REG - Sovereign Metals Ltd - Kasiya Definitive Feasibility Study Results
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RNS Number : 7038A Sovereign Metals Limited 16 April 2026
NEWS RELEASE I 16 APRIL 2026
KASIYA DEFINITIVE FEASIBILITY STUDY RESULTS
DFS Confirms Potential for Sovereign to Redefine Titanium Metal and Graphite
Supply Chains
Rio Tinto Technical Expertise | Real-World Pilot Mining Validation
OUTSTANDING FINANCIAL RETURNS
4 Steady State annual EBITDA US$476M and Free Cash Flow (pre-tax, unlevered)
US$452M
4 Total revenue of US$16.2Bn over 25-year initial mine life, with potential
for mine life extensions
4 Pre-tax NPV₈ of US$2.2 billion
4 NPV/Capex ratio of 3.0x - capital expenditure to first production of US$727
million
4 Operating cost of just US$450/t product (FOB Nacala) - underpinning strong
margin resilience across commodity cycles
GLOBAL LEADER ACROSS TWO CRITICAL MINERALS SUPPLY CHAINS
4 Positioned to become the world's largest producer of both natural rutile
(222ktpa) and natural flake graphite (275ktpa)
4 Lowest-cost graphite producer globally at or beyond pre-feasibility stage -
including China
4 Titanium and graphite both designated as Critical Minerals by the United
States and the European Union, highlighting their strategic importance to
Western supply chains
4 Free-dig orebody requiring no pre-strip, drilling or blasting with a simple
low-energy processing flowsheet
4 Established export infrastructure: hydropower grid, heavy-haul rail, port at
Nacala
BANKABLE DEVELOPMENT PATHWAY
4 DFS completed under the oversight of the Sovereign-Rio Tinto Technical
Committee
4 Data obtained from Pilot Mining Program, completed with technical input from
Rio Tinto, provided real-world inputs across key DFS workstreams
4 DFS incorporates environmental and social workstreams aligned with IFC
performance standards; World Bank/IFC Collaboration Agreement in place as
potential co-lead mandated lead arranger for project financing
4 Non-binding offtake MOUs covering over 50% of Stage 1 rutile production
(Mitsui) and over 35% of coarse flake graphite sales (Traxys)
HEAVY RARE EARTH POTENTIAL NOT INCLUDED IN DFS - EVALUATION UNDERWAY
4 Monazite concentrate recovered from rutile processing circuit with
exceptionally elevated levels of heavy rare earths Dysprosium, Terbium and
Yttrium
4 Potential third revenue stream at minimal incremental cost - all three
elements subject to Chinese export restrictions
4 Dedicated monazite evaluation program now underway to assess scale, recovery
and economic potential
Sovereign Metals Limited (ASX:SVM; AIM:SVML; OTCQX:SVMLF) (Sovereign or the
Company) is delighted to announce the results of the Definitive Feasibility
Study (DFS or the Study) for its Kasiya Rutile-Graphite Project (Kasiya or the
Project) in Malawi. The DFS builds on the outcomes of the Optimised
Pre-feasibility Study (OPFS) and on empirical data from the Pilot Mining and
Rehabilitation Program (Pilot Mining). The DFS was undertaken in accordance
with a scope of work approved by, and with technical input and oversight from,
the Sovereign-Rio Tinto Technical Committee and, where applicable, conforms to
the World Bank Group's International Finance Corporation (IFC) Performance
Standards to enhance bankability of the Project.
Managing Director and CEO Frank Eagar commented:
"The completion of this DFS marks a defining milestone for Kasiya and for the
global titanium and graphite supply chains. To deliver a DFS of this quality,
depth and confidence, rarely achieved by a pre-production company, reflects
the calibre of partnerships that Sovereign has assembled around this project:
Rio Tinto's technical expertise, alignment with IFC Performance Standards
under our Collaboration Agreement, and offtake interest driven by U.S. and
Japanese supply chain security priorities. The successful completion of
large-scale field trials, combined with the expertise of our experienced
owner's team and the technical support provided by Rio Tinto, reinforces
Kasiya's potential to be a long-life, low-cost, and reliable source of two
critical and globally strategic minerals. Kasiya is not simply a mining
project - it is a globally strategic asset."
TABLE 1: Key DFS Metrics (Steady State)
OPERATING METRICS Units Results
Initial Life of Mine (LOM) Yrs 25
Total Ore Mined Mt 536
Phase 1 Plant Throughput (Yrs 1-4) Mtpa 12
Phase 2 Plant Throughput (Yrs 5-25) Mtpa 24
Annual Rutile Production (95%+ TiO(2)) ktpa 222
Annual Graphite Production (96% TGC) ktpa 275
FINANCIAL PERFORMANCE
Total Revenue US$M 16,210
Annual Revenue US$M 728
Annual EBITDA US$M 476
Annual Free Cash Flow (pre-tax, unlevered) US$M 452
NPV(8) (real, pre-tax) US$M 2,204
IRR (pre-tax) % 23%
OPERATING AND CAPITAL EXPENDITURE
Capex to First Production US$M 727
Total LOM Development Capex US$M 1,239
Total LOM Sustaining Capex US$M 431
Operating Costs (FOB Nacala) US$/t product 450
Note: Steady State is defined as years of operation during which total
run-of-mine is at full capacity of 24 Mtpa (i.e., years 5 to 23). All results
are presented on a 100% project basis.
DFS CONFIRMS SOVEREIGN TO REDEFINE TITANIUM METAL AND GRAPHITE SUPPLY CHAINS
Kasiya, located in central Malawi, hosts the world's largest natural rutile
deposit and the second-largest flake graphite deposit. Both titanium and
graphite are officially classified as Critical Minerals by the United States
and the European Union. At steady-state, Kasiya is forecast to deliver
approximately 222 kt of rutile and 275 kt of graphite annually - positioning
Sovereign as potentially the world's largest producer of both natural rutile
and natural flake graphite.
Natural Rutile - Addressing Titanium Supply Chain Vulnerability
Natural rutile is the purest and highest-grade form of naturally occurring
titanium feedstock, with titanium dioxide (TiO₂) content typically exceeding
95%. It is the preferred feedstock for titanium sponge production and
high-specification titanium alloy applications in aerospace, defence and
medical industries.
According to the United States Geological Survey (USGS), the United States
currently produces zero titanium sponge domestically and is 100%
import-reliant, with record imports of 44,000 tonnes in 2025. Japan supplies
over 70% of the US's titanium sponge imports, and Japanese producers
themselves depend on securing reliable natural rutile feedstock. Meanwhile,
Western-qualified titanium sponge production has declined 9% to approximately
81,000 tonnes, while China's share of global sponge production has risen to
70%.
Figure 1: Kasiya contained rutile resource vs. other rutile-bearing titanium
deposits (Mt)
(Source: See Appendix 2)
Global primary rutile supply is in structural decline. Rutile reserves at
Leonoil Company Limited's Area 1 Mine are expected to be depleted within the
next 2-3 years, and Energy Fuels Inc. has recently ceased operations at its
Kwale Mine in Kenya. With no other large-scale primary rutile developments at
an advanced stage, Sovereign is positioned to become the only large-scale
primary producer of natural rutile globally.
Kasiya's natural rutile has demonstrated premium chemical characteristics and
suitability across all major end-use applications, with high TiO₂ content,
low impurity levels, and favourable particle size distribution - positioning
it as a preferred high-purity feedstock within a structurally undersupplied
market.
Kasiya's 222ktpa of natural rutile would represent a significant addition to
Western-accessible non-pigment rutile supply, directly addressing the
structural feedstock deficit facing the US, Japanese and European titanium
industries.
Figure 2: United States Lockheed Martin F35-B Lightning II aircraft (approximately 35% titanium) prepares to launch from Kadena Air Base, Okinawa, Japan.
Natural Flake Graphite - Lowest-Cost Producer Outside Chinese Control
Graphite is essential to lithium-ion battery anodes, refractories and a range
of advanced industrial applications. China currently dominates global natural
graphite production and processing, accounting for approximately 77% of
worldwide output and an even larger share of battery-grade anode material³.
The US has designated graphite as a critical mineral and is actively seeking
to diversify supply away from Chinese-controlled sources, including through
the US$12 billion Project Vault strategic reserve initiative.
Kasiya's incremental cost of graphite production is estimated at US$216/t.
Based on public disclosures by listed graphite developers with studies at or
beyond the pre-feasibility stage, this positions Sovereign as the lowest-cost
graphite producer globally, including China (see Appendix 3).
Compared with single-commodity hard-rock graphite operations, Kasiya benefits
from a soft, free-dig orebody and a simple processing flowsheet. The majority
of operating costs are allocated to the primary rutile stream, enabling the
production of high-purity, coarse-flake graphite at materially lower costs.
Independent testing has confirmed that Kasiya graphite performs exceptionally
well as an anode material for lithium-ion batteries, while also meeting
specifications for traditional industrial markets such as refractories.
Figure 3: Natural flake graphite C1 cash costs. (Source: See Appendix 3. China
cost from Benchmark Minerals Intelligence)
Figure 4: Utility-scale battery energy storage system using graphite anodes -
California, USA.
SUMMARY OF KEY DFS WORKSTREAMS
Following input from world-class consultancies, Sovereign's highly experienced
owners' team, and subject matter experts from Rio Tinto, the DFS has
reconfirmed that Kasiya will be a leading future supplier to two distinct
strategic critical minerals supply chains and outside of Chinese control -
natural rutile for the titanium industry and natural flake graphite.
The DFS outlines a large-scale, long-life operation that delivers substantial
volumes of premium-quality natural rutile and graphite while generating
significant returns across a range of price scenarios.
The DFS for Kasiya has been prepared in accordance with the JORC Code (2012),
with an estimated accuracy range of ±15% for Capital Expenditure (Capex) and
±10% for Operating Costs (Opex).
Dry Mining Method Confirmed
Using real-world data collected from the Pilot Mining, the DFS confirms a dry
mechanical mining method using draglines and 100t rigid dump trucks. The soft,
free-dig saprolite orebody requires no drilling, blasting, crushing or
milling. A two-bench approach (5m top cut, up to 15m bottom cut) keeps the
draglines above the water table, eliminating the need for production equipment
below groundwater level. This represents a significant de-risking step from
the hydro-mining method originally considered in the original Pre-feasibility
Study (PFS).
No Conventional Tailings Storage Facility
A major advancement in the DFS is the elimination of the conventional Tailings
Storage Facility (TSF) leading to a significant reduction in the mining
footprint and providing a flexible, lower-risk tailings management solution.
All tailings will be stored via hydraulic co-disposal backfilling of mined-out
pits, designed in compliance with the Global Industry Standard on Tailings
Management (GISTM), aiming for zero harm to people and the environment. The
50:50 fines-to-sand backfill ratio closely matches the existing soil profile,
supporting progressive rehabilitation. This has also reduced the raw water dam
wall height from 23m to 20.7m and storage capacity from 16.4 to 11Mm³.
Hydropower-Sourced Grid Electricity
The DFS is based on connection to Malawi's national hydropower grid via a
132kV overhead line to the Nkhoma substation. Electricity Supply Corporation
of Malawi Limited (ESCOM) has confirmed significant grid expansion is
underway, including a 400kV Mozambique interconnector (2025) and the 375MW
IFC/World Bank-funded Mpatamanga hydropower station (2030). Grid connection
delivers substantially lower power costs and a favourable emissions profile.
Processing Flowsheet
Ore will be trucked to the processing plant for scrubbing and screening before
entering the Wet Concentration Plant (WCP). The WCP employs a low-energy
gravity separation process to produce a Heavy Mineral Concentrate (HMC). The
HMC is then fed to the Mineral Separation Plant (MSP), where electrostatic and
magnetic separation yield premium-quality rutile (+95% TiO₂), suitable as a
direct feedstock for titanium sponge production or use in high-end titanium
alloy applications, including aerospace and defence. Graphite-rich concentrate
recovered from the spirals is processed in a dedicated flotation plant,
producing a high-purity, high-crystallinity, coarse-flake graphite product.
Independent testing has confirmed that Kasiya graphite performs exceptionally
well as an anode material for lithium-ion batteries and meets specifications
for traditional industrial markets such as refractories.
Dual Plant Configuration
The DFS confirms a staged development with two 12Mtpa processing plants -
South Plant from Year 1 and North Plant from Year 5 - positioned at the
respective resource centres of gravity to minimise haulage distances and
costs. The configuration provides operational flexibility and a phased capital
profile.
Logistics and Export Infrastructure
Kasiya's products will be railed directly from a purpose-built dry port at the
mine site eastward along the Nacala Logistics Corridor to the container
terminal at the Port of Nacala on the Indian Ocean. The existing heavy-haul
rail line and deep-water port provide a proven, operational export route - a
significant infrastructure advantage over comparable undeveloped projects.
Product transport cost is estimated at US$117/t product (FOB Nacala).
Rutile and Graphite Pricing
The DFS adopts a life-of-mine weighted-average realised rutile price of
US$1,670/t (real, FOB Nacala), based on an independent TZMI market study.
Japanese titanium metal producers OSAKA Titanium Technologies Co., Ltd. (Osaka
Titanium) and Toho Titanium Co., Ltd. (Toho Titanium) are expected to drive
the growth in rutile demand for titanium manufacturing over the next 10 years.
Graphite pricing is based on an independent Benchmark Minerals Intelligence
(BMI) price forecast, resulting in a life-of-mine average price of
approximately US$1,288/t (FOB Nacala) - effectively in line with the OPFS
assumption of US$1,290/t. The graphite basket price is derived from FOB China
benchmarks, adjusted for an East Africa premium and weighted by Kasiya's
concentrate flake size distribution.
IFC Performance Standards Integrated into Design
The DFS has been prepared in alignment with IFC Performance Standards, with a
comprehensive Environmental and Social Impact Assessment (ESIA) nearing
completion and the full suite of environmental and social specialist studies
completed. Sovereign's established on-the-ground social team of 22 core staff
and 90-member Community Liaison Team represent a level of social preparedness
rarely achieved at DFS stage.
Mining and Rehabilitation Trials - Proven in Practice
Large-scale mining and rehabilitation trials were completed during the DFS
period, covering excavation, backfilling, soil remediation and crop
establishment. During Pilot Mining, the Company successfully completed dry and
hydraulic mining trials, excavating a test pit at Kasiya. The test pit covered
the planned area of 120 metres by 110 metres and was excavated to a depth of
20 metres through the weathered ore at Kasiya.
Post mining, the rehabilitated pit has achieved maize yields of 5.2 tonnes per
hectare within six months of backfilling - over five times the local community
average of approximately 1 tonne per hectare. The Pilot Mining validated the
progressive rehabilitation approach and confirmed that mined land can be
returned to productive agricultural use within one to two years.
Enquiries
Frank Eagar, Managing Director & CEO Sapan Ghai, CCO
South Africa / Malawi London
+27 21 140 3190 +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
To view this announcement in full, including the Summary Section of the DFS
and all images and figures, please refer to:
https://api.investi.com.au/api/announcements/svm/b6f76c34-dfa.pdf
(https://api.investi.com.au/api/announcements/svm/b6f76c34-dfa.pdf) .
SUMMARY OF MATERIAL ASSUMPTIONS
Material assumptions used in the estimation of the production target and
associated financial information are set out in the following table.
TABLE 2: Material assumptions of the Kasiya DFS
Assumption Units Inputs / Outcome
Maximum accuracy variation - Capital costs % ±15%
Maximum accuracy variation - Operating costs % ±10%
Minimum Life of Mine Years 25 years
Annual average throughput - Phase 1 tpa 12,000,000
Annual average throughput - Phase 2 tpa 24,000,000
Head grade - rutile % 0.95%
Recovery - rutile % 97.6%
Product grade (TiO2) - rutile % 95%+
Head grade - graphite % 1.56%
Recovery - graphite(1) % 71.9%
Product grade (TGC) - graphite % 96%
Annual production (average steady state LOM) - rutile tpa 222,000
Annual production (average steady state LOM) - graphite tpa 275,000
Sales Price - rutile (average LOM) US$/t FOB 1,670
Sales Price - graphite (average LOM) US$/t FOB 1,288
Government Royalty % 5% of gross revenue
Vendor Royalty % 2% of gross profit
Community Development Fund % 0.45% of gross revenue
Phase 1 Capital (12Mtpa South Plant) US$M 727
Phase 2 Capital (12Mtpa North Plant) US$M 511
Sustaining Capital US$M 431
Operating Costs excluding royalties (LOM) - FOB Nacala US$/t 450
Operating Costs including royalties (LOM) - FOB Nacala US$/t 517
Discount Rate % 8%
(1) Graphite recovery is 71.9% total, which is discounted by 3% in the first
two years of operation, 2.5% in year 3, 2.0% in year 4, and 1.5% in year 5
thereafter.
ORE RESERVE STATEMENT
The information that relates to Ore Reserves was compiled by Mr Frikkie Fourie
(BEng, Pr. Eng, MSAIMM) of Moletech, who takes overall responsibility for the
Ore Reserve as Competent Person (refer to Competent Persons Statement below).
Mr Fourie is a Member of The South African Institute of Mining and Metallurgy,
also a member of the Engineering Council of South Africa (ECSA) and has
sufficient experience, which is relevant to the style of mineralisation and
type of deposit under consideration, and to the activity he is undertaking, to
qualify as Competent Person in terms of the JORC Code (2012).
Mr Fourie has been engaged by Sovereign and consulted on the PFS, OPFS, DFS,
and trial mining program completed in 2024-2025, including approximately two
months spent on site at Kasiya in 2024.
The updated MRE was used as the basis for the DFS Ore Reserve Estimate and was
prepared by Sovereign under the guidance and review of Independent Competent
Person, Mr Jeremy Witley of MSA Group South Africa. The updated MRE followed
additional drilling, which significantly upgraded the Indicated to Measured
Mineral Resource Estimate. This new geological model also includes moisture
percentages from each respective lithology so that the moisture can be
accounted for in the equipment selection to ensure the production target of
12Mtpa of dry ore can be achieved at each of the two plants.
Mineral Resources were converted to Ore Reserves in line with the material
classifications which reflect the level of confidence within the resource
estimate. The Ore Reserve reflects that portion of the Mineral Resource which
can be economically extracted by open pits utilising mechanical mining
methodologies.
In accordance with the JORC Code (2012), the Kasiya Proved and Probable Ore
Reserve is based on only Measured and Indicated classified Mineral Resources.
The reported MRE is inclusive of the resources converted to Ore Reserves.
The Ore Reserve has no allowance for mining dilution and ore loss on the basis
that all material within the shells is classified and extracted as ore.
The open pit geometries developed for the purposes of mine planning, and which
define the subsequent Ore Reserve, are based on NPVS pit shells edited to
comply with practical mining requirements and identified exclusion zones. Due
to the shallow nature of the geometries, and there being no requirements for
ramp access to the bottom of the pits, traditional mine designs were not
developed. The final geometries were developed on the basis of applying a
rutile cut-off grade ranging from 0.7% to 1.5% RUT95. These cut-offs are all
considerably higher than the Project breakeven cut-off grade which lies
between 0.4% and 0.5% RUT95.
The Ore Reserve estimate comprises 536Mt of Proven and Probable Ore grading at
0.95% RUT95 and 1.56% TGC.
The Ore Reserve estimate is summarised in Table 1 below, along with the
associated cut-off grade used to define the shell.
TABLE 1: Kasiya March 2026 Model - Ore Reserve - Rutile (Rut95) + Graphite
(TGC)
Class Tonnes Rutile Grade Rutile TGC TGC Rutile Eq. Dry BD
(Mt) (%) (Mt) (%) (Mt) (%)
Proved 78 1.03 0.80 1.65 1.28 1.87 1.67
Probable 458 0.94 4.29 1.54 7.07 1.47 1.62
Total 536 0.95 5.09 1.56 8.35 1.39 1.62
The Total Ore Reserve is all rutile and graphite mineralisation within an
optimised open pit shell using a Rut95 concentrate revenue price of net
US$1,286.81/t and a Graphite product price of net US$1,099.51/t; Mine Opex
US$1.35/t; Process Opex US$5.44/t; Rutile recovery of 97.6%; Average Graphite
recovery of 70.4%.
Pit Optimisation
Open pit optimisation utilising NPVS software was carried out on the Kasiya
deposit using Measured and Indicated Mineral Resources only (in accordance
with the JORC Code (2012)). The latest parameters available were used to
determine the economic extent of the open pit excavation. The process plant
production parameters were supplied by Sovereign with an initial rate of
12Mtpa from year 3 to the South MSP and an additional 12Mtpa to the North MSP
from year 7 for a total annual processing rate of 24Mtpa.
The intention to dry mining the defined Ore Reserve means that there is the
ability to selectively mine, stockpile ore and all material can be selectively
trucked to the plant as feed. Therefore, all material within the "shell" will
be extracted and fed to the plant as ore and any interstitial waste and/or
sub-economic grade material will be likewise treated as diluent material.
For the production schedule on which the Ore Reserve is based all material
within the shell was treated as "ore" to ensure the appropriate dilution was
captured.
Mineable Pit Geometries
Based on the cut-off grades applied the mining areas were further interrogated
to determine the potential recoverable mining inventory. The interrogation
process applied the following constraints to determine the bulk mining
boundaries:
· A minimum depth of 2m and a maximum of 20m for the dry mining method.
· Removal of any small, isolated pits.
· Pit extents limited to mineable areas and to remain outside of
identified exclusion areas wherever reasonably possible. Sovereign identified
all local village areas and areas of cultural or environmental significance
within the potential mining envelope that should not be disturbed during the
mining phase of the Project.
Ore Reserve Notes
The 2026 Ore Reserves for the Kasiya deposits have been reported according to
the JORC Code (2012).
The estimation of the Ore Reserves followed a process of pit optimisation,
final pit shell selection and production scheduling:
· The Mineral Resource Estimation model was prepared by Sovereign under
guidance and review of Competent Person Jeremy Witley of MSA Group South
Africa.
· Due to the nature of the deposit and all mined material from the pits
being sent to the MSP (except for a small portion of material (8.4Mt), that
can easily be isolated and removed as waste from the pits), no ore losses or
dilution was applicable.
· For the same reason, no cut-off is applied in the pits, as all
material is sent to the MSP. Cut-offs were only used in selecting the
appropriate pits for final LOM production scheduling.
· Using the models and input parameters, pit optimisations were
completed in Studio NPVS software (Datamine).
· Using the final selected pit shells as templates, a monthly LOM
production schedule was completed in Deswik IS (Interactive Scheduler)
software.
· The schedule economics was verified through a financial analysis and
proved to be economically viable.
The independent Competent Person for the Ore Reserve estimates is Mr Frikkie
Fourie (BEng, Pr. Eng, MSAIMM) of Moletech.
DISCLOSURES & DISCLAIMERS
The information in this announcement that relates to Production Targets and
Ore Reserves is based on and fairly represents information provided by Mr
Frikkie Fourie, a Competent Person, who is an Associate Member of The South
African Institute of Mining and Metallurgy and a Registered Professional
Engineer with the Engineering Council of South Africa, a Recognised
Professional Organisation (RPO), included in a list promulgated by ASX from
time to time. Mr Fourie is employed by Moletech Consulting Pty Ltd, an
independent consulting company. Mr Fourie has sufficient experience, which is
relevant to the style of mineralisation and type of deposit under
consideration, and to the activities 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 Fourie
consents to the inclusion in the Announcement 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 is based on and fairly represents information compiled or
reviewed by Mr James Gemmel, a Competent Person, who is a Registered
Professional Engineer with the Engineering Council of South Africa, a RPO
included in a list promulgated by ASX from time to time. Mr Gemmel is employed
by DRA Limited, an independent consulting company. Mr Gemmel has sufficient
experience, which is relevant to the style of mineralisation and type of
deposit under consideration, and to the activities 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
Gemmel consents to the inclusion in the Announcement of the matters based on
his information in the form and context in which it appears.
The information in this announcement that relates to Metallurgy - rutile and
graphite is extracted from announcements dated 28 September 2023, 8 May 2024,
15 May 2024 and 4 September 2024, which are 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 report have not been materially changed from the
announcement.
The information in this announcement that relates to the Mineral Resource
Estimate is extracted from Sovereign's announcement dated 18 March 2026
entitled 'Kasiya Mineral Resource Estimate Significantly Upgraded Ahead of
DFS' (original announcement), which is available to view at
www.sovereignmetals.com.au, and is based on, and fairly represents information
compiled by Mr Jeremy Witley, a Competent Person, who is a member of the South
African Council for Natural Scientific Professions (SACNASP Pr. Sci. Nat.), a
RPO included in a list promulgated by ASX from time to time. Mr Witley is a
principal of MSA Group, an independent consulting company. Sovereign confirms
that a) it is not aware of any new information or data that materially affects
the information included in the original announcement; b) all material
assumptions included in the original announcement continue to apply and have
not materially changed; and c) the form and context in which the relevant
Competent Persons' findings are presented in original announcement have not
been materially changed from the disclosure in 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 the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 (MAR). Upon the publication of this
announcement via Regulatory Information Service ('RIS'), this inside
information is now considered to be in the public domain.
MODIFYING FACTORS
The Modifying Factors included in the JORC Code (2012) have been assessed as
part of the Definitive Feasibility Study (DFS), including mining, processing,
metallurgical, infrastructure, economic, marketing, legal, environmental,
social and government factors. The Company has received advice from
appropriate experts when assessing each Modifying Factor.
A summary assessment of each relevant Modifying Factor is provided below.
Mining
Refer to Section 5.0 Mining in the Announcement.
The Company engaged independent consultants, Moletech Consulting Pty Ltd to
carry out the pit optimisations, mine design, scheduling, mining cost
estimation and Ore Reserves for the DFS.
The DFS draws on empirical data collected through a comprehensive pilot mining
program covering excavation, backfilling, rehabilitation with mixed crops, and
post-harvest assessment.
Metallurgy and Processing
Refer to Section 6.0 Processing and Metallurgy in the Announcement.
Rutile
The Company completed bulk rutile testwork programs at globally recognised
Allied Mineral Laboratories (AML) in Perth, Australia. Testwork programs were
supervised by Sovereign's Head of Development, Mr Paul Marcos. Mr Marcos is a
metallurgist and mineral sands industry veteran. Bulk test-work programs have
confirmed that premium-grade rutile can be produced via a simple, conventional
process flow sheet.
Process engineering was completed by DRA, who developed the process plant
design and associated cost estimates for the OPFS. During the DFS, further
metallurgical testwork was performed to complement the testwork completed
during the previous studies. Testwork across all programs has concluded that
a product with an average grade specification of 95.3% TiO(2) can be
successfully produced with the application of an average 97.6%
recovery-to-product factor.
Graphite
The Company has conducted graphite testwork in multiple laboratories,
including ALS Laboratory in Perth, SGS Lakefield in Canada, Core Resources
Queensland and ProGraphite GmbH in Germany.
Graphite product testwork conducted during the DFS was a continuation and an
increase in scale of testwork completed during the PFS and the OPFS. The DFS
testwork campaign was overseen by Dr Surinder Ghag, Chief Technology Officer
for Sovereign and Mr Oliver Peters, the Competent Person appointed by DRA. The
testwork provided sufficient data to address potential variability in graphite
quality and product recovery.
Process engineering was completed by DRA who further developed the process
plant design in conjunction with Dr Ghag, while DRA were responsible for the
associated capital and operating cost estimates. Graphite recovery is 71.9%
total, discounted by 3% in the first two years of operation, 2.5% in year 3,
2.0% in year 4, and 1.5% in year 5 thereafter. This has been conservatively
adjusted to reflect scale-up from laboratory to plant conditions, with
recoveries expected to improve over the first five years as operations are
optimised. DFS variability testwork gravity recovery average was 73.8% and
flotation plant recovery average 97.4%. The average combined gravity and
flotation recovery is 71.9%. Overall concentrate grades average 95.5% TGC with
over 62% of the graphite flake product being larger than 180µm.
Rutile & Graphite
It is acknowledged that laboratory scale testwork will not always represent
actual results achieved from a production plant in terms of grade, chemistry,
sizing and recovery. Further testwork will continue to build confidence in
specifications and recoveries that will be achieved at full-scale production.
Overall, the process flowsheet is conventional for both rutile and graphite
with no novel features or specialised equipment incorporated.
Infrastructure
Refer to Sections 9.0 Infrastructure and 10.0 Transport and Logistics in the
Announcement.
Kasiya is located approximately 40km northwest of Lilongwe, Malawi's capital,
and boasts excellent access to services and infrastructure. The proximity to
Lilongwe gives the project a number of benefits, including access to a large
pool of professionals and skilled tradespeople, as well as industrial
services.
Logistics cost estimates, including rail and port infrastructure and handling,
were provided by Nacala Logistics and Grindrod based on market data,
suppliers' quotations, industry databases, industry contacts and consultants'
existing knowledge of southern African transport infrastructure and freight
markets. All consultants are independent with substantial experience in the
management of transport logistics studies in southern Africa.
Powerline Funding
The Company entered into a non-binding MOU with a European-backed Private
Equity Fund (PE fund) that invests in the Southern African Power Pool and
power reticulation infrastructure across Sub-Saharan Africa. The MOU is an
undertaking to fund the development and construction of a 132kV transmission
line connecting Kasiya to the Malawi national grid. The powerline project is
estimated to cost approximately US$40.7 million, with the PE fund expected to
provide development funding and construction financing of up to ~US$40
million, subject to due diligence and investment committee approvals. The
structure contemplates funding at the project special purpose vehicle level,
with repayment from project financing at Financial Close, and provides
Sovereign with a clear, funded pathway to secure grid power. This materially
de-risks a key enabling infrastructure component of the Project, reduces
upfront capital burden at the Company level, and aligns with broader ESG
objectives through connection to stable grid power rather than standalone
generation.
Marketing
Refer to subsections 12.4 and 13.4 Marketing Strategy in the Announcement.
Rutile
During the DFS, the Company engaged TZMI to provide a bespoke marketing report
to support the DFS. TZMI is a global, independent consulting and publishing
company which specialises in technical, strategic and commercial analyses of
the opaque (non-terminal market) mineral, chemical and metal sectors.
TZMI's assessment has confirmed that, based upon their high-level view on
global demand and supply forecasts for natural rutile, and with reference to
the specific attributes of Kasiya, there is a reasonable expectation that the
product will be able to be sold into existing and future rutile markets.
Included in the Investment Agreement between Rio Tinto and Sovereign, Rio
Tinto undertook to provide assistance and advice on technical and marketing
aspects under the oversight from a Sovereign-Rio Tinto technical committee.
Also, included in the Investment Agreement, Rio Tinto holds the option to
become the operator of Kasiya on commercial arm's-length terms.
In the event, Rio Tinto elects to become the operator of Kasiya, and for so
long as Rio Tinto remain the operator, Rio Tinto shall have exclusive
marketing rights to 40% of the annual production of all products from the
Project as identified in this DFS, and on an arm's-length terms.
Rio Tinto's option over operatorship and 40% marketing rights lapse if not
exercised by the earlier of (i) 90 days after the announcement of this DFS or
180 days after this announcement if Rio Tinto advises it needs additional time
to consider the exercise; or (ii) Rio Tinto ceasing to hold voting power in
the Company of at least 10%.
Irrespective of whether Rio Tinto exercises its option to become operator, the
Company has engaged in numerous preliminary off-take, financing and strategic
discussions over recent months, including executing an MOU with Mitsui &
Co as follows:
Mitsui non-binding MOU
In March 2026, Sovereign executed a non-binding offtake MOU with Mitsui &
Co. for up to 70,000 tonnes per annum of Kasiya natural rutile concentrate
(TiO₂ >95%) over an initial four-year term (with extension potential),
supporting Japan's titanium industry amid strengthening US-EU-Japan critical
minerals cooperation. The initial 70ktpa offtake equates to over 50% of Phase
1 rutile production.
Prior to Rio Tinto's investment, Sovereign had established several non-binding
MOUs with key industry players, including:
· Mitsui & Co - global trading and investment company headquartered
in Japan (30ktpa)
· The Chemours Company - one of the world's largest producers of
high-quality titanium dioxide (20ktpa)
· Hascor International - global processor and distributor of rutile for
the welding industry (25ktpa)
Other than renewing and revising the Mitsui & Co offtake MOU as discussed
above, the Company did not progress with definitive offtake agreements due to
Rio Tinto's rights under the Investment Agreement.
However, several third parties continue to express interest in entering into
offtake agreements in order to secure U.S. and "Western-aligned" titanium
supply chains, and the Company remains confident that binding offtake
agreements for Kasiya's natural rutile concentrate will be entered into in due
course, should Rio Tinto not exercise its rights under the Investment
Agreement.
Graphite
The Company engaged Fastmarkets, a specialist international publisher and
information provider for the global steel, non-ferrous and industrial minerals
markets, to prepare a marketing report for graphite.
Fastmarkets' assessment has confirmed that based upon their high-level view on
global demand and supply forecasts for natural flake graphite, and with
reference to the specific attributes of Sovereign's project, there is a
reasonable expectation that the product from Sovereign's Kasiya project will
be able to be sold into existing and future graphite markets. Given the
extremely low-cost profile and high-quality product, it is expected that
output from Kasiya will be able to fill new demand or substitute existing
lower quality / higher cost supply.
Project considerations taken by Fastmarkets in forming an opinion about the
marketability of product include:
· Low capital costs (incremental)
· Low operating costs
· High quality concentrate specifications
Industry participants confirm that the highest value graphite concentrates
remain the large, jumbo and super-jumbo flake fractions, primarily used in
industrial applications such as refractories, foundries and expandable
products. These sectors currently make up the significant majority of total
global natural flake graphite market by value.
Fastmarkets have formed their opinion based solely upon project information
provided by Sovereign to Fastmarkets and have not conducted any independent
analysis or due diligence on the information provided.
As noted above, Sovereign and Rio Tinto have been working together to qualify
Kasiya's graphite product with a particular focus on supplying the spherical
purified graphite segment of the lithium-ion battery anode market.
In September 2024, Sovereign announced an update on the downstream testwork
which demonstrated that Coated Spherical Purified Graphite (CSPG) produced
from Kasiya natural flake graphite has performance characteristics comparable
to the leading Chinese natural graphite anode materials manufacturers such as
BTR New Material Group (BTR). Electrochemical testing of the CSPG samples at a
leading German institute achieved first cycle efficiencies (FCE) of 94.2% to
95.8%, with results above 95%, a key specification for highest quality natural
graphite anode materials under the Chinese standard.
BTR has a 20-year track record in the production of lithium-ion battery anode
materials, is a dominant player in the market and has recently concluded anode
material offtake agreements with global automotive companies including Ford.
BTR's highest specification CSPG materials, that have low swelling, long cycle
life, good processability and outstanding electrochemical performance include
their GSN17 and LSG17 products (with D50 of 17.0+/- 1.5μm).
Traxys non-binding MoU
In February 2026, Sovereign executed a non-binding MOU with Traxys North
America for the marketing of graphite from the Kasiya Project, targeting
40,000 tonnes per annum during Phase 1 (Years 1-5) and up to 80,000 tonnes per
annum thereafter, supporting supply into US critical minerals stockpiling
initiatives, with an initial focus on high-value flake graphite for the
refractory market.
Other than this graphite offtake MOU, the Company did not progress with
definitive graphite offtake agreements due to Rio Tinto's rights under the
Investment Agreement. Several U.S. / "Western-aligned" potential offtakers
continue to express interest in entering into offtake agreements for
Sovereign's graphite product and the Company continues to advance these
discussions. The Company remains confident that binding offtake agreements
for Kasiya's natural flake graphite concentrate will be entered into in due
course, should Rio Tinto not exercise its rights under the Investment
Agreement.
Economic
Also refer to Sections 14.0 Cost Estimations and 15.0 Financial & Economic
Analysis in the Announcement.
Capital estimates for the process plant have been prepared by PCC, together
with input from the Company and other contributing consultants using
combinations of cost estimates from suppliers, historical data, benchmarks and
other independent sources. The accuracy of the initial capital cost estimate
for the Project is ±15%.
Capital costs include the cost of all services, direct costs, contractor
indirects, EPCM expenses, non-process infrastructure, sustaining capital and
other facilities used for the mine. Capital costs make provision for
mitigation expenses and mine closure and environmental costs.
Working capital requirements (including contingency) for plant commissioning
and full ramp-up have been included in the headline capital estimate reported
under construction, owner's and start-up costs.
Mining costs have been estimated by DRA, a regional leader in conventional
open pit mining and materials handling. Life cycle costs for mining capital
and operating cost have been built up from first principles based on
equipment, vendor, and contractor quotations, local unit cost rates, and
benchmarked costs.
Labor costs have been developed based on a first-principles build-up of
staffing requirements with labour rates benchmarked in Malawi and expatriate
rates benchmarked for professionals from South Africa and other jurisdictions.
A Government royalty of 5% (applied to revenue) and a vendor profit share of
2% (applied to gross profit) have been included in all project economics. A
0.45% royalty (applied to revenue) has been applied for the community
development fund.
Rehabilitation and mine closure costs are included within the reported
operating cost and sustaining capital figures.
A detailed financial model and discounted cash flow (DCF) analysis has been
built and prepared by an independent specialist advisory firm, Practara Metals
and Mining Advisory (Practara), in order to demonstrate the economic viability
of the Project. The financial model and DCF were modelled with conservative
inputs to provide management with a baseline valuation of the Project.
The DCF analysis demonstrated compelling economics of the prospective Project,
with an NPV (ungeared, pre-tax, at an 8% discount rate) of US$2,204 million,
and an (ungeared) IRR of 23%.
Sensitivity analysis was performed on all key assumptions used. The robust
project economics insulate the Kasiya Project from variations in market
pricing, capital expense, or operating expenses.
Sensitivity analysis with both rutile and graphite concentrate prices
simultaneously 25% lower than the DFS selected prices, the Project still
displays a positive NPV (ungeared, pre-tax, 8% discount rate) of US$913
million and pre-tax IRR of 15.2%.
The Project's payback period is 6.2 years from the start of production. The
payback period is based on unlevered, pre-tax free cashflow.
Sovereign estimates the total capital cost to construct the mine to be US$727m
(which includes a contingency of US$43 million.
Key parameters are disclosed in the body of the announcement, and include:
· Life of Mine: 25 years
· Discount rate: 8%
· Royalty rate: 5% royalty (Government), 2% of gross profit (Original
Project Vendor) and 0.45% Community Development Fund.
· Pricing: Rutile average price of US$1,670 per tonne and Graphite
average basket price of US$1,288 per tonne
There is uncertainty in some respects of the tax law applicable to mining
companies in Malawi. Specifically with regard to the calculation of and the
application of the RRT. The 2023 Mines Act, further provides for the holder of
large-scale mining licenses to enter into a fiscal stability agreement, known
as a Mine Development Agreement (MDA) with the Government of Malawi. These
MDAs provide the opportunity to agree and clarify the application of taxation.
At the date of the DFS announcement, Sovereign has not applied for a
large-scale mining license or entered into an MDA.
In 2024, mining companies Lotus Resources Limited (Lotus) and Mkango Resources
Limited (Mkango) each entered into separate MDAs with the Government of
Malawi. These MDAs have deviated from the enacted mining taxation laws and,
specifically, the levying of the RRT, with no RRT payable as part of the
MDAs. The Government has since proposed an alternative supernormal profits
tax (SPT) to replace the current RRT. Profits of up to MWK 10 billion (~US$6
million at the time of writing) are taxed at the standard income tax rate of
30%. Any profits which exceed MWK 10 billion are taxed at a higher rate of
40%. Mkango and Lotus are exempt of SPT under their existing MDAs. As such,
and until such time Sovereign has sight of what actual fiscal terms would
apply to the Kasiya Project in terms of its own fiscal stability agreement
with the Government of Malawi, results for the DFS have been reported on a
pre-tax basis only.
Notwithstanding this uncertainty, scenario analysis has been undertaken to
indicate a range of potential post-tax outcomes. This analysis considered the
impact of key fiscal variables, including RRT, SPT, and capital allowances, on
project returns, with the resulting post-tax NPV8% estimated to range between
US$1,065 million and US$1,448 million.
The financial model has been built and prepared by Practara using inputs from
the various expert consultants and has been reviewed by SP Angel Corporate
Finance LLP (SPA), the Company's Nominated Advisor and Corporate Broker as
defined by the AIM Rules for Companies set out by the London Stock Exchange,
to validate the functionality and accuracy of the model.
The Company considers that, given the nature of the Project, funding is likely
to be sourced from specialist investors. Potential funding sources include,
but are not limited to, traditional equity and debt, royalty financing, and
off-take agreements at either the corporate and/or Project level.
In this regard, the Company has already engaged in numerous preliminary
off-take, financing and strategic discussions over recent months. Interested
parties are global in nature and include companies from the titanium,
graphite, mining, industrial, battery, automotive, government and private
equity sectors.
In particular, the Company has entered a non-binding offtake MOU with Mitsui
& Co. for up to 70,000 tonnes per annum of Kasiya natural rutile
concentrate (TiO₂ >95%) over an initial four-year term (with extension
potential), supporting Japan's titanium industry amid strengthening
US-EU-Japan critical minerals cooperation.
Further, in February 2026, Sovereign executed a non-binding MOU with Traxys
North America for the marketing of graphite from the Kasiya Project, targeting
40,000 tonnes per annum during Stage 1 (Years 1-5) and up to 80,000 tonnes per
annum thereafter, supporting supply into US critical minerals stockpiling
initiatives, with an initial focus on high-value flake graphite for the
refractory market.
The Company intends to negotiate and convert these MOUs into definitive
offtake agreements, which will assist in securing future debt facilities to
finance the Project.
The Company has also had preliminary financing discussions with a number of
other institutional investors, development finance institutions, U.S. and
"Western-aligned" government agencies, end-user customers, and other strategic
investors, regarding potential equity and/or debt funding at the Company
and/or Project level.
Since July 2023, leading global mining company Rio Tinto has made an
investment in Sovereign for A$60 million, resulting in a shareholding of
18.5%. The investment proceeds have been used to advance Kasiya, including
completion of the Pilot Mining and Rehabilitation Program and DFS. Under the
Investment Agreement with Rio Tinto, it was agreed with Rio Tinto that if
Sovereign is raising debt finance for the development of the Project,
Sovereign and Rio Tinto will negotiate, in good faith, financing arrangements
in order to put in place an acceptable mine construction funding package.
Further, Rio Tinto has the option to become operator of Kasiya on commercial
arm's-length terms. Rio Tinto's option over operatorship lapses if not
exercised by the earlier of:
i) 90 days after the announcement of this DFS or 180 days after this
announcement if Rio Tinto advises it needs additional time to consider the
exercise; or ii) Rio Tinto ceasing to hold voting power in the Company of at
least 10%.
Irrespective of whether Rio Tinto exercises its option to become operator, the
Company has entered into multiple agreements that may provide alternative
sources of financing, as set out below:
· A Collaboration Agreement with the International Finance Corporation
(IFC), a member of the World Bank Group, which provides a clear pathway to
international project financing for Kasiya, with a particular focus on debt
funding. Through the Collaboration Agreement, IFC holds rights to participate
as lender, mandated co-lead arranger and/or investor in the project financing
structure, supporting the development of a robust and bankable funding
package. As a leading global development finance institution with extensive
experience in mining projects in emerging markets, IFC's involvement is
expected to enhance lender confidence, support access to competitive long-term
debt, and underpin the overall financing strategy for the Project;
· Further and as discussed above, the Company has entered into a
non-binding MOU with a PE fund to fund the development and construction of a
132kV transmission line connecting Kasiya to the Malawi national grid. Refer
to discussion above in Infrastructure Modifying Factor; and
· MOU offtake agreements with Mitsui & Co and Traxys North America
as discussed above.
The Company also engaged the services of SPA with regard to project economics.
SPA is a financial advisory firm that offers full-service advisory, corporate
broking and research, which specialises in the resources sector. SPA is well
regarded as a specialist capital markets service provider and has raised
funding for companies across a range of commodities including the industrial
and speciality minerals sector.
In this regard and after the services provided by SPA, the assessment and
advice indicates that financing for industrial mineral companies often
involves a broader mix of funding sources than just traditional debt and
equity. SPA considers that given the nature of the Project, funding is likely
to involve specialist funds, with potential funding sources including, but not
limited to, traditional equity and debt, royalty financing and off-take
agreements, at either the corporate or project level. It is important to note
that no funding arrangements have yet been put in place, as discussions
continue with potential funders. The composition of the funding arrangements
ultimately put in place may also vary, so it is not possible at this stage to
provide any further information about the composition of potential funding
arrangements. Following the assessment of a number of key criteria, and after
the services provided by SPA which states that, irrespective of whether or not
Rio Tinto exercises any of its rights under the Investment Agreement, on the
basis that the DFS outcomes are consistent with any future technical study
(e.g. a Front-End Engineering Design), all in-country government and
regulatory approvals are received, commercial offtake agreements are in place
for the majority of Rutile and Graphite production for at least the first five
years of mine life, and that there has not been any material adverse change in
financial condition, results of operations, business or prospects of the
Company/or political and business environment in Malawi and/or financial or
capital markets in general, Sovereign believes that it should be able to raise
sufficient funding to develop the Project..
SPA, which is authorised and regulated by the Financial Conduct Authority
(FCA) in the United Kingdom, is acting exclusively for the Company and no one
else in connection with the matters referred to in this announcement and will
not be responsible to anyone other than the Company for providing the
protections afforded to the customers of SPA or for providing advice in
relation to the matters described in this announcement. No liability
whatsoever is accepted by SPA for the accuracy of any information or opinions
contained in this announcement or for the omission of any material
information. The responsibilities of SPA as the Company's Nominated Adviser
under the AIM Rules for Companies and the AIM Rules for Nominated Advisers are
owed solely to London Stock Exchange plc and are not owed to the Company or to
any director or shareholder of the Company or any other person, in respect of
its decision to acquire shares in the capital of the Company in reliance on
any part of this announcement, or otherwise. SPA will not be responsible to
anyone other than the Company for providing the protections afforded to its
clients or for providing advice in relation to the Project economics or any
other matters referred to in this announcement.
Since commencing exploration at Kasiya in November 2019, the Company has
completed extensive drilling, sampling, metallurgical test work, and
geological modelling, and has defined a Measured and Indicated Mineral
Resource Estimate that has been converted to Ore Reserves as part of this DFS.
The Company is also in a unique position, having collected real-world data
through the Pilot Mining Program, which has significantly validated and
de-risked the Project. Over this period, and with these key milestones being
achieved, the Company's market capitalisation has increased from approximately
A$18m to over A$450m.
The Company has a simple and clean corporate and capital structure, is
debt-free, and is in a strong financial position, with approximately A$29.2
million in cash on hand as at 31 March 2026 (unaudited). This financial
position means the Company is well funded to continue key post-DFS
workstreams, including the permitting and financing activities required to
advance the Project to a final investment decision.
The Company's shares are listed on the ASX and AIM which are premier markets
for growth companies and provide increased access to capital from
institutional and retail investors in Australia and the UK. The Company's
shares are also quoted on the OTCQX and Frankfurt Stock Exchange.
Sovereign has a strong track record of successfully raising equity funds for
Kasiya plus it has an experienced and high-quality Board and management team
comprising highly respected resource executives with extensive technical,
financial, commercial and capital markets experience. The directors have
previously raised more than A$2.5 billion from capital markets for a number of
exploration and development companies.
As discussed above, and taking into account the following additional factors:
1) Recently completed funding arrangements for similar or larger scale
development projects; 2) The range of potential funding options available; 3)
The favourable key metrics generated by the Kasiya Project; 4) Investor
interest to date; 5) The Company owns 100% of Kasiya which is highly
attractive to potential financiers; and 6) The DFS demonstrates that the
Project is commercially viable and provides justification to progress to the
final investment decision and project finance stages, the Board has a high
level of confidence that the Project will be able to secure funding in due
course.
Environmental, Social, Legal and Governmental
Refer to Section 11.0 Environmental & Social Impact in the Announcement.
Sovereign is committed to conduct its activities in full compliance to the
requirements of national regulations, its obligations under international
conventions and treaties and giving due consideration to international best
practices and policies. The Company has appointed an experienced environmental
consultant to manage the ESIA process, and environmental and social baseline
studies have commenced with appropriately qualified independent experts. The
Company has also completed a high-level risk assessment to identify major
environmental and social risks which could affect the development of the
Project, along with mitigating strategies to allow identified risks to be
addressed early in the project design phase.
The Company has embarked on several community engagement exercises in the area
and there is a general positive acceptance of the Project. Social
responsibility/RAP costs totalling US$40m have been included in this Study, as
well as a 0.45% revenue royalty for the community development fund.
Based on the current assessments and commenced ESIA, the Company believes
there are no environmental issues currently identified that cannot be
appropriately mitigated in accordance with standard practices adopted for the
development of mining projects.
Following the completion of this DFS, Sovereign intends to apply for a Mining
Licence (ML) to secure mineral deposits for mining. At this point of Kasiya's
development, the Company notes no known issues or impediments obtaining a ML
under normal course of business.
Under the 2023 Mines Act, the Government of Malawi has a right to equity
ownership for large-scale mining licences (>5Mt mined per annum or
>US$250m Capex) with the right a negotiation matter, likely as part of any
future MDA. The Mkango and Lotus MDAs included a 10% non-diluting equity
interest to the Malawi Government.
Following successful completion of the Pilot Mining program, the test pit
mined at Kasiya has been successfully backfilled which has allowed Sovereign
to commence with on-site soil remediation and land rehabilitation activities,
testing our proposed rehabilitation approach and demonstrating that the mined
land can support sustainable farming post-closure.
During the Pilot Mining program, 170,000m(3) was mined using a conventional
excavator fleet. The fleet was then used to place mined material back into the
pit, filling the pit to the original ground level in less than two months and
ahead of schedule.
The rehabilitation approach has been based on agronomic principles, including
promoting sustainable farming practices and providing various end-land uses.
Rehabilitation is underway through a five-step process:
Step 1: Introduce Lime
The land rehabilitation demonstration commenced with the application and
incorporation of locally sourced dolomitic lime (calcium and
calcium-magnesium-carbonate) to improve naturally low PH levels.
Step 2: Introduce Carbon and Basic Nutrients
Sovereign is augmenting the mined area with organic carbon and basic nutrients
to support post-closure farming. The Company is testing the application of
biochar (to provide carbon) and fertiliser (in the form of potash (MOP),
phosphate (MAP) and a blend of nitrogen, potash, and sulphur (NPK) 15:23:16).
Step 3: Grading, Ripping and Discing
Lime, biochar, and fertiliser are incorporated into the soil through grading,
ripping, and discing using graders and locally sourced farming equipment. This
ensures the land is level and safe and that essential inputs are incorporated
into the soil.
Step 4: Planting of Rehabilitation Crops
Sovereign planted it first round of rehabilitation crops in the 2024/2025
cropping season, and it second round of crops in the 2025/2026 cropping
season. Giant bamboo has been introduced in 4 by 8-metre blocks and will act
as the primary crop to enhance carbon and bioactivity in the remediated soils.
To return the land to farmers, maize and other cover crops have be
intercropped between the giant bamboo in formalised farm blocks.
Step 5: Monitoring and Evaluation
Sovereign continues to monitor soil remediation, plant growth and crop yields.
As part of stakeholder engagement, the Company has worked with local farmers
to improve results through conservation farming, composting operations,
testing new seed varieties and establishing an indigenous, fruit and farming
nursery. This serves as an active and live demonstration of rehabilitation and
timely return of land to pre-mining use.
APPENDIX 1 - JORC CODE, 2012 EDITION - TABLE 1
Section 1 - Sampling Techniques and Data
Criteria JORC Code explanation Commentary
Sampling Techniques Nature and quality of sampling (e.g. cut channels, random chips, or specific Hand Auger (HA) samples are composited based on regolith boundaries and sample
specialised industry standard measurement tools appropriate to the minerals chemistry generated by hand-held XRF (pXRF). Each 1m of sample is dried and
under investigation, such as down hole gamma sondes, or handheld XRF riffle-split to generate a total sample weight of 3kg for analysis, generally
instruments, etc). These examples should not be taken as limiting the broad at 2 - 5m intervals.
meaning of sampling.
Spiral Auger (SA) samples are mechanical auger bulk samples collected at 1m
intervals. Each 1m of sample is dried and riffle-split to generate a total
sample weight of 3kg for analysis.
Push-Tube and/or Diamond Core (PTDD) core drilling is sampled routinely at 2m
intervals by compositing dried and riffle-split half core. Several PTDD holes
were sampled on 1m intervals in a twinning campaign with HA and AC.
Air-Core (AC) samples are generally composited on 2m intervals. Each 1m of
sample is dried and riffle-split to generate a total sample weight of 3kg for
analysis.
For all sampling methods the primary sample (nominally 3kg) is split to
provide two 1.5kg samples for both and graphite analyses.
Include reference to measures taken to ensure sample representivity and the Drilling and sampling activities are supervised by a suitably qualified
appropriate calibration of any measurement tools or systems used. company geologist who is present at all times. All drill samples are
geologically logged by the geologist at the drill site/core yard.
Each sample is sun dried and homogenised. Sub-samples are carefully riffle
split to ensure representivity. The 1.5kg composite samples are then
processed.
An equivalent mass is taken from each sample to make up the composite. A
calibration schedule is in place for laboratory scales, sieves and field XRF
equipment.
Prior to June 2024 Placer Consulting Pty Ltd (Placer), then post June2024 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 and support the resource classifications
as applied to the MRE. The primary composite sample is considered
representative for this style of rutile and graphite mineralisation.
Aspects of the determination of mineralisation that are Material to the Public Logged mineralogy percentages, lithology/regolith information and TiO2%
Report. In cases where 'industry standard' work has been done this would be obtained from pXRF are used to assist in determining compositing intervals.
relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m Care is taken to ensure that only samples with similar geological
samples from which 3 kg was pulverised to produce a 30 g charge for fire characteristics are composited together.
assay'). In other cases more explanation may be required, such as where there
is coarse gold that has inherent sampling problems. Unusual commodities or
mineralisation types (e.g. submarine nodules) may warrant disclosure of
detailed information.
Drilling Techniques Drill type (e.g. core, reverse circulation, open‐hole hammer, rotary air Several sampling methods have been tested at Kasiya. The drill types deemed
blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or suitable for use in the MRE are Hand Auger (HA 62mm), Air Core (AC 75 and
standard tube, depth of diamond tails, face‐sampling bit or other type, 115mm), Push Tube and/or Diamond Core (PTDD 61 and 88mm) and Spiral Mechanical
whether core is oriented and if so, by what method, etc). Auger (SA 300 and 700mm).
Other sampling methods used for geological and verification purposes included
open pit bulk samples (PIT 1x1m), Channel samples (CH 62 and 100mm) from bulk
sample pits, the trial mining open pit and rehabilitation trial pits.
All sampling was carried out vertically to best intersect the horizontal
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.
Two similar designs of HA drilling equipment are employed. HA drilling with
75mm diameter enclosed spiral bits (SOS) with 1m long steel rods and with 62mm
diameter open spiral bits (SP) with 1m long steel rods. The SP bit accounts
for less than 10% of the HA drilling, as the enclosed spiral proved to be the
more effective tool. Drilling is oriented vertically by eye.
Each 1m of drill sample is collected into separate sample bags and set aside.
The auger bits and flights are cleaned between each metre of sampling to avoid
contamination.
Core-drilling is undertaken using a drop hammer, Dando Terrier MK1. The
drilling generated 1m runs of 88mm PQ core in the first 2m and then
transitioned to 61mm core for the remainder of the hole. Core drilling is
oriented vertically by spirit level.
AC drilling was completed by Thompson Drilling utilising a Smith Capital 10R3H
compact track-mounted drill.
Each 1m sample bag is immediately transported back to Sovereign's secure field
laydown yard for processing.
Drill Sample Recovery Method of recording and assessing core and chip sample recoveries and results Samples are assessed visually for recoveries. The configuration of drilling
assessed. and nature of materials encountered results in negligible sample loss or
contamination.
HA and PT drilling is ceased when recoveries become poor once the water table
has been reached. Water table and recovery information is included in
lithological logs.
Core drilling samples are actively assessed by the driller and geologist
onsite for recoveries and contamination.
AC drilling recovery in the top few metres is moderate to good. Extra care is
taken to maximise sample recovery in these metres. Sample weight is recorded
to determine recovery at the rig at the time of drilling by the geologist.
Drilling is ceased when recoveries become poor or once Saprock or refusal has
been reached.
The use of the AC 115mm has been adopted as the standard since October 2025.
Improvements in both air pressure and cyclone management have resulted in
excellent recovery. This has been combined with the use of SA 300mm twin
drilling to the base of the FERP layer (4 to 6m) to further validate the
quality of the AC 115mm drilling.
Measures taken to maximise sample recovery and ensure representative nature of The Company's trained geologists supervise drilling on a 1 team 1 geologist
the samples. basis and are responsible for monitoring all aspects of the drilling and
sampling process.
For PT drilling, core is extruded into core trays; slough is actively removed
by the driller at the drilling rig and core recovery, and quality is recorded
by the geologist.
AC samples are recovered in large plastic bags. The bags are clearly labelled
and delivered back to sovereign's laydown yard at the end of shift for
processing. Since October 2025 the cyclone is checked every 1m. If there is
any hang-up in the cyclone, this material is collected and recombined with the
primary sample.
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.
An oversize (>5mm) bias can occur where larger coarse fragments,
predominantly near the surface, appear preferentially recovered when using
different diameter drilling methods. The use of larger diameter drilling (AC
115mm and SA 300mm) negates the potential for this bias.
Logging Whether core and chip samples have been geologically and geotechnically logged Geological data is collected in adequate detail for use in Mineral Resource
to a level of detail to support appropriate Mineral Resource estimation mining estimation.
studies and metallurgical studies.
All individual 1m HA intervals are geologically logged, recording relevant
data using company codes. A small representative sample is collected for each
1m interval and placed in chip trays for future reference.
All individual 1m PT core intervals are geologically logged, recording
relevant data using company codes.
Half core remains in the trays and is securely stored in the company
warehouse.
AC and SA 1m intervals are geologically logged using company codes. A small
representative sample is collected for each 1m interval and placed in chip
trays for future reference.
Whether logging is qualitative or quantitative in nature. Core (or costean, All logging includes lithological features and estimates of basic mineralogy.
channel, etc.) photography. Logging is qualitative.
The PTDD core is photographed dry.
The total length and percentage of the relevant intersection logged 100% of samples are geologically logged.
Sub- sampling techniques and sample preparation If core, whether cut or sawn and whether quarter, half or all core taken. Due to the soft weathered nature of the material, core samples are carefully
cut in half using hand tools.
If non-core, whether riffled, tube sampled, rotary split, etc. and whether HA, PTDD, SA and AC hole samples are dried, riffle split and composited.
sampled wet or dry. Samples are collected 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 verified by
preparation technique. Placer and MSA Resource Geologists.
Sample preparation is recorded on a standard flow sheet and detailed QA/QC is
undertaken on all samples. Sample preparation techniques and QA/QC protocols
are appropriate for mineral determination and support the resource
classifications as stated.
Quality control procedures adopted for all sub-sampling stages to maximise The sampling equipment is cleaned after each sub-sample is taken. Field
representivity of samples. duplicate, laboratory replicate and standard sample statistical analysis is
employed to manage sample precision and analysis accuracy.
Measures taken to ensure that the sampling is representative of the in situ Sample size analysis is completed to verify sampling accuracy. Field
material collected, including for instance results for field duplicates are collected for precision analysis of riffle splitting. SOPs
duplicate/second-half sampling. consider sample representivity. Results indicate a sufficient level of
precision for mineral resource classification.
Whether sample sizes are appropriate to the grain size of the material being The sample size is considered appropriate for the material sampled.
sampled.
Quality of assay data and laboratory tests The nature, quality and appropriateness of the assaying and laboratory Rutile
procedures used and whether the technique is considered partial or total.
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-magnetic (NMag) concentrate
is generated. Since June 2023 SSL has included the magnetic separation process
to create the NMag concentrate, which is then sent to an external laboratory
for TiO(2) analysis. Prior to 2023 the Heavy Mineral Concentrate (HMC) was
sent to AML Laboratory in Perth for separation.
Final results generated are for recovered rutile i.e., the % mass of the
sample that is rutile that can be recovered to the non-magnetic component of a
HMC.
The current SSL Laboratory workflow is:
· Dry sample in oven for 1 hour at 105℃
· Soak in water with 1% Tetrasodium pyrophosphate (TSPP) for 12 hours
and lightly agitate
· Wet screen at 5mm, 600µm and 45µm to remove oversize and slimes
material, since October 2025 a 2mm to 5mm size fraction has also been screened
to represent the +2mm portion produced from the planned processing plant.
· Dry +45µm -600mm (sand fraction) in oven for 1 hour at 105℃
· Pass +45µm -600mm (sand fraction) across wet table to generate a
HMC.
· Dry HMC in oven for 30 minutes at 105℃
· Magnetic separation of the HMC by Carpco magnet @ 16,800G (2.9Amps)
into a magnetic (Mag) and non-magnetic (NMag) fraction
· Send NM to external laboratory for TiO2% (and other elements) XRF
analysis
Various workflows were use to produce HMC, Magnetic separation and external
laboratory TiO2% plus other XRF analysis prior to June 2023
Work flow codes and number of samples impacted are presented below:
WORKFLOW Num Sample Metres
DIA-AML-IT 190 635.0
DIA-AML-ALS 877 2,860.2
LLW-AML-IT 408 1,465.5
LLW-AML-ALS 3,321 8,745.8
LLW-LLW-ALS 5,272 9,279.3
LLW-LLW-SS 7,768 12,959.2
Total 17,836 35,944.9
DIA-AML-IT and DIA-AML-ALS
· The Sand fractions are sent to Diamantina Laboratories, Perth.
Split ~150g of sand fraction for HLS using Tetrabromoethane (TBE, SG 2.96g/cc)
as the liquid heavy media to generate HMC.
(Heavy liquid separation (HLS) of the HM is no longer required and a HM result
is not reported in the updated MRE. The HMC prepared via wet-table, gravity
separation at the Lilongwe Laboratory provides an ideal sample for subsequent
magnetic separation and XRF.)
· Bag the HMC fraction and send to AML Perth for quantitative
separation.
· The resulting NM fractions are sent to either ALS Metallurgy Perth
or Intertek Perth for quantitative XRF analysis.
LLW-AML-IT and LLW-AML-ALS
· Bag HMC fraction and send to Perth, Australia for quantitative
separation at AML
· The resulting NM fractions are sent to either ALS Metallurgy Perth
or Intertek Perth for quantitative XRF analysis.
LLW-LLW-ALS
· The NM fractions are sent to ALS Metallurgy Perth for quantitative
XRF analysis. Samples receive XRF_MS and are analysed for: TiO2, Al2O3, CaO,
Cr2O3, Fe2O3, K2O, MgO, MnO, SiO2, V2O5, ZrO2, HfO2.
LLW-LLW-SS
· The NM fractions are sent to Scientific Services 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
The number of Rutile samples used in the MRE by hole type are:
HTYPE_4 Num Sample Metres
AC 6,511 11,382.6
HA 6,608 17,919.4
PTDD 3,359 5,190.2
SA 1,358 1,452.7
Total 18,994 35,944.9
Graphite
All graphite samples were processed at Intertek-Genalysis Johannesburg and
Perth via method C72/CSA.
750g of each 1.5kg graphite sample is pulverised to -75um with a 150g
sub-sample dissolved in dilute hydrochloric acid to liberate carbonate carbon.
The solution is filtered using a filter paper and the collected residue is the
dried to 425°C in a muffle oven to drive off organic carbon. The 150g dried
sample is then combusted using an Eltra CS-800 induction furnace infra-red
Carbon / Sulphur analyser er to yield total graphitic or TGC as a percentage
of the total rock.
The number of samples analysed for TGC and used in the MRE by hole type are:
HTYPE_4 Num Sample Metres
AC 6,349 11,110.0
HA 5,999 16,563.4
PTDD 3,084 4,971.6
SA 1,257 1,293.7
Total 16,689 33,938.7
In some holes (especially near the surface) no graphite float was detected,
these samples were not sent for analysis and were set to waste TGC grades:
HTYPE_4 Num Sample Metres
AC 87 146.0
HA 751 1,545.2
PTDD 225 204.3
Total 1,063 1,895.5
For geophysical tools, spectrometers, Acceptable levels of accuracy and precision have been established. 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 Sovereign uses internal and externally sourced wet screening reference
material inserted into samples batches at a rate of 1 in 20. The externally
adopted (e.g. standards, blanks, duplicate, external laboratory checks) and sourced, certified standard reference material for HM and Slimes assessment is
whether acceptable levels of accuracy (i.e. lack of bias) and precision have provided by Placer Consulting.
been established.
Accuracy monitoring of the analytical work is achieved through submission of
certified reference materials (CRM's). ALS, Scientific Services and Intertek
all use internal CRMs and duplicates on XRF analyses. Sovereign also inserts
CRMs into the sample batches at a rate of 1 in 20.
Three Rutile CRMs are used by Sovereign and range from 35% - 95% TiO2.
Three Graphite CRMs are used by Sovereign and range from 3% - 25% TGC.
Analysis of sample duplicates is undertaken by standard statistical
methodologies (Scatter, Pair Difference and QQ Plots) to test for bias and to
ensure that sample splitting is representative. Standards determine assay
accuracy performance, monitored on control charts, where failure (beyond 3SD
from the mean) may trigger re-assay of the affected batch.
Examination of the QA/QC sample data indicates satisfactory performance of
field sampling protocols and assay laboratories providing acceptable levels of
precision and accuracy.
Acceptable levels of accuracy and precision are displayed in statistical
analyses to support the resource classifications as applied to the estimate.
Verification of sampling & assaying The verification of significant intersections by either independent or Results are reviewed in cross-section using Datamine Studio RM and either
alternative company personnel. Micromine or LeapFrog software and any spurious results are investigated.
Extreme high grades are not encountered for either rutile or graphite.
The use of twinned holes. Twinned holes are drilled across a geographically dispersed area to determine
short-range geological and assay field variability for the resource
estimation. Twins were primarily: HA and AC; PTDD and AC and more recently SA
and AC. A total of 389 twin holes have been drilled of which 135 are twins of
the same drilling type, the remainder being comparisons between different
drilling methods. All twins are within 5m of each other.
The October/November AC 115mm drilling program included SA 300mm twins to the
base of the FERP layer, a total of 55 twin holes. The comparison showed a 2.5%
lower Rut95 grade in the AC, with the difference primarily in the higher grade
near surface material. This difference was not unexpected due to difference in
sample diameter. The results demonstrate the improved quality of AC recovery
using the 115mm drill bit.
Comparison between the drilling methods shows some bias in the sizing
distributions particularly in the volume of +45 um recovered due to behaviour
of coarse size fractions at the drill face. Key parameters are: sample
diameter; downhole air pressure; cyclone efficiency; moisture content; and
drill bit configuration. The variances observed fall within the grades
tolerances expected for this type of deposit and have been taken into account
in the MRE classification.
Documentation of primary data, data entry procedures, data verification, data All 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).
Discuss any adjustment to assay data. Assay data adjustments are made to convert laboratory collected weights to
assay field percentages and to account for moisture.
QEMSCAN of the NMag fraction shows dominantly clean and liberated rutile
grains and confirms rutile is the only titanium species in the NMag fraction.
Recovered rutile is defined and reported here as: TiO2 recovered in the +45 to
-600um range to the NMag concentrate fraction as a % of the total primary,
dry, raw sample mass divided by 95% (to represent an approximation of final
product specifications). i.e., recoverable rutile within the whole sample.
Graphite grade (TGC%) is not adjusted. In some holes where panning of the
sample encountered no graphite flakes, a waste grade of 0.01% TGC was applied.
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 drill hole collars. Daily
down-hole surveys), trenches, mine workings and other locations used in capture at a registered reference marker ensures equipment remains in
Mineral Resource estimation. calibration.
No downhole surveying of any holes is completed. Given the horizontal nature
of geology and mineralisation and shallow depths of the holes, any drill hole
deviation will have very limited impact on the estimation of block grades.
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-
control. 20m lidar drone survey point array, commissioned by SVM in March 2022.
Non-topographic features were removed from the survey points file prior to
generating the topographical wireframe for resource model construction. The
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 features that do not include
the undisturbed ground surface (cemeteries, pits, mounds, etc.)
Topography for North - South extensions to the mineralisation outside the
limits of the lidar DTM was created using the publicly available satellite
topography. This was adjusted using DGPS drill hole collars to improve local
accuracy.
The DTM is suitable for the classification of the MRE
Data spacing & distribution Data spacing for reporting of Exploration Results. Preliminary regional exploration is completed on a nominal 800m grid. The
infill HA drilling is spaced nominally 400m along the 400m spaced drill-
lines. Further infill is completed with PT and AC holes similarly spaced at an
offset grid. In some areas recent PT, AC and SA drilling has been completed on
a 200m offset grid. The resultant infill 141m and 283m equilateral spacing is
deemed to adequately define the mineralisation in the MRE.
The PT, AC and SA holes are selectively placed throughout the deposit to
ensure a broad geographical and lithological spread for the analysis.
Whether the data spacing and distribution is sufficient to establish the The drill spacing and distribution is considered to be sufficient to establish
degree of geological and grade continuity appropriate for the Mineral Resource a degree of geological and grade continuity appropriate for the Mineral
and Ore Reserve estimation procedure(s) and classifications applied. Resource estimation.
Variogram analysis completed using Supervisor software informs the optimal
drill and sample spacing for the MRE. Based on these results and the
experience of the Competent Person, the data spacing and distribution is
considered adequate for the definition of mineralisation and adequate for
Mineral Resource Estimation.
Whether sample compositing has been applied. All samples were assigned a Weathering domain code based on the geology
logging and 3D weathering profile interpretation. Separate grade domains for
both rutile and graphite were interpreted based on nominal mineralisation
cut-offs.
Compositing to create a single composite representing the unique weathering
and mineralisation domain down each hole was completed.
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 The CP Jeremy Witley has reviewed and advised on all stages of data
collection, sample processing, QA protocol and Mineral Resource Estimation.
Field and in-country lab visits have been completed by Mr Witley. A high
standard of operation, procedure and personnel was observed and reported.
DIA-AML-IT and DIA-AML-ALS
· The Sand fractions are sent to Diamantina Laboratories, Perth.
Split ~150g of sand fraction for HLS using Tetrabromoethane (TBE, SG 2.96g/cc)
as the liquid heavy media to generate HMC.
(Heavy liquid separation (HLS) of the HM is no longer required and a HM result
is not reported in the updated MRE. The HMC prepared via wet-table, gravity
separation at the Lilongwe Laboratory provides an ideal sample for subsequent
magnetic separation and XRF.)
· Bag the HMC fraction and send to AML Perth for quantitative
separation.
· The resulting NM fractions are sent to either ALS Metallurgy Perth
or Intertek Perth for quantitative XRF analysis.
LLW-AML-IT and LLW-AML-ALS
· Bag HMC fraction and send to Perth, Australia for quantitative
separation at AML
· The resulting NM fractions are sent to either ALS Metallurgy Perth
or Intertek Perth for quantitative XRF analysis.
LLW-LLW-ALS
· The NM fractions are sent to ALS Metallurgy Perth for quantitative
XRF analysis. Samples receive XRF_MS and are analysed for: TiO2, Al2O3, CaO,
Cr2O3, Fe2O3, K2O, MgO, MnO, SiO2, V2O5, ZrO2, HfO2.
LLW-LLW-SS
· The NM fractions are sent to Scientific Services 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
The number of Rutile samples used in the MRE by hole type are:
HTYPE_4 Num Sample Metres
AC 6,511 11,382.6
HA 6,608 17,919.4
PTDD 3,359 5,190.2
SA 1,358 1,452.7
Total 18,994 35,944.9
Graphite
All graphite samples were processed at Intertek-Genalysis Johannesburg and
Perth via method C72/CSA.
750g of each 1.5kg graphite sample is pulverised to -75um with a 150g
sub-sample dissolved in dilute hydrochloric acid to liberate carbonate carbon.
The solution is filtered using a filter paper and the collected residue is the
dried to 425°C in a muffle oven to drive off organic carbon. The 150g dried
sample is then combusted using an Eltra CS-800 induction furnace infra-red
Carbon / Sulphur analyser er to yield total graphitic or TGC as a percentage
of the total rock.
The number of samples analysed for TGC and used in the MRE by hole type are:
HTYPE_4 Num Sample Metres
AC 6,349 11,110.0
HA 5,999 16,563.4
PTDD 3,084 4,971.6
SA 1,257 1,293.7
Total 16,689 33,938.7
In some holes (especially near the surface) no graphite float was detected,
these samples were not sent for analysis and were set to waste TGC grades:
HTYPE_4 Num Sample Metres
AC 87 146.0
HA 751 1,545.2
PTDD 225 204.3
Total 1,063 1,895.5
For geophysical tools, spectrometers,
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.
Acceptable levels of accuracy and precision have been established. No pXRF
methods are used for quantitative determination.
Nature of quality control procedures
adopted (e.g. standards, blanks, duplicate, external laboratory checks) and
whether acceptable levels of accuracy (i.e. lack of bias) and precision have
been established.
Sovereign uses internal and externally sourced wet screening reference
material inserted into samples batches at a rate of 1 in 20. The externally
sourced, certified standard reference material for HM and Slimes assessment is
provided by Placer Consulting.
Accuracy monitoring of the analytical work is achieved through submission of
certified reference materials (CRM's). ALS, Scientific Services and Intertek
all use internal CRMs and duplicates on XRF analyses. Sovereign also inserts
CRMs into the sample batches at a rate of 1 in 20.
Three Rutile CRMs are used by Sovereign and range from 35% - 95% TiO2.
Three Graphite CRMs are used by Sovereign and range from 3% - 25% TGC.
Analysis of sample duplicates is undertaken by standard statistical
methodologies (Scatter, Pair Difference and QQ Plots) to test for bias and to
ensure that sample splitting is representative. Standards determine assay
accuracy performance, monitored on control charts, where failure (beyond 3SD
from the mean) may trigger re-assay of the affected batch.
Examination of the QA/QC sample data indicates satisfactory performance of
field sampling protocols and assay laboratories providing acceptable levels of
precision and accuracy.
Acceptable levels of accuracy and precision are displayed in statistical
analyses to support the resource classifications as applied to the estimate.
Verification of sampling & assaying
The verification of significant intersections by either independent or
alternative company personnel.
Results are reviewed in cross-section using Datamine Studio RM and either
Micromine or LeapFrog software and any spurious results are investigated.
Extreme high grades are not encountered for either rutile or graphite.
The use of twinned holes.
Twinned holes are drilled across a geographically dispersed area to determine
short-range geological and assay field variability for the resource
estimation. Twins were primarily: HA and AC; PTDD and AC and more recently SA
and AC. A total of 389 twin holes have been drilled of which 135 are twins of
the same drilling type, the remainder being comparisons between different
drilling methods. All twins are within 5m of each other.
The October/November AC 115mm drilling program included SA 300mm twins to the
base of the FERP layer, a total of 55 twin holes. The comparison showed a 2.5%
lower Rut95 grade in the AC, with the difference primarily in the higher grade
near surface material. This difference was not unexpected due to difference in
sample diameter. The results demonstrate the improved quality of AC recovery
using the 115mm drill bit.
Comparison between the drilling methods shows some bias in the sizing
distributions particularly in the volume of +45 um recovered due to behaviour
of coarse size fractions at the drill face. Key parameters are: sample
diameter; downhole air pressure; cyclone efficiency; moisture content; and
drill bit configuration. The variances observed fall within the grades
tolerances expected for this type of deposit and have been taken into account
in the MRE classification.
Documentation of primary data, data entry procedures, data verification, data
storage (physical and electronic) protocols.
All data is collected electronically using coded templates and logging
software. This data is then imported to a SQL Database and validated both
automatically (on upload) and manually (by viewing sections).
Discuss any adjustment to assay data.
Assay data adjustments are made to convert laboratory collected weights to
assay field percentages and to account for moisture.
QEMSCAN of the NMag fraction shows dominantly clean and liberated rutile
grains and confirms rutile is the only titanium species in the NMag fraction.
Recovered rutile is defined and reported here as: TiO2 recovered in the +45 to
-600um range to the NMag concentrate fraction as a % of the total primary,
dry, raw sample mass divided by 95% (to represent an approximation of final
product specifications). i.e., recoverable rutile within the whole sample.
Graphite grade (TGC%) is not adjusted. In some holes where panning of the
sample encountered no graphite flakes, a waste grade of 0.01% TGC was applied.
Location of data points
Accuracy and quality of surveys used to locate drill holes (collar and
down-hole surveys), trenches, mine workings and other locations used in
Mineral Resource estimation.
A Trimble R2 Differential GPS is used to pick up the drill hole collars. Daily
capture at a registered reference marker ensures equipment remains in
calibration.
No downhole surveying of any holes is completed. Given the horizontal nature
of geology and mineralisation and shallow depths of the holes, any drill hole
deviation will have very limited impact on the estimation of block grades.
Specification of the grid system used.
WGS84 UTM Zone 36 South.
Quality and adequacy of topographic
control.
The digital terrane model (DTM) was generated by wireframing a 20m-by-
20m lidar drone survey point array, commissioned by SVM in March 2022.
Non-topographic features were removed from the survey points file prior to
generating the topographical wireframe for resource model construction. The
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 features that do not include
the undisturbed ground surface (cemeteries, pits, mounds, etc.)
Topography for North - South extensions to the mineralisation outside the
limits of the lidar DTM was created using the publicly available satellite
topography. This was adjusted using DGPS drill hole collars to improve local
accuracy.
The DTM is suitable for the classification of the MRE
Data spacing & distribution
Data spacing for reporting of Exploration Results.
Preliminary regional exploration is completed on a nominal 800m grid. The
infill HA drilling is spaced nominally 400m along the 400m spaced drill-
lines. Further infill is completed with PT and AC holes similarly spaced at an
offset grid. In some areas recent PT, AC and SA drilling has been completed on
a 200m offset grid. The resultant infill 141m and 283m equilateral spacing is
deemed to adequately define the mineralisation in the MRE.
The PT, AC and SA holes are selectively placed throughout the deposit to
ensure a broad geographical and lithological spread for the analysis.
Whether the data spacing and distribution is sufficient to establish the
degree of geological and grade continuity appropriate for the Mineral Resource
and Ore Reserve estimation procedure(s) and classifications applied.
The drill spacing and distribution is considered to be sufficient to establish
a degree of geological and grade continuity appropriate for the Mineral
Resource estimation.
Variogram analysis completed using Supervisor software informs the optimal
drill and sample spacing for the MRE. Based on these results and the
experience of the Competent Person, the data spacing and distribution is
considered adequate for the definition of mineralisation and adequate for
Mineral Resource Estimation.
Whether sample compositing has been applied.
All samples were assigned a Weathering domain code based on the geology
logging and 3D weathering profile interpretation. Separate grade domains for
both rutile and graphite were interpreted based on nominal mineralisation
cut-offs.
Compositing to create a single composite representing the unique weathering
and mineralisation domain down each hole was completed.
Orientation of data in relation to geological structure
Whether the orientation of sampling achieves unbiased sampling of possible
structures and the extent to which this is known considering the deposit type
Sample orientation is vertical and approximately perpendicular to the
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
key mineralised structures is considered to have introduced a sampling bias,
this should be assessed and reported if material.
There is no apparent bias arising from the orientation of the drill holes with
respect to the orientation of the deposit.
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
The CP Jeremy Witley has reviewed and advised on all stages of data
collection, sample processing, QA protocol and Mineral Resource Estimation.
Field and in-country lab visits have been completed by Mr Witley. 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) EL0609,
material issues with third parties such as joint ventures, partnerships, EL0582, EL0657 and EL0710 and Retention Licences RTL0035/25 to RTL0046/25
overriding royalties, native title interests, historical sites, wilderness or (previously EL0492). The EL's were issued in accordance with Mines and
national park and environment settings. Minerals Act (2023) and are held in the Company's wholly-owned Malawi-
registered subsidiaries.
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 mining exist.
operate in the area.
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
and graphite resources in Malawi. No other parties are, or have been, involved
in exploration.
Geology Deposit type, geological setting and style of mineralisation The rutile deposit type is considered a residual placer formed by the intense
weathering of rutile-rich basement paragneisses and variable enrichment by
elluvial processes.
Rutile occurs in a mostly topographically flat area west of Malawi's capital,
known as the Lilongwe Plain, where a deep tropical weathering profile is
preserved. A typical profile from top to base is generally soil ("SOIL" 0-1m)
ferruginous pedolith ("FERP", 1-4m), mottled zone ("MOTT", 4-7m), pallid
saprolite ("PSAP", 7-9m), saprolite ("SAPL", 9-25m), saprock ("SAPR", 25-35m)
and fresh rock ("FRESH" >35m). Any rutile located in SAPR and FRESH is not
considered in this Mineral Resource Estimate
The 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 Rutile grades from the 2024 AC drill program have been excluded from this MRE
information is not Material and this exclusion does not detract from the update as there was an unexpected issue with cyclone hangup which where
understanding of the report, the Competent Person should clearly explain why occurred introduced a material sizing bias which affects the reliability of
this is the case the rutile grade estimate.
Geology logging and the mineralisation domains defined from the 2024 AC
drilling have been incorporated to enhance confidence in the geological model.
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. A nominal bottom cut of 0.7% rutile is used, based on preliminary assessment
of resource product value and anticipated cost of operations.
Where aggregate intercepts incorporate short lengths of high-grade results and No data aggregation was required.
longer lengths of low-grade results, the procedure used for such aggregation
should be stated and some typical examples of such aggregations should be
shown in detail.
The assumptions used for any reporting of metal equivalent values should be Rutile Equivalent (Rut_Eq = Rutile+(TGC*0.5735) - where applicable
clearly stated.
Formula: (Rutile Grade x Recovery x Rutile Price) + (Graphite Grade x Recovery
x Graphite Price) / Rutile Price.
Commodity Prices:
· Rutile price: US$1,294/t
· Graphite price: US$1,099/t
Metallurgical Recovery to Product:
· Rutile Recovery: 97.6%
· Graphite Recovery: 70.4%
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.
Graphite results are approximate true width as defined by the sample interval
and are typically higher in the deeper portions of the weathering profile.
Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts Refer to figures and diagrams provided in this announcement as well as
should be included for any significant discovery being reported. These should previous announcements (which are accessible on the Company's website).
include, but not be limited to a plan view of the drill collar locations and
appropriate sectional views.
Balanced 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 website.
reporting 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 typical 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 under 2% of the HA/PT drill
treatment; metallurgical test results; bulk density, groundwater, geotechnical database. No drilling refusal was recorded above the saprock interface by AC
and rock characteristics; potential deleterious or contaminating substances. drilling.
Slimes (-45 µm) averages 46wt% in the primary rutile mineralisation zone.
Separation test work conducted at AML demonstrates the success in applying a
contemporary mineral sands flowsheet in treating this material and achieving
excellent rutile recovery.
Sample quality (representivity) is established by statistical analysis of
comparable sample intervals.
Several generations of QEMSCAN analysis of the NMag performed at ALS
Metallurgy, shows dominantly clean and liberated rutile grains and confirms
rutile is the only titanium species in the NMag fraction.
Further work The nature and scale of planned further work (e.g. test for lateral extensions Additional waste rock characterisation work relevant to mining scale, related
or depth extensions or large-scale step-out drilling). to barren clay horizons related to recent alluvial weathering (dambos),
amphibolite and pegmatitic zones.
A greater understanding of the lithological character and extent of those
basement units, where high-grade (>1%) rutile persists at the saprock
interface, may assist in focusing further resource definition and exploration
targeting.
Further metallurgical assessment is suggested to characterise rutile quality
and establish whether any chemical variability is inherent across the deposit.
Further laboratory and metallurgical analysis of the Mag fraction to improve
the definition of the Rare Earth Elements (REE) associated with the presence
of Monazite in the Mag fraction.
Further analysis of other potential HM associated with the byproducts of
rutile production.
Diagrams clearly highlighting the areas of possible extensions, including the Refer to diagrams in the body of this report and in previous releases. These
main geological interpretations and future drilling areas, provided this are accessible on the Company's website.
information is not commercially sensitive.
Section 3 - Estimation and Reporting of Mineral Resources
Criteria JORC Code explanation Commentary
Database integrity Measures taken to ensure that data has not been corrupted by, for example, Data are manually entered into database tables according to SOPs and
transcription or keying errors, between its initial collection and its use for conforming to company field names and classifications. These are migrated to
Mineral Resource estimation purposes. Datashed5 (prior to June 2024) and now MX Deposit database managed internally
by the Company (with external support from Cape Town based exploration company
RES) with validation and quarantine capability. Relevant tables from the
database are exported to csv format and forwarded to MSA for independent
review.
Data validation procedures used. Validation of the primary data include checks for duplicate or overlapping
intervals, missing survey data, missing assay data or missing lithological
data.
Statistical, out-of-range, distribution, error and missing data validation is
completed by MSA on data sets before being compiled into a de-surveyed drill
hole file and interrogated in 3D using Datamine Studio RM software.
All questions relating to the input data are forwarded to the client for
review and resolution prior to resource estimation.
The type and number of holes used in the MRE are:
HTYPE_4 Num Holes Metres drilled
AC 538 11,636.7
HA 1,938 18,066.0
PTDD 533 5,650.7
SA 178 1,725.9
Total 3,187 37,079.3
Additional sampling included open pits, channel sampling of the trial mining
area which were used for checking and validation of the various drilling
methods:
HTYPE_4 Num Holes Metres Drilled
CH 54 315.0
CL 10 40.0
HACL 279 829.6
PIT 87 400.3
RC 9 279.0
PC 17 91.4
Total 456 1,955.3
Site visits Comment on any site visits undertaken by the Competent Person and the outcome Field and SSL laboratory visits were completed over a 1-week period in
of those visits. November 2024 and June 2025. A high standard of operation, procedure and
personnel was observed and reported.
If no site visits have been undertaken indicate why this is the case. Not applicable
Geological interpretation Confidence in (or conversely, the uncertainty of) the geological There is a high degree of repeatability and uniformity in the geological
interpretation of the mineral deposit. character of the Kasiya Deposit demonstrated by lithological logging of AC, PT
core and HA samples. Satellite imagery and airborne geophysical data provided
guidance for interpreting the strike continuity of the deposit.
Drill hole intercept logging and assay results (AC, PT, SA and HA),
stratigraphic interpretations from drill core and geological logs of drill
data have formed the basis for the geological interpretation. The drilling
exclusively targeted the SOIL, FERP, MOTT and SAPL weathering horizons, with
no sampling of the SAPR and below the upper level of the fresh rock (FRESH)
domain.
Nature of the data used and of any assumptions made. No assumptions were made.
The effect, if any, of alternative interpretations on Mineral Resource No alternative interpretations on Mineral Resource Estimation are offered.
estimation.
The use of geology in guiding and controlling Mineral Resource estimation. The mineral resource is constrained by the drill array plus up to 400m area of
influence from nearest drilling.
The topographical DTM constrains the vertical extent of the resource.
The primary domain control is weathering type - SOIL+FERP, MOTT, PSAP and
SAPL. This is further sub-divided into rutile mineralisation (nominally
>=0.5% Rutile) and graphite mineralisation (nominally >=0.6% TGC). The
mineralisation domains are treated independently of each other.
The base to mineralisation is constrained by a DTM representing the bottom of
drilling.
AC drilling has accurately defined depth to basement at the saprock interface,
which has been modelled in the MRE where intersected.
The factors affecting continuity both of grade and geology. Rutile grade is concentrated in surface regolith horizons. Deposit
stratigraphy and weathering is consistent along and across strike. Rutile
grade trend is oriented at 45 degrees at Kasiya North and 360 degrees at
Kasiya South and far North, which mimics the underlying basement source rocks
and residual topography. Rutile varies across strike as a result of the
layering of mineralised and non-mineralised basement rocks.
Areas containing near surface clay lenses, amphibolite and narrow cross
striking pegmatitic rocks are barren of rutile and graphite. These zones have
been modelled and excluded from the mineralisation domains.
Dimensions The extent and variability of the Mineral Resource expressed as length (along The Kasiya mineralised footprint strikes N - S & NE - SW, is 72km long and
strike or otherwise), plan width, and depth below surface to the upper and approximately 20km at its widest section. The currently defined surface extent
lower limits of the Mineral Resource. of >=0.7% rutile is about 268.6km2..
The mineral resource occurs from surface to the saprolite-saprock interface,
which is typically in the order of 15 m, although can attain localised
thicknesses in excess of 25 m. The deposit thins towards the edges to
approximately 5 m and pinches out in the drainage channels.
Estimation and modelling techniques The nature and appropriateness of the estimation technique(s) applied and key Datamine Studio RM, LeapFrog and Supervisor software are used for the data
assumptions, including treatment of extreme grade values, domaining, analysis, variography, geological interpretation and resource estimation.
interpolation parameters and maximum distance of extrapolation from data
points. If a computer assisted estimation method was chosen include a A 3D block model honouring the geology boundaries which included weathering
description of computer software and parameters used. horizons; barren mafic intrusives; surface clay horizons, cross striking
pegmatitic zones and presence of barren or low grade amphibolite was created.
The model was also coded with the tenement EL codes, rock in-situ dry bulk
density and moisture content.
Rutile mineralisation was defined as the last intercept >=2m down hole
exceeding 0.5% Rutile. Generally, rutile grade is highest at the surface
gradually reducing in grade with depth. Using this guideline very little
internal low grade/waste is introduced. The resulting sample point data was
used to create the bounding lower surface for a rutile mineralisation DTM.
Additional manual points were interpreted in section by section to ensure
consistency, especially in areas with wider spaced drilling.
Graphite mineralisation was defined as the highest up hole intercept >-2m
exceeding 0.6% TGC. Generally, TGC grade is highest at depth gradually
reducing in grade closer to the surface. Using this guideline very little
internal low grade/waste is introduced. Similarly to rutile, a graphite
mineralisation upper limit DTM was constructed. The lower limit of graphite
mineralisation was either the base of drilling or the top of SAPR if drilling
intersected SAPR.
Eight grade domains were created, 4 mineralised and 4 low grade / waste for
both rutile and graphite, based on the combination of weathering type inside
or outside the mineralisation DTM's. Samples were composited to 1 sample per
drillhole per domain. Rutile and TGC samples were treated independently as
there is no correlation between rutile and TGC grades.
The composite populations generally approximated normal distributions with
some -ve and/or +ve skewness relating to the imposed mineralisation boundary.
Ordinary Kriging (OK) was considered the best grade estimator for both rutile
and graphite due to the near normal grade distributions and adequate
variograms. Variography analysis was used to determine population nugget
effect and OK search and neighbourhood parameters.
Each grade domain was treated as a 2D seam and estimated using OK with dynamic
anisotropy which followed the broad mineralisation continuity trends. No
declustering or removal of twin data was required, as OK is an optimal
declustering algorithm, and the post OK checks demonstrated no negative
weights in the mineralised zones. Any areas not estimated were set to waste
grades.
The availability of check estimates, previous estimates and/or mine production This is the fifth MRE for the Kasiya Deposit.
records and whether the Mineral Resource estimate takes appropriate account of
such data. Bulk-scale test work has been completed and results support the view of the
Competent Person that an economic deposit of readily separable, high- quality
rutile is anticipated from the Kasiya Deposit. The recovery of a coarse- flake
graphite by-product was also achieved by the test work.
The assumptions made regarding recovery of by-products. A graphite co-product was modelled as recoverable TGC based on the test-work.
Estimation of deleterious elements or other non-grade variables of economic No significant deleterious elements are identified. A selection of assay,
significance (e.g. sulphur for acid mine drainage characterisation). magnetic separation, XRF and mineralogical results have been reviewed.
In the case of block model interpolation, the block size in relation to the The parent cell size used is equivalent to the infill drill hole spacing
average sample spacing and the search employed. within the Measured Resource (200m*200m). XY sub-celling to 50m*50m is
adequate resolution for horizontal boundaries. Seam modelling ensured the
weathering and topography layers were vertically accurate (within the 50m
horizontal resolution). Grade was estimated using the parent cell panel size.
Any assumptions behind modelling of selective mining units. Dry mining using bulk mining methods such as dragline and/or excavator load
and haul has been considered in the modelling. The assumption is that any
mining selectivity will be based on distinct weathering horizons which range
in thickness from 2m to 9m, with a near horizontal dip.
Any assumptions about correlation between variables. Rutile and graphite mineralisation have been modelled separately as there is
no correlation between them.
Description of how the geological interpretation was used to control the Grade estimation was constrained by hard boundaries (domains) that result from
resource estimates. the geological interpretation and mineralisation interpretation.
Discussion of basis for using or not using grade cutting or capping. Top Capping was applied to the composites considered to be outliers to reduce
local high-grade bias. Generally <1% of samples had a grade cap applied.
The process of validation, the checking process used, the comparison of model Validation of the grade estimate was completed both visually and
data to drill hole data, and use of reconciliation data if available. statistically.
Visual validation by loading the model and drill hole files and annotating,
colouring and using filtering to check for the appropriateness of the
estimate.
Distributions of section line averages (swath plots) for drill holes and
models were prepared for each zone and orientation for comparison purposes.
The resource model has appropriately averaged informing drill hole data and is
considered suitable to support the resource classifications as applied to the
estimate.
No production has been carried out, so no reconciliation data is available.
Moisture Whether the tonnages are estimated on a dry basis or with natural moisture, Tonnages are estimated on a dry basis. Average moisture content is included in
and the method of determination of the moisture content. the model for mine planning purposes.
Cut-off parameters The basis of the adopted cut-off grade(s) or quality parameters applied. The mineral resource is confined to an economically optimised pit shell based
on financial parameters.
For clarity and comparison with previous resource estimates, the MRE has been
subdivided into a rutile dominant resource (reported at >=0.4% Rutile which
is similar to previous MRE's) and a graphite rich zone (generally below the
rutile resource) reported at 0.6% TGC cutoff grade.
Note: The pit shell includes internal lower grade rutile and graphite material
which is tabled for transparency as it will most probably be mined due to the
bulk mining methodology.
Mining factors or assumptions Assumptions made regarding possible mining methods, minimum mining dimensions Dry-mining has been determined as the optimal method of mining for the Kasiya
and internal (or, if applicable, external) mining dilution. It is always Rutile deposit. The materials competence is loose, soft, fine and friable with
necessary as part of the process of determining reasonable prospects for no cemented sand or dense clay layers, allowing for a free dig mining method.
eventual economic extraction to consider potential mining methods, but the It is considered that the strip ratio would be zero or near zero.
assumptions made regarding mining methods and parameters when estimating
Mineral Resources may not always be rigorous. Where this is the case, this Dilution is considered to be minimal as rutile mineralisation occurs from
should be reported with an explanation of the basis of the mining assumptions surface and mineralisation is generally gradational into the low-grade
made. portions with few sharp boundaries.
Metallurgical factors or assumptions The basis for assumptions or predictions regarding metallurgical amenability. Recovery parameters have not been factored into the estimate. However, the
It is always necessary as part of the process of determining reasonable valuable minerals are readily separable due to their SG differential and are
prospects for eventual economic extraction to consider potential metallurgical expected to have a high recovery through the proposed, conventional wet
methods, but the assumptions regarding metallurgical treatment processes and concentration plant.
parameters made when reporting Mineral Resources may not always be rigorous.
Where this is the case, this should be reported with an explanation of the Rigorous metallurgical testwork on rutile and graphite recoverability and
basis of the metallurgical assumptions made. specifications has been completed on numerous bulk samples since 2018.
Rutile recovered to product is modelled at 97.6% (the estimated rutile grade
is a recovered grade).
The average recovery for graphite recovered to product is 70.4%.
The chemical and physical specifications of both products rank in the top
quartile.
Environmental factors or assumptions Assumptions made regarding possible waste and process residue disposal The Project has commenced preparation of the Environmental and Social Impact
options. It is always necessary as part of the process of determining Assessment (ESIA), and all supporting biological, social and biophysical
reasonable prospects for eventual economic extraction to consider the specialist studies have been concluded, and have been fed into the Project
potential environmental impacts of the mining and processing operation. While design as modifying factors or assumptions.
at this stage the determination of potential environmental impacts,
particularly for a greenfields project, may not always be well advanced, the The unconstrained MRE was constrained by both environmental and social no-go
status of early consideration of these potential environmental impacts should areas which acted as modifying factors. This allowed the determination of the
be reported. Where these aspects have not been considered this should be constrained MRE covering the current 22 pits of 3,400 hectares. The
reported with an explanation of the environmental assumptions made. constrained mapping reduced social impact by completely avoiding nearby
communities, as well as avoiding all remanent natural habitats - barring the
establishment of the Water Storage Dam.
With respect to possible waste and process residue, full hydrogeological and
geochemical testing has been concluded. Metals leaching is deemed a low risk,
with most modelled parameters are expected to remain within local and WHO
drinking water standards. Risk related to acid mine drainage has been
categorized as intermediate - as while the Sulphides are below thresholds
(<0.3%) there is near no neutralizing capacity. Long-term kinetic leach
testing is required to verify the models; however, no specific or targeted
disposal measures is currently required as the risks is not deemed to be
material.
Bulk density Whether assumed or determined. If assumed, the basis for the assumptions. If In-situ dry bulk density was calculated from 400 core samples taken from
determined, the method used, whether wet or dry, the frequency of the spatially and lithologically-representative sites across the deposit.
measurements, the nature, size and representativeness of the samples.
Dry bulk density is calculated from PT drill core using a cylinder volume wet
and dry method performed by Sovereign in Malawi.
Shelby tube core samples collected from the 2024 PTDD drill program were
analysed by CIVILAB in South Africa.
Bulk density data was coded by weathering horizon. Population distributions
were then reviewed and obvious outlies removed. Either the mean or median were
used as the average for each weathering and/or rock type domain.
The bulk density for bulk material must have been measured by methods that The in-situ volume and dry mass method was used, which accounts for porosity.
adequately account for void spaces (vughs, porosity, etc.), moisture and
differences between rock and alteration zones within the deposit. No significant voids are expected.
Discuss assumptions for bulk density estimates used in the evaluation process The average in-situ dry bulk density of the total MRE is 1.60 t/m3.
of the different materials.
This is derived from using an average density of 1.39 t/m3 for the SOIL; 1.58
t/m3 for the FERP, 1.66 t/m3 for the MOTT; 1.68 t/m3 for the PSAP; and 1.77
t/m3 for SAPL; Density was assigned based on the weathering domain.
Classification The basis for the classification of the Mineral Resources into varying The Kasiya MRE has been classified as Measured, Indicated or Inferred.
confidence categories.
JORC classification considered geological understanding; mineralisation
continuity; drilling and sampling quality and spacing; OK estimation
efficiency and confidence (SoR); and proposed mining method and scale.
The dominant control on grade distribution within the mineralised zone is
intensity of weathering. Rutile is a mineral resistant to weathering and is
concentrated by depletion of less resistant minerals during the weathering
process resulting in higher grades near the surface where more intense
weathering has taken place. The weathering profiles are consistent and readily
defined by logging of drill samples.
Both rutile and graphite mineralisation have been well defined by drilling and
appropriate sample analysis to determine rutile recovered grade and in-situ
TGC. Both mineralisation zones are broad and continuous with rutile dominant
in the Soil, FERP and MOTT horizons, and graphite in the PSAP and SAPL
horizons. There is significant overlap of the two mineralisation zones. The
mineralisation is truncated either by changes in the protolith of displaced by
mafic intrusives. Recent drainage has also impacted mineralisation continuity.
The dominant zones of mineralisation exceed 10km of strike continuity and
range from 1 to 4km in width.
Regional exploration was completed on a nominal 800m square grid, with infill
to 400m then either 200m square or 200m offset grid.
Twin holes plus some close spaced geostatistical drilling, close spaced
channel sampling during the trial mining and open pit sampling have all
demonstrated the robustness of the geology interpretation and mineralisation
continuity.
OK efficiency (KE) generally exceeds 0.6 with SoR exceeding 0.85 in the
dominant mineralised zones.
Based on the high confidence geology interpretation; mineralisation scale and
continuity, including considering the bulk mining method; and very tight grade
distributions within the estimation domains the Competent Person is
comfortable classifying all the Mineral Resource as either Measured, Indicated
or Inferred.
Measured was defined using a nominal KE >=0.6 and a SOR >=0.85 but
generally exceeding 0.9, which generally fits areas with a nominal drill
spacing of 200 by 200m. A boundary was used to define the Measured Mineral
Resource.
Indicated was defined using a nominal KE >=0.4 to 0.5 and a SOR >=0.8,
which generally fits areas with a nominal drill spacing of 400 to 200m. A
boundary was used to define the Indicated Mineral Resource.
The Mineral Resource was constrained to a potentially economic open pit shell
to reflect the code requirement for Reasonable Prospects of Eventual Economic
Extraction (RPEEE). The shell was defined using Whittle Open Pit Optimisation
with the following parameters:
Rutile: Net concentrate revenue US$1400/t; Process recovery 100%;
Graphite: Net revenue US$1200/t ; Average Process recovery of 70.4%.
Mining Opex US$1.35/t; Process Opex US$5.44/t
The MRE is presented in 3 Tables.
The top table presents the rutile dominant mineral resource based on a higher
rutile cut-off pit shell - optimised using the $1,400 rutile price using a
nominal ore grade cutoff of 0.75% Rutile. This pit shell was generated to
maximise material above 0.7% Rutile as a comparison with the previously
reported MRE.
The middle table presents the remaining mineral resource within the primary
pit shell but outside (mainly below) the rutile dominant pit shell. This table
is further sub-divided to show the high grade graphite material (primarily at
depth) and the lower grade rutile material (primarily at the edges of the
deposit).
The bottom table presents the entire MRE constrained to the RPEEE Open Pit
shell. No cutoff is applied as material <0.7% Rut_EQ will likely be mined
as internal dilution as it is spread throughout the MRE in small pockets not
suitable for selective mining.
Whether appropriate account has been taken of all relevant factors (i.e. All relevant factors were assessed by the Competent Person, including data
relative confidence in tonnage/grade estimations, reliability of input data, quality, confidence in the geological interpretation and framework for the
confidence in continuity of geology and metal values, quality, quantity and mineral resource, mineralisation continuity and variability. Geostatistical
distribution of the data). parameters relative to drillhole spacing was used guide the classification of
the Mineral Resource.
Whether the result appropriately reflects the Competent Person's view of the The MRE appropriately reflects the Competent Person's view of the Kasiya
deposit rutile and graphite deposit.
Audits or reviews The results of any audits or reviews of Mineral Resource estimates. The Mineral Resource was completed by the SVM technical services team. MSA
completed fine tuning of the mineralisation interpretation, statistics,
variography and OK parameters. The final model was reviewed by the Competent
Person within the MSA team.
Discussion of relative accuracy/ confidence Where appropriate a statement of the relative accuracy and confidence level in Additional mineralisation is expected to occur below the effective depth of HA
the Mineral Resource estimate using an approach or procedure deemed and PT drilling. This has been confirmed by areas which have included deeper
appropriate by the Competent Person. For example, the application of AC drilling.
statistical or geostatistical procedures to quantify the relative accuracy of
the resource within stated confidence limits, or, if such an approach is not A high-degree of uniformity exists in the broad and contiguous lithological
deemed appropriate, a qualitative discussion of the factors that could affect and grade character of the deposit. Drilling, sampling and data collection
the relative accuracy and confidence of the estimate. procedures have been professionally executed. QA protocols and interpretations
conform to industry best practice.
Assay, mineralogical determinations and metallurgical test work conform to
industry best practice and demonstrate a rigorous assessment of product and
procedure. The development of a conventional processing flowsheet and
marketability studies support the classification of the Kasiya Resource.
The statement should specify whether it relates to global or local estimates, The block model estimate is of sufficient accuracy to apply modifying factors
and, if local, state the relevant tonnages, which should be relevant to for mine planning in the portion classified as Measured and Indicated Mineral
technical and economic evaluation. Documentation should include assumptions Resource.
made and the procedures used.
Inferred Mineral Resources are global in nature and are suitable for economic
evaluation at a high level such as a scoping study.
Recoverable resource estimates have not been made on a selective mining unit
basis.
These statements of relative accuracy and confidence of the estimate should be No production data are available to reconcile model results.
compared with production data, where available.
Additional sampling included open pits, channel sampling of the trial mining
area which were used for checking and validation of the various drilling
methods:
HTYPE_4 Num Holes Metres Drilled
CH 54 315.0
CL 10 40.0
HACL 279 829.6
PIT 87 400.3
RC 9 279.0
PC 17 91.4
Total 456 1,955.3
Site visits
Comment on any site visits undertaken by the Competent Person and the outcome
of those visits.
Field and SSL laboratory visits were completed over a 1-week period in
November 2024 and June 2025. A high standard of operation, procedure and
personnel was observed and reported.
If no site visits have been undertaken indicate why this is the case.
Not applicable
Geological interpretation
Confidence in (or conversely, the uncertainty of) the geological
interpretation of the mineral deposit.
There is a high degree of repeatability and uniformity in the geological
character of the Kasiya Deposit demonstrated by lithological logging of AC, PT
core and HA samples. Satellite imagery and airborne geophysical data provided
guidance for interpreting the strike continuity of the deposit.
Drill hole intercept logging and assay results (AC, PT, SA and HA),
stratigraphic interpretations from drill core and geological logs of drill
data have formed the basis for the geological interpretation. The drilling
exclusively targeted the SOIL, FERP, MOTT and SAPL weathering horizons, with
no sampling of the SAPR and below the upper level of the fresh rock (FRESH)
domain.
Nature of the data used and of any assumptions made.
No assumptions were made.
The effect, if any, of alternative interpretations on Mineral Resource
estimation.
No alternative interpretations on Mineral Resource Estimation are offered.
The use of geology in guiding and controlling Mineral Resource estimation.
The mineral resource is constrained by the drill array plus up to 400m area of
influence from nearest drilling.
The topographical DTM constrains the vertical extent of the resource.
The primary domain control is weathering type - SOIL+FERP, MOTT, PSAP and
SAPL. This is further sub-divided into rutile mineralisation (nominally
>=0.5% Rutile) and graphite mineralisation (nominally >=0.6% TGC). The
mineralisation domains are treated independently of each other.
The base to mineralisation is constrained by a DTM representing the bottom of
drilling.
AC drilling has accurately defined depth to basement at the saprock interface,
which has been modelled in the MRE where intersected.
The factors affecting continuity both of grade and geology.
Rutile grade is concentrated in surface regolith horizons. Deposit
stratigraphy and weathering is consistent along and across strike. Rutile
grade trend is oriented at 45 degrees at Kasiya North and 360 degrees at
Kasiya South and far North, which mimics the underlying basement source rocks
and residual topography. Rutile varies across strike as a result of the
layering of mineralised and non-mineralised basement rocks.
Areas containing near surface clay lenses, amphibolite and narrow cross
striking pegmatitic rocks are barren of rutile and graphite. These zones have
been modelled and excluded from the mineralisation domains.
Dimensions
The extent and variability of the Mineral Resource expressed as length (along
strike or otherwise), plan width, and depth below surface to the upper and
lower limits of the Mineral Resource.
The Kasiya mineralised footprint strikes N - S & NE - SW, is 72km long and
approximately 20km at its widest section. The currently defined surface extent
of >=0.7% rutile is about 268.6km2..
The mineral resource occurs from surface to the saprolite-saprock interface,
which is typically in the order of 15 m, although can attain localised
thicknesses in excess of 25 m. The deposit thins towards the edges to
approximately 5 m and pinches out in the drainage channels.
Estimation and modelling techniques
The nature and appropriateness of the estimation technique(s) applied and key
assumptions, including treatment of extreme grade values, domaining,
interpolation parameters and maximum distance of extrapolation from data
points. If a computer assisted estimation method was chosen include a
description of computer software and parameters used.
Datamine Studio RM, LeapFrog and Supervisor software are used for the data
analysis, variography, geological interpretation and resource estimation.
A 3D block model honouring the geology boundaries which included weathering
horizons; barren mafic intrusives; surface clay horizons, cross striking
pegmatitic zones and presence of barren or low grade amphibolite was created.
The model was also coded with the tenement EL codes, rock in-situ dry bulk
density and moisture content.
Rutile mineralisation was defined as the last intercept >=2m down hole
exceeding 0.5% Rutile. Generally, rutile grade is highest at the surface
gradually reducing in grade with depth. Using this guideline very little
internal low grade/waste is introduced. The resulting sample point data was
used to create the bounding lower surface for a rutile mineralisation DTM.
Additional manual points were interpreted in section by section to ensure
consistency, especially in areas with wider spaced drilling.
Graphite mineralisation was defined as the highest up hole intercept >-2m
exceeding 0.6% TGC. Generally, TGC grade is highest at depth gradually
reducing in grade closer to the surface. Using this guideline very little
internal low grade/waste is introduced. Similarly to rutile, a graphite
mineralisation upper limit DTM was constructed. The lower limit of graphite
mineralisation was either the base of drilling or the top of SAPR if drilling
intersected SAPR.
Eight grade domains were created, 4 mineralised and 4 low grade / waste for
both rutile and graphite, based on the combination of weathering type inside
or outside the mineralisation DTM's. Samples were composited to 1 sample per
drillhole per domain. Rutile and TGC samples were treated independently as
there is no correlation between rutile and TGC grades.
The composite populations generally approximated normal distributions with
some -ve and/or +ve skewness relating to the imposed mineralisation boundary.
Ordinary Kriging (OK) was considered the best grade estimator for both rutile
and graphite due to the near normal grade distributions and adequate
variograms. Variography analysis was used to determine population nugget
effect and OK search and neighbourhood parameters.
Each grade domain was treated as a 2D seam and estimated using OK with dynamic
anisotropy which followed the broad mineralisation continuity trends. No
declustering or removal of twin data was required, as OK is an optimal
declustering algorithm, and the post OK checks demonstrated no negative
weights in the mineralised zones. Any areas not estimated were set to waste
grades.
The availability of check estimates, previous estimates and/or mine production
records and whether the Mineral Resource estimate takes appropriate account of
such data.
This is the fifth MRE for the Kasiya Deposit.
Bulk-scale test work has been completed and results support the view of the
Competent Person that an economic deposit of readily separable, high- quality
rutile is anticipated from the Kasiya Deposit. The recovery of a coarse- flake
graphite by-product was also achieved by the test work.
The assumptions made regarding recovery of by-products.
A graphite co-product was modelled as recoverable TGC based on the test-work.
Estimation of deleterious elements or other non-grade variables of economic
significance (e.g. sulphur for acid mine drainage characterisation).
No significant deleterious elements are identified. A selection of assay,
magnetic separation, XRF and mineralogical results have been reviewed.
In the case of block model interpolation, the block size in relation to the
average sample spacing and the search employed.
The parent cell size used is equivalent to the infill drill hole spacing
within the Measured Resource (200m*200m). XY sub-celling to 50m*50m is
adequate resolution for horizontal boundaries. Seam modelling ensured the
weathering and topography layers were vertically accurate (within the 50m
horizontal resolution). Grade was estimated using the parent cell panel size.
Any assumptions behind modelling of selective mining units.
Dry mining using bulk mining methods such as dragline and/or excavator load
and haul has been considered in the modelling. The assumption is that any
mining selectivity will be based on distinct weathering horizons which range
in thickness from 2m to 9m, with a near horizontal dip.
Any assumptions about correlation between variables.
Rutile and graphite mineralisation have been modelled separately as there is
no correlation between them.
Description of how the geological interpretation was used to control the
resource estimates.
Grade estimation was constrained by hard boundaries (domains) that result from
the geological interpretation and mineralisation interpretation.
Discussion of basis for using or not using grade cutting or capping.
Top Capping was applied to the composites considered to be outliers to reduce
local high-grade bias. Generally <1% of samples had a grade cap applied.
The process of validation, the checking process used, the comparison of model
data to drill hole data, and use of reconciliation data if available.
Validation of the grade estimate was completed both visually and
statistically.
Visual validation by loading the model and drill hole files and annotating,
colouring and using filtering to check for the appropriateness of the
estimate.
Distributions of section line averages (swath plots) for drill holes and
models were prepared for each zone and orientation for comparison purposes.
The resource model has appropriately averaged informing drill hole data and is
considered suitable to support the resource classifications as applied to the
estimate.
No production has been carried out, so no reconciliation data is available.
Moisture
Whether the tonnages are estimated on a dry basis or with natural moisture,
and the method of determination of the moisture content.
Tonnages are estimated on a dry basis. Average moisture content is included in
the model for mine planning purposes.
Cut-off parameters
The basis of the adopted cut-off grade(s) or quality parameters applied.
The mineral resource is confined to an economically optimised pit shell based
on financial parameters.
For clarity and comparison with previous resource estimates, the MRE has been
subdivided into a rutile dominant resource (reported at >=0.4% Rutile which
is similar to previous MRE's) and a graphite rich zone (generally below the
rutile resource) reported at 0.6% TGC cutoff grade.
Note: The pit shell includes internal lower grade rutile and graphite material
which is tabled for transparency as it will most probably be mined due to the
bulk mining methodology.
Mining factors or assumptions
Assumptions made regarding possible mining methods, minimum mining dimensions
and internal (or, if applicable, external) mining dilution. It is always
necessary as part of the process of determining reasonable prospects for
eventual economic extraction to consider potential mining methods, but the
assumptions made regarding mining methods and parameters when estimating
Mineral Resources may not always be rigorous. Where this is the case, this
should be reported with an explanation of the basis of the mining assumptions
made.
Dry-mining has been determined as the optimal method of mining for the Kasiya
Rutile deposit. The materials competence is loose, soft, fine and friable with
no cemented sand or dense clay layers, allowing for a free dig mining method.
It is considered that the strip ratio would be zero or near zero.
Dilution is considered to be minimal as rutile mineralisation occurs from
surface and mineralisation is generally gradational into the low-grade
portions with few sharp boundaries.
Metallurgical factors or assumptions
The basis for assumptions or predictions regarding metallurgical amenability.
It is always necessary as part of the process of determining reasonable
prospects for eventual economic extraction to consider potential metallurgical
methods, but the assumptions regarding metallurgical treatment processes and
parameters made when reporting Mineral Resources may not always be rigorous.
Where this is the case, this should be reported with an explanation of the
basis of the metallurgical assumptions made.
Recovery parameters have not been factored into the estimate. However, the
valuable minerals are readily separable due to their SG differential and are
expected to have a high recovery through the proposed, conventional wet
concentration plant.
Rigorous metallurgical testwork on rutile and graphite recoverability and
specifications has been completed on numerous bulk samples since 2018.
Rutile recovered to product is modelled at 97.6% (the estimated rutile grade
is a recovered grade).
The average recovery for graphite recovered to product is 70.4%.
The chemical and physical specifications of both products rank in the top
quartile.
Environmental factors or assumptions
Assumptions made regarding possible waste and process residue disposal
options. It is always necessary as part of the process of determining
reasonable prospects for eventual economic extraction to consider the
potential environmental impacts of the mining and processing operation. While
at this stage the determination of potential environmental impacts,
particularly for a greenfields project, may not always be well advanced, the
status of early consideration of these potential environmental impacts should
be reported. Where these aspects have not been considered this should be
reported with an explanation of the environmental assumptions made.
The Project has commenced preparation of the Environmental and Social Impact
Assessment (ESIA), and all supporting biological, social and biophysical
specialist studies have been concluded, and have been fed into the Project
design as modifying factors or assumptions.
The unconstrained MRE was constrained by both environmental and social no-go
areas which acted as modifying factors. This allowed the determination of the
constrained MRE covering the current 22 pits of 3,400 hectares. The
constrained mapping reduced social impact by completely avoiding nearby
communities, as well as avoiding all remanent natural habitats - barring the
establishment of the Water Storage Dam.
With respect to possible waste and process residue, full hydrogeological and
geochemical testing has been concluded. Metals leaching is deemed a low risk,
with most modelled parameters are expected to remain within local and WHO
drinking water standards. Risk related to acid mine drainage has been
categorized as intermediate - as while the Sulphides are below thresholds
(<0.3%) there is near no neutralizing capacity. Long-term kinetic leach
testing is required to verify the models; however, no specific or targeted
disposal measures is currently required as the risks is not deemed to be
material.
Bulk density
Whether assumed or determined. If assumed, the basis for the assumptions. If
determined, the method used, whether wet or dry, the frequency of the
measurements, the nature, size and representativeness of the samples.
In-situ dry bulk density was calculated from 400 core samples taken from
spatially and lithologically-representative sites across the deposit.
Dry bulk density is calculated from PT drill core using a cylinder volume wet
and dry method performed by Sovereign in Malawi.
Shelby tube core samples collected from the 2024 PTDD drill program were
analysed by CIVILAB in South Africa.
Bulk density data was coded by weathering horizon. Population distributions
were then reviewed and obvious outlies removed. Either the mean or median were
used as the average for each weathering and/or rock type domain.
The bulk density for bulk material must have been measured by methods that
adequately account for void spaces (vughs, porosity, etc.), moisture and
differences between rock and alteration zones within the deposit.
The in-situ volume and dry mass method was used, which accounts for porosity.
No significant voids are expected.
Discuss assumptions for bulk density estimates used in the evaluation process
of the different materials.
The average in-situ dry bulk density of the total MRE is 1.60 t/m3.
This is derived from using an average density of 1.39 t/m3 for the SOIL; 1.58
t/m3 for the FERP, 1.66 t/m3 for the MOTT; 1.68 t/m3 for the PSAP; and 1.77
t/m3 for SAPL; Density was assigned based on the weathering domain.
Classification
The basis for the classification of the Mineral Resources into varying
confidence categories.
The Kasiya MRE has been classified as Measured, Indicated or Inferred.
JORC classification considered geological understanding; mineralisation
continuity; drilling and sampling quality and spacing; OK estimation
efficiency and confidence (SoR); and proposed mining method and scale.
The dominant control on grade distribution within the mineralised zone is
intensity of weathering. Rutile is a mineral resistant to weathering and is
concentrated by depletion of less resistant minerals during the weathering
process resulting in higher grades near the surface where more intense
weathering has taken place. The weathering profiles are consistent and readily
defined by logging of drill samples.
Both rutile and graphite mineralisation have been well defined by drilling and
appropriate sample analysis to determine rutile recovered grade and in-situ
TGC. Both mineralisation zones are broad and continuous with rutile dominant
in the Soil, FERP and MOTT horizons, and graphite in the PSAP and SAPL
horizons. There is significant overlap of the two mineralisation zones. The
mineralisation is truncated either by changes in the protolith of displaced by
mafic intrusives. Recent drainage has also impacted mineralisation continuity.
The dominant zones of mineralisation exceed 10km of strike continuity and
range from 1 to 4km in width.
Regional exploration was completed on a nominal 800m square grid, with infill
to 400m then either 200m square or 200m offset grid.
Twin holes plus some close spaced geostatistical drilling, close spaced
channel sampling during the trial mining and open pit sampling have all
demonstrated the robustness of the geology interpretation and mineralisation
continuity.
OK efficiency (KE) generally exceeds 0.6 with SoR exceeding 0.85 in the
dominant mineralised zones.
Based on the high confidence geology interpretation; mineralisation scale and
continuity, including considering the bulk mining method; and very tight grade
distributions within the estimation domains the Competent Person is
comfortable classifying all the Mineral Resource as either Measured, Indicated
or Inferred.
Measured was defined using a nominal KE >=0.6 and a SOR >=0.85 but
generally exceeding 0.9, which generally fits areas with a nominal drill
spacing of 200 by 200m. A boundary was used to define the Measured Mineral
Resource.
Indicated was defined using a nominal KE >=0.4 to 0.5 and a SOR >=0.8,
which generally fits areas with a nominal drill spacing of 400 to 200m. A
boundary was used to define the Indicated Mineral Resource.
The Mineral Resource was constrained to a potentially economic open pit shell
to reflect the code requirement for Reasonable Prospects of Eventual Economic
Extraction (RPEEE). The shell was defined using Whittle Open Pit Optimisation
with the following parameters:
Rutile: Net concentrate revenue US$1400/t; Process recovery 100%;
Graphite: Net revenue US$1200/t ; Average Process recovery of 70.4%.
Mining Opex US$1.35/t; Process Opex US$5.44/t
The MRE is presented in 3 Tables.
The top table presents the rutile dominant mineral resource based on a higher
rutile cut-off pit shell - optimised using the $1,400 rutile price using a
nominal ore grade cutoff of 0.75% Rutile. This pit shell was generated to
maximise material above 0.7% Rutile as a comparison with the previously
reported MRE.
The middle table presents the remaining mineral resource within the primary
pit shell but outside (mainly below) the rutile dominant pit shell. This table
is further sub-divided to show the high grade graphite material (primarily at
depth) and the lower grade rutile material (primarily at the edges of the
deposit).
The bottom table presents the entire MRE constrained to the RPEEE Open Pit
shell. No cutoff is applied as material <0.7% Rut_EQ will likely be mined
as internal dilution as it is spread throughout the MRE in small pockets not
suitable for selective mining.
Whether appropriate account has been taken of all relevant factors (i.e.
relative confidence in tonnage/grade estimations, reliability of input data,
confidence in continuity of geology and metal values, quality, quantity and
distribution of the data).
All relevant factors were assessed by the Competent Person, including data
quality, confidence in the geological interpretation and framework for the
mineral resource, mineralisation continuity and variability. Geostatistical
parameters relative to drillhole spacing was used guide the classification of
the Mineral Resource.
Whether the result appropriately reflects the Competent Person's view of the
deposit
The MRE appropriately reflects the Competent Person's view of the Kasiya
rutile and graphite deposit.
Audits or reviews
The results of any audits or reviews of Mineral Resource estimates.
The Mineral Resource was completed by the SVM technical services team. MSA
completed fine tuning of the mineralisation interpretation, statistics,
variography and OK parameters. The final model was reviewed by the Competent
Person within the MSA team.
Discussion of relative accuracy/ confidence
Where appropriate a statement of the relative accuracy and confidence level in
the Mineral Resource estimate using an approach or procedure deemed
appropriate by the Competent Person. For example, the application of
statistical or geostatistical procedures to quantify the relative accuracy of
the resource within stated confidence limits, or, if such an approach is not
deemed appropriate, a qualitative discussion of the factors that could affect
the relative accuracy and confidence of the estimate.
Additional mineralisation is expected to occur below the effective depth of HA
and PT drilling. This has been confirmed by areas which have included deeper
AC drilling.
A high-degree of uniformity exists in the broad and contiguous lithological
and grade character of the deposit. Drilling, sampling and data collection
procedures have been professionally executed. QA protocols and interpretations
conform to industry best practice.
Assay, mineralogical determinations and metallurgical test work conform to
industry best practice and demonstrate a rigorous assessment of product and
procedure. The development of a conventional processing flowsheet and
marketability studies support the classification of the Kasiya Resource.
The statement should specify whether it relates to global or local estimates,
and, if local, state the relevant tonnages, which should be relevant to
technical and economic evaluation. Documentation should include assumptions
made and the procedures used.
The block model estimate is of sufficient accuracy to apply modifying factors
for mine planning in the portion classified as Measured and Indicated Mineral
Resource.
Inferred Mineral Resources are global in nature and are suitable for economic
evaluation at a high level such as a scoping study.
Recoverable resource estimates have not been made on a selective mining unit
basis.
These statements of relative accuracy and confidence of the estimate should be
compared with production data, where available.
No production data are available to reconcile model results.
Section 4 - Estimation and Reporting of Ore Reserves
JORC Table 1
Estimation and Reporting of Ore Reserves
The following information provided complies with the 2012 JORC Code
requirements specified by 'Table-1 Section 4' of the Code. Each item in this
table has been summarised as the basis for the assessment of overall Ore
Reserves risk in the table below, with each of the risks related to confidence
and/or accuracy of the various inputs into the Ore Reserves qualitatively
assessed.
Criteria JORC Code explanation Commentary
Mineral Resource estimate for conversion to Ore Reserves · Description of the Mineral Resource estimate used as a basis for · The current identified MRE underpins the Ore Reserve reported in
the conversion to an Ore Reserve. this DFS.
· Clear statement as to whether the Mineral Resources are reported · The updated 2026 Mineral Resource model was prepared by Sovereign
additional to, or inclusive of, the Ore Reserves. under the guidance and review of Independent Competent Person Mr Jeremy Witley
of MSA Group South Africa. The updated MRE followed additional drilling which
significantly upgraded both Inferred to Indicated and Indicated to Measured
Mineral Resources.
· The Ore Reserves are included within the Mineral Resource Estimate.
Site visits · Comment on any site visits undertaken by the Competent Person and · Mr. Fourie has been engaged by Sovereign and consulted on the PFS,
the outcome of those visits. OPFS, DFS, and trial mining program completed in 2024-2025, including
approximately two months spent on site at Kasiya in 2024.
· If no site visits have been undertaken, indicate why this is the
case.
Study status · The type and level of study undertaken to enable Mineral Resources · The study was completed to a feasibility level of detail.
to be converted to Ore Reserves.
· A detailed plan that is technically achievable and economically
· The Code requires that a study to at least Pre-Feasibility Study viable has been completed.
level has been undertaken to convert Mineral Resources to Ore Reserves. Such
studies will have been carried out and will have determined a mine plan that
is technically achievable and economically viable, and that material Modifying
Factors have been considered.
Cut-off parameters · The basis of the cut-off grade(s) or quality parameters applied. · The pit shell generated was based on a 0.7% RUT95 cut-off grade.
Although all ore incapsulated in the inventory of the pit will be sent to the
processing plant as ore, regardless of grade.
· All material in the pits will be sent to the process plant, except
for isolated waste portions, which can easily be identified and removed as
waste. As no cut-off grade is applied a validation of the average Rut95 grade
over the LoM compared to the breakeven cut-off grade was investigated. The
calculated breakeven Rut95 cut-off grade is 0.42%, with the LoM average being
0.96% Rut95. This demonstrates that the average grade over the LoM for all the
material is well above the calculated breakeven cut-off grade and therefore
the assumption that all material is sent to the plant to be treated as ore and
form part of the Ore Reserve is validated.
· A financial assessment was undertaken to ascertain whether the LoM
Plan fulfils the criteria of 'reasonable prospects for eventual economic
extraction' using detailed costs. On the basis that no cut-off grade is being
used for the Project the CP finds it to be appropriate for the operation,
considering the nature of the deposit, and the associated project economics.
Mining factors or assumptions · The method and assumptions used as reported in the Pre-Feasibility · The Mineral Resource model prepared by Sovereign under the guidance
or Feasibility Study to convert the Mineral Resource to an Ore Reserve (i.e. and review of Independent Competent Person, Mr Jeremy Witley, of MSA Group
either by application of appropriate factors by optimisation or by preliminary South Africa was used for the estimation of Ore Reserves.
or detailed design).
· Pit optimisation work, which defines the Ore Reserve estimate and
· The choice, nature and appropriateness of the selected mining subsequently the LOM schedules were generated.
method(s) and other mining parameters including associated design issues such
as pre-strip, access, etc. · The open pit geometries developed for the purposes of mine
planning, and which define the subsequent Ore Reserve, are based on NPVS pit
· The assumptions made regarding geotechnical parameters (e.g. pit shells edited to comply with practical mining requirements and identified
slopes, stope sizes, etc.), grade control and pre-production drilling. exclusion zones.
· The major assumptions made and Mineral Resource model used for pit · Due to the shallow nature of the geometries, and there being no
and stope optimisation (if appropriate). requirements for ramp access due to the mining methodology, traditional mine
designs were not developed.
· The mining dilution factors used.
· Initially the mining method considered in the PFS for the Kaysia
· The mining recovery factors used. Project was a hydro mining operation. During a trail mining period, mechanical
and hydro mining methods were tested with the outcome indicating that
· Any minimum mining widths used. mechanical methods are better suited for the Project.
· The manner in which Inferred Mineral Resources are utilised in · The mining method for the Project will therefore be based on
mining studies and the sensitivity of the outcome to their inclusion. utilising mechanical equipment (draglines with excavator support). Trucking
the mined material to the processing plants with 90t RDT's.
· The infrastructure requirements of the selected mining methods.
· A strip-mining configuration will be implemented.
· The mining operation will not require any machinery at the bottom
of the pit and due to the shallow nature of the operation, geotechnical slopes
is insignificant.
· A 30-degree slope angle is required only on the active face where
the heavy dragline machinery will be operational.
· The quantities of dilution and ore losses will be negligible due to
the relatively homogenous and continuous nature of the orebody and therefore
0% dilution and Ore Losses were applied, as all tonnes mined (except for
isolated waste portions, which can easily be identified and removed as waste)
will be processed.
· It was imperative to mine each of the pits from the deepest portion
first and mine progressively to the shallower areas. The first strip was
placed in such a manner of each pit so that water is constantly draining away
from the working faces so that the clean water can be reclaimed as processing
water from the sump.
The strips were based on the following assumptions:
· Starting the first strip in the pit at the area which will provide
the lowest elevation and developing towards the high point to assist with
natural water drainage to the collection sump for dewatering.
· Minimum width of 50m but preferably 200m to allow for grade
blending and slower face progressions with optimal productivity.
· No Inferred Mineral Resources were included. The portion of
Inferred Mineral resources included in the pit was classified as waste and
removed, The Inferred Mineral Resources are situated in an isolated area,
which could be easily separated from all other material.
· The main mining infrastructure includes processing plants, ore
stockpiles, haul roads/ramps, workshops and piping required for backfilling.
Metallurgical factors or assumptions · The metallurgical process proposed and the appropriateness of that Rutile Processing Plant
process to the style of mineralisation.
Test work has been conducted across four key study phases: Scoping Study (SS)
· Whether the metallurgical process is well-tested technology or 2021, Pre-Feasibility Study (PFS) 2023, Optimised Pre-Feasibility Study (OPS)
novel in nature. 2024, and Definitive Feasibility Study (DFS) 2026.
· The nature, amount and representativeness of metallurgical test A series of bulk samples, listed below, were processed during the SS, PFS,
work undertaken, the nature of the metallurgical domaining applied and the OPFS and DFS phases to validate and refine the metallurgical flowsheet for the
corresponding metallurgical recovery factors applied. Kasiya Rutile Project.
· Any assumptions or allowances made for deleterious elements. · 2020 - Kasiya North (1 tonne):
· The existence of any bulk sample or pilot scale test work and the A bulk sample was processed at Allied Mineral Laboratories (AML) in Perth,
degree to which such samples are considered representative of the orebody as a Western Australia. The testwork included desliming, particle classification,
whole. MG12 spiral separation, attritioning, and both electrostatic and magnetic
separation. This produced rutile, ilmenite, and non-conductor concentrates.
· For minerals that are defined by a specification, has the ore Flocculant screening and thickening tests were subsequently conducted at Metso
reserve estimation been based on the appropriate mineralogy to meet the Outotec in 2021.
specifications?
· 2021 - Kasiya North (1.6 tonnes):
Building on the 2020 flowsheet, this sample underwent additional testing at
AML, focusing on fine particles (<45 µm) and combined spiral concentrates.
The dry separation process assumptions were validated, and approximately 650
kg of fine material was generated for pilot-scale thickening (High Compression
and High Rate), pressure filtration, and centrifuge testwork conducted by
Metso Outotec
· 2022 - Kasiya South Composite (250 kg):
A composite sample from early-mining areas (Kingfisher, Dove/Parrot, Sparrow)
was tested to confirm that Kasiya South ore behaves similarly to Kasiya North.
The PFS gravity and dry separation flowsheet for rutile was successfully
validated.
· 2023 - Kasiya South Kingfisher (2.5 tonnes):
A bulk sample comprising of multiple samples taken from the larger Kasiya
South (Kingfisher, Mousebird, Babbler, Flycatcher, Starling, Dove and Parrot),
was used for variability testwork aligned with the early years of the PFS mine
plan.
· 2023 - Dove/Parrot Composite (250 kg):
A sub-sample from Kingfisher, Dove/Parrot and Sparrow pits, also representing
early-mining areas, was collected and stored in Perth. The sample was
processed considering the developed flowsheet. However, this sample was not
included in the DFS mine plan.
During the DFS phase, variability testwork was conducted to assess
metallurgical performance across ore zones scheduled for mining in the first
eight years. This work aimed to validate recovery assumptions and refine
domain-specific processing parameters.
At the start of the DFS, the OPFS mine plan was used to select the
Metallurgical Bulk Samples.
Following the DFS Mineral Resource Estimate (MRE) update and mine plan
optimisation, it was determined that some bulk samples selected at the start
of the DFS were no longer representative of the early mining schedule. As a
result, additional samples were collected from key pits to represent the pits
to be mined in accordance with the DFS mine schedule:
· Sparrow/Babbler/Mousebird Composite Samples:
Complete Lithology - (FERP/MOTT/PSAP/SAPL): 1045 kg
Upper Lithology - FERP Horizon Only (~0-4.5 m): 234 kg
Lower Lithology - Below FERP (MOTT/PSAP/SAPL): 870 kg
· Hawk and Crow Pits:
Full lithology samples were collected and processed.
These samples were selected to ensure coverage of geological variability and
to support geometallurgical modelling efforts.
All variability samples were processed replicating the established rutile
flowsheet, consistent with prior bulk sample campaigns. Where sample mass was
insufficient for spiral separation, wet tables were employed as a substitute.
The DFS Flowsheet adds a scrubber at the start of the circuit due to the
mining method change from Hydraulic mining in the PFS to Dry mining in the
DFS. Processing steps included:
· Gravity Separation:
Classification via Up Current Classifier (UCC) to separate fine light minerals
from coarse dense minerals.
Rougher spirals (fine and coarse) to produce Heavy Mineral Concentrate (HMC)
and graphite-rich tailings.
Cleaner, scavenger, and recleaner spirals for HMC refinement.
· Dry Mineral Separation (MSP - Rutile Production):
Removal of +600 µm trash minerals.
Attritioning of HMC followed by UCC fines removal.
Electrostatic separation.
Oversize screening (300 µm, 355 µm, or 425 µm).
Rare Earth Drum and Roll Magnetic Separation.
This flowsheet was applied consistently across all DFS variability samples,
ensuring comparability with previous testwork and supporting robust
metallurgical modelling.
The proposed processes are conventional for the production of Rutile product
concentrate and utilises commercially established processes.
Bench-scale and pilot-scale testwork conducted throughout the PFS and DFS
phase has been sufficient to validate the metallurgical design and performance
projections for the rutile circuit. The rutile produced during these campaigns
meets the required grade specifications for marketable product (see Table
below).
Description Bulk Sample Rutile Feed grade Rutile Recovery Rutile Product Grade Rutile Product Grade Rutile Product Yield
(TiO(2))
(Fe(2)O(3))
(%ROM)
Variability Testwork Kasiya North Area Crow 0.80% 87.39% 94.11% 1.04% 0.70%
Kasiya North Area Hawk 0.86% 94.92% 94.82% 0.99% 0.82%
Kasiya South Sparrow Mousebird - Lower 0.97% 91.19% 93.78% 0.99% 0.88%
Kasiya South Sparrow Mousebird - Upper 1.74% 99.23% 94.93% 0.98% 1.72%
Kasiya South Sparrow Mousebird - Complete 1.15% 97.56% 94.79% 1.00% 1.12%
SS & PFS Testwork Kasiya South Area Dove/Parrot 1.45% 98.40% 95.04% 0.97% 1.42
Kasiya South Area Kingfisher 1.50% 98.49% 95.58% 1.00% 1.47
Kasiya South 250 kg composite 1.43% 94.84% 96.41% 1.50% 1.32
2021 Kasiya North Bulk Sample 1.17% 98.69% 96.01% 0.94% 1.18
2020 Kasiya North Bulk Sample 0.97% 99.89% 95.75% 0.99% 0.97
The summarised testwork results indicates some variability in feed grade,
recovery, and product quality across the different Kasiya pits. Bulk samples
from the variability testwork program show rutile feed grades ranging from
0.80% to 1.74%, with corresponding recoveries between 87% and 99%, and rutile
product grade averaging 94.8% TiO₂.
The South Sparrow Mousebird sample set demonstrated a pronounced lithological
dependence, where the lower lithology yielded lower recoveries and grades than
the upper horizon. When composited, the overall recovery and grade stabilised
at 97.6% and 94.8% TiO₂, respectively. This observation reinforces the need
for a well-defined ROM blending strategy to ensure consistent feed
characteristics and to optimise plant throughput, recovery, and product
quality.
The Scoping and PFS bulk testwork achieved consistently higher feed grades
(1.05-1.48% rutile), with recoveries ranging from 96% to 99% and average
product grades of 95.8% TiO₂, confirming the robustness and repeatability of
the flowsheet across multiple campaigns and sample sources.
Nevertheless, spatial variability in the Crow sample, which was taken near the
pit boundary, warrants further investigation to support the development of a
geometallurgical model for this pit. The Crow pit, representing approximately
5% of the mine plan, indicated a lower Rutile recovery of 87.4%.
Overall, the metallurgical testwork confirms that the Kasiya rutile flowsheet
is robust and repeatable, producing high-quality rutile and demonstrating
resilience to spatial and lithological variability. These results provide a
reliable basis for plant design, geometallurgical modelling, and financial
evaluation.
Graphite Processing Plant
· Bench and pilot scale metallurgical testing for the graphite
circuit was performed at ALS (Perth, Australia), Core Metallurgy (Brisbane,
Australia), Maelgwyn (South Africa), and SGS (Lakefield, Canada) to develop
the flowsheet and conditions for the graphite flotation circuit.
· The proposed flowsheet and conditions are aligned with the design
of other projects treating a similar style of mineralization.
· The technologies employed in the Kasiya graphite flowsheet are well
proven and have been employed in the mineral processing industry for decades.
· Several bulk samples were collected from different areas of the
Kasiya project and subjected to pilot plant testing. The latest pilot plant
tests processed two large composite samples from 4 different pits with a total
sample mass of almost 30 tonnes. The composites were generated using auger
drills from many different locations within these four pits. These two bulk
samples were used to optimise the flowsheet, assess technology alternatives,
and generate graphite concentrate for application testing and customers'
evaluation.
· A variability flotation test program aimed to provide
representative samples from the different pits that will be mined within the
first few years of operation. The optimized flowsheet and conditions were
applied to these variability samples. This approach was chosen to verify the
robustness of the proposed flowsheet and conditions.
· Flake size of the concentrate has been determined to ensure
salability of product.
Environmental · The status of studies of potential environmental impacts of the The Project has commenced preparation of the Environmental and Social Impact
mining and processing operation. Details of waste rock characterisation and Assessment (ESIA), and all supporting biological, social and biophysical
the consideration of potential sites, status of design options considered and, specialist studies have been concluded, and have been fed into the Project
where applicable, the status of approvals for process residue storage and design as modifying factors or assumptions. Sovereign intends to submit the
waste dumps should be reported. ESIA to the Malawi Environmental Protection Agency for review in the second
quarter of 2026.
With respect to possible waste and process residue, full hydrogeological and
geochemical testing has been concluded. Metals leaching is deemed a low risk,
with most modelled parameters are expected to remain within local and WHO
drinking water standards. Risk related to acid mine drainage has been
categorized as intermediate - as while the Sulphides are below thresholds
(<0.3%) there is near no neutralizing capacity. Long-term kinetic leach
testing is required to verify the models; however, no specific or targeted
disposal measures is currently required as the risks is not deemed to be
material.
The unconstrained MRE was constrained by both environmental and social no-go
areas which acted as modifying factors. This allowed the determination of the
constrained MRE covering the current 22 pits of 3,400 hectares. The
constrained mapping reduced social impact by completely avoiding nearby
communities, as well as avoiding all remanent natural habitats - barring the
establishment of the Water Storage Dam.
Barring the ESIA approval, there are a separate suit of approvals required on
a component-by-component basis covering (1) land acquisition, (2) water
extraction and water effluent discharge, (3) air and noise emissions and other
applicable permits. Sovereign intends to apply for the permits post-DFS but
well ahead of any FEED and FID planning.
Infrastructure · The existence of appropriate infrastructure: availability of land Kasiya is located approximately 40km northwest of Lilongwe, Malawi's capital,
for plant development, power, water, transportation (particularly for bulk and boasts favourable access to services and infrastructure. The proximity to
commodities), labour, accommodation; or the ease with which the infrastructure Lilongwe gives the project access to a large pool of professionals and skilled
can be provided, or accessed. tradespeople, as well as industrial services.
Logistics cost estimates, including rail and port infrastructure and handling
were provided by Thelo DB, Nacala Logistics and Grindrod based on market data,
suppliers' quotations, industry databases, industry contacts and the
consultant's existing knowledge of southern African transport infrastructure
and freight markets.
The above consultants are independent with appropriate experience in the
management of transport logistics studies in southern Africa.
Costs · The derivation of, or assumptions made, regarding projected capital · The capital expenditure of the project is broken down as follows
costs in the study. (summarised by Capital Cost Type):
Capital Phase Total (US$'m)
· The methodology used to estimate operating costs. Pre-Construction Capex 32
Phase 1 - Pre-production Capex 727
· Allowances made for the content of deleterious elements. Life of Mine Sustainable capital: South 289
Phase 2 - Pre-production Capex 511
· The source of exchange rates used in the study. Life of Mine Sustainable capital: North 142
Total 1,701
· Derivation of transportation charges.
· The method of estimation includes a combination of the following
· The basis for forecasting or source of treatment and refining key methods:
charges, penalties for failure to meet specification, etc.
o Detailed-and Feasibility-level Engineering design
· The allowances made for royalties payable, both Government and
private. o Material take-off done from first principles
o Competitive bidding processes from Vendors
o Benchmarking against comparable mining operations
· Contingency estimation by means of Quantitative Risk Assessment
· Sustaining Capital was estimated similarly i.e., through first
principles, and priced by means of competitive bidding processes.
· The Capex estimate is expressed in USD, with the base date being Q4
2025. All bids received are valid until this date, therefore the estimate is
expressed in real terms with limited escalation exposure.
· Standardised exchange rates were used exclusively to convert foreign
currencies to the base currency. These foreign exchange rates were produced by
the Sovereign Advisory financial department. The forward-escalation due to
foreign currency fluctuation is covered in the DCF.
Revenue factors · The derivation of, or assumptions made regarding revenue factors · A life-of-mine production schedule was derived from the pit shells
including head grade, metal or commodity price(s) exchange rates, selected and the Mineral Resource model. The production schedule was used to
transportation and treatment charges, penalties, net smelter returns, etc. generate monthly estimates of the mined tonnes and feed grade.
· The derivation of assumptions made of metal or commodity price(s), · The Rutile price used for Ore Reserve declaration is US$1,490/t and
for the principal metals, minerals and co-products. the Graphite price is US$1,290/t.
· All cost inputs are based on tenders, quote estimates or calculated
from first principal.
Market assessment · The demand, supply and stock situation for the particular Sovereign obtained independent market assessments for both products.
commodity, consumption trends and factors likely to affect supply and demand
into the future.
· A customer and competitor analysis along with the identification of Rutile:
likely market windows for the product.
Sovereign engaged market leading TZMI to provide a bespoke marketing report to
· Price and volume forecasts and the basis for these forecasts. support the Study. TZMI is a global, independent consulting and publishing
company which specialises in technical, strategic and commercial analyses of
· For industrial minerals the customer specification, testing and the opaque (non-terminal market) mineral, chemical and metal sectors.
acceptance requirements prior to a supply contract.
TZMI's assessment has confirmed that, based upon their high-level view on
global demand and supply forecasts for natural rutile, and with reference to
the specific attributes of Kasiya, there is a reasonable expectation that the
product will be able to be sold into existing and future rutile markets. Given
the premium specifications of Kasiya's natural rutile, the product is expected
to be suitable for all major end-use markets including TiO2 pigment feedstock,
titanium metal and welding sectors.
The rutile price adopted in the DFS is based on TZMI's real 2025 price
forecast and confirmed by TZMI as part of the DFS. Using the above product
mix, the LOM average realised price for rutile is US$1,670 per tonne FOB,
Nacala.
Graphite:
Sovereign engaged Fastmarkets, a specialist international publisher and
information provider for the global steel, non-ferrous and industrial minerals
markets, to prepare a marketing report for graphite.
Fastmarkets' assessment has confirmed that based upon their high-level view on
global demand and supply forecasts for natural flake graphite, and with
reference to the specific attributes of Sovereign's projects, there is a
reasonable expectation that the product from Sovereign's projects will be able
to be sold into existing and future graphite markets. Given the extremely
low-cost profile and high-quality product, it is expected that output from
Kasiya will be able to fill new demand or substitute existing lower quality /
higher cost supply.
Project considerations taken by Fastmarkets in forming an opinion about the
marketability of product include:
· Low capital costs (incremental)
· Low operating costs
· High quality concentrate specifications
Industry participants confirm that the highest value graphite concentrates
remain the large, jumbo and super-jumbo flake fractions, primarily used in
industrial applications such as refractories, foundries and expandable
products. These sectors currently make up the significant majority of total
global natural flake graphite market by value.
Fastmarkets have formed their opinion based solely upon project information
provided by Sovereign to Fastmarkets and have not conducted any independent
analysis or due diligence on the information provided.
Graphite pricing in the DFS is based on the price forecast provided by
Benchmark Minerals Intelligence (BMI), which reflects a gradual increase in
prices from current observed market levels over time. Importantly, this
independently derived pricing framework results in a Life-of-Mine (LoM)
average graphite price of approximately US$1,288/t, which is effectively
unchanged from the PFS and OPFS assumption of US$1,290/t.
Pricing was constructed using FOB China benchmarks, adjusted by an FOB East
Africa premium to derive FOB Nacala realised prices by size fraction. These
were then weighted according to Kasiya's expected graphite size distribution
to generate a representative basket price. This approach provides a more
detailed and market-aligned methodology while maintaining consistency with
prior study pricing assumptions.
Economic · The inputs to the economic analysis to produce the net present The economic analysis for the Project is based on the discounted cashflow
value (NPV) in the study, the source and confidence of these economic inputs (DCF) methodology, consistent with the advanced development status of the
including estimated inflation, discount rate, etc. Project and the availability of Feasibility-level engineering data. The
financial model develops real, pre- and post-tax, unlevered free cash flow
· NPV ranges and sensitivity to variations in the significant forecasts, which are discounted at a project-specific discount rate to derive
assumptions and inputs. the Project's Net Present Value (NPV). Life of Mine (LoM) cashflows are
derived from the Ore Reserve only and do not include any inferred mineral
resources. The investment evaluation is 100% equity-based, with no
consideration for the impact of shareholding or debt on the Project's returns.
Discount Rate: The Project's discount rate of 8% (US$ real) was provided by
the Issuer and is based on the Issuer's corporate investment standards. The
discount rate is considered appropriate compared to other similar late-stage
development studies completed recently on Greenfields rutile and graphite
projects in Africa.
Production: Gross revenue is driven exclusively by the sale of natural rutile
with a 95% TiO(2) grade, and natural flake graphite concentrate with a 95.5%
TGC grade. The mine plan, stockpiling strategy, and blending strategy produces
a monthly head feed profile with accompanying ore tonnes and ore grades which
are incorporated in the financial model as an input. The head feed profile is
driven by the available plant feed capacity in Stage 1 (12Mtpa) and Stage 2
(24 Mtpa) respectively. The South and North plants ramp up to nameplate feed
capacity over a period of 10 months and 7 months respectively.
Recovery: Rutile recovery (% RUT95), is kept constant over the LoM at 97.6%,
whereas the graphite recovery (% TGC), is gradually increased from 68.9% TGC
in the first 2 years, to 69.4% in Year 3, 69.9% in Year 4, and 70.4% from year
5 onwards.
Gross Revenue: Sales prices are stated on a free-on-board Nacala basis for
both rutile and graphite (refer above). Rutile revenue is segmented into
standard and premium market segments based on the concentrate analysis
performed by TZMI. A 25% premium applies to sales into the premium market
segment. Graphite revenue is based on the mesh size distribution of the
graphite concentrate, which defines the yield to fine flake (-100mm), medium
flake (+100mm), large flake (+80mm), jumbo flake (+50mm), and super jumbo
flake (+32mm). The weighted average basket price is derived from the mesh size
distribution based on prices obtained from BMI and applied to the concentrate
production profile.
Capital Expenditure: A Class 3 capital budget estimate with a target accuracy
range of +/-10% as defined in terms of the Association for the Advancement of
Cost Engineering International (AACEi) was developed for the Project. The CBE
was structured according to an approved work breakdown structure and cash
flowed in line with the Project's execution schedule. A WBS level 1 summary of
the Initial, Expansion, and Sustaining Capex is provided in the table below.
Metric Initial Capex Expansion Capex Sustaining Capex TOTAL: Capex
(US$ million Real, Jan 2026)
A. Mining Area 52 81 302 435
B. Infrastructure Area 215 78 79 373
C. Processing Facility 289 274 0 563
D. Relocation and Environmental, Social and Governance (ESG) 8 0 49 58
E. Owners Admin, Indirect and Overhead Costs 121 39 0 161
Subtotal 685 473 431 1,589
(excl. contingency)
F. Contingency 43 38 - 81
Total 727 511 431 1,670
(incl. contingency)
Operating Expenditure: A detailed operating cost estimate was prepared in line
with AUSIMM guidelines for Class 3 Feasibility Studies with an accuracy range
of +/-10% at an 80% confidence level. A significant proportion of the costs
were derived from detailed first-principle calculations, supported by a
combination of actual in-country costs and vendor pricing.
A summary of the total operating unit cost for Stage 1, Stage 2, and the LoM
is provided below.
Item Unit Cost: Unit Cost: Unit Cost:
(US$/t product sold, Real 2026)
Stage 1
Stage 2
LOM AVE
Mining and related infrastructure 166 60 69
Processing plant 130 122 123
Tailings management 44 52 51
Central services (engineering) 70 52 54
Rehabilitation 9 5 5
General and admin costs (site costs) 65 29 32
Site Cash Cost 484 319 334
Off-site costs, incl. transport 116 117 117
FOB Cost 600 435 450
Mineral Royalties 63 67 67
Other Regulatory Fees 6 7 7
Total Operating Cost 670 510 524
All pre-production operating costs have been capitalised and are reported as
part of the Project's Initial Project Capex estimate. No corporate allocated
charges have been levied to the Project and the Opex estimate excludes any
provisions for contingency.
Rehabilitation and Closure Costs: Ongoing rehabilitation and final closure
costs are included in the Opex estimate and reported under Rehabilitation. The
final closure cost is modelled as a closure guarantee facility, where an
upfront payment is made to secure the guarantee and the balance of the closure
liability is financed over the LoM.
Selling Expenses: off-site costs for the transport of products to Nacala, as
well as all port-related fees, are included in the operating cost estimate
based on quoted contracted rates received.
Mineral Royalties and Other Regulatory Fees: Mineral royalties on rutile and
graphite sales are included at 5% ad valorem. Mandatory community development
costs are included at 0.45% of gross revenue.
Inflation: The capital and operating cost inputs adopted in the economic
analysis are expected to remain fixed in real US$ terms throughout the life of
the Project, reflecting constant purchasing power assumptions at the
Feasibility Study effective date.
Investment Evaluation Results: The Project generates a value accretive
business case with pre-tax NPV(8% Real) and pre-tax IRR of US$2,204 million
and 23.4% respectively. A deterministic sensitivity analysis was performed
illustrating the pre-tax NPV movement resulting from discrete movements in key
input parameters such as sales prices, discount rate, Capex and Opex. The
Project remains NPV-positive over these observed sensitivity ranges evaluated.
Corporate Tax: The fiscal regime applicable to mining companies in Malawi is
uncertain. Companies have recently entered into mine development agreements
(MDAs) with the Malawian Government which provide stability through the fixing
of certain fiscal terms but critically deviate from the enacted legislation.
Since the terms of these MDAs remain uncertain, the Issuer has elected to
report the economic analysis results on a pre-tax basis The assessment of
post-tax results provided below is subject to finalization of these fiscal
terms with Government and should be treated as conceptual at this stage.
The post-tax results below are based on the fiscal assumptions:
• Corporate Tax Rate: 30%
• Resource Rent Tax: Not Applicable
• Super Profit Tax: All profits above MWK 10 billion
taxed at an additional 10%
• Capital Allowances: Mining Capex is 100% deductible in
the year of spend, with unredeemed capital allowances carried forward
indefinitely.
• Tax Payment Periodicity: Quarterly in advance.
Metric UoM Result
NPV(8% real) (Post-Tax) US$ million 1,196
IRR (Post-Tax) % Real 18.5
Capex Efficiency ratio 1.6
Payback Period from 1(st) Production years 6.4
Peak Funding Requirement US$ million Real 733
Social · The status of agreements with key stakeholders and matters leading · ESIA commenced and all baseline and specialist studies concluded to
to social licence to operate. inform the DFS (Refer to Chapter 19). ESIA Report to be submitted to the
Malawi Environmental Protection Authority in early 2026 for authorisation.
· Full suite of social management plans prepared in support of the
DFS (Refer to Chapter 19). Community Development Agreements (CDAs) as required
under Malawi mining law, currently under negotiation with 13 traditional
authorities, and expected to be concluded before construction.
Other · To the extent relevant, the impact of the following on the project · There are no identified naturally occurring risks associated with
and/or on the estimation and classification of the Ore Reserves: the Project.
· Any identified material naturally occurring risks. · The Project is wholly owned by Sovereign Metals Limited.
Marketing discussions are ongoing and non-binding memoranda of understanding
· The status of material legal agreements and marketing arrangements. have been executed with potential customers. Binding sales agreements are
expected to be established prior to project development.
· The status of governmental agreements and approvals critical to the
viability of the project, such as mineral tenement status, and government and · Sovereign is yet to apply for a Mining Licence ("ML") covering
statutory approvals. There must be reasonable grounds to expect that all the footprint of the project, however it is not anticipated for there to be
necessary Government approvals will be received within the timeframes any objections in obtaining the necessary government approvals.
anticipated in the Pre-Feasibility or Feasibility study. Highlight and discuss
the materiality of any unresolved matter that is dependent on a third party on
which extraction of the reserve is contingent.
Classification · The basis for the classification of the Ore Reserves into varying · All Ore Reserves are reported and constraint within the pit shells
confidence categories. generated from the pit optimisation process.
· Whether the result appropriately reflects the Competent Person's · The Ore Reserve is classified in accordance with the guidelines of
view of the deposit. the Australian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves (JORC 2012 Edition).
· The proportion of Probable Ore Reserves that have been derived from
Measured Mineral Resources (if any). · Only Proven and Probable Ore Reserves were converted from Measured
and Indicated Mineral Resources respectively.
· The Ore Reserves are included within the declared Mineral
Resources.
· The Ore Reserves have been completed to a Feasibility level of
accuracy.
· Inferred Mineral Resource material has not been included in the pit
optimisation or in the Ore Reserves estimation.
· The CP considers this appropriate for the Kasiya Ore Reserve
Estimation
Audits or reviews · The results of any audits or reviews of Ore Reserve estimates. · No external audits or reviews of the Ore Reserve has been completed
Discussion of relative accuracy/ confidence · Where appropriate a statement of the relative accuracy and · The Ore Reserve has been completed to feasibility level with the
confidence level in the Ore Reserve estimate using an approach or procedure data being generated from a tightly spaced drilling grid, thus confidence in
deemed appropriate by the Competent Person. For example, the application of the resultant figures is considered high.
statistical or geostatistical procedures to quantify the relative accuracy of
the reserve within stated confidence limits, or, if such an approach is not
deemed appropriate, a qualitative discussion of the factors which could affect
the relative accuracy and confidence of the estimate.
· The statement should specify whether it relates to global or local
estimates, and, if local, state the relevant tonnages, which should be
relevant to technical and economic evaluation. Documentation should include
assumptions made and the procedures used.
· Accuracy and confidence discussions should extend to specific
discussions of any applied Modifying Factors that may have a material impact
on Ore Reserve viability, or for which there are remaining areas of
uncertainty at the current study stage.
· It is recognised that this may not be possible or appropriate in
all circumstances. These statements of relative accuracy and confidence of the
estimate should be compared with production data, where available.
The summarised testwork results indicates some variability in feed grade,
recovery, and product quality across the different Kasiya pits. Bulk samples
from the variability testwork program show rutile feed grades ranging from
0.80% to 1.74%, with corresponding recoveries between 87% and 99%, and rutile
product grade averaging 94.8% TiO₂.
The South Sparrow Mousebird sample set demonstrated a pronounced lithological
dependence, where the lower lithology yielded lower recoveries and grades than
the upper horizon. When composited, the overall recovery and grade stabilised
at 97.6% and 94.8% TiO₂, respectively. This observation reinforces the need
for a well-defined ROM blending strategy to ensure consistent feed
characteristics and to optimise plant throughput, recovery, and product
quality.
The Scoping and PFS bulk testwork achieved consistently higher feed grades
(1.05-1.48% rutile), with recoveries ranging from 96% to 99% and average
product grades of 95.8% TiO₂, confirming the robustness and repeatability of
the flowsheet across multiple campaigns and sample sources.
Nevertheless, spatial variability in the Crow sample, which was taken near the
pit boundary, warrants further investigation to support the development of a
geometallurgical model for this pit. The Crow pit, representing approximately
5% of the mine plan, indicated a lower Rutile recovery of 87.4%.
Overall, the metallurgical testwork confirms that the Kasiya rutile flowsheet
is robust and repeatable, producing high-quality rutile and demonstrating
resilience to spatial and lithological variability. These results provide a
reliable basis for plant design, geometallurgical modelling, and financial
evaluation.
Graphite Processing Plant
· Bench and pilot scale metallurgical testing for the graphite
circuit was performed at ALS (Perth, Australia), Core Metallurgy (Brisbane,
Australia), Maelgwyn (South Africa), and SGS (Lakefield, Canada) to develop
the flowsheet and conditions for the graphite flotation circuit.
· The proposed flowsheet and conditions are aligned with the design
of other projects treating a similar style of mineralization.
· The technologies employed in the Kasiya graphite flowsheet are well
proven and have been employed in the mineral processing industry for decades.
· Several bulk samples were collected from different areas of the
Kasiya project and subjected to pilot plant testing. The latest pilot plant
tests processed two large composite samples from 4 different pits with a total
sample mass of almost 30 tonnes. The composites were generated using auger
drills from many different locations within these four pits. These two bulk
samples were used to optimise the flowsheet, assess technology alternatives,
and generate graphite concentrate for application testing and customers'
evaluation.
· A variability flotation test program aimed to provide
representative samples from the different pits that will be mined within the
first few years of operation. The optimized flowsheet and conditions were
applied to these variability samples. This approach was chosen to verify the
robustness of the proposed flowsheet and conditions.
· Flake size of the concentrate has been determined to ensure
salability of product.
Environmental
· The status of studies of potential environmental impacts of the
mining and processing operation. Details of waste rock characterisation and
the consideration of potential sites, status of design options considered and,
where applicable, the status of approvals for process residue storage and
waste dumps should be reported.
The Project has commenced preparation of the Environmental and Social Impact
Assessment (ESIA), and all supporting biological, social and biophysical
specialist studies have been concluded, and have been fed into the Project
design as modifying factors or assumptions. Sovereign intends to submit the
ESIA to the Malawi Environmental Protection Agency for review in the second
quarter of 2026.
With respect to possible waste and process residue, full hydrogeological and
geochemical testing has been concluded. Metals leaching is deemed a low risk,
with most modelled parameters are expected to remain within local and WHO
drinking water standards. Risk related to acid mine drainage has been
categorized as intermediate - as while the Sulphides are below thresholds
(<0.3%) there is near no neutralizing capacity. Long-term kinetic leach
testing is required to verify the models; however, no specific or targeted
disposal measures is currently required as the risks is not deemed to be
material.
The unconstrained MRE was constrained by both environmental and social no-go
areas which acted as modifying factors. This allowed the determination of the
constrained MRE covering the current 22 pits of 3,400 hectares. The
constrained mapping reduced social impact by completely avoiding nearby
communities, as well as avoiding all remanent natural habitats - barring the
establishment of the Water Storage Dam.
Barring the ESIA approval, there are a separate suit of approvals required on
a component-by-component basis covering (1) land acquisition, (2) water
extraction and water effluent discharge, (3) air and noise emissions and other
applicable permits. Sovereign intends to apply for the permits post-DFS but
well ahead of any FEED and FID planning.
Infrastructure
· The existence of appropriate infrastructure: availability of land
for plant development, power, water, transportation (particularly for bulk
commodities), labour, accommodation; or the ease with which the infrastructure
can be provided, or accessed.
Kasiya is located approximately 40km northwest of Lilongwe, Malawi's capital,
and boasts favourable access to services and infrastructure. The proximity to
Lilongwe gives the project access to a large pool of professionals and skilled
tradespeople, as well as industrial services.
Logistics cost estimates, including rail and port infrastructure and handling
were provided by Thelo DB, Nacala Logistics and Grindrod based on market data,
suppliers' quotations, industry databases, industry contacts and the
consultant's existing knowledge of southern African transport infrastructure
and freight markets.
The above consultants are independent with appropriate experience in the
management of transport logistics studies in southern Africa.
Costs
· The derivation of, or assumptions made, regarding projected capital
costs in the study.
· The methodology used to estimate operating costs.
· Allowances made for the content of deleterious elements.
· The source of exchange rates used in the study.
· Derivation of transportation charges.
· The basis for forecasting or source of treatment and refining
charges, penalties for failure to meet specification, etc.
· The allowances made for royalties payable, both Government and
private.
· The capital expenditure of the project is broken down as follows
(summarised by Capital Cost Type):
Capital Phase Total (US$'m)
Pre-Construction Capex 32
Phase 1 - Pre-production Capex 727
Life of Mine Sustainable capital: South 289
Phase 2 - Pre-production Capex 511
Life of Mine Sustainable capital: North 142
Total 1,701
· The method of estimation includes a combination of the following
key methods:
o Detailed-and Feasibility-level Engineering design
o Material take-off done from first principles
o Competitive bidding processes from Vendors
o Benchmarking against comparable mining operations
· Contingency estimation by means of Quantitative Risk Assessment
· Sustaining Capital was estimated similarly i.e., through first
principles, and priced by means of competitive bidding processes.
· The Capex estimate is expressed in USD, with the base date being Q4
2025. All bids received are valid until this date, therefore the estimate is
expressed in real terms with limited escalation exposure.
· Standardised exchange rates were used exclusively to convert foreign
currencies to the base currency. These foreign exchange rates were produced by
the Sovereign Advisory financial department. The forward-escalation due to
foreign currency fluctuation is covered in the DCF.
Revenue factors
· The derivation of, or assumptions made regarding revenue factors
including head grade, metal or commodity price(s) exchange rates,
transportation and treatment charges, penalties, net smelter returns, etc.
· The derivation of assumptions made of metal or commodity price(s),
for the principal metals, minerals and co-products.
· A life-of-mine production schedule was derived from the pit shells
selected and the Mineral Resource model. The production schedule was used to
generate monthly estimates of the mined tonnes and feed grade.
· The Rutile price used for Ore Reserve declaration is US$1,490/t and
the Graphite price is US$1,290/t.
· All cost inputs are based on tenders, quote estimates or calculated
from first principal.
Market assessment
· The demand, supply and stock situation for the particular
commodity, consumption trends and factors likely to affect supply and demand
into the future.
· A customer and competitor analysis along with the identification of
likely market windows for the product.
· Price and volume forecasts and the basis for these forecasts.
· For industrial minerals the customer specification, testing and
acceptance requirements prior to a supply contract.
Sovereign obtained independent market assessments for both products.
Rutile:
Sovereign engaged market leading TZMI to provide a bespoke marketing report to
support the Study. TZMI is a global, independent consulting and publishing
company which specialises in technical, strategic and commercial analyses of
the opaque (non-terminal market) mineral, chemical and metal sectors.
TZMI's assessment has confirmed that, based upon their high-level view on
global demand and supply forecasts for natural rutile, and with reference to
the specific attributes of Kasiya, there is a reasonable expectation that the
product will be able to be sold into existing and future rutile markets. Given
the premium specifications of Kasiya's natural rutile, the product is expected
to be suitable for all major end-use markets including TiO2 pigment feedstock,
titanium metal and welding sectors.
The rutile price adopted in the DFS is based on TZMI's real 2025 price
forecast and confirmed by TZMI as part of the DFS. Using the above product
mix, the LOM average realised price for rutile is US$1,670 per tonne FOB,
Nacala.
Graphite:
Sovereign engaged Fastmarkets, a specialist international publisher and
information provider for the global steel, non-ferrous and industrial minerals
markets, to prepare a marketing report for graphite.
Fastmarkets' assessment has confirmed that based upon their high-level view on
global demand and supply forecasts for natural flake graphite, and with
reference to the specific attributes of Sovereign's projects, there is a
reasonable expectation that the product from Sovereign's projects will be able
to be sold into existing and future graphite markets. Given the extremely
low-cost profile and high-quality product, it is expected that output from
Kasiya will be able to fill new demand or substitute existing lower quality /
higher cost supply.
Project considerations taken by Fastmarkets in forming an opinion about the
marketability of product include:
· Low capital costs (incremental)
· Low operating costs
· High quality concentrate specifications
Industry participants confirm that the highest value graphite concentrates
remain the large, jumbo and super-jumbo flake fractions, primarily used in
industrial applications such as refractories, foundries and expandable
products. These sectors currently make up the significant majority of total
global natural flake graphite market by value.
Fastmarkets have formed their opinion based solely upon project information
provided by Sovereign to Fastmarkets and have not conducted any independent
analysis or due diligence on the information provided.
Graphite pricing in the DFS is based on the price forecast provided by
Benchmark Minerals Intelligence (BMI), which reflects a gradual increase in
prices from current observed market levels over time. Importantly, this
independently derived pricing framework results in a Life-of-Mine (LoM)
average graphite price of approximately US$1,288/t, which is effectively
unchanged from the PFS and OPFS assumption of US$1,290/t.
Pricing was constructed using FOB China benchmarks, adjusted by an FOB East
Africa premium to derive FOB Nacala realised prices by size fraction. These
were then weighted according to Kasiya's expected graphite size distribution
to generate a representative basket price. This approach provides a more
detailed and market-aligned methodology while maintaining consistency with
prior study pricing assumptions.
Economic
· The inputs to the economic analysis to produce the net present
value (NPV) in the study, the source and confidence of these economic inputs
including estimated inflation, discount rate, etc.
· NPV ranges and sensitivity to variations in the significant
assumptions and inputs.
The economic analysis for the Project is based on the discounted cashflow
(DCF) methodology, consistent with the advanced development status of the
Project and the availability of Feasibility-level engineering data. The
financial model develops real, pre- and post-tax, unlevered free cash flow
forecasts, which are discounted at a project-specific discount rate to derive
the Project's Net Present Value (NPV). Life of Mine (LoM) cashflows are
derived from the Ore Reserve only and do not include any inferred mineral
resources. The investment evaluation is 100% equity-based, with no
consideration for the impact of shareholding or debt on the Project's returns.
Discount Rate: The Project's discount rate of 8% (US$ real) was provided by
the Issuer and is based on the Issuer's corporate investment standards. The
discount rate is considered appropriate compared to other similar late-stage
development studies completed recently on Greenfields rutile and graphite
projects in Africa.
Production: Gross revenue is driven exclusively by the sale of natural rutile
with a 95% TiO(2) grade, and natural flake graphite concentrate with a 95.5%
TGC grade. The mine plan, stockpiling strategy, and blending strategy produces
a monthly head feed profile with accompanying ore tonnes and ore grades which
are incorporated in the financial model as an input. The head feed profile is
driven by the available plant feed capacity in Stage 1 (12Mtpa) and Stage 2
(24 Mtpa) respectively. The South and North plants ramp up to nameplate feed
capacity over a period of 10 months and 7 months respectively.
Recovery: Rutile recovery (% RUT95), is kept constant over the LoM at 97.6%,
whereas the graphite recovery (% TGC), is gradually increased from 68.9% TGC
in the first 2 years, to 69.4% in Year 3, 69.9% in Year 4, and 70.4% from year
5 onwards.
Gross Revenue: Sales prices are stated on a free-on-board Nacala basis for
both rutile and graphite (refer above). Rutile revenue is segmented into
standard and premium market segments based on the concentrate analysis
performed by TZMI. A 25% premium applies to sales into the premium market
segment. Graphite revenue is based on the mesh size distribution of the
graphite concentrate, which defines the yield to fine flake (-100mm), medium
flake (+100mm), large flake (+80mm), jumbo flake (+50mm), and super jumbo
flake (+32mm). The weighted average basket price is derived from the mesh size
distribution based on prices obtained from BMI and applied to the concentrate
production profile.
Capital Expenditure: A Class 3 capital budget estimate with a target accuracy
range of +/-10% as defined in terms of the Association for the Advancement of
Cost Engineering International (AACEi) was developed for the Project. The CBE
was structured according to an approved work breakdown structure and cash
flowed in line with the Project's execution schedule. A WBS level 1 summary of
the Initial, Expansion, and Sustaining Capex is provided in the table below.
Metric Initial Capex Expansion Capex Sustaining Capex TOTAL: Capex
(US$ million Real, Jan 2026)
A. Mining Area 52 81 302 435
B. Infrastructure Area 215 78 79 373
C. Processing Facility 289 274 0 563
D. Relocation and Environmental, Social and Governance (ESG) 8 0 49 58
E. Owners Admin, Indirect and Overhead Costs 121 39 0 161
Subtotal 685 473 431 1,589
(excl. contingency)
F. Contingency 43 38 - 81
Total 727 511 431 1,670
(incl. contingency)
Operating Expenditure: A detailed operating cost estimate was prepared in line
with AUSIMM guidelines for Class 3 Feasibility Studies with an accuracy range
of +/-10% at an 80% confidence level. A significant proportion of the costs
were derived from detailed first-principle calculations, supported by a
combination of actual in-country costs and vendor pricing.
A summary of the total operating unit cost for Stage 1, Stage 2, and the LoM
is provided below.
Item Unit Cost: Unit Cost: Unit Cost:
(US$/t product sold, Real 2026)
Stage 1
Stage 2
LOM AVE
Mining and related infrastructure 166 60 69
Processing plant 130 122 123
Tailings management 44 52 51
Central services (engineering) 70 52 54
Rehabilitation 9 5 5
General and admin costs (site costs) 65 29 32
Site Cash Cost 484 319 334
Off-site costs, incl. transport 116 117 117
FOB Cost 600 435 450
Mineral Royalties 63 67 67
Other Regulatory Fees 6 7 7
Total Operating Cost 670 510 524
All pre-production operating costs have been capitalised and are reported as
part of the Project's Initial Project Capex estimate. No corporate allocated
charges have been levied to the Project and the Opex estimate excludes any
provisions for contingency.
Rehabilitation and Closure Costs: Ongoing rehabilitation and final closure
costs are included in the Opex estimate and reported under Rehabilitation. The
final closure cost is modelled as a closure guarantee facility, where an
upfront payment is made to secure the guarantee and the balance of the closure
liability is financed over the LoM.
Selling Expenses: off-site costs for the transport of products to Nacala, as
well as all port-related fees, are included in the operating cost estimate
based on quoted contracted rates received.
Mineral Royalties and Other Regulatory Fees: Mineral royalties on rutile and
graphite sales are included at 5% ad valorem. Mandatory community development
costs are included at 0.45% of gross revenue.
Inflation: The capital and operating cost inputs adopted in the economic
analysis are expected to remain fixed in real US$ terms throughout the life of
the Project, reflecting constant purchasing power assumptions at the
Feasibility Study effective date.
Investment Evaluation Results: The Project generates a value accretive
business case with pre-tax NPV(8% Real) and pre-tax IRR of US$2,204 million
and 23.4% respectively. A deterministic sensitivity analysis was performed
illustrating the pre-tax NPV movement resulting from discrete movements in key
input parameters such as sales prices, discount rate, Capex and Opex. The
Project remains NPV-positive over these observed sensitivity ranges evaluated.
Corporate Tax: The fiscal regime applicable to mining companies in Malawi is
uncertain. Companies have recently entered into mine development agreements
(MDAs) with the Malawian Government which provide stability through the fixing
of certain fiscal terms but critically deviate from the enacted legislation.
Since the terms of these MDAs remain uncertain, the Issuer has elected to
report the economic analysis results on a pre-tax basis The assessment of
post-tax results provided below is subject to finalization of these fiscal
terms with Government and should be treated as conceptual at this stage.
The post-tax results below are based on the fiscal assumptions:
• Corporate Tax Rate: 30%
• Resource Rent Tax: Not Applicable
• Super Profit Tax: All profits above MWK 10 billion
taxed at an additional 10%
• Capital Allowances: Mining Capex is 100% deductible in
the year of spend, with unredeemed capital allowances carried forward
indefinitely.
• Tax Payment Periodicity: Quarterly in advance.
Metric UoM Result
NPV(8% real) (Post-Tax) US$ million 1,196
IRR (Post-Tax) % Real 18.5
Capex Efficiency ratio 1.6
Payback Period from 1(st) Production years 6.4
Peak Funding Requirement US$ million Real 733
Social
· The status of agreements with key stakeholders and matters leading
to social licence to operate.
· ESIA commenced and all baseline and specialist studies concluded to
inform the DFS (Refer to Chapter 19). ESIA Report to be submitted to the
Malawi Environmental Protection Authority in early 2026 for authorisation.
· Full suite of social management plans prepared in support of the
DFS (Refer to Chapter 19). Community Development Agreements (CDAs) as required
under Malawi mining law, currently under negotiation with 13 traditional
authorities, and expected to be concluded before construction.
Other
· To the extent relevant, the impact of the following on the project
and/or on the estimation and classification of the Ore Reserves:
· Any identified material naturally occurring risks.
· The status of material legal agreements and marketing arrangements.
· The status of governmental agreements and approvals critical to the
viability of the project, such as mineral tenement status, and government and
statutory approvals. There must be reasonable grounds to expect that all
necessary Government approvals will be received within the timeframes
anticipated in the Pre-Feasibility or Feasibility study. Highlight and discuss
the materiality of any unresolved matter that is dependent on a third party on
which extraction of the reserve is contingent.
· There are no identified naturally occurring risks associated with
the Project.
· The Project is wholly owned by Sovereign Metals Limited.
Marketing discussions are ongoing and non-binding memoranda of understanding
have been executed with potential customers. Binding sales agreements are
expected to be established prior to project development.
· Sovereign is yet to apply for a Mining Licence ("ML") covering
the footprint of the project, however it is not anticipated for there to be
any objections in obtaining the necessary government approvals.
Classification
· The basis for the classification of the Ore Reserves into varying
confidence categories.
· Whether the result appropriately reflects the Competent Person's
view of the deposit.
· The proportion of Probable Ore Reserves that have been derived from
Measured Mineral Resources (if any).
· All Ore Reserves are reported and constraint within the pit shells
generated from the pit optimisation process.
· The Ore Reserve is classified in accordance with the guidelines of
the Australian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves (JORC 2012 Edition).
· Only Proven and Probable Ore Reserves were converted from Measured
and Indicated Mineral Resources respectively.
· The Ore Reserves are included within the declared Mineral
Resources.
· The Ore Reserves have been completed to a Feasibility level of
accuracy.
· Inferred Mineral Resource material has not been included in the pit
optimisation or in the Ore Reserves estimation.
· The CP considers this appropriate for the Kasiya Ore Reserve
Estimation
Audits or reviews
· The results of any audits or reviews of Ore Reserve estimates.
· No external audits or reviews of the Ore Reserve has been completed
Discussion of relative accuracy/ confidence
· Where appropriate a statement of the relative accuracy and
confidence level in the Ore Reserve estimate using an approach or procedure
deemed appropriate by the Competent Person. For example, the application of
statistical or geostatistical procedures to quantify the relative accuracy of
the reserve within stated confidence limits, or, if such an approach is not
deemed appropriate, a qualitative discussion of the factors which could affect
the relative accuracy and confidence of the estimate.
· The statement should specify whether it relates to global or local
estimates, and, if local, state the relevant tonnages, which should be
relevant to technical and economic evaluation. Documentation should include
assumptions made and the procedures used.
· Accuracy and confidence discussions should extend to specific
discussions of any applied Modifying Factors that may have a material impact
on Ore Reserve viability, or for which there are remaining areas of
uncertainty at the current study stage.
· It is recognised that this may not be possible or appropriate in
all circumstances. These statements of relative accuracy and confidence of the
estimate should be compared with production data, where available.
· The Ore Reserve has been completed to feasibility level with the
data being generated from a tightly spaced drilling grid, thus confidence in
the resultant figures is considered high.
APPENDIX 2 - NATURAL RUTILE RESOURCE INFORMATION (Figure 1)
Ref Company Project Stage of Develop-ment Source
1 Iluka Resources Wimmera DFS Ore Reserves and Mineral Resources statement 2025
https://www.iluka.com/media/ntnd53oo/iluka-resources-ore-reserves-and-mineral-resources-as-at-31-december-2024.pdf
2 Leonoil (ex.Sierra Rutile) Sembehun DFS 2023 Annual Report
https://sierra-rutile.com/media/52zon0go/sierra-rutile-
2023-annual-report.pdf
3 Kenmare Resources Moma (Various) Production 2024 Annual Report
https://wp-kenmare-2024.s3.eu-west-2.amazonaws.com/media/2025/04/2025-04-14-Kenmare-2024-Annual-Report.pdf#page=35
4 VHM Goschen DFS / Permitted Corporate Presentation (26 Mar 2026)
https://wcsecure.weblink.com.au/pdf/VHM/03072246.pdf
5 Leonoil (ex.Sierra Rutile) Area 1 Production 2023 Annual Report
https://sierra-rutile.com/media/52zon0go/sierra-rutile-
2023-annual-report.pdf
6 Iluka Resources Balranald Construction Ore Reserves and Mineral Resources statement 2025
https://www.iluka.com/media/ntnd53oo/iluka-resources-ore-reserves-and-mineral-resources-as-at-31-december-2024.pdf
7 Iluka Resources Eneabba Construction Ore Reserves and Mineral Resources statement 2025
https://www.iluka.com/media/ntnd53oo/iluka-resources-ore-reserves-and-mineral-resources-as-at-31-december-2024.pdf
8 Image Resources McCalls Resource Corporate Presentation 30 May 2025
https://app.sharelinktechnologies.com/announcement-preview/asx/5953be32f215f379c7d1903671e85994
9 Iluka Resources Euston Resource Ore Reserves and Mineral Resources statement 2025
https://www.iluka.com/media/ntnd53oo/iluka-resources-ore-reserves-and-mineral-resources-as-at-31-december-2024.pdf
10 Energy Fuels Toliara DFS NI 43-101 and S-K 1300 Feasibility Study
https://www.energyfuels.com/wp-content/uploads/2026/01/FS-Vara-Mada-Project-Report-NI43-101-FINAL-01.07.2026.pdf
11 MRG Metals Koko Massava Resource 2023 Annual Report
https://wcsecure.weblink.com.au/pdf/MRQ/02717754.pdf
12 Iluka Resources Cataby Production Ore Reserves and Mineral Resources statement 2025
https://www.iluka.com/media/ntnd53oo/iluka-resources-ore-reserves-and-mineral-resources-as-at-31-december-2024.pdf
13 Shenge Resources Tajiri Scoping Study 2024 Annual Report (Strandline Resources Limited)
https://clients3.weblink.com.au/pdf/STA/02860612.pdf
14 Iluka Resources Ouyen Production Ore Reserves and Mineral Resources statement 2025
https://www.iluka.com/media/ntnd53oo/iluka-resources-ore-reserves-and-mineral-resources-as-at-31-december-2024.pdf
Notes: Does not include any projects where rutile is not reported separately
within HMC assemblage.
1. Wimmera
Mt Rutile Grade Contained Rutile
Measured 246 0.31% 0.8
Indicated 535 0.29% 1.5
Inferred 1,327 0.38% 3.1
Total 2,108 0.28% 5.8
2. Sembehun
Mt Rutile Grade Contained Rutile
Measured 133.77 1.38% 1.85
Indicated 166.82 1.05% 1.75
Inferred 207.20 0.93% 1.93
Total 507.79 1.09% 5.53
3. Moma
Mt Rutile Grade Contained Rutile
Reserves not included in Resources 1,420 0.05% 0.8
Measured 363 0.06% 0.2
Indicated 2,879 0.05% 1.4
Inferred 4,296 0.04% 1.8
Total 8,958 0.05% 4.3
4. Goschen
Mt Rutile Grade Contained Rutile
Measured 25 0.5% 0.1
Indicated 360 0.3% 1.2
Inferred 500 0.3% 1.6
Total 890 0.3% 2.8
5. Area 1
Mt Rutile Grade Contained Rutile
Measured 41.85 0.99% 0.41
Indicated 103.53 0.91% 0.94
Inferred 123.32 0.71% 0.88
Total 268.7 0.83% 2.23
6. Balranald
Mt Rutile Grade Contained Rutile
Measured 6 5.7% 0.3
Indicated 35 3.8% 1.3
Inferred 13 3.0% 0.4
Total 54 3.7% 2.0
7. Eneabba
Mt Rutile Grade Contained Rutile
Measured 249 0.4% 0.9
Indicated 177 0.4% 0.7
Inferred 93 0.4% 0.3
Total 518 0.4% 1.9
8. McCalls
Mt Rutile Grade Contained Rutile
Measured - - -
Indicated 1,630 0.05% 0.8
Inferred 1,980 0.05% 0.9
Total 3,610 0.05% 1.7
9. Euston
Mt Rutile Grade Contained Rutile
Measured - - -
Indicated 34 3.5% 1.2
Inferred 14 1.7% 0.2
Total 48 3.1% 1.5
10. Toliara
Mt Rutile Grade Contained Rutile
Measured 597 0.06% 0.4
Indicated 793 0.04% 0.3
Inferred 1,390 0.03% 0.4
Total 1,190 0.03% 1.1
11. Koko Massava
Mt Rutile Grade Contained Rutile
Measured - - -
Indicated 557 0.05% 0.3
Inferred 977 0.05% 0.5
Total 1,531 0.05% 0.8
12. Cataby
Mt Rutile Grade Contained Rutile
Measured 105 0.2% 0.2
Indicated 63 0.1% 0.1
Inferred 65 0.1% 0.1
Total 233 0.3% 0.7
13. Tajiri
Mt Rutile Grade Contained Rutile
Measured 74 0.2% 0.1
Indicated 165 0.2% 0.4
Inferred 29 0.2% 0.1
Total 268 0.2% 0.6
14. Ouyen
Mt Rutile Grade Contained Rutile
Measured - - -
Indicated 10 1.9% 0.2
Inferred 24 1.5% 0.4
Total 34 1.6% 0.5
Note:
Where not disclosed separately, rutile grades have been calculated as HM%
multiplied by rutile % of assemblage.
APPENDIX 3 - FLAKE GRAPHITE RESOURCE INFORMATION (Figure 3)
Company Project Stage of Development Steady State Production C1 Cash Costs Notes Source
tpa US$/t
NGX Malingunde PFS Complete 52000 396 - Company Presentation: Clean Energy Minerals in Africa (August 2024)
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02844363-6A1222369&v=fc9bdb61fe50ea61f8225e24ce041a0e155a9400
Focus Graphite Lac Knife FS Complete 47781 413 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)
https://focusgraphite.com/wp-content/uploads/2021/07/J5116-Focus-Lac-Knife-Tech-Rep-FSU-1.pdf
Nouveau Monde Graphite Matawinie Construction 105882 419 - Press Release: Updated Feasibility Study for the Matawinie Mine
https://nmg.com/updated-feasibility-study/
Syrah Resources Balama Production 240000 455 Production based on Company guidance of 20kt per month production rate. Company Presentation: Equity Raising and US Government Strategic Funding
Operating costs based on midpoint of Balama C1 cost (FOB Nacala/Pemba) Proposals (26 March 2026)
medium-term guidance of US$430-480 per tonne.
https://www.syrahresources.com.au/investors/asx-announcements#
Black Rock Mining Mahenge Financing post eDFS 89000 466 Operating costs are for first 10 years therefore average production of first Company Announcement: Black Rock Completes FEED and eDFS Update (10 October
10 years only shown 2022)
https://blackrockmining.com.au/wp-content/uploads/BlackRockCompletesFEEDAndeDFSUpdate.pdf
Renascor Siviour DFS Complete 150000 472 - Company Announcement: Siviour Battery Anode Material Study Results (8 August
2023)
https://renascor.com.au/wp-content/uploads/2023/08/20230808-Siviour-Battery-Anode-Material-Study-Results-2588185.pdf
South Star Battery Metals Santa Cruz Production 25000 484 Transport costs per Benchmark minerals Technical Report: Updated Resources and Reserves Assessment and
Pre-feasibility Study (18 March 2020)
https://www.southstarbatterymetals.com/ydihapto/2021/04/NI43-101_PFS_Santa_Cruz_Mar18_2020.pdf
Blencowe Resources Orom-Cross PFS Complete 97000 485 Costs are AISC Company Announcement: Definitive Feasibility Study Confirms Outstanding
Economics for Orom-Cross Graphite Project (1 Dec 2025)
https://blencoweresourcesplc.com/2025/12/01/dfs-results-confirms-outstanding-economics/
NextSource Materials Molo Production 150000 541 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)
https://www.nextsourcematerials.com/nextsource-materials-announces-robust-feasibility-study-results-for-molo-mine-expansion-to-150000-tonnes-per-annum-of-superflake-graphite-concentrate/
Ecograf Epanko BFS Complete 73000 553 - Updated Epanko BFS (25 February 2026)
https://www.ecograf.com.au/wp-content/uploads/2026/02/3029888.pdf
Evion Maniry DFS Complete 56400 658 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)
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02593286-6A1120357?access_token=83ff96335c2d45a094df02a206a39ff4
Volt Resources Bunyu Stage 1 FS Complete 24780 670 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)
https://api.investi.com.au/api/announcements/vrc/d68bb8a5-dc8.pdf
Evolution Energy Chilalo DFS Complete 52000 773 Operating costs are for first 9 years of production Company Announcement: FEED and updated DFS confirms Chilalo as a standout high
margin, low Capex and development-ready graphite project (20 March 2023)
https://api.investi.com.au/api/announcements/ev1/67aa3d24-039.pdf
Graphite One Graphite Creek FS Complete 175000 982 Production and costs relate to Graphite Creek Mine and not the proposed Graphite Creek Project NI 43-101 Technical Report and Feasibility Study (25
graphite manufacturing facility March 2025)
https://www.graphiteoneinc.com/wp-content/uploads/2025/04/NI-43101_FS_Report_20250422_Final.pdf
Notes:
Analysis does not include projects:
- without at least a PFS-level study complete;
- owned by unlisted companies or companies in administration
(voluntary or otherwise);
- in care and maintenance;
- with downstream studies which do not include a breakdown of
graphite concentrate C1 costs
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