise sample recovery and ensure representative nature of The Company's trained geologists supervise auger drilling on a 1 team 1
the samples. geologist basis and are responsible for monitoring all aspects of the drilling
and sampling process.
Whether a relationship exists between sample recovery and grade and whether No bias related to preferential loss or gain of different materials has
sample bias may have occurred due to preferential loss/gain of fine/coarse occurred.
material.
Logging Whether core and chip samples have been geologically and geotechnically logged All individual 1-metre auger intervals are geologically logged, recording
to a level of detail to support appropriate Mineral Resource estimation mining relevant data to a set template using company codes.
studies and metallurgical studies.
Whether logging is qualitative or quantitative in nature. Core (or costean, All logging includes lithological features and estimates of basic mineralogy.
channel, etc.) photography. Logging is generally qualitative.
The total length and percentage of the relevant intersection logged 100% of samples are geologically logged.
Sub-sampling techniques and sample preparation If core, whether cut or sawn and whether quarter, half or all core taken. Not applicable - no core drilling conducted.
If non-core, whether riffled, tube sampled, rotary split, etc. and whether Primary individual 1-metre samples from all HA and PT holes drilled are sun
sampled wet or dry. dried, homogenised and riffle split.
For all sample types, the nature, quality and appropriateness of the sample Metallurgical Composite Sample:
preparation technique.
Full length of the Hand Auger Holes were processed in total 15,767kg.
Graphite concentrate sent to Maelgwyn was ~4,800kg
Quality control procedures adopted for all sub-sampling stages to maximise The sample preparation techniques and QA/QC protocols are considered
representivity of samples. appropriate for the nature of this test-work.
Measures taken to ensure that the sampling is representative of the in situ The sampling best represents the material in situ.
material collected, including for instance results for field
duplicate/second-half sampling.
Whether sample sizes are appropriate to the grain size of the material being The sample size is considered appropriate for the nature of the test-work.
sampled.
Quality of assay data and laboratory tests The nature, quality and appropriateness of the assaying and laboratory Metallurgical Composite Sample:
procedures used and whether the technique is considered partial or total.
The following workflow was used to generate a graphite product;
· Rougher graphite flotation
· Polishing grind of rougher graphite concentrate
· Primary cleaner flotation milled rougher concentrate
· Attrition milling of primary cleaner concentrate
· Secondary cleaning of attritioned primary cleaner concentrate
· Attrition milling of secondary cleaner concentrate
· Tertiary cleaner flotation of attritioned secondary cleaner
concentrate
· Final concentrate dewatering, drying and sizing
For geophysical tools, spectrometers, handheld XRF instruments, etc., the Acceptable levels of accuracy and precision have been established. No handheld
parameters used in determining the analysis including instrument make and 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, Acceptable levels of accuracy and precision have been established in the
duplicate, external laboratory checks) and whether acceptable levels of preparation of the bulk sample composites.
accuracy (i.e. lack of bias) and precision have been established.
Verification of sampling & assaying The verification of significant intersections by either independent or No drilling intersections are being reported.
alternative company personnel.
The use of twinned holes. No twin holes completed in this program.
Documentation of primary data, data entry procedures, data verification, data All data was collected initially on paper logging sheets and codified to the
storage (physical and electronic) protocols. Company's templates. This data was hand entered to spreadsheets and validated
by Company geologists.
Discuss any adjustment to assay data. No adjustment to assay data has been made.
Location of data points Accuracy and quality of surveys used to locate drill holes (collar and A Trimble R2 Differential GPS is used to pick up the collars. Daily capture at
down-hole surveys), trenches, mine workings and other locations used in a registered reference marker ensures equipment remains in calibration.
Mineral Resource estimation.
No downhole surveying is completed. Given the vertical nature and shallow
depths of the holes, drill hole deviation is not considered to significantly
affect the downhole location of samples.
Specification of the grid system used. WGS84 UTM Zone 36 South.
Quality and adequacy of topographic control. DGPS pickups are considered to be high quality topographic control measures.
Data spacing & distribution Data spacing for reporting of Exploration Results. Metallurgical Composite Sample: The hand-auger holes contributing to this
metallurgical were selected from pit area Kingfisher and broadly represent
early years of mining as contemplated in the OPFS (Approximately the first
three years).
It is deemed that these holes should be broadly representative of the
mineralisation style in the general area.
Whether the data spacing and distribution is sufficient to establish the Not applicable, no Mineral Resource or Ore Reserve estimations are covered by
degree of geological and grade continuity appropriate for the Mineral Resource new data in this report.
and Ore Reserve estimation procedure(s) and classifications applied.
Whether sample compositing has been applied. Metallurgical Composite Sample:
The sample was composited as described under Sampling Techniques in this Table
1.
Orientation of data in relation to geological structure Whether the orientation of sampling achieves unbiased sampling of possible No bias attributable to orientation of sampling has been identified.
structures and the extent to which this is known considering the deposit type
If the relationship between the drilling orientation and the orientation of All holes were drilled vertically as the nature of the mineralisation is
key mineralised structures is considered to have introduced a sampling bias, horizontal. No bias attributable to orientation of drilling has been
this should be assessed and reported if material. identified.
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
Johannesburg. Samples are again securely stored once they arrive and are
processed at Maelgwyn.
Graphite concentrate samples were shipped to German laboratories using a
reputable international transport company with shipment tracking to enable a
chain of custody to be maintained while the samples moved from Johannesburg to
Germany. Concentrate samples are securely stored once they arrive and are
processed in Germany.
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 It is considered by the Company that industry best practice methods have been
employed at all stages of the exploration.
Malawi Field and Laboratory visits have been completed by Richard Stockwell in
May 2022. A high standard of operation, procedure and personnel was observed
and reported.
SECTION 2 - REPORTING OF EXPLORATION RESULTS
Criteria Explanation Commentary
Mineral tenement & land tenure status Type, reference name/number, location and ownership including agreements or The Company owns 100% of the following Exploration Licences (ELs) under the
material issues with third parties such as joint ventures, partnerships, Mines and Minerals Act 2019 (Malawi), held in the Company's wholly-owned,
overriding royalties, native title interests, historical sites, wilderness or Malawi-registered subsidiaries: EL0609, EL0582, EL0492, EL0528, EL0545,
national park and environment settings. EL0561, EL0657 and EL0710.
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 Limited is a first-mover in the discovery and definition of
residual rutile and graphite deposits in Malawi.
Geology Deposit type, geological setting and style of mineralisation The rutile deposit type is considered a residual placer formed by the intense
weathering of rutile-rich basement paragneisses and variable enrichment by
eluvial processes.
Rutile occurs in a mostly topographically flat area west of Malawi's capital,
known as the Lilongwe Plain, where a deep tropical weathering profile is
preserved. A typical profile from top to base is generally soil ("SOIL" 0-1m)
ferruginous pedolith ("FERP", 1-4m), mottled zone ("MOTT", 4-7m), pallid
saprolite ("PSAP", 7-9m), saprolite ("SAPL", 9-25m), saprock ("SAPR", 25-35m)
and fresh rock ("FRESH" >35m).
The low-grade graphite mineralisation occurs as multiple bands of graphite
gneisses, hosted within a broader Proterozoic paragneiss package. In the
Kasiya areas specifically, the preserved weathering profile hosts significant
vertical thicknesses from near surface of graphite mineralisation.
Drill hole information A summary of all information material to the understanding of the exploration All 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 No data aggregation was required.
and/or minimum grade truncations (e.g. cutting of high-grades) and cut-off
grades are usually Material and should be stated.
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 Not applicable
clearly stated.
Relationship between mineralisation widths & intercept lengths These relationships are particularly important in the reporting of Exploration The mineralisation has been released by weathering of the underlying, layered
Results. gneissic bedrock that broadly trends NE-SW 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.
No drilling intercepts are being reported.
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 where alluvial channels cut the surface of the deposit.
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 No drilling intercepts are being reported.
be a clear statement to this effect (e.g. 'down hole length, true width not
known'.
Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts The original exploration results and plan view of the drill holes for the
should be included for any significant discovery being reported. These should samples used in relation to the metallurgical composite test work conducted in
include, but not be limited to a plan view of the drill collar locations and this announcement, are included in Sovereign's announcements dated 15 March
appropriate sectional views. 2022, 8 September 2022, 26 October 2022 and 30 January 2023.
These announcements are accessible on the Company and ASX websites.
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.
Sample quality (representivity) is established by geostatistical analysis of
comparable sample intervals.
Further work The nature and scale of planned further work (e.g. test for lateral extensions Having completed an OPFS in January 2025, the Company is working towards
or depth extensions or large-scale step-out drilling). completing a definitive feasibility study.
Diagrams clearly highlighting the areas of possible extensions, including the Refer to diagrams and plan views disclosed in previous announcements. These
main geological interpretations and future drilling areas, provided this are accessible on the Company's website as discussed above.
information is not commercially sensitive.
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