TIDMSVML
RNS Number : 7394Y
Sovereign Metals Limited
08 September 2022
SOVEREIGN METALS LIMITED
NEWS RELEASE | 8 September 2022
KASIYA AIR-CORE DRILLING INDENTIFIES HIGH-GRADE MINERALISATION
AT DEPTH
-- First drilling results from the Company's deeper air-core (AC)
program
confirm rutile mineralisation extends at depth beneath previous
drilling in most of the targeted areas
-- Results demonstrate the growth potential of Kasiya at depth and
confirm that extensive rutile mineralisation remains outside of
the current Mineral Resource Estimate (MRE) and pit shells
-- Core areas of the previously designed pit shells averaged about
15m depth with new drilling commonly extending mineralisation to
between 20m and 30m depth
-- The new deeper and thicker rutile intercepts highlight the
potential
to increase the mineral resource at depth
-- Highlights include:
* 28m @ 1.05% inc. 5m @ 1.78% rutile * 22m @ 1.15% inc. 8m @ 1.51% rutile
* 25m @ 1.06% inc. 13m @ 1.15% rutile * 20m @ 1.29% inc. 6m @ 1.27% rutile
* 20m @ 1.26% inc. 16m @ 1.37% rutile * 26m @ 1.18% inc. 6m @ 1.66% rutile
-- Identification of high-grade mineralisation at depth is expected
to contribute to the MRE update targeted for Q1 2023
-- Kasiya's Pre-Feasibility Study (PFS) and Environmental and Social
baseline workstreams are advancing with all major project and
consultant
teams appointed with a scheduled completion date in Q2 2023
Sovereign Metals Limited (ASX:SVM; AIM:SVML) (Sovereign or the
Company) is pleased to report first results from its H1 2022 AC
drilling program at the Kasiya Rutile Project (Kasiya), the world's
largest rutile deposit in Malawi.
The results confirm that rutile mineralisation is continuous in
many pit areas from surface down to the top of saprock, normally
between 20m and 30m from surface. Results reveal the potential for
mining pits to be extended at depth to the top of saprock in
numerous areas.
Sovereign's Managing Director Dr Julian Stephens commented :
"The early results from this deeper drilling re-asserts the truly
remarkable Tier 1 nature of Kasiya in terms of size, grade and
mineralisation consistency. We have now answered the question on
the potential to deliver additional tonnes for the mineral resource
at depth. Kasiya continues to grow and will likely become a multi
generational project capable of supplying a reliable and
sustainable source of high-purity titanium as natural rutile."
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
Joint Brokers
Berenberg +44 20 3207 7800
Matthew Armitt
Jennifer Lee
Optiva Securities +44 20 3137 1902
Daniel Ingram
Mariela Jaho
Christian Dennis
To view the announcement in full, including all illustrations
and figures, please refer to the announcement at
http://sovereignmetals.com.au/announcements/.
KASIYA AIR CORE DRILLING
The 191-hole air-core drilling program at the Kasiya rutile
deposit was completed in two phases from May to August 2022 by
Thompson Drilling. The program was divided into an initial 32-hole
sighter phase with results reported herein, and a second more
expansive and targeted 159-hole phase. The drilling was completed
on a nominal 200m x 200m grid spacing targeting upgrading of
mineralisation into the Indicated category which could convert to
Probable Reserves as part of the forthcoming PFS. A total of 32
drill-holes for 814m are reported (Figure 1) with results from the
remaining 159 holes for 3,846m pending.
The initial sighter AC drilling program focused on mineralised
corridors where high-grade rutile mineralisation was hypothesised
to persist at depth, below the limit of the previous drilling.
Results show that the mineralisation is pervasive throughout the
saprolite zones with many holes showing mineralisation with 20-30m
thickness from surface. Further MRE depth extensions are likely
where the AC holes have extended known mineralisation beyond the
base of the current MRE bound.
Second phase targeted drilling on the planned pit areas
considered in the ESS has also been completed with the expectation
that these pit designs may be modified if additional rutile
mineralisation is encountered at depth.
Coarse flake graphite is present in all AC holes in association
with rutile mineralisation. Graphite grades appear to improve with
depth averaging +2% TGC in numerous holes.
PRE-FEASIBILITY STUDY PROGRESS
There are numerous technical work packages in progress for the
Kasiya PFS including;
-- Further drilling to refine and extend the MRE and then the final PFS mining inventory
-- Preliminary hydrogeological pilot and test boreholes
-- Continued metallurgical test-work focused on the planned first 10 years of mining
-- Site visits throughout September by the principal PFS consultants
-- Updated JORC resource estimate planned for Q1 2023
-- Ongoing product marketing with further offtake MOUs expected to be executed
PERFORMANCE RIGHTS PLAN
The Company will seek shareholder approval to amend the terms of
all existing performance rights currently on issue to amend the
performance conditions as detailed in the table below ( Amendment
).
The Amendment is being sought to ensure that management are not
disadvantaged by the impacts of COVID and the Company's decision to
complete the Expanded Scoping Study ( ESS ) which was underpinned
by the substantial MRE update as announced in April 2022. The
decision to complete the ESS has further enhanced the Kasiya
economics but delayed the commencement of the PFS and subsequent
Definitive Feasibility Study ( DFS ).
The Company does not envisage that it will require the full life
of each tranche of performance rights to satisfy the relevant
performance conditions, but the Amendment provides the Company with
maximum flexibility to ensure the highest quality PFS and DFS can
be completed whilst also allowing time to consider any funding
opportunities or other corporate transactions that may present
themselves as the Company approaches the completion of a PFS and
DFS. The Company expects to complete the PFS in the June 2023
quarter.
The Board believes that the Amendment is required to ensure that
the performance rights currently on issue continue to incentivise
and retain existing key management personnel and to ensure
continuing alignment between the strategic goals of the Company and
the creation of shareholder value.
The Company will seek shareholder approval in November at its
2022 Annual General Meeting to make the Amendment as follows:
TRANCHE ORIGINAL ORIGINAL EXPIRY AMED PERFORMANCE AMED EXPIRY DATE No. of Performance
PERFORMANCE DATE CONDITIONS Rights
CONDITIONS
Pre-Feasibility
Feasibility Study Study Milestone
Milestone means means announcement
announcement of a of a positive
positive Pre-Feasibility
Feasibility Study Study for
for the Malawi the Malawi Rutile
Rutile Project in Project in
accordance with accordance with
the provisions of the provisions of
the JORC Code. the JORC Code.
Feasibility Study Pre-Feasibility
has the meaning Study has the
given in the JORC meaning given in
2 Code. 31 December 2023 the JORC Code. 30 September 2023 5,120,000
-------------------- -------------------- -------------------- -------------------- -------------------
3 Decision to Mine 31 October 2025 Feasibility Study 31 October 2025 7,320,000
Milestone means Milestone means
announcement of a announcement of a
Decision to Mine positive
for the Malawi Feasibility (DFS)
Rutile Study for
Project. the Malawi Rutile
Decision to Mine Project in
means a decision accordance with
to commence mining the provisions of
operations. the JORC Code.
Feasibility Study
has the meaning
given in the JORC
Code.
-------------------- -------------------- -------------------- -------------------- -------------------
Further, and subject to shareholder approval following his
appointment as Chairman, the Company will also issue an additional
240,000 tranche 2 (PFS) performance rights and 120,000 tranche 3
(DFS) performance rights to director, Mr Ben Stoikovich.
Following the change in focus from exploration to development
activities and the associated requirement for additional human
resources, the Company will also issue, subject to shareholder
approval of the Amendment, 1,140,000 tranche 2 (PFS) performance
rights and 1,520,000 tranche 3 (DFS) performance rights to existing
and incoming staff.
Competent Persons Statement
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 and
unlisted performance rights in Sovereign Metals Limited. 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 the Mineral
Resource Estimate is extracted from the announcement dated 5 April
2022. 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.
Table 1: Kasiya Mineral Resource Estimate at 0.7% Rutile Cut-off
Mineral Resource Category Material Tonnes (millions) Rutile Rutile Tonnes (millions) Total Contained Graphite (TGC) TGC Tonnes (millions) RutEq.
Grade*
(%) (%) (%)
Indicated 662 1.05% 6.9 1.43% 9.5 1.76%
============================ ============================ ======== ========================== ================================ ======================= ========
Inferred 1,113 0.99% 11.0 1.26% 14.0 1.61%
============================ ============================ ======== ========================== ================================ ======================= ========
Total 1,775 1.01% 18.0 1.32% 23.4 1.67%
============================ ============================ ======== ========================== ================================ ======================= ========
* RutEq. Formula: Rutile Grade x Recovery (98%) x Rutile Price
(US$1,308/t) + Graphite Grade x Recovery (62%) x Graphite Price
(US$1,085/t) / Rutile Price (US$1,308/t). All assumptions are taken
from this Study ** Any minor summation inconsistencies are due to
rounding
Qualified Person
Data disclosed in this press release have been reviewed and
verified by Sovereign's Qualified Person, Dr Julian Stephens (B.Sc
(Hons), PhD, MAIG), Managing Director, 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.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK domestic law by virtue of the European Union (Withdrawal) Act
2018 ('MAR'). Upon the publication of this announcement via
Regulatory Information Service ('RIS'), this inside information is
now considered to be in the public domain.
Appendix I - DRILL RESULTS
Rutile and graphite drilling results from Kasiya are shown below
in Table 2.
Hole ID Interval Rutile % TGC % From (m) Hole Type
Thickness Downhole
KYAC0001 19.0 0.88 1.8 0.0 AC
----------- --------- ------ ---------- ----------
incl 6.0 1.23 1.5 0.0
----------- --------- ------ ---------- ----------
KYAC0002 16.0 0.84 1.3 0.0 AC
----------- --------- ------ ---------- ----------
incl 5.0 1.12 0.7 0.0
----------- --------- ------ ---------- ----------
KYAC0003 11.0 0.84 0.8 1.0 AC
----------- --------- ------ ---------- ----------
incl 3.0 1.27 0.3 1.0
----------- --------- ------ ---------- ----------
KYAC0004 16.0 1.05 1.9 2.0 AC
----------- --------- ------ ---------- ----------
incl 13.0 1.10 1.8 2.0
----------- --------- ------ ---------- ----------
KYAC0005 22.0 1.06 1.5 1.0 AC
----------- --------- ------ ---------- ----------
incl 15.0 1.16 1.4 1.0
----------- --------- ------ ---------- ----------
KYAC0006 28.0 1.05 2.0 2.0 AC
----------- --------- ------ ---------- ----------
incl 5.0 1.78 2.4 10.0
----------- --------- ------ ---------- ----------
KYAC0007 5.0 1.15 0.2 1.0 AC
----------- --------- ------ ---------- ----------
incl 3.0 1.36 0.1 1.0
----------- --------- ------ ---------- ----------
KYAC0008 19.0 0.95 1.5 1.0 AC
----------- --------- ------ ---------- ----------
incl 3.0 1.24 0.2 1.0
----------- --------- ------ ---------- ----------
KYAC0009 NSR AC
----------- --------- ------ ---------- ----------
KYAC0010 24.0 1.03 1.9 0.0 AC
----------- --------- ------ ---------- ----------
incl 5.0 1.87 0.3 0.0
----------- --------- ------ ---------- ----------
KYAC0011 20.0 1.17 2.1 0.0 AC
----------- --------- ------ ---------- ----------
incl 11.0 1.21 1.7 0.0
----------- --------- ------ ---------- ----------
KYAC0012 20.0 0.70 1.2 1.0 AC
----------- --------- ------ ---------- ----------
KYAC0013 20.0 1.03 1.5 1.0 AC
----------- --------- ------ ---------- ----------
incl 6.0 1.46 1.1 1.0
----------- --------- ------ ---------- ----------
KYAC0014 7.0 1.64 1.0 0.0 AC
----------- --------- ------ ---------- ----------
KYAC0015 19.0 0.97 1.7 1.0 AC
----------- --------- ------ ---------- ----------
incl 10.0 1.12 1.9 3.0
----------- --------- ------ ---------- ----------
KYAC0016 7.0 1.16 0.5 0.0 AC
----------- --------- ------ ---------- ----------
KYAC0017 20.0 0.97 1.5 0.0 AC
----------- --------- ------ ---------- ----------
incl 4.0 1.53 0.4 0.0
----------- --------- ------ ---------- ----------
KYAC0018 25.0 1.06 2.5 0.0 AC
----------- --------- ------ ---------- ----------
incl 13.0 1.15 2.5 0.0
----------- --------- ------ ---------- ----------
KYAC0019 20.0 0.98 1.6 0.0 AC
----------- --------- ------ ---------- ----------
incl 3.0 1.67 0.3 0.0
----------- --------- ------ ---------- ----------
KYAC0020 14.0 0.95 2.1 0.0 AC
----------- --------- ------ ---------- ----------
incl 3.0 1.51 0.0 0.0
----------- --------- ------ ---------- ----------
KYAC0021 14.0 0.99 2.2 0.0 Twin AC
----------- --------- ------ ---------- ----------
incl 3.0 1.37 0.0 0.0
----------- --------- ------ ---------- ----------
KYAC0022 20.0 1.26 2.4 0.0 AC
----------- --------- ------ ---------- ----------
incl 16.0 1.37 2.4 0.0
----------- --------- ------ ---------- ----------
KYAC0023 23.0 0.86 2.2 0.0 AC
----------- --------- ------ ---------- ----------
incl 7.0 1.08 2.9 7.0
----------- --------- ------ ---------- ----------
KYAC0024 17.0 1.06 1.7 0.0 AC
----------- --------- ------ ---------- ----------
incl 4.0 1.56 0.6 0.0
----------- --------- ------ ---------- ----------
KYAC0025 23.0 1.08 2.4 0.0 AC
----------- --------- ------ ---------- ----------
incl 10.0 1.50 1.9 0.0
----------- --------- ------ ---------- ----------
KYAC0026 22.0 1.15 3.5 0.0 AC
----------- --------- ------ ---------- ----------
incl 8.0 1.51 2.3 0.0
----------- --------- ------ ---------- ----------
KYAC0027 30.0 0.95 2.7 0.0 AC
----------- --------- ------ ---------- ----------
incl 3.0 2.19 0.2 0.0
----------- --------- ------ ---------- ----------
KYAC0028 23.0 0.85 1.6 0.0 AC
----------- --------- ------ ---------- ----------
incl 2.0 2.06 0.3 0.0
----------- --------- ------ ---------- ----------
KYAC0029 16.0 0.86 1.1 0.0 AC
----------- --------- ------ ---------- ----------
incl 4.0 1.45 0.1 0.0
----------- --------- ------ ---------- ----------
KYAC0030 20.0 1.29 1.6 0.0 AC
----------- --------- ------ ---------- ----------
incl 6.0 1.70 0.5 0.0
----------- --------- ------ ---------- ----------
KYAC0031 26.0 1.18 2.1 0.0 AC
----------- --------- ------ ---------- ----------
incl 6.0 1.66 0.4 0.0
----------- --------- ------ ---------- ----------
KYAC0032 27.0 1.06 1.5 0.0 AC
----------- --------- ------ ---------- ----------
incl 6.0 1.48 0.5 0.0
----------- --------- ------ ---------- ----------
APPIX II: DRILL HOLE COLLAR DATA - TABLE 3
Hole ID Easting Northing RL Depth Hole ID Easting Northing RL Depth
KYAC0001 542200 8480400 1117 23.0 KYAC0017 544200 8471800 1126 20.0
-------- --------- ----- ------ --------- -------- --------- ----- ------
KYAC0002 542399 8480401 1123 18.0 KYAC0018 544400 8471800 1128 27.0
-------- --------- ----- ------ --------- -------- --------- ----- ------
KYAC0003 542601 8480400 1126 25.0 KYAC0019 544600 8471800 1130 23.0
-------- --------- ----- ------ --------- -------- --------- ----- ------
KYAC0004 542800 8480402 1129 21.0 KYAC0020 544800 8471800 1132 27.0
-------- --------- ----- ------ --------- -------- --------- ----- ------
KYAC0005 543001 8480400 1132 26.0 KYAC0021 544801 8471800 1132 27.0
-------- --------- ----- ------ --------- -------- --------- ----- ------
KYAC0006 548200 8478600 1144 32.0 KYAC0022 543599 8468204 1129 22.0
-------- --------- ----- ------ --------- -------- --------- ----- ------
KYAC0007 548399 8478603 1143 33.0 KYAC0023 543800 8468200 1136 25.0
-------- --------- ----- ------ --------- -------- --------- ----- ------
KYAC0008 548600 8478600 1140 24.0 KYAC0024 544000 8468197 1139 36.0
-------- --------- ----- ------ --------- -------- --------- ----- ------
KYAC0009 548800 8478600 1137 18.0 KYAC0025 544200 8468200 1142 25.0
-------- --------- ----- ------ --------- -------- --------- ----- ------
KYAC0010 549000 8478600 1134 26.0 KYAC0026 544401 8468200 1142 24.0
-------- --------- ----- ------ --------- -------- --------- ----- ------
KYAC0011 549180 8478600 1130 21.0 KYAC0027 544600 8468200 1140 33.0
-------- --------- ----- ------ --------- -------- --------- ----- ------
KYAC0012 549400 8478600 1125 23.0 KYAC0028 544798 8468201 1136 27.0
-------- --------- ----- ------ --------- -------- --------- ----- ------
KYAC0013 543400 8471800 1121 23.0 KYAC0029 544998 8465399 1162 30.0
-------- --------- ----- ------ --------- -------- --------- ----- ------
KYAC0014 543600 8471800 1123 21.0 KYAC0030 545196 8465401 1164 21.0
-------- --------- ----- ------ --------- -------- --------- ----- ------
KYAC0015 543800 8471800 1124 21.0 KYAC0031 545399 8465398 1166 27.0
-------- --------- ----- ------ --------- -------- --------- ----- ------
KYAC0016 544000 8471800 1125 29.0 KYAC0032 545600 8465400 1167 36.0
-------- --------- ----- ------ --------- -------- --------- ----- ------
Appendix III: JORC Code, 2012 Edition - Table 1
SECTION 1 - SAMPLING TECHNIQUES AND DATA
Criteria JORC Code explanation Commentary
Sampling Nature and quality of Air-Core 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 2m intervals.
the minerals under investigation, This primary sample is then split again
such as down hole gamma to provide a 1.5kg sample for both
sondes, or handheld XRF rutile and graphite analyses.
instruments, etc). These
examples should not be
taken as limiting the
broad meaning of sampling.
------------------------------------- -------------------------------------------------------------
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. 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 32 Air-Core holes for 814m
Techniques reverse circulation, are reported here from drilling at
open -- hole hammer, the Kasiya Rutile Deposit to obtain
rotary air blast, auger, samples for quantitative determination
Bangka, sonic, etc) and of recoverable rutile and Total Graphitic
details (e.g. core diameter, Carbon (TGC).
triple or standard tube,
depth of diamond tails, Placer has reviewed SOPs for Air-Core
face -- sampling bit and found them to be fit for purpose
or other type, whether and support the resource classifications
core is oriented and as applied to the MRE.
if so, by what method,
etc).
------------------------------------- -------------------------------------------------------------
Drill Method of recording Samples are assessed visually for recoveries.
Sample and assessing core and The configuration of drilling and nature
Recovery chip sample recoveries of materials encountered results in
and results assessed. negligible sample loss or contamination.
Air-Core drilling recovery in the top
few metres are moderate to good. Extra
care is taken to ensure sample is recovered
best as possible in these metres. Recoveries
are recorded on the rig at the time
of drilling by the geologist. Drilling
is ceased when recoveries become poor
once Sap rock has been encountered.
------------------------------------- -------------------------------------------------------------
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.
Air-core drilling samples are recovered
in large plastic bags. The bags are
clearly labelled and delivered back
to the laydown at the end of shift
for processing.
------------------------------------- -------------------------------------------------------------
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 intervals are
Mineral Resource estimation geologically logged, recording relevant
mining studies and metallurgical data to a set log-chief template using
studies. company codes. A small representative
sample is collected for each 1-metre
interval and placed in appropriately
labelled chip trays for future reference.
------------------------------------- -------------------------------------------------------------
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 total length and 100% of samples are geologically logged.
percentage of the relevant
intersection logged
------------------------------------- -------------------------------------------------------------
Sub-sampling If core, whether cut N/A
techniques or sawn and whether quarter,
and sample half or all core taken.
preparation
------------------------------------- -------------------------------------------------------------
If non-core, whether Air-Core samples are dried, riffle
riffled, tube sampled, split and composited. Samples are collected
rotary split, etc. and and homogenised prior to splitting
whether sampled wet or to ensure sample representivity. 1.5kg
dry. 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.
------------------------------------- -------------------------------------------------------------
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 Rutile
of assay and appropriateness of The Malawi onsite laboratory sample
data and the assaying and laboratory preparation methods are considered
laboratory procedures used and whether quantitative to the point where a non-magnetic
tests the technique is considered mineral concentrate (NM) 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.
The HMC is prepared via wet-table,
gravity separation at the Lilongwe
Laboratory which provides an ideal
sample for subsequent magnetic separation
and XRF.
All samples (incl. QA) included in
this announcement 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
* Pass +45um -600mm (sand fraction) across wet table to
generate a heavy mineral concentrate (HMC)
* Pan HMC to remove retained light minerals
* Dry HMC in oven for 30 minutes at 105
* Magnetic separation of the HMC by Carpco magnet @
16,800G (2.9Amps) into a magnetic (M) and
non-magnetic (NM) fraction.
Bag NM fraction and send to Perth,
Australia for quantitative chemical
and mineralogical determination.
* The NM fractions were sent to ALS Metallurgy Perth
for quantitative XRF analysis. Samples received
XRF_MS.
Graphite
All samples are initially checked in
and processed to pulp at Intertek-Genalysis
Johannesburg.
The pulp samples are then dispatched
to Intertek-Genalysis Perth where they
undergo TGC assay 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.
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.
Three Rutile CRMs used by Sovereign.
Rutile A (AMIS0602) containing TiO(2)
XRF 90.62%. The CRM is supplied by
African Mineral Standards (AMIS), South
Africa.
Rutile B containing TiO(2) XRF 70.71%.
The CRM is supplied by OREAS and has
been designed and matrix matched specifically
for Sovereign.
Rutile C containing TiO(2) XRF 40.76%.
The CRM is supplied by OREAS and has
been designed and matrix matched specifically
for Sovereign.
Two Graphite Standards are used by
Sovereign.
MPHLG1 containing 3.22% TGC
TCMG1 containing 7.54% TGC
Both these CRMs are supplied by OREAS
and has been designed and matrix matched
specifically for Sovereign.
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.
------------------------------------- -------------------------------------------------------------
Verification The verification of Results are reviewed in cross-section
of sampling significant intersections using Micromine software and any spurious
& assaying by either independent results are investigated. The deposit
or alternative company type and consistency of mineralisation
personnel. leaves little room for unexplained
variance. Extreme high grades are not
encountered.
Significant mineralisation intersections.
------------------------------------- -------------------------------------------------------------
The use of twinned holes. Twinned holes are drilled across a
geographically-dispersed area to determine
short-range geological and assay field
variability. Twin drilling is applied
at a rate of 1 in 20 routine holes.
Acceptable levels of precision are
displayed in the geostatistical analysis
of twin drilling data.
No twin holes are reported here.
------------------------------------- -------------------------------------------------------------
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 Datashed5
and validated automatically and then
manually.
A transition to electronic field and
laboratory data capture is underway.
------------------------------------- -------------------------------------------------------------
Discuss any adjustment QEMSCAN of the NM fraction shows dominantly
to assay data. 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 Air-Core collars. Daily
points drill holes (collar and capture at a registered reference marker
down-hole surveys), trenches, ensures equipment remains in calibration.
mine workings and other No downhole surveying of Air-Core holes
locations used in Mineral is completed. Given the vertical nature
Resource estimation. and shallow depths of the Air-Core
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 DGPS pickups are considered to be high
of topographic control. quality topographic control measures.
------------------------------------- -------------------------------------------------------------
Data Data spacing for reporting The Air-Core collars are spaced on
spacing of Exploration Results. a 200m x 200m grid which is deemed
& distribution to adequately define the mineralisation.
------------------------------------- -------------------------------------------------------------
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 further future Mineral
continuity appropriate Resource estimation.
for the Mineral Resource
and Ore Reserve estimation
procedure(s) and classifications
applied.
------------------------------------- -------------------------------------------------------------
Whether sample compositing Individual 1m intervals have been composited,
has been applied. based on lithology, at a max 2m sample
interval for the 32 air-core holes.
------------------------------------- -------------------------------------------------------------
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 There is no apparent bias arising from
between the drilling the orientation of the drill holes
orientation and the orientation with respect to the orientation of
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 or Malawi to Johannesburg.
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.
Malawi Field and Laboratory visits
have been completed by Richard Stockwell
in May 2022. A high standard of operation,
procedure and personnel was observed
and reported.
------------------------------------- -------------------------------------------------------------
SECTION 2 - REPORTING OF EXPLORATION RESULTS
Criteria Explanation Commentary
Mineral tenement & land tenure status Type, reference name/number, location 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: EL0609, EL0492, EL0528,
wilderness or national park and EL0545, EL0561, EL0582 and RL0012.
environment settings. 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
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 collar and composite data are
to the understanding of the provided in the body and appendices
exploration results including of this report.
a tabulation of the following
information for all Material drill
holes: easting and northings
of the drill hole collar; elevation
or RL (Reduced Level-elevation above
sea level in metres
of the drill hole collar); dip and
azimuth of the hole; down hole length
and interception
depth; and hole length
-------------------------------------- --------------------------------------
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 grades. The results reported
grade truncations (e.g. cutting of in the body of the report are on a
high-grades) and cut-off grades are nominal lower cut-off of 0.5% Rutile
usually Material and and exclude bottom
should be stated. of hole samples where saprock has
been geologically logged.
-------------------------------------- --------------------------------------
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 profile is preserved
nature 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.
-------------------------------------- --------------------------------------
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 the body of this
scales) and tabulations of intercepts report.
should be included
for any significant discovery being
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.
practicable, representative
reporting of both low and high-grades
and/or widths should be practiced to
avoid misleading
reporting of exploration results.
-------------------------------------- --------------------------------------
Other substantive exploration data Other exploration data, if meaningful Rutile has been determined, by
and material, should be reported QEMSCAN, to be the major TiO(2)
including (but not -bearing mineral at and around
limited to: geological observations; several rutile prospects within
geophysical survey results; Sovereign's ground package. The
geochemical survey results; company continues to examine
bulk samples - size and method of areas within the large tenement
treatment; metallurgical test package for rutile and graphite
results; bulk density, groundwater, by-product mineralisation.
geotechnical and rock
characteristics; potential
deleterious or contaminating
substances.
-------------------------------------- --------------------------------------
Further work The nature and scale of planned Core-drilling and water
further work (e.g. test for lateral exploratory drilling is planned
extensions or depth extensions and ongoing throughout the
or large-scale step-out drilling). remainder
for 2022.
-------------------------------------- --------------------------------------
Diagrams clearly highlighting the Refer to diagrams in the body of this
areas of possible extensions, report.
including the main geological
interpretations and future drilling
areas, provided this information is
not commercially sensitive.
-------------------------------------- --------------------------------------
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