REG - Sovereign Metals Ltd - Monazite Containing Heavy Rare Earths at Kasiya
27/05/2026 07:00
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RNS Number : 8560F Sovereign Metals Limited 27 May 2026
NEWS RELEASE I 27 MAY 2026
MONAZITE CONTAINING CRITICAL HEAVY RARE EARTHS CONFIRMED ACROSS MULTIPLE PITS
AT KASIYA
KEY HIGHLIGHTS
· Monazite concentrate containing the most critical and highly valuable
heavy rare earth elements Dysprosium (Dy), Terbium (Tb) and Yttrium recovered
from four planned pits in the Kasiya DFS mine plan, including pits scheduled
for Year 1 production.
· DyTb and Yttrium oxide ratios in the Total Rare Earth Oxide (TREO)
basket ~7-times higher than world's five largest rare earth producers.
o Average 2.5% DyTb and 11.8% Yttrium within TREO basket vs. 0.4% DyTb and
1.7% Yttrium across the five largest rare earth producers.
o Highest ratios of up to 3.1% DyTb and 17.2% Yttrium found near-surface
(0-6m).
· U.S. Department of War describes heavy rare earth supply chain risk
as "a clear and present danger to our national security" - Assistant Secretary
of War for Industrial Base Policy Michael P. Cadenazzi Jr., testifying before
the Senate Armed Services Committee, 24 February 2026.
o MP Materials Corp., America's only fully integrated rare earth producer,
reports no measurable Dy, Tb or Yttrium.
· Western supply-chain decoupling has accelerated as DyTb and Yttrium
subject to Chinese export controls.
o On 20 April 2026, USA Rare Earth, Inc. agreed to acquire Serra Verde Group
for ~US$2.8 billion, underpinned by a 15-year U.S. government-backed offtake
with floor pricing.
· Monazite potentially a third revenue stream from the non-conductor
tailings stream of the DFS flowsheet - potential for no additional mining and
no new primary processing circuit - confirmation of this is in progress.
· Independent report shows potential pricing of US$16,000/t base case
(US$19,000/t high case) in 2026 (real), vs April 2026 Shanghai Metals Market
benchmark spot monazite price (min 54-55% TREO grade) of US$6,142/t for a
monazite product with identical TREO as these latest results.
Managing Director and CEO Frank Eagar commented:
"These results confirm that the monazite-hosted rare earth content first
reported in January 2026 is present in pits scheduled for the early years of
production at Kasiya. The monazite concentrate contains all four magnetic rare
earth elements - Neodymium, Praseodymium, Dysprosium and Terbium - plus highly
critical Yttrium. These elements appear to be recoverable from the current
tailings stream of our DFS flowsheet. We are advancing the additional
mineralogical and metallurgical work required to quantify the potential
economic upside to the DFS reported last month."
Sovereign Metals Limited (ASX:SVM; AIM:SVML; OTCQX:SVMLF) (Sovereign or the
Company) is pleased to announce significant heavy rare earth metallurgical
testwork results at its Kasiya Rutile-Graphite Project (Kasiya or the Project)
in Malawi. The testwork was conducted on monazite concentrates recovered from
four pits in the Project's Definitive Feasibility Study (DFS) mine plan.
The results confirm that the heavy rare earth content of Dy, Tb and Yttrium
first reported in January 2026 (See ASX Announcement dated 21 January 2026) is
present in pits scheduled for the early years of production at Kasiya, with
average TREO basket ratios approximately 7x higher than the world's five
largest rare earth producers.
Heavy rare earth content is highest in the near-surface (0-6m) which returns
DyTb and Yttrium ratios within the TREO basket materially above those of the
deeper horizon.
Table 1: Summary Results
Pit Light REE Heavy REE
NdPr (%) DyTb (%) Y (%)
Babbler 21.0 2.6 11.7
Kingfisher 20.5 2.7 12.5
Sparrow 20.9 2.5 11.9
Mousebird 21.2 2.4 11.3
Kasiya Four-pit Average 20.9 2.5 11.8
Near Surface (0-6m) 19.3 2.9 15.4
Deeper (6m+) 21.6 2.3 10.3
Top Five Producers Average REE Content 19.4 0.4 1.7
Note: Kasiya Four-pit Average calculated as average of per-pit TREO basket
ratios. See Appendix 1 & 2 for source detail.
The findings come as the U.S. accelerates efforts to decouple heavy rare earth
supply chains from China - a supply-chain risk the U.S. Department of War has
described as a matter of national security.
Kasiya, already at DFS stage with a US$2.2 billion pre-tax NPV(8), contains
the four magnetic rare earth elements plus highly critical Yttrium recoverable
from the DFS flowsheet as a potential by-product alongside rutile and
graphite.
An independent price report for a monazite concentrate has been prepared based
on the composition of a 60% TREO basket. Due to the exceptionally high
proportion of heavy rare earths within Kasiya's TREO basket, the independent
report has identified the potential for a premium to benchmark monazite
prices. The 2026 forecast base-case price is US$16,000/t (high case
US$19,000/t), against a current benchmark monazite concentrate (54-55% TREO
grade) price of approximately US$6,142/t based on the Shanghai Metals Market.
Figure 1: Combined DyTb and Yttrium content in the TREO basket of Kasiya
monazite concentrate (four-pit weighted average) vs the rare earth assemblages
reported by the five largest global rare earth producers
(Sources: See Appendix 2)
STRATEGIC IMPORTANCE OF DYSPROSIUM-TERBIUM AND YTTRIUM
Dy and Tb are heavy magnet rare earths essential for high-temperature
permanent magnets used in advanced defence systems, precision weapons,
aerospace applications and next-generation electric drivetrains.
Yttrium is a high-impact rare earth element critical for aerospace thermal
barrier coatings, radar and laser systems, high-performance alloys and
semiconductor manufacturing.
On 24 February 2026, the U.S. Assistant Secretary of War for Industrial Base
Policy, Michael P. Cadenazzi Jr., testified before the Senate Armed Services
Committee that on heavy rare earths China controls 95% of global output, with
the U.S. importing almost 100% of what it uses - 90% of that from China. Mr
Cadenazzi stated that this control provides Beijing with the ability to
weaponize these supply chains, describing the situation as "a clear and
present danger to our national security."
China's April 2025 export controls on Dy, Tb and Yttrium created immediate
supply tightness for Western manufacturers. On 6 January 2026, China announced
strengthened export controls on dual-use items to Japan, effective
immediately. Despite 15 years of diversification efforts, Japan remains
approximately 60% dependent on Chinese rare earth imports, and for heavy rare
earths Japan's dependence on China approaches 100%. The U.S. is 100% reliant
on imports for its Yttrium requirements.
Western Supply-Chain Strategy: Market Context
The strategic value of non-Chinese heavy rare earth supply has been
crystallised by recent corporate activity. On 20 April 2026, Nasdaq-listed USA
Rare Earth, Inc. (USA Rare Earth) announced a definitive agreement to acquire
Brazil's Serra Verde Group (Serra Verde) for approximately US$2.8 billion. The
acquisition is underpinned by a 15-year 100% U.S. Government backed offtake
agreement, with contractual price floors of US$110/kg for both Neodymium (Nd)
and Praseodymium (Pr), US$575/kg for Dy and US$2,050/kg for Tb.
Upon announcing the acquisition, USA Rare Earth described Serra Verde's
product as containing a high percentage of all four magnetic rare earths,
"including the most critical and highly valuable heavy rare earths Dysprosium,
Terbium and Yttrium." USA Rare Earth also positioned Serra Verde as the only
producer outside Asia capable of supplying all four magnetic rare earths at
scale, and noted that Serra Verde has secured a US$565 million mine
development finance package from the U.S. International Development Finance
Corporation.
On 20 January 2026, U.S. uranium and rare earth producer Energy Fuels Inc.
announced a US$299 million acquisition of ASX-listed Australian Strategic
Materials Limited, expanding its mine-to-metal-and-alloy rare earth platform
with the stated aim of becoming "the largest fully integrated producer of REE
materials outside of China."
These transactions crystallise the value that Western governments and capital
markets now ascribe to scaled, non-Chinese rare earth supply. Kasiya's
monazite concentrate contains all four magnetic rare earth elements - plus
Yttrium - at TREO basket ratios consistent with or exceeding benchmark
operations, potentially recovered as a by-product of a project that is already
at DFS stage with a US$2.2 billion pre-tax NPV(8).
BY-PRODUCT ECONOMICS: NEAR-ZERO INCREMENTAL COST
The monazite concentrates reported above are recovered from the non-conductor
tailings stream of the processing flowsheet specified in the Kasiya DFS. This
is material that would otherwise report to tailings.
Recovery as a by-product of the DFS-specified flowsheet could potentially
mean:
• No additional mining - the mine plan remains unchanged
• No new primary processing circuits
• No parallel rare-earth processing plant of the kind required by
primary rare earth producers
• Monazite is isolated from the existing non-conductor product stream
• No additional reagents required
In aggregate, monazite concentrate recovery is potentially achievable at
near-zero incremental costs relative to the DFS base case. Further work is
required to assess the capital and operating cost implications of any
downstream product separation or refining, and to characterise the mineralogy,
deportment, liberation and radioactive element (uranium and thorium) handling
requirements of the Kasiya monazite.
Figure 2: High-level DFS process flowsheet and additional potential steps
required for a monazite by-product
KASIYA MONAZITE INDEPENDENT PRICE FORECAST
Project Blue Group Limited (Project Blue), a specialist in critical minerals
market intelligence, prepared an independent price forecast for a monazite
mineral concentrate containing 60% TREO.
Project Blue's methodology values a contained Mixed Rare Earth Compound (MREC)
within a concentrate using ex-China rare earth oxide prices, applies a
payability factor reflecting commercial discounts, deducts for downstream
processing and transportation to Japan as a Western-aligned ex-China proxy,
and other realisation costs.
Table 2: Project Blue 2026 price estimates for a monazite concentrate with
TREO distribution in line with that observed in Sovereign's monazite testwork
to date
Scenario Payability factor MREC value Monazite concentrate (US$/kg)
(US$/kg)
Base case 60% 39.49 16.00
High case 70% 46.07 19.00
April 2026 monazite concentrate price (54-55% TREO grade) 6.14
Sources: Project Blue; Shanghai Metal Exchange
(https://www.metal.com/Concentrate/202403260008).
Project Blue's base-case forecast prices range from US$15.81/kg to US$16.00/kg
over 2026-2028. High-case prices range from US$18.78/kg to US$19.00/kg over
the same period.
Project Blue notes that prices for key rare earth products including NdPr
oxide, Tb oxide, Dy oxide and Yttrium oxide are commanding a premium in
ex-China markets relative to Chinese domestic prices, reflecting the limited
pool of non-Chinese suppliers and ongoing decoupling of Western and Chinese
rare earth supply chains.
The Project Blue forecast is independent commentary on potential pricing for a
monazite concentrate with a 60% TREO. Sovereign has not entered into any
offtake or sales agreement for monazite concentrate. Realised prices will
depend on commercial negotiation, market conditions at the time of sale, the
actual specifications of any concentrate produced and the terms of any offtake
agreement.
SAMPLE PROCESSING AND METHODOLOGY
Monazite concentrates were produced from bulk sampling sites across four pits
within the Kasiya DFS mine plan, namely Babbler, Kingfisher, Sparrow and
Mousebird.
The Babbler bulk samples were extracted at two locations using a 700mm spiral
auger and composited to represent planned pit depth or ROM feed material at
each borehole location. The bulk samples were processed through the company's
pilot plant to produce a 45µm to 2mm spiral Heavy Mineral Concentrate
(HMC). A 200kg portion of the spiral HMC was screened at 600µm and the
resultant 45µm to 600µm sand fraction was processed over the Wilfley wet
table to produce an HMC.
The Kingfisher, Sparrow and Mousebird bulk samples were composited from twin
pit and Air Core (AC) samples at several sites within each pit. The pit
composite bulk samples represent the 0m to 6m Ferruginous Pedolith (FERP) and
Mottled Clay (MOTT) weathering units, while the AC bulk composites represent
the +6m Pallid Saprolite (PSAP) and Saprolite (SAPL) weathering units.
The bulk composite samples of between 200kg and 1000kg were processed using
mechanical vibrating screens to produce a 45µm to 600µm sand fraction which
was further processed over the Wilfley wet table to produce an HMC.
Figure 3: Monazite rich HMC clearly observable from gravity separation of
non-conductor tailings (taken from samples disclosed in this announcement)
The Wilfley HMC of each bulk sample from the four pits were then processed
through the Corona Stat electrostatic separator to produce a monazite-bearing,
non-conductor product. A monazite-rich, non-conductor HMC was produced from
the Wilfley table processing of each non-conductor product from which a final
magnetic monazite concentrate was produced by magnetic separation. The
monazite concentrates were sent for X-ray fluorescence (XRF) and Inductively
Coupled Plasma (ICP) analysis.
NEXT STEPS
• Further detailed mineralogical characterisation of the monazite
across the pits tested, including liberation, grain size and deportment of
uranium and thorium.
• Additional metallurgical testwork to assess potential downstream
processing pathways for the monazite concentrate.
• Characterisation of monazite grades and recoveries and marketable
product volumes
• Study to assess the economic uplift from incorporating monazite as a
bolt-on to the existing DFS flowsheet.
• Continued engagement with potential offtake partners and government
stakeholders in relation to the heavy rare earth co-product opportunity.
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
Competent Persons Statement
The information in this report that relates to Metallurgical Testwork is based
on information compiled by Mr Andries Willem Kruger, a Competent Person, who
is a Member of the South African Council for Natural Scientific Professions, a
Recognised Professional Organisation' (RPO) included in a list promulgated by
ASX from time to time. Mr Kruger is employed by Sovereign and is a holder of
ordinary shares and unlisted performance rights in Sovereign. Mr Kruger 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 (and a Qualified Person under
the AIM Rules) as defined in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr
Kruger 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 the DFS (including Mine
Engineering, Mine Scheduling, Processing, Infrastructure, Capital and
Operating Costs, Production Target and Ore Reserves) is extracted from an
announcement dated 16 April 2026, 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 included in the
original announcement continue to apply and have not materially changed; and
c) the form and context in which the relevant Competent Persons' findings are
presented in this announcement have not been materially changed from the
original announcement.
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.
To view the announcement in full, including all figures and illustrations,
please refer to:
https://api.investi.com.au/api/announcements/svm/7aef9728-8c0.pdf
(https://api.investi.com.au/api/announcements/svm/7aef9728-8c0.pdf)
APPENDIX 1: ANALYSIS OF REE DISTRIBUTION IN KASIYA MONAZITE SAMPLES (%)
Pit Kingfisher Kingfisher Mousebird Mousebird Sparrow Sparrow Babbler Babbler
Interval 0-6m 6-20m 0-6m 6-20m 0-6m 6-20m 0-8m 8-20m
Origin 2 x pit composites 2 x AC composites 3 x pit composites 3 x AC composites 4 x pit composites 4 x AC composites KYSA0068 KYSA0069
La(2)O(3) (%) 15.4 18.0 17.1 18.2 16.2 18.5 18.1 17.5
CeO(2) (%) 35.7 39.2 37.7 39.2 36.1 39.3 37.6 38.7
Pr(6)O(11) (%) 4.3 5.0 4.7 4.9 4.4 5.0 4.9 4.8
Nd(2)O(3) (%) 14.1 16.5 15.7 16.6 14.6 16.7 16.4 15.9
Dy(2)O(3) (%) 2.6 1.9 2.2 1.7 2.4 1.7 2.1 2.1
Sm(2)O(3) (%) 2.9 3.2 3.1 3.3 2.9 3.2 3.2 3.1
Er(2)O(3) (%) 1.6 1.0 1.2 0.8 1.5 0.8 1.1 1.1
Eu(2)O(3) (%) 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.1
Gd(2)O(3) (%) 2.5 2.6 2.5 2.6 2.6 2.6 2.6 2.5
Ho(2)O(3) (%) 0.5 0.3 0.4 0.3 0.5 0.3 0.4 0.4
Lu(2)O(3) (%) 0.3 0.1 0.2 0.1 0.2 0.1 0.1 0.2
Tb(4)O(7) (%) 0.6 0.5 0.5 0.5 0.6 0.5 0.5 0.5
Tm(2)O(3) (%) 0.2 0.1 0.1 0.1 0.2 0.1 0.1 0.1
Yb(2)O(3) 1.9 0.9 1.3 0.9 1.7 0.8 1.0 1.1
Y(2)O(3) (%) 17.2 10.4 13.1 10.5 16.0 10.1 11.5 11.9
TREO (%) 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
U (ppm) 7,471 5,482 7,064 5,872 8,143 6,184 6,250 6,307
Th (ppm) 17,587 16,962 18,334 16,315 18,417 16,839 15,854 17,296
APPENDIX 2: COMPANY SPECIFIC SOURCES
Project Company Status Source Data Link
Bayan Obo China Northern Rare Earth (Group) High-Tech CO. Ltd Producing Rare Earth Exchanges rareearthexchanges.com/project/bayan-obo/
(8-Feb-25)
Maoniuping China Rare Earth Group Producing Rare Earth Exchanges https://rareearthexchanges.com/project/maoniuping/
(8-Feb-25)
Mt Weld Lynas Rare Earths Ltd. Producing Vara Mada Feasibility Study https://www.energyfuels.com/wp-content/uploads/2026/01/FS-Vara-Mada-Project-Report-NI43-101-FINAL-01.07.2026.pdf
NI43-101 & S-K 1300 Technical Summary
(7-Jan-26)
Mountain Pass MP Materials Corp. Producing SEC FILING: 10-K - Mineral Resource Estimate https://d18rn0p25nwr6d.cloudfront.net/CIK-0001801368/37126578-26fe-49e0-b0d2-12c6053a5a1b.pdf
(28-Feb-25)
Weishan China Rare Earth Group Producing Rare Earth Exchanges rareearthexchanges.com/project/weishan/
(8-Feb-25)
APPENDIX 3: DRILL HOLE COLLAR DATA AND LOCATION MAP
Borehole ID Type Easting Northing Elevation Dip Depth
KYSA0068 Spiral Auger(700mm) 543797 8470001 1117 -90 15
KYSA0069 Spiral Auger(700mm) 543899 8470502 1122 -90 21
KYAC0479 Air Core 543499 8471502 1118 -90 20
KYAC0480 Air Core 543299 8472101 1120 -90 18
KYAC0481 Air Core 544299 8471700 1125 -90 19
KYAC0482 Air Core 544700 8472099 1132 -90 20
KYAC0483 Air Core 543200 8470200 1120 -90 20
KYAC0484 Air Core 543100 8469901 1125 -90 20
KYAC0485 Air Core 543400 8469601 1121 -90 14
KYAC0486 Air Core 543900 8468101 1139 -90 20
KYAC0487 Air Core 544500 8468699 1138 -90 20
KYPIT0176 Pit 544300 8471701 1125 -90 6
KYPIT0177 Pit 544701 8472099 1132 -90 6
KYPIT0178 Pit 543299 8472102 1120 -90 6
KYPIT0179 Pit 543498 8471502 1119 -90 6
KYPIT0180 Pit 543200 8470201 1120 -90 6
KYPIT0181 Pit 543101 8469901 1126 -90 6
KYPIT0182 Pit 543399 8469601 1121 -90 6
KYPIT0183 Pit 543900 8468102 1139 -90 6
KYPIT0184 Pit 544500 8468698 1138 -90 6
Figure 3: Plan view of drill locations at the Kasiya Project
APPENDIX 4: RAW ASSAY DATA
Pit Kingfisher Kingfisher Mousebird Mousebird Sparrow Sparrow Babbler Babbler
Interval 0 - 6m +6m 0 - 6m +6m 0 - 6m +6m 0 - 8m 1 - 20m
Origin 2 x pit composites 2 x AC composites 3 x pit composites 3 x AC composites 4 x pit composites 4 x AC composites KYSA0068 ROM KYSA0069 ROM
La % 1.37 1.91 2.29 0.89 1.55 1.39 3.62 1.78
Ce % 3.03 3.97 4.81 1.83 3.29 2.82 7.17 3.77
Pr % 0.37 0.51 0.62 0.23 0.41 0.36 0.96 0.47
Nd % 1.26 1.76 2.11 0.82 1.4 1.26 3.29 1.63
Dy % 0.23 0.21 0.29 0.09 0.23 0.13 0.43 0.21
Sm % 0.26 0.35 0.42 0.16 0.28 0.25 0.65 0.32
Er % 0.15 0.11 0.17 0.04 0.15 0.06 0.22 0.12
Eu % 0.02 0.02 0.03 0.01 0.02 0.01 0.04 0.01
Gd % 0.23 0.28 0.34 0.13 0.25 0.2 0.52 0.26
Ho % 0.05 0.03 0.06 0.01 0.05 0.02 0.07 0.04
Lu % 0.03 0.01 0.03 0.01 0.02 0.01 0.03 0.02
Tb % 0.05 0.06 0.07 0.03 0.05 0.04 0.1 0.05
Tm % 0.02 0.01 0.02 0.01 0.02 0.01 0.02 0.01
Yb % 0.17 0.1 0.18 0.05 0.17 0.07 0.21 0.12
Y % 1.42 1.02 1.61 0.48 1.41 0.7 2.11 1.12
APPENDIX 5: 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 Bulk samples are prepared using material extracted from manual dug pits, AC
specialised industry standard measurement tools appropriate to the minerals drilling and 700mm spiral auger drilling.
under investigation, such as down hole gamma sondes, or handheld XRF
instruments, etc). These examples should not be taken as limiting the broad · 0-6m composites are composited from equal weights of 1m pit face
meaning of sampling. samples.
· +6m composites are composited from equal weights of 1m AC
samples.
ROM mines are composited from equal weights of 1m spiral auger samples.
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.
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.
MSA Group Resource Geologists completed site visits and reviewed Standard
Operating Procedures (SOPs) for the collection and processing of drill samples
and found them to be fit for purpose. The primary composite sample is
considered representative for this style of HM and graphite mineralisation.
Aspects of the determination of mineralisation that are Material to the Public Logged mineralogy percentages and lithology/regolith information are used to
Report. In cases where 'industry standard' work has been done this would be assist in determining compositing intervals where required.
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
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 All sampling was carried out vertically to best intersect the horizontal
blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or weathering and grade layers.
standard tube, depth of diamond tails, face‐sampling bit or other type,
whether core is oriented and if so, by what method, etc). All material of interest is in the weathered zones located above the saprock
boundary, so no collection of oriented core was possible or warranted.
Drill Sample Recovery Method of recording and assessing core and chip sample recoveries and results All sampling was carried out vertically to best intersect the horizontal
assessed. weathering and grade layers.
All material of interest is in the weathered zones located above the saprock
boundary, so no collection of oriented core was possible or warranted.
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.
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.
Logging Whether core and chip samples have been geologically and geotechnically logged AC 1m intervals are geologically logged using company codes. A small
to a level of detail to support appropriate Mineral Resource estimation mining representative sample is collected for each 1m interval and placed in chip
studies and metallurgical studies. 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 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 AC hole samples are dried, riffle split and composited. Samples are collected
sampled wet or dry. and homogenised prior to splitting to ensure sample representivity. ~1.5kg
composite samples are processed.
Where drillhole lengths are composited into longer samples for processing, 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 MSA
preparation technique. 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.
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.
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 Monazite (Magnetic concentrate)
procedures used and whether the technique is considered partial or total.
All sample preparation is completed at Sovereign Metals Malawi onsite
laboratory (SSL) located in Lilongwe. The sample preparation methods are
considered quantitative to the point where a non-conductor magnetic
concentrate is generated.
Heavy Mineral Concentrates (HMC) are produced from bulk samples by gravity
separation from spirals and wet table processing. The HMC is processed through
a Corona Stat electromagnetic separator to produce a monazite-bearing
non-conductor product. The non-conductor product is further processed over a
Wilfley wet table to produce a non-conductor HMC.
A monazite-rich magnetic concentrate is produced by processing the
non-conductor HMC at 16800G (2.9Amps) though a Carpco magnetic separator.
The magnetic concentrates are sent to Scientific Servies South Africa for
quantitative XRF analysis. Samples are analysed for: TiO2, Nd2O3, CeO2, La2O3,
BaO, HfO2, Nb2O5, ZrO2, Y2O3, Fe2O3, MnO, Cr2O3, V2O5, CaO, K2O, P2O5, SiO2,
Al2O3, MgO, NaO2, Th and U.
The magnetic concentrates are sent to Scientific Servies South Africa for
quantitative ICP-OES analysis. Samples are analysed for REE and Y.
For geophysical tools, spectrometers, No pXRF methods are used for quantitative determination.
handheld XRF instruments, etc., the parameters used in determining the
analysis including instrument make and model, reading times, calibrations
factors applied and their derivation, etc.
Nature of quality control procedures Mass balance checks are used as a quality control measure in bulk sample
processing; sample are taken at various stages of the flowsheet.
adopted (e.g. standards, blanks, duplicate, external laboratory checks) and
whether acceptable levels of accuracy (i.e. lack of bias) and precision have Standard Reference Material is included in all sample batched sent to external
been established. laboratories.
Verification of sampling & assaying The verification of significant intersections by either independent or Bulk processing and REE results are reviewed internally by Sovereign technical
alternative company personnel. personnel as well as consultants.
The use of twinned holes. Bulk sample composites are generated from AC, pit and spiral auger where twin
holes were drilled during Resource Estimation drilling programs.
Documentation of primary data, data entry procedures, data verification, data Drilling data is collected electronically using coded templates and logging
storage (physical and electronic) protocols. software. This data is then imported to a SQL Database and validated both
automatically (on upload) and manually (by viewing sections).
Bulk sample processing data and assay results are recorded in internal data
files.
Discuss any adjustment to assay data. No adjustments are made to assay data.
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 The digital terrane model (DTM) was generated by wireframing a 20m-by-20m
lidar drone survey point array, commissioned by Sovereign in March 2022. Major
control. 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 (cemeteries, pits, mounds, etc.)
Data spacing & distribution Data spacing for reporting of Exploration Results. Not applicable for current REE assessment work. Samples from existing resource
drilling and pitting is used to generate bulk samples.
Whether the data spacing and distribution is sufficient to establish the Not applicable for current REE assessment work. Samples from existing resource
degree of geological and grade continuity appropriate for the Mineral Resource drilling and pitting is used to generate bulk samples where geological
and Ore Reserve estimation procedure(s) and classifications applied. continuity is deemed sufficient.
Whether sample compositing has been applied. ROM bulk samples are composited to represent the planned DFS pit depth at the
material extraction location.
Bulk samples were composited to represent pedolith and saprolith weathering
units.
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 grid.
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 South
Africa and Australia. Samples are again securely stored once they arrive and
are processed at respective laboratories.
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 No audits of the Monazite work have been completed. Independent consultant
Chris Le Roux of Pro Nexus Consult has peer reviewed the results relating to
Monazite.
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
material issues with third parties such as joint ventures, partnerships, Retention Licences (RLs) under the Mines and Minerals Act 2019 (Malawi), held
overriding royalties, native title interests, historical sites, wilderness or in the Company's wholly-owned, Malawi-registered subsidiaries: EL0609,
national park and environment settings. EL0582, EL0561, EL0657, EL0710 and RL0035-0046.
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 is a first-mover in the discovery and definition of residual rutile,
monazite 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 deposit type is considered a residual placer formed by the intense
weathering of rutile-rich basement paragneisses and variable enrichment by
elluvial processes.
Rutile and Monazite 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).
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. Releases included all collar and
drill holes: easting and northings of the drill hole collar; elevation or RL composite data and these can be viewed on the Company website.
(Reduced Level-elevation above sea level in metres of the drill hole collar);
dip and azimuth of the hole; down hole length and interception depth; and hole There are no further drill hole results that are considered material to the
length 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 relevant Monazite data 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.
and/or minimum grade truncations (e.g. cutting of high-grades) and cut-off
grades are usually Material and should be stated. No cutting has been applied
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 N/A
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 and far North. 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 and far North 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.
Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts Refer to Appendices 3 & 4.
should be included for any significant discovery being reported. These should
include, but not be limited to a plan viewof the drill collar locations and
appropriate sectional views.
Balanced Where comprehensive reporting of all n/a
reporting Exploration Results is not practicable, representative reporting of both low
and high-grades and/or widths should be practiced to avoid misleading
reporting of exploration results.
Other substantive exploration data Other exploration data, if meaningful and material, should be reported Sample quality (representivity) is established by statistical analysis of
including (but not limited to: geological observations; geophysical survey comparable sample intervals.
results; geochemical survey results; bulk samples - size and method of
treatment; metallurgical test results; bulk density, groundwater, geotechnical
and rock characteristics; potential deleterious or contaminating substances.
Further work The nature and scale of planned further work (e.g. test for lateral extensions Planned work to include XRF, ICP and Qemscan analysis on magnetic fractions
or depth extensions or large-scale step-out drilling). produced in Lilongwe from the 2025 Measure Resource AC drilling. Focus will be
in REE ratios related to weathering zones as well as Th and U content as well
as mineralogical characteristics of the REE hosting minerals.
Further work will include bulk sample processing to isolate monazite/xenotime
product using the electrostatic flow sheet developed for Kasiya and gravity
and magmatic processing of non-conductor fraction.
Diagrams clearly highlighting the areas of possible extensions, including the Refer to and plan views disclosed in previous announcements. These are
main geological interpretations and future drilling areas, provided this accessible on the Company's website as discussed above.
information is
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