TIDMSVML
RNS Number : 9972S
Sovereign Metals Limited
15 March 2023
SOVEREIGN METALS LIMITED
NEWS RELEASE I 15 MARCH 2023
KASIYA'S GRAPHITE GLOBAL WARMING POTENTIAL TO BE AMONGST LOWEST
IN THE WORLD
-- Independent benchmarking indicates Sovereign's graphite co-product
from Kasiya should have significantly lower global warming
potential versus current and developing natural graphite projects
-- Global warming potential (GWP) of producing one tonne of flake
graphite concentrate at Kasiya estimated to be 0.2 tonnes of
CO(2) equivalent emissions (CO(2) e)
-- Kasiya has the lowest GWP compared with currently known and
planned future natural graphite projects :
o Up to 60% lower than currently reported GWP of graphite producers
and developers, including suppliers to Tesla Inc.
o 3x less polluting than proposed Tanzanian natural graphite
production from hard rock sources
o 6x less polluting than current Chinese natural graphite production
which accounts for up to 80% of current global graphite supply
-- In 2022, the lithium-ion battery market became the biggest
end-market for natural flake graphite
-- Despite graphite being only a co-product to future potential
rutile production, Kasiya is still one of the largest and potentially
lowest production cost flake graphite resources in the world
as it is hosted in soft and friable saprolite material instead
of hard rock
-- Mining is planned to be via hydro-methods (high-powered water
monitors) with the operation powered almost 100% by renewable
sources (hydro-generated grid and on-site solar power)
-- Previously, Sovereign had announced that its primary product
of natural rutile is expected to have a GWP of only 0.1 tonnes
CO(2) e - up to 97% lower than alternative titanium feedstocks
produced by upgrading ilmenite
Sovereign Metals Limited (ASX: SVM, AIM: SVML) (the Company or
Sovereign) is pleased to announce the combined results of internal
company analysis, supplemented with an independent benchmarking
study by UK-based consultancy Minviro Ltd (Minviro) which compared
the global warming potential (GWP) of producing natural flake
graphite from the Kasiya Project (Kasiya or the Project) against
relevant current and future natural graphite projects.
The cradle-to-gate life cycle assessment (LCA) was carried out
by Minviro comparing current natural graphite production from China
which produces almost 80% of the world's natural graphite, and
proposed near-term production from Tanzania, which offers a
regional benchmark against Kasiya in Malawi. The LCA study followed
ISO 14067:2008 guidelines and was critically reviewed by a panel of
three independent experts.
A number of graphite producers and explorers/developers have
conducted their own LCAs, with conclusions of a select number being
made public. Kasiya's graphite product currently has the lowest GWP
of publicly reported current and future potential graphite
production.
The benchmarking study found that the total GWP of 0.2 tonnes
CO(2) e per tonne of natural flake graphite concentrate produced at
Kasiya is significantly lower than the total GWP per tonne produced
in Heilongjiang Province, China (1.2 tonnes CO(2) e) and the total
GWP per tonne produced in Tanzania (0.6 tonnes CO(2) e).
Sovereign's Managing Director, Dr Julian Stephens, commented:
"It is remarkable that our graphite co-product from planned rutile
production at Kasiya will not only be potentially one of the lowest
cost flake graphite projects in the world but now can also be
considered to have one of the lowest global warming potentials of
current and future graphite mines. Producers and users of
lithium-ion batteries are already taking note of the carbon
footprint associated with the raw materials that feed into battery
technology - so to be developing Kasiya at this time is truly
exciting."
Minviro's LCA has already previously shown the potential for
Sovereign's primary product of natural rutile to significantly
reduce the carbon footprint of the titanium pigment industry.
Each tonne of natural rutile produced at Kasiya is expected to
have a Global Warming Potential of only 0.1 tonnes CO(2) eq., which
equates to a 95% to 97% reduction in total greenhouse gas emissions
(20 to 33 times less) compared to production of titania slag and
synthetic rutile respectively - both of which are alternative
titanium feedstocks produced by upgrading ilmenite via energy and
carbon intensive processes.
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
Why is Kasiya's Graphite able to achieve such a low
carbon-footprint?
The GWP for Kasiya's flake graphite product was based on
information in the Kasiya Scoping Study from December 2021. This
was followed up with an Expanded Scoping Study in June 2022 (see
announcement here:
http://www.investi.com.au/api/announcements/svm/c6f18bca-8aa.pdf ).
The significantly lower GWP for Kasiya graphite is due to the fact
that it is hosted in soft, friable saprolite material which will be
mined via hydro methods (high pressure water monitors) powered by
renewable energy sources - hydro power from the Malawi grid and
on-site solar power. This is opposed to the production in
Heilongjiang Province, China where hard-rock ore requires drilling,
blasting, excavation, trucking, crushing, and grinding - overall
high CO(2) e activities.
About Kasiya's Graphite
The Kasiya discovery in central Malawi is the largest natural
rutile deposit and one of the largest flake graphite deposits in
the world.
The lithium-ion battery sector is the main emerging market for
flake graphite. Greater capacity batteries, such as those required
for electric vehicles, are expected to drive significant demand for
graphite over the coming years. It is forecast the battery sector
will become the largest graphite market segment by 2028.
Kasiya will be a simple and conventional operation using
traditional and well-developed processes used across the globe on
numerous mineral sands and graphite operations.
The proposed large-scale operation will process soft, friable
mineralisation that occurs from surface in an area with excellent
access and water availability. The Project has high quality
surrounding infrastructure including hydro-sourced grid power,
bitumen roads and recently upgraded rail lines connecting to the
deep water of ports of Nacala and Beira on the Indian Ocean.
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.
Competent Persons Statement
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.
The information in this announcement that relates to Production
Targets, Processing, Infrastructure and Capital and Operating
Costs, is extracted from the announcement dated 16 December 2021
entitled 'Kasiya Scoping Study Confirms Globally Significant
Natural Rutile Project' (Announcement). 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 and technical parameters underpinning the
Production Target, and related forecast financial information
derived from the Production Target 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 presentation have not been materially modified
from the Announcement.
The information in this announcement that relates to Metallurgy
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.
To view this announcement in full, including all figures and
illustrations, please refer to
http://www.investi.com.au/api/announcements/svm/61a82ede-fa0.pdf
.
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.
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