TIDMSVML
RNS Number : 8325V
Sovereign Metals Limited
16 December 2021
SOVEREIGN METALS LIMITED
NEWS RELEASE
KASIYA INDICATED RESOURCE TO SUPPORT SCOPING STUDY
Sovereign Metals Limited (the Company or Sovereign) is pleased
to announce its JORC Mineral Resource Estimate (MRE) upgrade for
Kasiya - another major technical milestone for the Company's
flagship, large, high-grade rutile deposit in Malawi. Over 50% of
the total resource has now been upgraded to the Indicated
category.
Kasiya Mineral Resource Estimate
Indicated: 304Mt @ 1.02% rutile
Inferred: 301Mt @ 0.93% rutile
Total: 605Mt @ 0.98% rutile
HIGHLIGHTS
-- MRE upgrade re-affirms Kasiya as a globally significant,
potentially long-life future source of natural rutile
-- High degree of confidence confirmed with >50% of the total
MRE now in the Indicated category
-- MRE contains 3.1Mt of rutile in the Indicated category and
2.8Mt of rutile in the Inferred category
-- MRE also contains 4.0Mt of graphite in the Indicated category
and 3.5Mt of graphite in the Inferred category - a valuable
by-product
-- Substantial additional resource growth is expected in the
near future with the current MRE covering just 49km(2) or 38% of
the total 129km(2) (Kasiya 89km(2) + Nsaru 40km(2) ) drill-defined
rutile-mineralised footprint.
Sovereign's Managing Director Dr Julian Stephens commented :
"It is really pleasing to achieve an Indicated resource upgrade
of such magnitude in under six months since our maiden MRE at
Kasiya. Sovereign is already well advanced to deliver a further
considerable resource and classification upgrade for Kasiya and the
new Nsaru deposit in early 2022."
ENQUIRIES
Dr Julian Stephens (Perth) Sam Cordin (Perth) Sapan Ghai (London)
Managing Director +61(8) 9322 6322 +44 207 478 3900
+61(8) 9322 6322
Nominated Adviser on AIM
RFC Ambrian
Bhavesh Patel / Andrew Thomson +44 20 3440 6800
Broker
Optiva Securities +44 20 3137 1902
Daniel Ingrams
Mariela Jaho
Christian Dennis
To view the announcement in full including all illustrations and
figures, please refer to the full announcement at
http://sovereignmetals.com.au/announcements/.
KASIYA JORC Mineral Resource Estimate OVERVIEW
The Kasiya updated MRE is presented below (Table 1). The MRE has
broad zones of very high-grade rutile which occur contiguously
across large areas.
Rutile mineralisation lies in laterally extensive, near surface,
flat "blanket" style bodies in areas where the weathering profile
is preserved and not significantly eroded. At Kasiya, high-grade
mineralisation commonly grading 1.2% to 2.0% rutile occurs in the
top 3-5m from surface. Moderate grade mineralisation generally
grading 0.5% to 1.2% rutile commonly extends from 5m to end of hole
where it remains open at depths >10m in numerous drill-defined,
NE-striking zones.
Table 1 - Kasiya Mineral Resource Estimate at 0.7% Rutile
Cut-off
Mineral Resource Material Tonnes Rutile (%) Rutile Tonnes TGC (%) TGC Tonnes (millions)
Category (millions) (millions)
Indicated 304 1.02 3.1 1.31 4.0
---------------------- ----------- ---------------------- -------- ----------------------
Inferred 301 0.93 2.8 1.16 3.5
---------------------- ----------- ---------------------- -------- ----------------------
Total 605 0.98 5.9 1.24 7.5
---------------------- ----------- ---------------------- -------- ----------------------
Cut-off: 0.7% rutile, includes topsoil, TGC = total graphitic
carbon
RESOURCE Growth potentiaL
Sovereign now has a total of 129km(2) of drilled, high-grade
rutile mineralisation (Kasiya 89km(2) + Nsaru 40km(2) ). The area
covered by the Kasiya Indicated component is just 23km(2) of the
129km(2) drilled, mineralised footprint. Further core drilling
results are expected in the coming months and are expected to
contribute to additional Indicated tonnage at Kasiya.
Most peripheral and extensional mineralisation at Kasiya
previously drilled on an 800m x 800m drill spacing has now been
infilled to 400m x 400m spacing. These samples have been dispatched
from Malawi and are in transit to Australian laboratories for final
analysis. The results are expected to contribute to additional
Inferred tonnage at Kasiya.
Infill and extensional hand auger and core drilling at the
nearby Nsaru deposit is now also complete with all samples well
advanced through processing at Australian laboratories. It is
anticipated that these results will contribute to a component of
the Nsaru maiden MRE being classified in the Indicated
category.
Kasiya's high-grade, NE-striking rutile corridors that extend to
depth beyond 15m continue to present a significant target for the
Company and have been marked for detailed 200 x 200m infill
drilling to test short range variability of the mineralisation. The
results of this program will inform the need for additional infill
into the future, and for targeting drilling to depths of 25m which
will offer potential significant additional tonnage.
Expansion of the Kasiya MRE and a maiden Nsaru MRE is advancing
with completion expected in Q1 2022.
KASIYA MRE TECHNICAL DETAILS
The Kasiya MRE has been prepared by independent consultants,
Placer Consulting Pty Ltd (Placer) and is reported in accordance
with the JORC Code (2012 Edition).
Summary of resource estimate reporting critera
As per ASX Listing Rule 5.8 and the 2012 JORC reporting
guidelines, a summary of the material information used to estimate
the MRE is detailed below.
Geology
Regional Geology
The greater part of Malawi is underlain by crystalline
Precambrian to lower Paleozoic rocks referred to as the Malawi
Basement Complex. In some parts these rocks have been overlain
unconformably by sedimentary and volcanic rocks ranging in age from
Permo-triassic to Quaternary. The Basement complex has undergone a
prolonged structural and metamorphic history dominated by uplift
and faulting resulting in the formation of the Malawi Rift
Valley.
Kasiya is located on the Lilongwe Plain which is underlain by
the Basement Complex paragneisses and orthogneisses which are part
of the Mozambique Belt. The bulk of the gneisses are semi-pelitic
but there are bands of psammitic and calcareous rocks that have
been metamorphosed under high pressure and temperature conditions
to granulite facies. Interspersed within the paragneiss units are
lesser orthogneisses, often cropping-out as conspicuous tors, as
well as amphibolites, pegmatites and minor mafic to ultramafic
intrusions. Foliation and banding in the gneisses have a broad
north-south strike over the general area. Thick residual soils and
pedolith with some alluvium overlie the gneisses and include sandy,
lateritic and dambo types.
Project Geology
Sovereign's tenure covers 2,882km(2) over an area to the north,
west and south of Malawi's capital city covering the Lilongwe
Plain. The topography is generally flat to gently undulating and
the underlying geology of the is dominated by paragneiss with
pelitic, psammitic and calcareous units.
A particular paragneiss unit is rich in rutile and graphite and
is the primary source of both of these minerals in the area. This
area was deeply weathered during the Tertiary and rutile
concentrated in the upper part of the weathering profile forming
residual placers, such as the Kasiya Deposit. Once this material is
incised and eroded, it is transported and deposited into wide,
regional braided river systems forming alluvial heavy mineral
placers such as the Bua Channel.
Kasiya Deposit Geology
The high-grade rutile deposit at Kasiya is best described as a
residual placer, or otherwise known as eluvial heavy mineral
deposit. It is formed by weathering of the primary host rock and
concentration in place of heavy minerals, as opposed to the
high-energy transport and concentration of heavy minerals in a
traditional placer.
The highly aluminous nature (kyanite) and the presence of carbon
(graphite) in the host material suggest that the protolith was of
meta-sedimentary origin. The protolith likely started with a
0.5-1.5Ga basin that also experienced consistent influx of titanium
minerals.
These sedimentary rocks were subject to granulite facies
metamorphism under reduced conditions in the Pan-African Orogeny at
circa 0.5-0.6Ga. The reduced environment, relatively high titanium
content and low iron content, resulted in rutile being the most
stable titanium mineral under these conditions. Slow exhumation and
cooling then resulted in in crystallisation of paragneisses
containing coarse rutile and graphite.
The final and most important stage of enrichment came as
tropical weathering during the Tertiary depleted the top 10m of
physically and chemically mobile minerals. This caused significant
volume loss and concurrent concentration of heavy resistate
minerals including rutile and kyanite.
Rutile mineralisation lies in laterally extensive, near surface,
flat "blanket" style bodies in areas where the weathering profile
is preserved and not significantly eroded. The Kasiya deposit
continue to confirm widespread, high-grade mineralisation commonly
grading 1.2% to 2.0% rutile in the top 3-5m from surface. Moderate
grade mineralisation generally grading 0.5% to 1.2% rutile commonly
extends from 5m to end of hole where it remains open at depths
>10m in numerous drill-defined, NE-striking zones.
Graphite generally occurs in broad association with rutile,
however, it is depleted in the top 3-5m and therefore can often
show an inverse grade relationship with rutile in the near-surface
zones. At depths generally greater than 5m graphite is not
depleted, and rutile is not particularly enriched, so a more stable
grade relationship exists.
Metallurgical results show that a very coarse-flake graphite
by-product can be recovered from rutile gravity tails.
Drilling Techniques
Spiral hand-auger (HA) drilling and Push-tube core (PT) drilling
has been used extensively at the Kasiya Deposit by Sovereign to
define mineralisation and to obtain quantitative rutile and
graphite (TGC) assay information in the upper sections of the
weathering profile.
A total of 507 hand auger holes for 4,820m were drilled at the
Kasiya Rutile Deposit to obtain samples for quantitative
determination of recoverable rutile and TGC.
An initial 30 push-tube core holes, for 359.4m, were drilled at
the Kasiya Rutile Deposit to obtain samples for validation of hand
auger drilling results and for bulk density test work.
The subsequent infill drilling programme, designed to support
the resource estimate update was completed by push tube coring. A
total of 182 core holes for 1,855.3m were included in the updated
MRE.
The drilling programs to date show a mineralised envelope,
defined nominally by >0.5% rutile, of approximately 89km(2) with
numerous areas of high-grade rutile defined. An additional 40km(2)
rutile mineralised envelope has been drill-defined at the nearby
Nsaru Deposit.
HA drilling was executed by Sovereign field teams using a
manually operated enclosed-flight Spiral Auger (SP / SOS) system
and produced by Dormer Engineering in Queensland, Australia. The HA
bits are 62mm and 75mm in diameter with 1m long steel rods. Each 1m
of drill advance is withdrawn and the contents of the auger flight
removed into bags and set aside. An additional 1m steel rod is
attached and the open hole is re-entered to drill the next metre.
This is repeated until the drill hole is terminated often due to
the water table being reached, and more rarely due to bit refusal.
The auger bits and flights were cleaned between each metre of
sampling to avoid contamination.
PT drilling is undertaken using a drop hammer Dando Terrier MK1
and a drop hammer DL650. The drilling generated 1-metre runs of
83mm PQ core in the first 2m and then transitioned to 72mm core for
the remainder of the hole. Core drilling is oriented vertically by
spirit level.
The hand auger collars are spaced at nominally 400m along the
400m spaced drill-lines with the push-tube holes similarly spaced
at an offset, infill grid. The resultant 200m by 200m drill spacing
(to the strike orientation of the deposit) is deemed to adequately
define the mineralisation in the MRE.
The push-tube twin and density sample holes are selectively
placed throughout the deposit to ensure a broad geographical and
lithological spread for the analysis.
Drilling and sampling are carried out on a regular diamond grid.
There is no apparent bias arising from the orientation of the drill
holes with respect to the orientation of the deposit.
Placer has reviewed SOPs for HA and PT drilling and found them
to be fit for purpose and support the resource classifications as
applied to the MRE.
Sampling Techniques
HA samples were obtained at 1m intervals generating on average
approximately 2.5kg of drill sample. HA samples are manually
removed from the auger bit and sample recovery visually assessed in
the field. As samples become wet at the water table and recovery
per metre declines the drill hole is terminated.
HA samples are collected on a metre by metre basis. Each 1m
sample is sun dried, logged, weighed and pXRF analysed. Hand auger
samples are composited based on regolith boundaries and sample
chemistry, generated by hand-held XRF analysis. Each 1m of sample
is dried and riffle-split to generate a total sample weight of 3kg
for analysis, generally at 2 - 5m intervals. This primary sample is
then split again to provide a 1.5kg sample for both rutile and
graphite analyses.
PT samples were predominantly HQ. Half core 1m samples were sun
dried, logged, weighed and pXRF analysed. Samples are then
composited over 2m intervals. An equal mass is taken from each
contributing metre to generate a 1.5kg composite sample. Individual
recoveries of core samples were recorded on a quantitative basis.
Core recovery was >95%.
This sampling and compositing method is considered appropriate
and reliable based on accepted industry practice.
Sample analysis methodology
Rutile
Heavy mineral concentrates (HMC) were generated onsite via
wet-tabling or at Diamantina Laboratories in Perth via heavy liquid
separation.
The Malawi onsite laboratory sample preparation methods are
considered quantitative to the point where a HMC is generated.
The HMC is then subject to magnetic separation at Allied Mineral
Laboratories Perth (AML) in Perth by Carpco magnet @ 16,800G
(2.9Amps) into a magnetic (M) and non-magnetic (NM) fraction.
The NM fractions were sent to either ALS Perth or Intertek Perth
for quantitative XRF analysis. Intertek samples received the
standard mineral sands suite FB1/XRF72. ALS Samples received
XRF_MS.
QEMSCAN of the NM fraction shows dominantly clean and liberated
rutile grains and confirms rutile is the only titanium species in
the NM fraction. Recovered rutile is therefore defined and reported
here as: TiO(2) recovered in the +45 to -600um range to the NM
concentrate fraction as a % of the total primary, dry, raw sample
mass divided by 95% (to represent an approximation of final product
specifications). i.e recoverable rutile within the whole
sample.
Graphite
A portion of each sample is dissolved in dilute hydrochloric
acid to liberate carbonate carbon. The solution is filtered using a
filter paper and the collected residue is then dried to 425degC in
a muffle oven to drive off organic carbon. The dried sample is then
combusted in an Eltra CS-800 induction furnace infra-red CS
analyser to yield total graphitic or elemental carbon (TGC).
The graphitic carbon content is determined by eliminating other
carbon forms from the total carbon content. The addition of acid to
the sample liberates carbon dioxide thus removing carbonate carbon.
Soluble organic carbon will also be removed. Insoluble organic
carbon is removed by heating the samples at 425degC in an oxidising
environment. The "dried" carbon-bearing sample that is analysed in
the resistance furnace is considered to contain only graphitic
carbon.
QAQC
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.
An external laboratory raw sample check duplicate is sent to
laboratories in Perth, Australia as an external check of the full
workflow. These duplicates are produced at a rate of 1 in 20.
Accuracy monitoring is achieved through submission of certified
reference materials (CRM's). ALS and Intertek both use internal
CRMs and duplicates on XRF and TGC analyses. Sovereign also inserts
CRMs into all sample batches at a rate of 1 in 20.
Analysis of sample duplicates is undertaken by standard
geostatistical methodologies (Scatter, Pair Difference and QQ
Plots) to test for bias and to ensure that sample splitting is
representative. Standards determine assay accuracy performance,
monitored on control charts, where failure (beyond 3SD from the
mean) may trigger re-assay of the affected batch.
Precision and accuracy assessment has been completed on all
alternate workflow methodologies and a consistent method has been
recommended by Placer Resource Geologists. Examination of the QA/QC
sample data indicates satisfactory performance of field sampling
protocols and assay laboratories providing acceptable levels of
precision and accuracy. Rutile determination by alternate methods
showed no observable bias.
Acceptable levels of accuracy and precision are displayed in
geostatistical analyses to support the resource classifications as
applied to the estimate.
Classification
The hand auger collars are spaced at nominally 400m along the
400m spaced drill-lines with the push-tube holes similarly spaced
at an offset, infill grid. The resultant 200m by 200m drill spacing
(to the strike orientation of the deposit) is deemed to adequately
define the mineralisation in the MRE.
The push-tube twin and density sample holes are selectively
placed throughout the deposit to ensure a broad geographical and
lithological spread for the analysis.
Variography and kriging neighbourhood analysis completed using
Supervisor software informs the optimal drill and sample spacing
for the MRE. Based on these results and the experience of the
Competent Person, the data spacing and distribution is considered
adequate for the definition of mineralisation and adequate for
mineral resource estimation.
The mineral resource and classification remain conservative.
Substantial additional resource material is expected to occur below
the effective depth of drilling (water table). High grade sample
results are constrained tightly by search and estimation
parameters, which are likely to be contiguous upon application of
closer-spaced drilling.
A high-degree of uniformity exists in the broad and contiguous
lithological and grade character of the deposit. Open-hole drilling
and infill core drilling techniques have been expertly applied and
data collection procedures, density assessments, QA protocols and
interpretations conform to industry best practice with few
exceptions.
Assay, mineralogical determinations and metallurgical test work
conform to industry best practice and demonstrate a rigorous
assessment of product and procedure. The development of a
conventional processing flowsheet and marketability studies support
the classification of the Kasiya Resource.
Estimation Methodology
Datamine Studio RM and Supervisor software is used for the
resource estimation with key fields being interpolated into the
volume model using the Inverse Distance weighting (power 2) method.
Dynamic Anisotropy search ellipses, informed by variography and
kriging neighbourhood analysis, were used to search for data during
the interpolation and suitable limitations on the number of samples
and the impact of those samples, was maintained.
Interpolation was constrained by hard boundaries (domains) that
result from the geological interpretation. The construction of an
upper (Soil/Ferp) domain reduces the dilution of resource grade
from the underlying, less mineralised (Mott/Sap) domain. A Topsoil
horizon has been defined at 0.3m thickness throughout the Indicated
Resource area to support anticipated ore reserve calculation and
mining studies. Topsoil is disclosed separately but remains in the
MRE in recognition of advanced investigations by SVM on topsoil
generation.
The average parent cell size used was approximately equivalent
to the average drill hole spacing within the Indicated Resource
(200m*200m). Cell size in the Z-axis was established to cater for
the composite sample spacing and definition of the Topsoil domain.
This resulted in a parent cell size of 200m x 200m x 3m for the
volume model with 5 sub-cell splits available in the X and Y axes
and 10 in the Z axis to smooth topographical and lithological
transitions. A sub-cell interpolation was applied for the MRE.
Extreme grade values were not identified by statistical
analysis, nor were they anticipated in this style of deposit. No
top cut is applied to the resource estimation.
Validation of grade interpolations was done visually In Datamine
by loading model and drill hole files and annotating, colouring and
using filtering to check for the appropriateness of
interpolations.
Statistical distributions were prepared for model zones from
both drill holes and the model to compare the effectiveness of the
interpolation. Distributions of section line averages (swath plots)
for drill holes and models were also prepared for each zone and
orientation for comparison purposes.
The resource model has effectively averaged informing drill hole
data and is considered suitable to support the resource
classifications as applied to the estimate.
Density is calculated by the water immersion technique using
core from geographically and lithologically diverse sample sites
throughout the project. This methodology delivers an accurate
density result that is interpolated in the MRE for each host
material type.
Density data are interpolated into the resource estimate by
geological domain. An average density of 1.39 t/m(3) for the soil
(SOIL) domain, 1.60 t/m(3) for the ferruginous pedolith (FERP)
domain, 1.65 t/m(3) for the mottled (MOTT) domain, 1.68 t/m(3) for
the pallid saprolite (PSAP) domain, 1.63 t/m(3) for the saprolite
(SAPL) domain, and 1.93 t/m(3) for the laterite (LAT) domain were
calculated. Density data are interpolated into the resource
estimate by the nearest neighbour method.
Cut-off Grades
All results reported are of a length-weighted average of in-situ
grades. The resource is reported at a range of bottom cut-off
grades in recognition that optimisation and financial assessment is
outstanding.
A nominal bottom cut of 0.7% rutile is offered, based on
preliminary assessment of resource product value and anticipated
cost of operations. No graphite top or bottom cuts are applied.
Mining and Metallurgy Factors
Hydro-mining has been determined as the optimal method of mining
for the Kasiya Rutile deposit. The material is loose, soft, fine
and friable with no cemented sand or dense clay layers rendering it
amenable to hydro-mining. It is considered that the strip ratio
would be zero or near zero.
Dilution is considered to be minimal as mineralisation commonly
occurs from surface and mineralisation is generally gradational
with few sharp boundaries.
Recovery parameters have not been factored into the estimate.
However, the valuable minerals are readily separable due to their
SG differential and are expected to have a high recovery through
the proposed, conventional wet concentration plant.
Sovereign have announced three sets of metallurgical results to
the market (24 June 2019 and 9 September 2020, 7(th) December
2021), relating to the Company's ability to produce a high-grade
rutile product with a high recovery via simple conventional
processing methods. Sovereign engaged AML to conduct the
metallurgical test work and develop a flowsheet for plant design
considerations. The work has shown a premium quality rutile product
ranging from 95.0% to 97.2% TiO(2) with low impurities could be
produced with recoveries of about 94% to 100% and with favourable
product sizing at d(50) of 118um (97.2% product).
Gravity separation was effective at concentrating graphite to a
"light mineral pre-concentrate" due to its low specific gravity
(2.2 t/m(3)) at circa 6.3% TGC.
A program at SGS Lakefield in Canada was undertaken in order to
confirm that the graphite gravity pre-concentrate can be upgraded
into a coarse flake graphite by-product via a conventional graphite
flotation flowsheet.
The test-work was extremely successful, and a very coarse-flake
graphite concentrate at 96.3% TGC was produced. Greater than 60% of
the graphite concentrate is in the large to super-jumbo fractions,
suggesting a high combined basket value. The overall graphite
recovery from the raw sample to product was 62%.
MINERAL RESOURCE ESTIMATE TABLE
Table 2 - Kasiya Mineral Resource Estimate Summary at varying
Rutile Cut-off grades and classifications
Mineral Resource Cut-off Material Tonnes Rutile (%) Rutile Tonnes TGC (%) TGC Tonnes
Category (millions) (millions) (millions)
Indicated 0.5 416 0.91 3.8 1.32 5.5
-------- ------------------- ----------- -------------------- -------- --------------------
Indicated 0.6 365 0.96 3.5 1.34 4.9
-------- ------------------- ----------- -------------------- -------- --------------------
Indicated 0.7 304 1.02 3.1 1.31 4.0
-------- ------------------- ----------- -------------------- -------- --------------------
Indicated 0.8 240 1.10 2.6 1.22 2.9
-------- ------------------- ----------- -------------------- -------- --------------------
Indicated 0.9 186 1.17 2.2 1.09 2.0
-------- ------------------- ----------- -------------------- -------- --------------------
Indicated 1.0 139 1.24 1.7 0.93 1.3
-------- ------------------- ----------- -------------------- -------- --------------------
Indicated 1.1 99 1.32 1.3 0.76 0.8
-------- ------------------- ----------- -------------------- -------- --------------------
Indicated 1.2 69 1.40 1.0 0.54 0.4
-------- ------------------- ----------- -------------------- -------- --------------------
Indicated 1.3 48 1.47 0.7 0.45 0.2
-------- ------------------- ----------- -------------------- -------- --------------------
Indicated 1.4 31 1.54 0.5 0.36 0.1
-------- ------------------- ----------- -------------------- -------- --------------------
Mineral Resource Cut-off Material Tonnes Rutile (%) Rutile Tonnes TGC (%) TGC Tonnes
Category (millions) (millions) (millions)
Inferred 0.5 516 0.79 4.1 1.16 6.0
-------- ------------------- ----------- -------------------- -------- --------------------
Inferred 0.6 405 0.86 3.5 1.19 4.8
-------- ------------------- ----------- -------------------- -------- --------------------
Inferred 0.7 301 0.93 2.8 1.16 3.5
-------- ------------------- ----------- -------------------- -------- --------------------
Inferred 0.8 202 1.02 2.1 1.08 2.2
-------- ------------------- ----------- -------------------- -------- --------------------
Inferred 0.9 135 1.11 1.5 0.95 1.3
-------- ------------------- ----------- -------------------- -------- --------------------
Inferred 1.0 84 1.21 1.0 0.75 0.6
-------- ------------------- ----------- -------------------- -------- --------------------
Inferred 1.1 54 1.30 0.7 0.63 0.3
-------- ------------------- ----------- -------------------- -------- --------------------
Inferred 1.2 33 1.40 0.5 0.48 0.2
-------- ------------------- ----------- -------------------- -------- --------------------
Inferred 1.3 20 1.49 0.3 0.43 0.1
-------- ------------------- ----------- -------------------- -------- --------------------
Inferred 1.4 12 1.60 0.2 0.40 0.0
-------- ------------------- ----------- -------------------- -------- --------------------
Mineral Resource Cut-off Material Tonnes Rutile (%) Rutile Tonnes TGC (%) TGC Tonnes
Category (millions) (millions) (millions)
Indicated +
Inferred 0.5 932 0.85 7.9 1.23 11.5
-------- ------------------- ----------- -------------------- -------- --------------------
Indicated +
Inferred 0.6 770 0.91 7.0 1.26 9.7
-------- ------------------- ----------- -------------------- -------- --------------------
Indicated +
Inferred 0.7 605 0.98 5.9 1.24 7.5
-------- ------------------- ----------- -------------------- -------- --------------------
Indicated +
Inferred 0.8 443 1.06 4.7 1.16 5.1
-------- ------------------- ----------- -------------------- -------- --------------------
Indicated +
Inferred 0.9 321 1.15 3.7 1.03 3.3
-------- ------------------- ----------- -------------------- -------- --------------------
Indicated +
Inferred 1.0 223 1.23 2.7 0.86 1.9
-------- ------------------- ----------- -------------------- -------- --------------------
Indicated +
Inferred 1.1 154 1.32 2.0 0.72 1.1
-------- ------------------- ----------- -------------------- -------- --------------------
Indicated +
Inferred 1.2 102 1.40 1.4 0.52 0.5
-------- ------------------- ----------- -------------------- -------- --------------------
Indicated +
Inferred 1.3 68 1.48 1.0 0.44 0.3
-------- ------------------- ----------- -------------------- -------- --------------------
Indicated +
Inferred 1.4 42 1.56 0.7 0.37 0.2
-------- ------------------- ----------- -------------------- -------- --------------------
Competent Person's Statement
The information that relates to Mineral Resources is based on,
and fairly represents, information compiled by Mr Richard
Stockwell, a Competent Person, who is a fellow of the Australian
Institute of Geoscientists (AIG). Mr Stockwell is a principal of
Placer Consulting Pty Ltd, an independent consulting company. Mr
Stockwell has sufficient experience, which is relevant to the style
of mineralisation and type of deposit under consideration, and to
the activity he is undertaking, to qualify as a Competent Person as
defined in the 2012 Edition of the 'Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves'. Mr
Stockwell consents to the inclusion of the matters based on his
information in the form and context in which it appears.
The information in this report that relates to Exploration
Results is based on information compiled by Mr Samuel Moyle, a
Competent Person who is a member of The Australasian Institute of
Mining and Metallurgy (AusIMM). Mr Moyle is the Exploration Manager
of Sovereign Metals Limited and a holder of ordinary shares,
unlisted options and performance rights in Sovereign. Mr Moyle has
sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity being undertaken, to qualify as a Competent Person as
defined in the 2012 Edition of the 'Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves'. Mr
Moyle consents to the inclusion in the report of the matters based
on his information in the form and context in which it appears.
The information in this announcement that relates to
Metallurgical test-work Results - Rutile & Graphite is
extracted from the announcement dated 7 December 2021. The
announcement is available to view on www.sovereignmetals.com.au.
Sovereign confirms that a) it is not aware of any new information
or data that materially affects the information included in the
announcement; b) all material assumptions included in the
announcement continue to apply and have not materially changed; and
c) the form and context in which the relevant Competent Persons'
findings are presented in this report have not been materially
changed from the announcement.
Information disclosed in this announcement has been reviewed by
Dr Julian Stephens (B.Sc (Hons), PhD, MAIG), Managing Director, a
Qualified Person for the purposes of the AIM Rules for
Companies.
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.
Appendix 1: JORC Code, 2012 Edition - Table 1
SECTION 1 - SAMPLING TECHNIQUES AND DATA
Criteria JORC Code explanation Commentary
Sampling Nature and quality of Hand auger samples are composited based
Techniques sampling (e.g. cut channels, on regolith boundaries and sample chemistry,
random chips, or specific generated by hand-held XRF analysis.
specialised industry Each 1m of sample is dried and riffle-split
standard measurement to generate a total sample weight of
tools appropriate to 3kg for analysis, generally at 2 -
the minerals under investigation, 5m intervals. This primary sample is
such as down hole gamma then split again to provide a 1.5kg
sondes, or handheld XRF sample for both rutile and graphite
instruments, etc). These analyses.
examples should not be
taken as limiting the Infill push tube/core drilling is sampled
broad meaning of sampling. routinely at 2m intervals by compositing
dried and riffle-split half core. A
consistent, 1.5kg sample is generated
for both the rutile and graphite determination.
-------------------------------------- ------------------------------------------------------------
Include reference to Drilling and sampling activities are
measures taken to ensure supervised by a suitably qualified
sample representivity Company geologist who is present at
and the appropriate calibration all times. All drill samples are geologically
of any measurement tools logged by the geologist at the drill
or systems used. site/core yard.
Each sample is sun dried and homogenised.
Sub-samples are carefully
riffle split to ensure representivity.
The 1.5kg composite samples are then
processed.
An equivalent mass is taken from each
sample to make up the composite. A
calibration schedule is in place for
laboratory scales, sieves and field
XRF equipment.
Placer Consulting Pty Ltd (Placer)
Resource Geologists have reviewed Standard
Operating Procedures (SOPs) for the
collection and processing of drill
samples and found them to be fit for
purpose and support the resource classifications
as applied to the Mineral Resource
Estimate (MRE). The primary composite
sample is considered representative
for this style of rutile mineralisation.
-------------------------------------- ------------------------------------------------------------
Aspects of the determination Logged mineralogy percentages, lithology
of mineralisation that information and TiO(2) % obtained from
are Material to the Public handheld XRF are used to determine
Report. In cases where compositing intervals. Care is taken
'industry standard' work to ensure that only samples with similar
has been done this would geological characteristics are composited
be relatively simple together
(e.g. 'reverse circulation
drilling was used to
obtain 1 m samples from
which 3 kg was pulverised
to produce a 30 g charge
for fire assay'). In
other cases more explanation
may be required, such
as where there is coarse
gold that has inherent
sampling problems. Unusual
commodities or mineralisation
types (e.g. submarine
nodules) may warrant
disclosure of detailed
information.
-------------------------------------- ------------------------------------------------------------
Drilling Drill type (e.g. core, A total of 507 hand auger holes for
Techniques reverse circulation, 4,820m were drilled at the Kasiya Rutile
open -- hole hammer, Deposit to obtain samples for quantitative
rotary air blast, auger, determination of recoverable rutile
Bangka, sonic, etc) and and Total Graphitic Carbon (TGC).
details (e.g. core diameter,
triple or standard tube, An initial 30 push-tube core holes,
depth of diamond tails, for 359.4m, were drilled at the Kasiya
face -- sampling bit Rutile Deposit to obtain samples for
or other type, whether validation of hand auger drilling results
core is oriented and and for bulk density test work.
if so, by what method,
etc). The subsequent infill drilling programme,
designed to support the resource estimate
update, was completed by push tube
coring. A total of 182 core holes for
1,855.29m were included in the updated
MRE.
Placer has reviewed SOPs for hand-auger
and push-tube drilling and found them
to be fit for purpose and support the
resource classifications as applied
to the MRE. A core-drilling SOP has
not been sighted. Sample handling and
preparation techniques is consistent
for push-tube and coring samples.
Two similar designs of hand auger drilling
equipment are employed. Hand-auger
drilling with 75mm diameter enclosed
spiral bits (SOS) with 1-metre long
steel rods and with 62mm diameter open
spiral bits (SP) with 1-metre long
steel rods. Drilling is oriented vertically
by eye.
Each 1m of drill sample is collected
into separate sample bags and set aside.
The auger bits and flights are cleaned
between each metre of sampling to avoid
contamination.
Core-drilling is undertaken using a
drop hammer, Dando Terrier MK1. The
drilling generated 1-metre runs of
83mm PQ core in the first 2m and then
transitioned to 72mm core for the remainder
of the hole. Core drilling is oriented
vertically by spirit level.
-------------------------------------- ------------------------------------------------------------
Drill Method of recording and Samples are assessed visually for recoveries.
Sample assessing core and chip The configuration of drilling and nature
Recovery sample recoveries and of materials encountered results in
results assessed. negligible sample loss or contamination.
Hand-auger 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.
-------------------------------------- ------------------------------------------------------------
Measures taken to maximise The Company's trained geologists supervise
sample recovery and ensure drilling on a 1 team 1 geologist basis
representative nature and are responsible for monitoring
of the samples. all aspects of the drilling and sampling
process.
For push-tube 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.
-------------------------------------- ------------------------------------------------------------
Whether a relationship No relationship is believed to exist
exists between sample between grade and sample recovery.
recovery and grade and The high percentage of silt and absence
whether sample bias may of hydraulic inflow from groundwater
have occurred due to at this deposit results in a sample
preferential loss/gain size that is well within the expected
of fine/coarse material. size range.
No bias related to preferential loss
or gain of different materials is observed.
-------------------------------------- ------------------------------------------------------------
Logging Whether core and chip Geologically, data is collected in
samples have been geologically detail, sufficient to aid in Mineral
and geotechnically logged Resource estimation.
to a level of detail
to support appropriate All individual 1-metre auger intervals
Mineral Resource estimation are geologically logged, recording
mining studies and metallurgical relevant
studies. data to a set template using company
codes. A small representative sample
is
collected for each 1-metre interval
and placed in appropriately labelled
chip trays for future reference.
All individual 1-metre core intervals
are geologically logged, recording
relevant
data to a set template using company
codes.
Half core remains in the trays and
is securely stored in the company warehouse.
-------------------------------------- ------------------------------------------------------------
Whether logging is qualitative All logging includes lithological features
or quantitative in nature. and estimates of basic mineralogy.
Core (or costean, channel, Logging is generally qualitative.
etc.) photography.
The core is photographed dry, after
logging and sampling is completed.
-------------------------------------- ------------------------------------------------------------
The total length and 100% of samples are geologically logged.
percentage of the relevant
intersection logged
-------------------------------------- ------------------------------------------------------------
Sub-sampling If core, whether cut Due to the soft nature of the material,
techniques or sawn and whether quarter, core samples are carefully cut in half
and sample half or all core taken. by hand tools.
preparation
-------------------------------------- ------------------------------------------------------------
If non-core, whether Auger and core hole samples are dried,
riffled, tube sampled, riffle split and composited. Samples
rotary split, etc. and are collected and homogenised prior
whether sampled wet or to splitting to ensure sample representivity.
dry. 1.5kg composite samples are processed.
An equivalent mass is taken from each
primary sample to make up the composite.
The primary composite sample is considered
representative for this style of mineralisation
and is consistent with industry standard
practice.
-------------------------------------- ------------------------------------------------------------
For all sample types, Techniques for sample preparation are
the nature, quality and detailed on SOP documents verified
appropriateness of the by Placer Resource Geologists.
sample preparation technique.
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 The sampling equipment is cleaned after
adopted for all sub-sampling each sub-sample is taken.
stages to maximise representivity
of samples. Field duplicate, laboratory replicate
and standard sample geostatistical
analysis is employed to manage sample
precision and analysis accuracy.
-------------------------------------- ------------------------------------------------------------
Measures taken to ensure Sample size analysis is completed to
that the sampling is verify sampling accuracy. Field duplicates
representative of the are collected for precision analysis
in situ material collected, of riffle splitting. SOPs consider
including for instance sample representivity. Results indicate
results for field a sufficient level of precision for
duplicate/second-half the resource classification.
sampling.
-------------------------------------- ------------------------------------------------------------
Whether sample sizes The sample size is considered appropriate
are appropriate to the for the material sampled.
grain size of the material
being sampled.
-------------------------------------- ------------------------------------------------------------
Quality The nature, quality and Rutile
of assay appropriateness of the The Malawi onsite laboratory sample
data and assaying and laboratory preparation methods are considered
laboratory procedures used and whether quantitative to the point where a heavy
tests the technique is considered mineral concentrate (HMC) is generated.
partial or total.
Final results generated are for recovered
rutile i.e, the % mass of the sample
that is rutile that can be recovered
to the non-magnetic component of a
HMC.
Heavy liquid separation of the HM is
no longer required and a HM result
is not reported in the updated MRE.
The HMC prepared via wet-table, gravity
separation at the Lilongwe Laboratory
provides an ideal sample for subsequent
magnetic separation and XRF.
All 2,888 samples (incl. QA) included
in the MRE update received the following
workflow undertaken on-site in Malawi;
* Dry sample in oven for 1 hour at 105
* Soak in water and lightly agitate
* Wet screen at 5mm, 600um and 45um to remove oversize
and slimes material
* Dry +45um -600mm (sand fraction) in oven for 1 hour
at 105
1,894 of the 2,888 samples received
the following workflow undertaken on-site
in Malawi
* Pass +45um -600mm (sand fraction) across wet table
twice to generate a heavy mineral concentrate (HMC)
* Dry HMC in oven for 30 minutes at 105
Bag HMC fraction and send to Perth,
Australia for quantitative chemical
and mineralogical determination.
994 of the 2,888 sample received the
following workflow undertaken at Perth
based Laboratories (superseded).
* Split 150g of sand fraction for Heavy Liquid
Separation (HLS) using Tetrabromoethane (TBE, SG
2.96g/cc) as the liquid heavy media to generate HMC.
Work undertaken at Diamantina Laboratories.
All of the 2,888 sample received the
final workflow undertaken at Perth
based Laboratories.
* Magnetic separation of the HMC by Carpco magnet @
16,800G (2.9Amps) into a magnetic (M) and
non-magnetic (NM) fraction. Work undertaken at Allie
d
Mineral Laboratories (AML) in Perth.
* The NM fractions were sent to either ALS Perth or
Intertek Perth for quantitative XRF analysis.
Intertek samples received the standard mineral sands
suite FB1/XRF72. ALS Samples received XRF_MS.
Graphite
2,291 Samples processed at Intertek-Genalysis
Perth via method C72/CSA.
A portion of each test sample is dissolved
in dilute hydrochloric acid to liberate
carbonate carbon. The solution is filtered
using a filter paper and the collected
residue is the dried to 425degC in
a muffle oven to drive off organic
carbon. The dried sample is then combusted
in a Carbon/ Sulphur analyser to yield
total graphitic or elemental carbon
(TGC).
The graphitic carbon content is determined
by eliminating other carbon forms from
the total carbon content. The addition
of acid to the sample liberates carbon
dioxide thus removing carbonate carbon.
Soluble organic carbon will also be
removed. Insoluble organic carbon is
removed by heating the samples at 425degC
in an oxidising environment. The "dried"
carbon-bearing sample that is analysed
in the resistance furnace is considered
to contain only graphitic carbon.
An Eltra CS-800 induction furnace infra-red
CS analyser is then used to determine
the remaining carbon which is reported
as Total Graphitic Carbon (TGC) as
a percentage.
-------------------------------------- ------------------------------------------------------------
For geophysical tools, Acceptable levels of accuracy and precision
spectrometers, handheld have been established. No handheld
XRF instruments, etc., XRF methods are used for quantitative
the parameters used in determination.
determining the analysis
including instrument
make and model, reading
times, calibrations factors
applied and their derivation,
etc.
-------------------------------------- ------------------------------------------------------------
Nature of quality control Sovereign uses internal and externally
procedures adopted (e.g. sourced wet screening reference material
standards, blanks, duplicate, inserted into samples batches at a
external laboratory checks) rate of 1 in 20. The externally sourced,
and whether acceptable certified standard reference material
levels of accuracy (i.e. for HM and Slimes assessment is provided
lack of bias) and precision by Placer Consulting.
have been established.
An external laboratory raw sample duplicate
is sent to laboratories in Perth, Australia
as an external check of the full workflow.
These duplicates are produced at a
rate of 1 in 20.
Accuracy monitoring is achieved through
submission of certified reference materials
(CRM's).
ALS and Intertek both use internal
CRMs and duplicates on XRF analyses.
Sovereign also inserts CRMs into the
sample batches at a rate of 1 in 20.
The CRMs used by Sovereign are supplied
by African Mineral Standards (AMIS),
South Africa. AMIS0602 is used containing
TiO(2) XRF 90.62%.
Analysis of sample duplicates is undertaken
by standard geostatistical methodologies
(Scatter, Pair Difference and QQ Plots)
to test for bias and to ensure that
sample splitting is representative.
Standards determine assay accuracy
performance, monitored on control charts,
where failure (beyond 3SD from the
mean) may trigger re-assay of the affected
batch.
Examination of the QA/QC sample data
indicates satisfactory performance
of field sampling protocols and assay
laboratories providing acceptable levels
of precision and accuracy.
Acceptable levels of accuracy and precision
are displayed in geostatistical analyses
to support the resource classifications
as applied to the estimate.
-------------------------------------- ------------------------------------------------------------
Verification The verification of significant Results are reviewed in cross-section
of sampling intersections by either using Datamine Studio RM software and
& assaying independent or alternative any spurious results are investigated.
company personnel. The deposit type and consistency of
mineralisation leaves little room for
unexplained variance. Extreme high
grades are not encountered.
-------------------------------------- ------------------------------------------------------------
The use of twinned holes. Twinned holes are drilled across a
geographically-dispersed area to determine
short-range geological and assay field
variability for the resource estimation.
Twin drilling is applied at a rate
of 1 in 20 routine holes. Twin paired
data (HA v HA & PT v PT) represents
2.25% of the drill database included
in the updated MRE. Substantial comparative
data between different drilling types
and test pit results are also available
but not referenced in the MRE.
Acceptable levels of precision are
displayed in the geostatistical analysis
of twin drilling data to support the
resource classifications as applied
to the estimate.
-------------------------------------- ------------------------------------------------------------
Documentation of primary All data are collected initially on
data, data entry procedures, paper logging sheets and codified to
data verification, data the Company's templates. This data
storage (physical and is hand entered to spreadsheets and
electronic) protocols. validated by Company geologists. This
data is then imported to a Microsoft
Access Database and validated automatically
and manually.
A transition to electronic field and
laboratory data capture is underway.
-------------------------------------- ------------------------------------------------------------
Discuss any adjustment Assay data adjustments are made to
to assay data. convert laboratory collected weights
to assay field percentages and to account
for moisture.
QEMSCAN of the NM fraction shows dominantly
clean and liberated rutile grains and
confirms rutile is the only titanium
species in the NM fraction.
Recovered rutile is therefore defined
and reported here as: TiO(2) recovered
in the +45 to -600um range to the NM
concentrate fraction as a % of the
total primary, dry, raw sample mass
divided by 95% (to represent an approximation
of final product specifications). i.e
recoverable rutile within the whole
sample.
-------------------------------------- ------------------------------------------------------------
Location Accuracy and quality A Trimble R2 Differential GPS is used
of data of surveys used to locate to pick up the hand auger collars.
points drill holes (collar and Daily capture at a registered reference
down-hole surveys), trenches, marker ensures equipment remains in
mine workings and other calibration.
locations used in Mineral No downhole surveying of hand-auger
Resource estimation. holes is completed. Given the vertical
nature and shallow depths of the hand-auger
holes, drill hole deviation is not
considered to significantly affect
the downhole location of samples.
-------------------------------------- ------------------------------------------------------------
Specification of the WGS84 UTM Zone 36 South.
grid system used.
-------------------------------------- ------------------------------------------------------------
Quality and adequacy The digital terrane model (DTM) was
of topographic control. generated by land-based survey of drill
collar positions and infill at a 200m
spacing in X and Y axes using the Trimble
RTK DGPS unit.
The DTM is suitable for the classification
of the resources as stated.
-------------------------------------- ------------------------------------------------------------
Data spacing Data spacing for reporting The hand auger collars are spaced at
& distribution of Exploration Results. nominally 400m along the 400m spaced
drill-lines with the push-tube holes
similarly spaced at an offset, infill
grid. The resultant 200m by 200m drill
spacing (to the strike orientation
of the deposit) is deemed to adequately
define the mineralisation in the MRE.
The push-tube twin and density sample
holes are selectively placed throughout
the deposit to ensure a broad geographical
and lithological spread for the analysis.
-------------------------------------- ------------------------------------------------------------
Whether the data spacing The drill spacing and distribution
and distribution is sufficient is considered to be sufficient to establish
to establish the degree a degree of geological and grade continuity
of geological and grade appropriate for the Mineral Resource
continuity appropriate estimation.
for the Mineral Resource
and Ore Reserve estimation Variography and kriging neighbourhood
procedure(s) and classifications analysis completed using Supervisor
applied. 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 Individual 1m auger intervals have
has been applied. been composited, based on lithology,
at 2 - 5m sample intervals for the
507 auger holes. Core holes have been
sampled at a regular 2m interval to
provide greater control on mineralisation
for the Indicated Resource.
The DH Compositing tool was utilised
in Supervisor software to define the
optimal sample compositing length.
A 2-metre interval is applied for the
MRE.
-------------------------------------- ------------------------------------------------------------
Orientation Whether the orientation Sample orientation is vertical and
of data of sampling achieves approximately perpendicular to the
in relation unbiased sampling of orientation of the mineralisation,
to geological possible structures and which results in true thickness estimates,
structure the extent to which this limited by the sampling interval as
is known considering applied. Drilling and sampling are
the deposit type carried out on a regular square grid.
There is no apparent bias arising from
the orientation of the drill holes
with respect to the orientation of
the deposit.
-------------------------------------- ------------------------------------------------------------
If the relationship between There is no apparent bias arising from
the drilling orientation the orientation of the drill holes
and the orientation of with respect to the orientation of
key mineralised structures the deposit.
is considered to have
introduced a sampling
bias, this should be
assessed and reported
if material.
-------------------------------------- ------------------------------------------------------------
Sample The measures taken to Samples are stored in secure storage
security ensure sample security from the time of drilling, through
gathering, compositing and analysis.
The samples are sealed as soon as site
preparation is complete.
A reputable international transport
company with shipment tracking enables
a chain of custody to be maintained
while the samples move from Malawi
to Australia. Samples are again securely
stored once they arrive and are processed
at Australian laboratories. A reputable
domestic courier company manages the
movement of samples within Perth, Australia.
At each point of the sample workflow
the samples are inspected by a company
representative to monitor sample condition.
Each laboratory confirms the integrity
of the samples upon receipt.
-------------------------------------- ------------------------------------------------------------
Audits The results of any audits Richard Stockwell (CP) has reviewed
or reviews or reviews of sampling and advised on all stages of data collection,
techniques and data sample processing, QA protocol and
mineral resource estimation. Methods
employed are considered industry best-practice.
Perth Laboratory visits have been completed
by Richard. Field and in-country lab
visits are precluded, for the time
being, by Covid 19 travel restrictions.
In these cases, audit is completed
by SOP review, site visits by an experienced
senior geologist from South Africa
and collection of photographs and video
during operations.
Sovereign Metals Managing Director
and CP for all exploration results
Julian Stephens has been onsite in
Malawi numerous times since the discovery
of the Kasiya Deposit.
-------------------------------------- ------------------------------------------------------------
SECTION 2 - REPORTING OF EXPLORATION RESULTS
Criteria Explanation Commentary
Mineral tenement & land tenure status Type, reference name/number, location The Company owns 100% of the
and ownership including agreements or following Exploration Licences (ELs)
material issues and Retention Licence (RL)
with third parties such as joint under the Mines and Minerals Act
ventures, partnerships, overriding 2019, held in the Company's
royalties, native title wholly-owned, Malawi-registered
interests, historical sites, subsidiaries: EL0372, EL0413, EL0492,
wilderness or national park and EL0528, EL0545, EL0561, EL0582 and
environment settings. RL0012
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 tenements are in good standing
the time of reporting along with any and no known impediments to
known impediments exploration or mining exist.
to obtaining a licence to operate in
the area.
-------------------------------------- --------------------------------------
Exploration done by other parties Acknowledgement and appraisal of Sovereign Metals Ltd is a first-mover
exploration by other parties. in the discovery and definition of
residual rutile and
graphite resources in Malawi. No
other parties are involved in
exploration.
-------------------------------------- --------------------------------------
Geology Deposit type, geological setting and The rutile deposit type is considered
style of mineralisation a residual placer formed by the
intense weathering of
rutile-rich basement paragneisses and
variable enrichment by elluvial
processes.
Rutile occurs in a mostly
topographically flat area west of
Malawi's capital, known as the
Lilongwe Plain, where a deep tropical
weathering profile is preserved. A
typical profile from
top to base is generally soil ("SOIL"
0-1m) ferruginous pedolith ("FERP",
1-4m), mottled zone
("MOTT", 4-7m), pallid saprolite
("PSAP", 7-9m), saprolite ("SAPL",
9-25m), saprock ("SAPR",
25-35m) and fresh rock ("FRESH"
>35m).
The low-grade graphite mineralisation
occurs as multiple bands of graphite
gneisses, hosted
within a broader Proterozoic
paragneiss package. In the Kasiya and
Nsaru 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 All intercepts relating to the Kasiya
to the understanding of the Deposit have been included in public
exploration results including releases during
a tabulation of the following each phase of exploration and in this
information for all Material drill report. Releases included all collar
holes: easting and northings and composite data
of the drill hole collar; elevation and these can be viewed on the
or RL (Reduced Level-elevation above Company website.
sea level in metres There are no further drill hole
of the drill hole collar); dip and results that are considered material
azimuth of the hole; down hole length to the understanding
and interception of the exploration results.
depth; and hole length 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 No information has been excluded.
is justified on the basis that the
information is not
Material and this exclusion does not
detract from the understanding of the
report, the Competent
Person should clearly explain why
this is the case
-------------------------------------- --------------------------------------
Data aggregation methods In reporting Exploration Results, All results reported are of a
weighting averaging techniques, length-weighted average of in-situ
maximum and/or minimum grade grades. The resource is reported
truncations (e.g. cutting of at a range of bottom cut-off grades
high-grades) and cut-off grades are in recognition that optimisation and
usually Material and should financial assessment
be stated. is outstanding.
A nominal bottom cut of 0.7% rutile
is offered, based on preliminary
assessment of resource
product value and anticipated cost of
operations.
-------------------------------------- --------------------------------------
Where aggregate intercepts No data aggregation was required.
incorporate short lengths of
high-grade results and 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 No metal equivalent values are used
reporting of metal equivalent values in this report.
should be clearly stated.
-------------------------------------- --------------------------------------
Relationship between mineralisation These relationships are particularly The mineralisation has been released
widths & intercept lengths important in the reporting of by weathering of the underlying,
Exploration Results. layered gneissic bedrock
that broadly trends NE-SW. It lies in
a laterally extensive superficial
blanket with high-grade
zones reflecting the broad bedrock
strike orientation of 045deg.
-------------------------------------- --------------------------------------
If the geometry of the mineralisation The mineralisation is laterally
with respect to the drill hole angle extensive where the entire weathering
is known, its nature profile is preserved
should be reported. 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 Downhole widths approximate true
hole lengths are reported, there widths limited to the sample
should be a clear statement intervals applied. Mineralisation
to this effect (e.g. 'down hole remains open at depth and in areas
length, true width not known'. coincident with high-rutile grade
lithologies in basement
rocks, is increasing with depth.
Graphite results are approximate true
width as defined by
the sample interval and typically
increase with depth.
-------------------------------------- --------------------------------------
Diagrams Appropriate maps and sections (with Refer to figures in this report and
scales) and tabulations of intercepts in previous releases. These are
should be included accessible on the Company's
for any significant discovery being webpage.
reported. These should include, but
not be limited to
a plan view of the drill collar
locations and appropriate sectional
views.
-------------------------------------- --------------------------------------
Balanced reporting Where comprehensive reporting of all All results are included in this
Exploration Results is not report and in previous releases.
practicable, representative These are accessible on
reporting of both low and high-grades the Company's webpage.
and/or widths should be practiced to
avoid misleading
reporting of exploration results.
-------------------------------------- --------------------------------------
Other substantive exploration data Other exploration data, if meaningful Limited lateritic duricrust has been
and material, should be reported variably developed at Kasiya, as is
including (but not customary in tropical
limited to: geological observations; highland areas subjected to seasonal
geophysical survey results; wet/dry cycles. Lithological logs
geochemical survey results; record drilling refusal
bulk samples - size and method of in 37 hand-auger holes, or just over
treatment; metallurgical test 7% of the drill database, although
results; bulk density, groundwater, many of these intervals
geotechnical and rock do not record Laterite as the primary
characteristics; potential lithology. No drilling refusal was
deleterious or contaminating recorded from push
substances. tube drilling.
Slimes (minus 45 micron) averages
49wt% in the Indicated Resource.
Separation test work conducted
at AML demonstrates the success in
applying a contemporary mineral sands
flowsheet in treating
this material and achieving excellent
rutile recovery.
Sample quality (representivity) is
established by geostatistical
analysis of comparable sample
intervals.
Rutile has been determined, by
QEMSCAN, to be the major TiO(2)
-bearing mineral at and around
several rutile prospects within
Sovereign's ground package. The
company continues to examine
areas within the large tenement
package for rutile and graphite
by-product mineralisation.
-------------------------------------- --------------------------------------
Further work The nature and scale of planned Extensional drilling is planned
further work (e.g. test for lateral at the neighbouring deposit
extensions or depth extensions (Nsaru) and to close off
or large-scale step-out drilling). high-grade
regions at Kasiya.
A total of 261 sample assay
results are pending inclusion in
the MRE from the infill,
push-tube
drilling programme (KYPT0185 -
KYPT0218). A MRE update proposed
in Q1, 2022 will include new
and outstanding results and a
material increase in Inferred
and Indicated resource is
anticipated.
Independent Competent person
audit of drilling, sample
preparation and sample
processing,
is required to support higher
confidence resources.
A migration to digital data
collection (field and
laboratory) is recommended.
Drilling results indicate
sufficient rutile grade
variability at the current drill
spacing
to warrant further drill hole
spacing (KNA) analysis. An
optimal drill spacing can then
be
decided prior to embarking on a
programme to increase resource
confidence.
The existing topographical
surface requires improvement to
meet industry best practice.
Drone
lidar survey is recommended for
subsequent resource estimates
and to support robust mining
and mine closure studies.
Assessment of resource depth,
guided by existing results over
high-grade basement lithologies
is required. Potentially, a
substantial resource increase
could be achieved without
increasing
the disturbance footprint.
Further metallurgical assessment
is recommended to characterise
rutile quality and establish
whether any chemical variability
is inherent across the deposit.
Audit assay is recommended for
high-grade rutile results.
Resource-infill drilling should
continue with closed-hole
techniques, such as coring or
reverse
circulation with samples
honouring lithological
boundaries. Hand-auger drilling
remains as
an effective means of
determining anomalism in
regional exploration programmes.
-------------------------------------- --------------------------------------
Diagrams clearly highlighting the Refer to diagrams in the body of this
areas of possible extensions, report and in previous releases.
including the main geological These are accessible
interpretations and future drilling on the Company's webpage.
areas, provided this information is
not commercially sensitive.
SECTION 3 - ESTIMATION AND REPORTING OF MINERAL RESOURCES
Criteria JORC Code explanation Commentary
Database Measures taken to ensure Data are manually entered into database
integrity that data has not been tables according to Standard Operating
corrupted by, for example, Procedures and conforming to company
transcription or keying flied names and classifications. These
errors, between its are then migrated to a MaxGeo, Datashed
initial collection and database with validation and quarantine
its use for Mineral capability. Relevant tables from the
Resource estimation database are exported to csv format
purposes. and forwarded to Placer for independent
review.
------------------------------------- -----------------------------------------------------
Data validation procedures Validation of the primary data include
used. checks for overlapping intervals, missing
survey data, missing assay data, missing
lithological data, missing and mis-matched
(to Lithology) collars.
Statistical, out-of-range, distribution,
error and missing data validation is
completed by Placer on data sets before
being compiled into a de-surveyed drill
hole file and interrogated in 3D using
D atamine Studio RM software.
All questions relating to the input
data are forwarded to the client for
review and resolution prior to resource
estimation.
-------------------------------------
Site visits Comment on any site The Competent Person (Richard Stockwell)
visits undertaken by was unable to visit the site due to
the Competent Person international travel restrictions imposed
and the outcome of those by the Australian Government. Visits
visits. were completed to Perth laboratories.
There are no issues observed that might
be considered material to the Mineral
Resource under consideration.
-------------------------------------
If no site visits have The Australian Government has restricted
been undertaken indicate any unnecessary international travel
why this is the case. due to the global Covid19 pandemic.
The restrictions have been in place
since the discovery of the Kasiya Rutile
Deposit in early 2020.
The company has endeavoured to increase
its site photography and drone footage
library to satisfy the competent person
that best practice procedures are being
employed in country.
------------------------------------- -----------------------------------------------------
Geological Confidence in (or conversely, There is a high degree of repeatability
interpretation the uncertainty of) and uniformity in the geological character
the geological interpretation of the Kasiya Deposit demonstrated by
of the mineral deposit. lithological logging of drill core and
hand-auger samples. Satellite imagery
and airborne geophysical data provided
guidance for interpreting the strike
continuity of the deposit.
Drill hole intercept logging and assay
results (hand auger and core), stratigraphic
interpretations from drill core and
geological logs of hand auger 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 No assumptions were made.
and of any assumptions
made.
------------------------------------- -----------------------------------------------------
The effect, if any, No alternative interpretations on mineral
of alternative interpretations resource estimation are offered.
on Mineral Resource
estimation.
------------------------------------- -----------------------------------------------------
The use of geology in The mineral resource is constrained
guiding and controlling by the topography, which is a lightly-undulating
Mineral Resource estimation. residual and elluvial plain. Rutile,
enriched at surface by deflation and
elluvial processes, is constrained vertically
by a wireframe that separates SOIL and
FERP horizons from the (generally less-mineralised)
MOTT and SAPL horizons. In this way,
continuity of rutile, observed in surface
drilling results, is honoured between
drill lines rather than being diluted
by averaging with underlying, lower-grade
material.
The base to mineralisation is arbitrarily
designated at 4m below the depth of
drill penetration, which is generally
where hand auger drilling becomes ineffective
at the static water table. A base to
mineralisation of 2.7m (the data set
average sample interval) below the depth
of drill penetration, was applied to
the Indicated Resource.
------------------------------------- -----------------------------------------------------
The factors affecting Rutile grade is generally concentrated
continuity both of grade in surface regolith horizons. Deposit
and geology. stratigraphy and weathering is consistent
along and across strike. Rutile grade
is oriented at 45 degrees, which mimics
the underlying basement source rocks.
Rutile varies across strike as a result
of the layering of mineralised and non-mineralised
basement rocks.
------------------------------------- -----------------------------------------------------
Dimensions The extent and variability The Kasiya mineralised footprint strikes
of the Mineral Resource NE - SW and currently occupies an area
expressed as length of about 89km(2) (excluding neighbouring
(along strike or otherwise), deposits).
plan width, and depth
below surface to the Kasiya is the subject of further extensional
upper and lower limits drilling but currently extends some
of the Mineral Resource. 20km along-strike and 9km across strike
at its widest point.
Due to drilling methodology, basement,
or the floor to the mineralisation,
has not been intersected. Average drilling
depth is about 10m, and mineralisation
remains open in many of these holes.
------------------------------------- -----------------------------------------------------
Estimation The nature and appropriateness Datamine Studio RM and Supervisor software
and modelling of the estimation technique(s) is used for the resource estimation
techniques applied and key assumptions, with key fields being interpolated into
including treatment the volume model using the Inverse Distance
of extreme grade values, weighting (power 2) method. Dynamic
domaining, interpolation Anisotropy search ellipses, informed
parameters and maximum by variography and kriging neighbourhood
distance of extrapolation analysis, were used to search for data
from data points. If during the interpolation and suitable
a computer assisted limitations on the number of samples
estimation method was and the impact of those samples, was
chosen include a description maintained.
of computer software
and parameters used. Extreme grade values were not identified
by statistical analysis, nor were they
anticipated in this style of deposit.
No top cut is applied to the resource
estimation.
Interpolation was constrained by hard
boundaries (domains) that result from
the geological interpretation.
------------------------------------- -----------------------------------------------------
The availability of This is the second mineral resource
check estimates, previous estimate reported for the Kasiya Deposit.
estimates and/or mine Comparative analysis of the two models
production records and is included in the release and in the
whether the Mineral resource report (in prep).
Resource estimate takes
appropriate account Pilot plant-scale test work has been
of such data. completed and results support the view
of the Competent Person that an economic
deposit of readily separable, high-quality
rutile is anticipated from the Kasiya
Deposit. The recovery of a coarse-flake
graphite by-product was achieved by
the test work.
------------------------------------- -----------------------------------------------------
The assumptions made A graphite by-product was modelled as
regarding recovery of recoverable Total Graphitic Carbon (TGC).
by-products.
------------------------------------- -----------------------------------------------------
Estimation of deleterious No significant deleterious elements
elements or other non-grade are identified. A selection of assay,
variables of economic magnetic separation and XRF results
significance (e.g. sulphur are modelled and are reported.
for acid mine drainage
characterisation).
------------------------------------- -----------------------------------------------------
In the case of block The average parent cell size used was
model interpolation, approximately equivalent to the average
the block size in relation drill hole spacing within the Indicated
to the average sample Resource (200m*200m). Cell size in the
spacing and the search Z-axis was established to cater for
employed. the composite sample spacing and definition
of the Topsoil domain. This resulted
in a parent cell size of 200m x 200m
x 3m for the volume model with 5 sub-cell
splits available in the X and Y axes
and 10 in the Z axis to smooth topographical
and lithological transitions. A sub-cell
interpolation was applied for the MRE.
A Topsoil horizon has been defined at
0.3m thickness throughout the Indicated
Resource area to support anticipated
ore reserve calculation and mining studies.
Topsoil is disclosed separately but
remains in the MRE in recognition of
advanced investigations by SVM on topsoil
generation.
------------------------------------- -----------------------------------------------------
Any assumptions behind No assumptions were made regarding the
modelling of selective modelling of selective mining units.
mining units. The resource is reported at an Indicated
level of confidence and is suitable
for optimisation and the calculation
of a Probable Reserve.
------------------------------------- -----------------------------------------------------
Any assumptions about No assumptions were made regarding the
correlation between correlation between variables.
variables.
------------------------------------- -----------------------------------------------------
Description of how the Interpolation was constrained by hard
geological interpretation boundaries (domains) that result from
was used to control the geological interpretation.
the resource estimates.
------------------------------------- -----------------------------------------------------
Discussion of basis Extreme grade values were not identified
for using or not using by statistical analysis, nor were they
grade cutting or capping. anticipated in this style of deposit.
No top cut is applied to the resource
estimation.
------------------------------------- -----------------------------------------------------
The process of validation, Validation of grade interpolations was
the checking process done visually In Datamine by loading
used, the comparison model and drill hole files and annotating,
of model data to drill colouring and using filtering to check
hole data, and use of for the appropriateness of interpolations.
reconciliation data
if available. Statistical distributions were prepared
for model zones from both drill holes
and the model to compare the effectiveness
of the interpolation. Distributions
of section line averages (swath plots)
for drill holes and models were also
prepared for each zone and orientation
for comparison purposes.
The resource model has effectively averaged
informing drill hole data and is considered
suitable to support the resource classifications
as applied to the estimate.
------------------------------------- -----------------------------------------------------
Moisture Whether the tonnages Tonnages are estimated on a dry basis.
are estimated on a dry No moisture content is factored.
basis or with natural
moisture, and the method
of determination of
the moisture content.
------------------------------------- -----------------------------------------------------
Cut-off The basis of the adopted The resource is reported at a range
parameters cut-off grade(s) or of bottom cut-off grades in recognition
quality parameters applied. that optimisation and financial assessment
is outstanding.
A nominal bottom cut of 0.7% rutile
is offered, based on preliminary assessment
of resource value and anticipated operational
cost.
------------------------------------- -----------------------------------------------------
Mining Assumptions made regarding Hydro-mining has been determined as
factors possible mining methods, the optimal method of mining for the
or assumptions minimum mining dimensions Kasiya Rutile deposit. The materials
and internal (or, if competence is loose, soft, fine and
applicable, external) friable with no cemented sand or dense
mining dilution. It clay layers rendering it amenable to
is always necessary hydro-mining. It is considered that
as part of the process the strip ratio would be zero or near
of determining reasonable zero.
prospects for eventual
economic extraction Dilution is considered to be minimal
to consider potential as mineralisation commonly occurs from
mining methods, but surface and mineralisation is generally
the assumptions made gradational with few sharp boundaries.
regarding mining methods
and parameters when Recovery parameters have not been factored
estimating Mineral Resources into the estimate. However, the valuable
may not always be rigorous. minerals are readily separable due to
Where this is the case, their SG differential and are expected
this should be reported to have a high recovery through the
with an explanation proposed, conventional wet concentration
of the basis of the plant.
mining assumptions made.
------------------------------------- -----------------------------------------------------
Metallurgical The basis for assumptions Sovereign have announced three sets
factors or predictions regarding of metallurgical results to the market
or assumptions metallurgical amenability. (24 June 2019 and 9 September 2020,
It is always necessary 7(th) December 2021), relating to the
as part of the process company's ability to produce a high-grade
of determining reasonable rutile product with a high recovery
prospects for eventual via simple conventional processing methods.
economic extraction Sovereign engaged Allied Mineral Laboratories
to consider potential Perth (AML) to conduct the metallurgical
metallurgical methods, test work and develop a flowsheet for
but the assumptions plant design considerations.
regarding metallurgical
treatment processes An initial sighter metallurgical test-work
and parameters made program was undertaken in June 2019
when reporting Mineral on a 180kg sample of saprolite-hosted
Resources may not always rutile from an area representative of
be rigorous. Where this the style of mineralisation at the Wofiira
is the case, this should prospect. This test work focused on
be reported with an generating saleable product specifications
explanation of the basis and demonstrated that a high-quality
of the metallurgical commercial Rutile product can be produced
assumptions made. using conventional mineral sands processing
methods. The recovered, in-situ rutile
grade was 1.16% produced in a +38um
to -250um size fraction with a produced
rutile product grade of 96.0% TiO(2)
.
A follow-up test work program was then
commissioned on a mineralised sample
of approximately 1,000kg composited
from a number of drill holes across
the Kasiya deposit. The sample had a
head grade of 0.96% recoverable rutile.
The test-work focussed on producing
a rutile product.
The test work was based on the flowsheet
previously developed with AML with minor
improvements. The work showed a premium
quality rutile product of 96.3% TiO(2)
with low impurities could again be produced
with favourable product sizing at d50
of 145um. Recoveries were about 98%.
A scoping study test work program was
then undertaken on a 1,600kg mineralised
sample to confirm and improve on the
previous bulk metallurgy program completed
in late 2020. Results again confirmed
premium grade rutile can be produced
via a simple and conventional process
flow sheet and are consistent with previous
results. World-class product chemical
specifications are reported at 95.0%
to 97.2% TiO2 with low impurities and
stand-out metallurgical recoveries ranging
from 94% to 100%.
The product characteristics are considered
by the Competent Person (industrial
minerals) to be favourable for product
marketability.
The Competent Person recommends additional
variability testing to investigate different
geological and weathering domains and
to improve confidence in product quality
across the deposit. This work is anticipated
as the project moves forward into higher-confidence
resource classifications to identify
discrete mineral populations, where
they exist, and assist in accurate mining
and product assumptions during optimisations
and feasibility study.
------------------------------------- -----------------------------------------------------
Environmental Assumptions made regarding A large portion of the Mineral Resource
factors possible waste and process is confined to the SOIL, FERP and MOTT
or assumptions residue disposal options. weathering domains, and any sulphide
It is always necessary minerals have been oxidised in the geological
as part of the process past. Therefore, acid mine-drainage
of determining reasonable is not anticipated to be a significant
prospects for eventual risk when mining from the oxidised domain.
economic extraction
to consider the potential No major water courses run through the
environmental impacts resource area.
of the mining and processing
operation. While at The Kasiya deposit is located within
this stage the determination a farming area and has villages located
of potential environmental along the strike of the deposit. Sovereign
impacts, particularly holds regular discussions with local
for a greenfields project, landholders and community groups to
may not always be well keep them well informed of the status
advanced, the status and future planned directions of the
of early consideration project. Sovereign has benefited from
of these potential environmental maintaining good relations with landowners
impacts should be reported. and enjoys strong support from the community
Where these aspects at large.
have not been considered
this should be reported Kasiya is in a sub-equatorial region
with an explanation of Malawi and is subject to heavy seasonal
of the environmental rainfall, with rapid growth of vegetation
assumptions made. in season. Substantial vegetation or
nature reserve is absent in the area.
------------------------------------- -----------------------------------------------------
Bulk density Whether assumed or determined. Density was calculated from 310 full
If assumed, the basis core samples taken from geographically
for the assumptions. and lithologically-diverse sites across
If determined, the method the deposit. Density measured using
used, whether wet or wet-bulk and dry-bulk density immersion
dry, the frequency of method performed by Sovereign in Malawi
the measurements, the and calculations verified by Placer
nature, size and representativeness Consulting.
of the samples.
Density data was loaded into an Excel
file, which was flagged against weathering
horizons and mineralisation domains.
------------------------------------- -----------------------------------------------------
The bulk density for All bulk density determinations were
bulk material must have completed by the wet-bulk and dry-bulk
been measured by methods density, water-immersion method.
that adequately account
for void spaces (vughs,
porosity, etc.), moisture
and differences between
rock and alteration
zones within the deposit.
------------------------------------- -----------------------------------------------------
Discuss assumptions An average density of 1.65 t/m(3) was
for bulk density estimates determined for the total weathering
used in the evaluation profile.
process of the different
materials. This incorporates and average density
of 1.39 t/m(3) for the soil (SOIL) domain,
1.60 t/m(3) for the ferruginous pedolith
(FERP) domain, 1.65 t/m(3) for the mottled
(MOTT) domain, 1.68 t/m(3) for the pallid
saprolite (PSAP) domain, 1.63 t/m(3)
for the saprolite (SAPL) domain, and
1.93 t/m(3) for the laterite (LAT) domain.
Density data are interpolated into the
resource estimate by the nearest neighbour
method.
------------------------------------- -----------------------------------------------------
Classification The basis for the classification Classification of the MRE is at an Indicated
of the Mineral Resources and Inferred category. An area equivalent
into varying confidence to, and surrounding, the Inferred Resource
categories. exists in an unclassified status on
account of lower data density.
------------------------------------- -----------------------------------------------------
Whether appropriate All available data were assessed and
account has been taken the competent person's relative confidence
of all relevant factors in the data was used to assist in the
(i.e. relative confidence classification of the Mineral Resource.
in tonnage/grade estimations,
reliability of input
data, confidence in
continuity of geology
and metal values, quality,
quantity and distribution
of the data).
------------------------------------- -----------------------------------------------------
Whether the result appropriately Results appropriately reflects a reasonable
reflects the Competent and conservative view of the deposit.
Person's view of the
deposit
------------------------------------- -----------------------------------------------------
Audits The results of any audits The Competent Person, Richard Stockwell
or reviews or reviews of Mineral undertook an audit of the resource estimate,
Resource estimates. and found it to be suitable for classification
at an Indicated and Inferred category.
------------------------------------- -----------------------------------------------------
Discussion Where appropriate a The mineral resource and classification
of relative statement of the relative remain conservative. Substantial additional
accuracy/ accuracy and confidence resource material is expected to occur
confidence level in the Mineral below the effective depth of drilling
Resource estimate using (water table). High grade sample results
an approach or procedure are constrained tightly by search and
deemed appropriate by estimation parameters, which are likely
the Competent Person. to be contiguous upon application of
For example, the application closer-spaced drilling.
of statistical or geostatistical
procedures to quantify A high-degree of uniformity exists in
the relative accuracy the broad and contiguous lithological
of the resource within and grade character of the deposit.
stated confidence limits, Open-hole drilling and infill core drilling
or, if such an approach technique has been expertly applied
is not deemed appropriate, and data collection procedures, density
a qualitative discussion assessments, QA protocols and interpretations
of the factors that conform to industry best practice with
could affect the relative few exceptions.
accuracy and confidence
of the estimate. 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 The estimate is global.
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.
------------------------------------- -----------------------------------------------------
These statements of No production data are available to
relative accuracy and reconcile model results.
confidence of the estimate
should be compared with
production data, where
available.
------------------------------------- -----------------------------------------------------
Glossary
Abbreviation Description
degC Degrees Celsius
---------------------------------------------------------------
um Micrometre or Micron
---------------------------------------------------------------
AACE American Association of Cost Engineering
---------------------------------------------------------------
AC Air-core
---------------------------------------------------------------
ALS ALS Metallurgical Laboratory
---------------------------------------------------------------
amsl Above Mean Sea Level
---------------------------------------------------------------
ARD Acid Rock Drainage
---------------------------------------------------------------
AS Australian Standard
---------------------------------------------------------------
ASNZS Australian and New Zealand Standard
---------------------------------------------------------------
ASX Australian Stock Exchange
---------------------------------------------------------------
AUD Australian Dollar
---------------------------------------------------------------
ave Average
---------------------------------------------------------------
BCM Bulk Cubic Meter
---------------------------------------------------------------
BOO Build Own Operate
---------------------------------------------------------------
Capex Capital Expenditure
---------------------------------------------------------------
CFR Cost and Freight
---------------------------------------------------------------
CEAR Central East African Railways
---------------------------------------------------------------
cm Centimetre
---------------------------------------------------------------
CPR Competent Persons Report
---------------------------------------------------------------
CRM Certified Reference Material
---------------------------------------------------------------
CSR Corporate Social Responsibility
---------------------------------------------------------------
d Day
---------------------------------------------------------------
D Discharge
---------------------------------------------------------------
d/y Days Per Year
---------------------------------------------------------------
DAP Delivered at Place
---------------------------------------------------------------
dB Decibel
---------------------------------------------------------------
DD Diamond-core Drilling
---------------------------------------------------------------
DFS Definitive Feasibility Study
---------------------------------------------------------------
DL Detection Limit
---------------------------------------------------------------
dmt Dry Metric Tonne
---------------------------------------------------------------
DRA DRA Pacific
---------------------------------------------------------------
EAD Environmental Affairs Department (of Malawi)
---------------------------------------------------------------
EAP Employee Assistance Program
---------------------------------------------------------------
EBITDA Earnings Before Interest, Taxes, Depreciation And Amortisation
---------------------------------------------------------------
EHS Environment, Health, And Safety
---------------------------------------------------------------
EIA Environmental Impact Assessment
---------------------------------------------------------------
EL Exploration Licence
---------------------------------------------------------------
EMP Environmental Management Plan
---------------------------------------------------------------
EPC Engineering, Procurement, Construction
---------------------------------------------------------------
EPCM Engineering, Procurement & Construction Management
---------------------------------------------------------------
ERP Emergency Response Plan
---------------------------------------------------------------
ESIA Environmental And Social Impact Assessment
---------------------------------------------------------------
ESR Environmental Scoping Report
---------------------------------------------------------------
FEED Front End Engineering And Design
---------------------------------------------------------------
FEL Front End Loader
---------------------------------------------------------------
FOB Free on Board
---------------------------------------------------------------
FS Feasibility Study
---------------------------------------------------------------
G&A General & Administration
---------------------------------------------------------------
GEL Generally Expected Levels
---------------------------------------------------------------
GHG Greenhouse Gas(es)
---------------------------------------------------------------
GISTM Global Industry Standards on Tailings Management
---------------------------------------------------------------
h Hour
---------------------------------------------------------------
h/d Hours Per Day
---------------------------------------------------------------
h/y Hours Per Year
---------------------------------------------------------------
HA Hand-auger
---------------------------------------------------------------
ha Hectare
---------------------------------------------------------------
HR Human Resources
---------------------------------------------------------------
HRMP Human Resources Management Plan
---------------------------------------------------------------
HSE Health, Safety and Environment
---------------------------------------------------------------
HSEMS Health Safety and Environmental Management System
---------------------------------------------------------------
HSMP Health and Safety Management Plan
---------------------------------------------------------------
HV High Voltage
---------------------------------------------------------------
IBC Intermediate Bulk Container
---------------------------------------------------------------
ICP-MS Inductively Coupled Plasma Mass Spectrometer
---------------------------------------------------------------
ICP-OES Inductively Coupled Plasma Optical Emission Spectrometry
---------------------------------------------------------------
ID Internal Diameter
---------------------------------------------------------------
IDW Inverse-Distance Weighted Algorithm
---------------------------------------------------------------
IFC International Finance Corporation
---------------------------------------------------------------
IRR Internal Rate of Return
---------------------------------------------------------------
IT Information Technology
---------------------------------------------------------------
IUCN International Union for Conservation of Nature
---------------------------------------------------------------
IVI Important Value Index
---------------------------------------------------------------
J Joule (Energy)
---------------------------------------------------------------
JECFA Joint FAO/WHO Expert Committee on Food Additive
---------------------------------------------------------------
JHA Job Hazard Analysis
---------------------------------------------------------------
JORC Australasian Joint Ore Reserves Committee
---------------------------------------------------------------
k Kilo or Thousand
---------------------------------------------------------------
kg Kilogram
---------------------------------------------------------------
km Kilometre
---------------------------------------------------------------
KPI Key Performance Indicator
---------------------------------------------------------------
KRW Korean Won
---------------------------------------------------------------
kt Kilo Tonne (Thousand Metric Tonne)
---------------------------------------------------------------
kW Kilowatt (Power)
---------------------------------------------------------------
kWh Kilowatt Hour
---------------------------------------------------------------
L Litre
---------------------------------------------------------------
LCT Locked Cycle Testwork
---------------------------------------------------------------
LME London Metals Exchange
---------------------------------------------------------------
LoM Life of Mine
---------------------------------------------------------------
LSE London Stock Exchange
---------------------------------------------------------------
LTI Lost Time Injury
---------------------------------------------------------------
LV Low Voltage
---------------------------------------------------------------
m Metre
---------------------------------------------------------------
M Million
---------------------------------------------------------------
m2 Square Metre
---------------------------------------------------------------
m3 Cubic Metre
---------------------------------------------------------------
Ma Mega annum (million years)
---------------------------------------------------------------
MCC Motor Control Centre
---------------------------------------------------------------
MG Mine Gate
---------------------------------------------------------------
ML Metal Leaching
---------------------------------------------------------------
mm Millimetre
---------------------------------------------------------------
MNREM Ministry of Natural Resources, Energy and Mining
---------------------------------------------------------------
MPA Maximum Potential Acidity
---------------------------------------------------------------
MPN Most Probably Number (Count of Coliforms and E. coli)
---------------------------------------------------------------
MRA Malawi Revenue Authority
---------------------------------------------------------------
MRE Mineral Resource Estimate
---------------------------------------------------------------
mRL Metre Reduced Level
---------------------------------------------------------------
MRMR Mining Rock Mass Rating
---------------------------------------------------------------
Msal Meters Above Sea Level
---------------------------------------------------------------
MSDS Material Safety Data Sheet
---------------------------------------------------------------
Mt Million Tonnes (Metric)
---------------------------------------------------------------
Mt/y Million Tonnes Per Year
---------------------------------------------------------------
MTI Medical Treatment Injury
---------------------------------------------------------------
MTO Material Take-Off
---------------------------------------------------------------
MW Megawatt
---------------------------------------------------------------
N/A Not Applicable
---------------------------------------------------------------
NA Not Available
---------------------------------------------------------------
NAF Non-Acid Forming
---------------------------------------------------------------
NAG Net Acid Generation
---------------------------------------------------------------
NAPP Net Acid Producing Potential
---------------------------------------------------------------
ND Not Detected
---------------------------------------------------------------
NOH&SC National Occupational Health and Safety Commission (Australia)
---------------------------------------------------------------
NPI Non Process Infrastructure
---------------------------------------------------------------
NPV Net Present Value
---------------------------------------------------------------
NR Not Regulated
---------------------------------------------------------------
NT Near Threatened
---------------------------------------------------------------
NTU Normalised Turbidity Unit
---------------------------------------------------------------
OHS&E Occupational Health, Safety & Environment
---------------------------------------------------------------
PEA Preliminary Economic Assessment
---------------------------------------------------------------
PFD Process Flow Diagram
---------------------------------------------------------------
PFS Pre-Feasibility Study
---------------------------------------------------------------
PPE Personal Protective Equipment
---------------------------------------------------------------
PS Performance Standard
---------------------------------------------------------------
PSU Practical Salinity Unit
---------------------------------------------------------------
PWTP Potable Water Treatment Plant
---------------------------------------------------------------
QA/QC Quality Assurance And Quality Control
---------------------------------------------------------------
RAP Resettlement Action Plan
---------------------------------------------------------------
ROM Run-Of-Mine
---------------------------------------------------------------
RRT Resource Rent Tax
---------------------------------------------------------------
s Second
---------------------------------------------------------------
SG Specific Gravity
---------------------------------------------------------------
SGS SGS Metallurgical Laboratory
---------------------------------------------------------------
SO2 Sulphur Dioxide
---------------------------------------------------------------
SOP Standard Operating Procedure
---------------------------------------------------------------
ST Total Sulphur
---------------------------------------------------------------
SVM Sovereign Metals Limited
---------------------------------------------------------------
t Tonne (Metric)
---------------------------------------------------------------
t/h Tonnes Per Hour
---------------------------------------------------------------
t/m3 Tonnes Per Cubic Metre
---------------------------------------------------------------
t/y Tonnes Per Year
---------------------------------------------------------------
ta Comminution Test Parameter
---------------------------------------------------------------
TARP Trigger, Action, Responsibility, Procedure
---------------------------------------------------------------
TBC To Be Confirmed
---------------------------------------------------------------
TC Total Carbon
---------------------------------------------------------------
TC Treatment Charge
---------------------------------------------------------------
TDS Total Dissolved Solids
---------------------------------------------------------------
TGC Total Graphitic Carbon
---------------------------------------------------------------
TSF Tailings Storage Facility
---------------------------------------------------------------
TSP Total Suspended Particulates
---------------------------------------------------------------
TSS Total Suspended Solids
---------------------------------------------------------------
UFD Utility Flow Diagram
---------------------------------------------------------------
UOM Unit of Measure
---------------------------------------------------------------
URTI Upper Respiratory Tract Infection
---------------------------------------------------------------
US EPA The United States Environmental Protection Agency
---------------------------------------------------------------
US$ United States Dollar
---------------------------------------------------------------
USD United States Dollar
---------------------------------------------------------------
UTM Universal Transverse Mercator
---------------------------------------------------------------
V Volt
---------------------------------------------------------------
VAT Value Added Tax
---------------------------------------------------------------
VSD Variable Speed Drive
---------------------------------------------------------------
VTEM Versatile Time Domain Electromagnetic
---------------------------------------------------------------
VU Vulnerable
---------------------------------------------------------------
w/v Weight/Volume
---------------------------------------------------------------
w/w Weight/Weight
---------------------------------------------------------------
WBG World Bank Group
---------------------------------------------------------------
WBS Work Breakdown Schedule
---------------------------------------------------------------
WHO World Health Organization
---------------------------------------------------------------
XRD X-Ray Diffraction
---------------------------------------------------------------
XRF X-Ray Fluorescence
---------------------------------------------------------------
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