REG - Sovereign Metals Ltd - Mining Method and Fleet Design Finalised for DFS

Sovereign MetalsAnnouncement

11/08/2025 07:00

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RNS Number : 7684U  Sovereign Metals Limited  11 August 2025

NEWS RELEASE I 11 AUGUST 2025

Mining Method and Fleet Design Finalised for DFS

·    Mining fleet design finalised as part of ongoing Definitive
Feasibility Study work at Kasiya

·    Fleet specifically engineered for large-scale dry mining operations
following the results of the successful pilot phase mining trials

·    No drilling, blasting, crushing or milling required at Kasiya
resulting in low capital outlays and operating costs

·    Equipment selection and supplier identification completed for all
operational requirements across the proposed initial 25-year mine life

·    Phased fleet deployment strategy from 36 units in Year 1 to peak
operational fleet of 81 units

·    Leading global suppliers identified, including CAT, Komatsu,
Liebherr, Hitachi and others

·    Preferred fleet selection completed with Rio-SVM Technical Committee
input and oversight

 

Sovereign Metals Limited (ASX:SVM; AIM:SVML; OTCQX:SVMLF) (Sovereign or the
Company) is pleased to announce confirmation of the mining method and
completion of the mining fleet design for the Kasiya Rutile-Graphite Project
(Kasiya or the Project) in Malawi, representing another significant milestone
in the ongoing Definitive Feasibility Study (DFS).

The Company has finalised the selection of mining equipment specifically
designed for large-scale dry mining operations at Kasiya. Following the
successful 2024 pilot phase mining trials that confirmed Kasiya ore can be
efficiently mined using conventional dry mining techniques, the comprehensive
fleet design encompasses both primary mining operations and support activities
across the Project's proposed initial 25-year life of mine.

The dry mining approach, detailed in the Company's recent Optimised
Pre-feasibility Study (OPFS), will deliver superior project delivery,
operational flexibility, and environmental outcomes (refer to announcement
"Kasiya - Optimised PFS Results" dated 22 January 2025). The fleet deployment
follows a strategic phased approach, with a total of ~200+ equipment units to
be purchased over the mine life, including replacements.

Sovereign Metals CEO, Mr Frank Eagar, commented: "The successful validation of
our dry mining approach through comprehensive pilot phase trials has enabled
us to design a fleet that delivers on our commitment to industry-leading low
operating costs while maintaining exceptional operational flexibility and
reliability.

The strategic phased deployment demonstrates our disciplined approach to
capital allocation and operational efficiency. Our dragline-based dry mining
method offers superior safety, operational flexibility and environmental
outcomes, while our multi-supplier strategy ensures competitive procurement
and ongoing support. This milestone brings us closer to our DFS completion and
demonstrates the systematic progress we are making across all work streams."

The Company has conducted a comprehensive market analysis and identified
leading global equipment manufacturers as potential suppliers, including
Caterpillar Inc. (CAT), Komatsu Ltd. (Komatsu), Liebherr Group (Liebherr),
Hitachi, Ltd. (Hitachi), and Volvo Group (Volvo).

MAJOR EQUIPMENT CATEGORIES

The mining fleet has been designed to support the Project's large-scale,
low-cost mining operation and includes:

Primary Mining Equipment

·    Draglines (350t) - three units total with Liebherr identified as
potential supplier, ramping from one unit in Year 1 to two units for full
(steady-state) operations,

·    Large Excavators (±230t) - six units total with multiple supplier
options including CAT, Liebherr, Komatsu and Hitachi, scaling from one unit
initially to two units at full production,

·    Mine Trucks (777 class or equivalent) - 51 units total, representing
the largest fleet component, growing from six units in Year 1 to a peak of 21
units, and

·    Front End Loaders (100t) - eight units total for material handling,
doubling from two to four units at steady-state operations.

Support Equipment

·    Dozers and Graders - 18 units combined for site preparation and
maintenance,

·    Articulated Dump Trucks (40t) - 21 units across various applications,
including drainage, water trucks and service vehicles, and

·      Light Vehicles and Ancillary Equipment - 68 units supporting
operations, scaling from 12 units initially to 24 units for full operations.

SUPPLIER IDENTIFICATION

The Company has identified leading global equipment manufacturers as potential
suppliers, including:

·    CAT - Primary supplier across multiple equipment categories,

·    Komatsu - Major supplier for excavators, trucks and support
equipment,

·    Liebherr - Specialist supplier for draglines and excavators,

·    Hitachi - Supplier for excavators and support equipment, and

·    Volvo, Bell - Additional suppliers for specific equipment categories.

This multi-supplier approach ensures competitive procurement, equipment
availability and ongoing support throughout the proposed 25-year project
lifecycle, with strategic timing of equipment deployment to match production
requirements and optimise capital efficiency.

Figure 1: Example of a dragline excavator in action (Source: Liebherr)

Figure 2: Komatsu large mining excavator loading a mining truck (Source:
Komatsu)

Figure 3: Cat(®) 777 100-ton mining trucks in action (Source: CAT)

Figure 4: Volvo articulated dump truck (Source: Volvo)

 

DRY MINING OPERATIONS

The fleet design is underpinned by the successful completion of large-scale
dry mining trials during the pilot phase, which confirmed that Kasiya's soft,
friable saprolite-hosted mineralisation can be efficiently extracted using
conventional dry mining methods. The trials, conducted on a 120m x 110m test
pit excavated to 20m depth, demonstrated that no drilling, blasting, crushing,
grinding or milling is required before processing the run-of-mine material.

Based on comprehensive evaluation criteria including safety, technical risk
factors, operational flexibility, infrastructure requirements, and capital and
operating costs, dragline mining was selected as the optimal method for
Kasiya's planned large-scale operation. The dragline approach offers
predominantly single-bench digging operations with extended reach
capabilities, resulting in fewer relocation operations and more consistent
material blending compared to alternative mining methods.

The dry mining fleet design directly supports the project's targeting of
industry-leading low operating costs and positions Kasiya as a long-life,
large-scale operation capable of meeting growing global titanium feedstock and
graphite demand.

Figure 5: Trial Mining operations at Kasiya during the 2024 pilot phase

 

DFS PROGRESSION

The completion of mining fleet design represents a critical component of the
DFS work program, building on previous milestones including geotechnical
investigations, continued product testwork, and signing of a memorandum of
understanding regarding power supply, with the Electricity Supply Corporation
of Malawi (ESCOM).

The DFS continues to progress including:

·    process plant design optimisation,

·    infrastructure and logistics planning, and

·    environmental and social impact assessments.

 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 announcement that relates to the OPFS, including
Production Targets, Ore Reserves, Processing, Mine Life, Infrastructure and
Capital and Operating Costs 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.

 

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