TIDMSVML
RNS Number : 3959V
Sovereign Metals Limited
05 April 2023
SOVEREIGN METALS LIMITED
NEWS RELEASE I 5 APRIL 2023
KASIYA INDICATED RESOURCE INCREASED BY OVER 80%
-- Kasiya Indicated Resource now stands at 1.2 Billion tonnes at 1.0% rutile and 1.5% graphite
-- Updated Mineral Resource Estimate (MRE) moves over 0.5
Billion tonnes from Inferred to Indicated - an increase of 81% to
the Indicated category
-- Over 66% of total MRE now in the Indicated category
-- Kasiya's global MRE over 1.8 Billion tonnes at 1.0% rutile and 1.4% graphite
-- Kasiya remains the world's largest natural rutile deposit and
second largest flake graphite deposit
-- Updated MRE to underpin the mining inventory and mine plan
for the forthcoming Pre-feasibility Study (PFS)
Sovereign's Managing Director Dr Julian Stephens commented :
"The increase of over 80% in the Indicated component at a
one-for-one conversion from Inferred is an outstanding outcome. The
conversion rate confirms the very consistent geological and grade
continuity and is testament to the high-quality and robustness of
the deposit. Kasiya is poised to become a major long-term supplier
of the critical minerals natural rutile and graphite, with both
forecast to be in near-term and significant supply deficit. The PFS
work program on this highly strategic and globally significant
project is progressing well and approaching its final stages. The
Company is looking forward to presenting the outcomes of the PFS in
the coming months."
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
Andrew Thomson +61 8 9480 2500
Joint Brokers
Berenberg +44 20 3207 7800
Matthew Armitt
Jennifer Lee
Optiva Securities +44 20 3137 1902
Daniel Ingrams
Mariela Jaho
Christian Dennis
KASIYA - THE LARGEST RUTILE DEPOSIT IN THE WORLD
Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or
Sovereign) is pleased to announce the updated MRE for its
world-class Kasiya rutile-graphite deposit in Malawi. Kasiya is a
Tier 1 deposit and a potential major source of low carbon footprint
critical minerals natural rutile (TiO ) and graphite.
Table 1: Kasiya Total Indicated + Inferred Mineral Resource Estimate
at 0.7% rutile cut-off grade
Classification Resource Rutile Grade Contained Graphite Contained
(Mt) (%) Rutile Grade (TGC) Graphite
(Mt) (%) (Mt)
Indicated 1,200 1.0% 12.2 1.5% 18.0
================ ========= ============= ========== ============= ==========
Inferred 609 0.9% 5.7 1.1% 6.5
================ ========= ============= ========== ============= ==========
Total 1,809 1.0% 17.9 1.4% 24.4
================ ========= ============= ========== ============= ==========
The updated MRE has further defined broad and contiguous zones
of high-grade rutile and graphite which occur across a very large
area of over 201km(2) . Rutile mineralisation is concentrated in
laterally extensive, near surface, flat "blanket" style bodies in
areas where the weathering profile is preserved and not
significantly eroded. Graphite is depleted near surface with grades
improving at depths generally >4m to the base of the saprolite
zone which averages about 22m.
Sovereign's 2022 drill program at Kasiya used push tube (PT)
core holes to in-fill and convert Inferred mineralisation into the
Indicated category. The consistency and robustness of the geology
allowed for an efficient conversion of this previously Inferred
material on a near-identical one-for-one basis to the Indicated
category.
A total of 66% of the MRE now reports to the Indicated category
@ 1.0% rutile and 1.5% TGC - up from 33% previously. Overall, the
new Indicated components show coherent, broad bodies of
mineralisation that have coalesced very well with the additional
infill drilling results.
Further advancement in this MRE update was the application of
air-core (AC) drilling to define the depth of mineralisation in a
number of selected higher-grade areas. As expected, this drilling
shows that high-grade rutile and graphite mineralisation extends to
the base of the soft saprolite unit terminating on the saprock
basement averaging about 22m depth. This AC drilling targeted
early-scheduled mining pits mainly in the southern areas of the MRE
footprint.
A number of higher-grade graphite zones at depth were identified
which are generally associated with higher grade rutile at surface.
Some of these zones have graphite grades at depths >6m in the 4%
to 8% TGC range and appear to represent significant contained
coarse flake graphite tonnages.
The highlighted cut-off of 0.7% rutile presents 1.8 billion
tonnes at a rutile grade of 1.0%. (Table 2). The overall recovered
rutile equivalent grade for the MRE at the global 0.7% cut-off is
1.65% RutEq*.
Table 2: Kasiya Total Indicated + Inferred Mineral Resource Estimate
at various rutile cut-off grades
Cut-off Resource Rutile Grade Contained Graphite Contained
(rutile) (Mt) (%) Rutile Grade (%) Graphite
(Mt) (Mt)
0.40% 3,215 0.80% 25.7 1.30% 41.9
=========== ========== =============== =========== ============ ==========
0.50% 2,779 0.85% 23.8 1.35% 37.4
=========== ========== =============== =========== ============ ==========
0.60% 2,304 0.92% 21.1 1.37% 31.7
=========== ========== =============== =========== ============ ==========
0.70% 1,809 0.99% 17.9 1.35% 24.4
=========== ========== =============== =========== ============ ==========
0.80% 1,335 1.08% 14.4 1.25% 16.6
=========== ========== =============== =========== ============ ==========
0.90% 934 1.17% 11.0 1.06% 9.9
=========== ========== =============== =========== ============ ==========
1.00% 643 1.28% 8.2 0.84% 5.4
=========== ========== =============== =========== ============ ==========
1.10% 449 1.38% 6.2 0.65% 2.9
=========== ========== =============== =========== ============ ==========
1.20% 324 1.47% 4.7 0.53% 1.7
=========== ========== =============== =========== ============ ==========
1.30% 230 1.56% 3.6 0.48% 1.1
=========== ========== =============== =========== ============ ==========
1.40% 163 1.64% 2.7 0.45% 0.7
=========== ========== =============== =========== ============ ==========
* 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 the Expanded Scoping Study (ESS) released in June 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).
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 high-grade zones are
relatively geologically consistent with limited variability along
and across strike. The mineralisation style is illustrated best in
Figures 5 & 6 in the full announcement on the website.
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 Palaeozoic 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 1,386km(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 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 presence of abundant kyanite and graphite in the host
material suggest a meta-sedimentary protolith. 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.
The metamorphic facies, 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 re-crystallisation as
paragneisses containing coarse rutile and graphite.
The final and most important stage of rutile enrichment came as
tropical weathering during the Tertiary depleted the top 8m of
physically and chemically mobile minerals. This caused significant
volume loss and concurrent concentration of heavy resistate
minerals including rutile and kyanite.
Rutile mineralisation therefore lies in laterally extensive,
near surface, flat "blanket" style bodies in areas where the
weathering profile is preserved. The Kasiya deposit shows
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
the base of the soft saprolite unit to generally 20-30m depth where
it terminates on the hard saprock basement.
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
consistent grade relationship exists.
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. For the MRE update, Aircore (AC)
drilling has been applied in some high-grade areas to determine
rutile and graphite grade potential at depth and to establish
basement elevation and composition. Additional HA and PT drilling
has been applied to extend, infill and upgrade resource confidence
in more prospective regions.
A further 152 HA holes for 1,253m were drilled to extend the
Kasiya Rutile Deposit and to obtain samples for quantitative
determination of recoverable rutile and TGC. The total HA dataset
incorporated in the MRE update is now 1,357 holes for 12,643m.
HA drilling was executed by Sovereign field teams using a
manually operated enclosed-flight Spiral Auger (SP / SOS) system
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
(2% of the resource HA drill database). The auger bits and flights
are cleaned between each metre of sampling to avoid
contamination.
The HA collars are nominally spaced at a 400m-by-400m spaced
array with the PT holes similarly spaced at an offset, infill grid.
This results in a 200m by 200m drill spacing (to the strike
orientation of the deposit).
PT drilling is undertaken using a drop hammer Dando Terrier MK1
and a drop hammer DL650 by Geo-consult and Thompsons Drilling. A
total of 488 holes for 4,669m contribute to the MRE. The drilling
generated 1m runs of 83mm PQ core in the first 2m and then
transition to 72mm core for the remainder of the hole. Core
drilling is oriented vertically by spirit level.
A total of 182 AC holes for 4,404m were completed in six
locations across the MRE deemed likely to fall into mining pit
areas.
AC drilling was completed by Thompson Drilling utilising a Smith
Capital 10R3H compact track-mounted drill. The drilling is vertical
and generates 1m samples with care taken in the top metres to
ensure good recoveries of the high-grade surface material. To
achieve this the bit is initially pushed down 200mm then air is
slowly introduced with slow rotation rpm, once sample begins
flowing freely air and rpm is increased to full volume as the hole
deepens. Whilst sample size was reduced in surface samples, there
was insignificant bias attributed to the AC method when compared
with results from a dedicated programme of twin PT holes.
The AC sample is collected by the on-board cyclone into
heavy-duty RC sample bags. Drilling continues until bit refusal
onto basement 20-30m. Sample bags are immediately transported back
to Sovereign's field laydown yard where they are processed.
AC drilling is on a nominal 200m by 200m pattern. The drill
spacing is deemed to adequately define the mineralisation in the
MRE. There is no apparent bias arising from the orientation of the
drill holes contributing to the MRE, with respect to the
orientation of the deposit.
The drilling programs to date show a mineralised envelope,
defined nominally by 0.7% rutile cut-off, of approximately 201km(2)
with numerous areas of high-grade rutile and graphite defined.
The PT and AC twin and density sample holes are selectively
placed throughout the deposit to ensure a broad geographical and
lithological coverage for the analysis.
Placer has reviewed Standard Operating Procedures (SOPs) for HA,
PT and AC drilling and found them to be fit for purpose and support
the resource classifications as applied to the MRE.
Sampling Techniques
HA samples are 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 is visually assessed
in the field. As samples become wet at the water table and recovery
per metre declines, the drill hole is terminated.
Each 1m sample is sun dried, logged and weighed. HA samples are
composited based on regolith weathering boundaries defined by
expert logging. Each 1m of sample is dried, lightly pressed to
remove soft aggregates and riffle-split to generate a total sample
weight of 3kg for analysis, generally at 2 - 5m intervals (average
2.8m for the total resource drill database). This primary sample is
then riffle split again to provide a 1.5kg sample each for rutile
and graphite analyses.
PT samples are predominantly from HQ sized core (63.5mm
diameter). Half core 1m samples are sun dried, logged and weighed.
Samples are then lightly pressed and 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 are
recorded on a quantitative basis. Core recovery is very good
overall at >95%.
AC samples are collected in 1m increments. AC samples are dried,
riffle split, lightly pressed and composited. Samples are collected
and homogenised prior to splitting to ensure sample representivity.
1.5kg composite samples defined by the regolith boundaries are
processed. An equivalent mass is taken from each primary sample to
make up the composite.
This sampling and compositing method is considered appropriate
and reliable based on accepted industry practice. Placer completed
an on-site audit of sampling and sample processing and deemed the
processes fit for purpose. Minor suggested sampling and processing
adjustments were implemented.
Sample analysis methodology
All samples arrive at Sovereign's Malawi laboratory where they
are sorted and checked in. Graphite samples are identified and
prepared for export, while the equivalent rutile samples begin the
sample workflow prior to export to Perth, Western Australia. Audit
of the laboratory premises, staff, sample analysis and QA
procedures were highly commended during the audit by Placer
Consulting in 2022.
Rutile
Samples are dried in a commercial oven for 1 hour at 105 and a
dry raw samples mass is recorded.
Samples are soaked in 1% TSPP solution overnight and then
lightly agitated prior to wet screening.
Wet screening occurs at 5mm, 600um and 45um to remove oversize
and slimes (-45um) material. Each +45um retained fraction is dried,
logged and weighed.
The resulting SAND fraction +45um -600mm is oven dried for 1
hour at 105 after which its dry weight is recorded.
The SAND fraction is then passed over a Gemeni wet shaking table
at a constant feed rate to generate a heavy mineral concentrate
(HMC).
Heavy Liquid Separation (HLS) at Diamantina Laboratories in
Perth was initially trialled as a preferred separation method but
was quickly superseded (supported by QA analysis) by wet-table
separation on account of substantial near-density gangue material
reporting to the HM sink for the HLS technique. The HLS analyses
represent 11% of the MRE assay dataset.
The wet-tabled HMC is then subject to magnetic separation @
16,800G (2.9Amps) producing a magnetic (M) and non-magnetic (NM)
fraction. The separation is performed using a Mineral Technologies
Reading Pilot IRM (Induced Roll Magnetic) purchased by Sovereign
and located at the Company's laboratory in Malawi. Pre-2022 this
step was completed by Allied Mineral Laboratories Perth (AML) in
Perth, Western Australia.
The Malawi onsite laboratory sample preparation methods are
considered quantitative to the point where the NM concentrate
(containing the rutile) is produced.
The routine NM fractions are air freighted to ALS Metallurgy
Perth for quantitative XRF analysis. The samples receive the XRF_MS
sample suite which includes TiO(2) and common impurities. Check
QAQC samples are sent to Intertek Perth where they receive and
equivalent standard mineral sands suite FB1/XRF72.
Several generations of QEMSCAN analysis of the NM and MAG
fractions performed at ALS Metallurgy show dominantly clean and
liberated rutile grains and confirm rutile is the only titanium
species in the NM fraction.
Recovered rutile is defined and reported here as: TiO(2)
recovered in the SAND +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.
Raw rutile results are also available.
Graphite
Once secured samples arrive at Intertek Johannesburg, South
Africa, a split of each raw 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 transported to Perth, Australia where it is then
combusted in an Eltra CS-800 induction furnace infra-red CS
analyser to yield total graphitic or elemental carbon (TGC).
QAQC
Accuracy monitoring is achieved through submission of certified
reference materials (CRM's). 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.
ALS and Intertek both use internal CRMs and duplicates on XRF
and TGC analyses. Sovereign also inserts its customised 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 2SD from the
mean) initiates investigation and may trigger re-processing of the
affected batch.
Precision and accuracy assessment has been completed on all
alternate workflow methodologies and a consistent method has been
decided, in consultation with 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
A nominal 200m-by-200m-by-2m drill sample array is deemed to
adequately define the Indicated mineralisation for the MRE, with a
predictable grade distribution and consistent host
stratigraphy.
The PT twin and density sample holes are selectively placed
throughout the deposit to ensure a broad geographical and
lithological spread of material types for the analysis.
Renewed kriging neighbourhood analysis, completed using
Supervisor software, has confirmed the drill and sample spacing
applied to the MRE update. Variography has also confirmed the
optimal search distances and orientations. Based on these results
and the experience of the Competent Person, the data spacing, and
distribution is considered adequate for the definition of
mineralisation classification and adequate for the MRE.
The HA and PT drilling methods applied to define the Kasiya
Deposit (HA and PT) are not able to retrieve reliable samples once
the bit is 3 to 5m below the water table and each terminate at an
average depth of about 9.5m in the resource dataset. Application of
AC drilling has confirmed the continuation of material rutile and
graphite grade to depth and defined the basement horizon at the
saprock interface. Elsewhere, mineralisation remains open at depth
and substantial additional tonnages could be anticipated.
High grade sample results are constrained adequately by the
search parameters and interpolation method applied to the MRE.
High-grade results are confirmed by an audit analysis program.
Regolith stratigraphy is uniform and rutile and graphite
mineralisation is predictable across the Kasiya Deposit. Open-hole
drilling and infill PT/AC drilling techniques have been expertly
applied and data collection procedures, density assessments, QA
protocols and interpretations conform to industry best
practice.
Assay, mineralogical determinations and metallurgical test work
conform to industry best practice and demonstrate a rigorous
assessment of product and procedure. These and 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 are used for the data
analysis, variography, geological interpretation and resource
estimation. Key fields are interpolated into the volume model using
a range of parameters and interpolation methods to establish best
fit for the deposit. For the Kasiya MRE update, the Inverse
Distance weighting (power 4) method was seen to perform a superior
interpolation of informing data and replication of the high-value
and thin, surface (SOIL/FERP) grade distribution. This was assisted
by the application of a Dynamic Anisotropy search, informed by the
results of variography. Suitable limitations on the number of
samples and the impact of those samples, was maintained.
Interpolation was constrained by hard boundary domains that
result from the geological interpretation. The construction of an
upper soil ("SOIL" 0-1m) and ferruginous pedolith ("FERP", 1-4m)
domain referred to as the Soil/Ferp domain reduces the dilution of
resource grade from the underlying, less mineralised mottled
("MOTT", 4-7m), pallid saprolite ("PSAP", 7-9m) and saprolite
("SAPL", 9-25m) or collectively the Mott/Sapl 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 synthetic topsoil generation for rehabilitation.
The average parent cell size used is 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.
Both parent and sub-cell interpolations were completed and
reconciled spatially against each other. The parent cell and sub
cell interpolations produced near identical global tonnages and
grades. The sub-cell interpolation was seen to provide a better
graduation of informing drill hole data through intermediate model
cells and to conform more sympathetically to the geological
interpretation. Whilst both are available, in this instance and as
a geological resource, the sub-cell interpolation was applied to
the MRE.
The resource model has been constrained by the drill array plus
one drill interval. This applies a buffer of 200*200*2.7m in X, Y
and Z axes. Only those areas drilled by AC allow the accurate
generation of a basement horizon, elsewhere the base of the MRE
hovers within the saprolite and reflects only the depth of
effective drilling by HA and PT methods where they terminate due to
excess water ingress. Substantial additional mineralisation is
anticipated below this depth in these areas, as demonstrated by the
limited AC drilling to date.
Extreme grade values were not identified by statistical
analysis, nor were they anticipated in this style of deposit. No
top cut is applied to rutile or graphite in the resource
estimation.
Validation of each interpolation method and of the reported
grade interpolation was done visually in Datamine by loading model
and drill hole files and annotating, colouring and using filtering
to check for the appropriateness of drill data interpolation.
Statistical distributions were prepared for model zones from
both the drill hole file and the model to assess how well the
interpolation represents informing data. Model-drilling
reconciliation was also performed by generating swath plots to
measure drilling support against interpolation performance in all
three primary orientations. Where data population is adequate, 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 determined on a 10cm segment of complete core through
a simple cylinder volume calculation on both wet in-situ weight and
an oven dry weight. The in-situ state of the core is carefully
preserved prior to selection. After the segment is chosen, it
undergoes measurement and weighing. Subsequently, it is subjected
to oven-drying for a specific duration, and its weight is once
again determined. This method is applied to samples that represent
different weathering domains found in various drill holes
throughout the project site.
This methodology delivers an accurate density result that is
interpolated in the MRE for each host material type.
Density data are applied to the resource estimate by weathering
domain. Minor adjustments were made for the MRE update on the
receipt of additional density data. Averaged density results of
1.39 t/m(3) for the soil (SOIL) domain, 1.58 t/m(3) for the
ferruginous pedolith (FERP) domain, 1.66 t/m(3) for the mottled
(MOTT) domain, 1.69 t/m(3) for the pallid saprolite (PSAP) domain,
1.97 t/m(3) for the saprolite (SAPL) domain and 1.95 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
in process.
A nominal bottom cut of 0.7% rutile is offered, based on
preliminary assessment of resource product value and anticipated
cost of operations. As a by-product of a rutile operation, graphite
is not considered for top or bottom cuts.
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, as demonstrated
by metallurgical test work.
Sovereign has announced three sets of metallurgical results to
the market (24 June 2019, 9 September 2020 and 7 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 d50 of 118um (Kasiya North) and 128um (Kasiya South).
Gravity separation was effective at concentrating graphite to a
"light mineral pre-concentrate" due to its low specific gravity
(2.2 t/m(3)) providing an upgrade of graphite grade to the
flotation circuit to about three times the run of mine grade.
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%.
Further graphite flotation testwork to define the PFS flowsheet
has been undertaken at ALS in Perth, Western Australia. Test work
results are being finalised, however as with all other Kasiya
metallurgical test work to date, minimal variation is expected from
previous results.
MRE TABLES
Table 5: Indicated MRE at various rutile cut-offs
Cut-off (rutile) Resource Rutile Grade Contained Rutile Graphite Grade (%) Contained Graphite
(Mt) (%) (Mt) (Mt)
0.40% 1,840 0.86 15.8 1.48 27.3
================= ========= ============= ================= =================== ===================
0.50% 1,673 0.90 15.0 1.51 25.2
================= ========= ============= ================= =================== ===================
0.60% 1,463 0.95 13.9 1.53 22.3
================= ========= ============= ================= =================== ===================
0.70% 1,200 1.01 12.2 1.50 18.0
================= ========= ============= ================= =================== ===================
0.80% 906 1.10 10.0 1.37 12.4
================= ========= ============= ================= =================== ===================
0.90% 645 1.20 7.7 1.15 7.4
================= ========= ============= ================= =================== ===================
1.00% 452 1.31 5.9 0.88 4.0
================= ========= ============= ================= =================== ===================
1.10% 327 1.41 4.6 0.65 2.1
================= ========= ============= ================= =================== ===================
1.20% 246 1.50 3.7 0.52 1.3
================= ========= ============= ================= =================== ===================
1.30% 185 1.58 2.9 0.47 0.9
================= ========= ============= ================= =================== ===================
1.40% 139 1.66 2.3 0.44 0.6
================= ========= ============= ================= =================== ===================
Table 6: Inferred MRE at various rutile cut-offs
Cut-off (rutile) Resource Rutile Grade Contained Rutile Graphite Grade (%) Contained Graphite
(Mt) (%) (Mt) (Mt)
0.40% 1,375 0.72 9.9 1.06 14.6
================= ========= ============= ================= =================== ===================
0.50% 1,106 0.79 8.7 1.10 12.2
================= ========= ============= ================= =================== ===================
0.60% 841 0.86 7.3 1.11 9.4
================= ========= ============= ================= =================== ===================
0.70% 609 0.94 5.7 1.06 6.5
================= ========= ============= ================= =================== ===================
0.80% 429 1.03 4.4 0.98 4.2
================= ========= ============= ================= =================== ===================
0.90% 290 1.11 3.2 0.86 2.5
================= ========= ============= ================= =================== ===================
1.00% 190 1.20 2.3 0.74 1.4
================= ========= ============= ================= =================== ===================
1.10% 122 1.29 1.6 0.64 0.8
================= ========= ============= ================= =================== ===================
1.20% 78 1.37 1.1 0.56 0.4
================= ========= ============= ================= =================== ===================
1.30% 46 1.45 0.7 0.56 0.3
================= ========= ============= ================= =================== ===================
1.40% 24 1.54 0.4 0.55 0.1
================= ========= ============= ================= =================== ===================
Table 7: Inferred & Indicated MRE at various rutile cut-offs
Cut-off (rutile) Resource Rutile Grade Contained Rutile Graphite Grade (%) Contained Graphite
(Mt) (%) (Mt) (Mt)
0.40% 3,215 0.80 25.7 1.30 41.9
================= ========= ============= ================= =================== ===================
0.50% 2,779 0.85 23.8 1.35 37.4
================= ========= ============= ================= =================== ===================
0.60% 2,304 0.92 21.1 1.37 31.7
================= ========= ============= ================= =================== ===================
0.70% 1,809 0.99 17.9 1.35 24.4
================= ========= ============= ================= =================== ===================
0.80% 1,335 1.08 14.4 1.25 16.6
================= ========= ============= ================= =================== ===================
0.90% 934 1.17 11.0 1.06 9.9
================= ========= ============= ================= =================== ===================
1.00% 643 1.28 8.2 0.84 5.4
================= ========= ============= ================= =================== ===================
1.10% 449 1.38 6.2 0.65 2.9
================= ========= ============= ================= =================== ===================
1.20% 324 1.47 4.7 0.53 1.7
================= ========= ============= ================= =================== ===================
1.30% 230 1.56 3.6 0.48 1.1
================= ========= ============= ================= =================== ===================
1.40% 163 1.64 2.7 0.45 0.7
================= ========= ============= ================= =================== ===================
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 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 announcement that relates to Exploration
Results is based on, and fairly represents, 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 24 June 2019, 9 September
2020 and 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.
Qualified Person
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.
To view the announcement in full including all illustrations and
figures, please refer to the full announcement at
http://sovereignmetals.com.au/announcements/ .
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.
APPIX 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 (HA) samples are composited
Techniques sampling (e.g. cut channels, based on regolith boundaries and sample
random chips, or specific chemistry generated by hand-held XRF
specialised industry (pXRF). Each 1m of sample is dried
standard measurement and riffle-split to generate a total
tools appropriate to sample weight of 3kg for analysis,
the minerals under generally at 2 - 5m intervals. This
investigation, primary sample is then split again
such as down hole gamma to create a 3kg composite to provide
sondes, or handheld XRF a 1.5kg sample for both rutile and
instruments, etc). These graphite analyses.
examples should not be
taken as limiting the Infill Push-Tube (PT) core drilling
broad meaning of sampling. is sampled 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.
Air-Core (AC) samples are composited
based on expertly logged regolith boundaries.
Each 1m of sample is dried and riffle-split
to generate a total sample weight of
3kg for analysis, generally at 2m intervals.
This primary sample is then split again
to provide a 1.5kg sample for both
rutile and graphite analyses.
--------------------------------- -----------------------------------------------------------------
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/regolith
of mineralisation that information and TiO(2) % obtained from
are Material to the Public pXRF are used to assist in determining
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 1,357 HA holes for 12,643m
Techniques reverse circulation, have been drilled to date at the Kasiya
open -- hole hammer, Rutile Deposit to obtain samples for
rotary air blast, auger, quantitative determination of recoverable
Bangka, sonic, etc) and rutile and Total Graphitic Carbon (TGC).
details (e.g. core diameter,
triple or standard tube, A PT infill drilling programme, designed
depth of diamond tails, to support this resource estimate upgrade,
face -- sampling bit was completed. An additional 234 core
or other type, whether holes for 2,368.5m were included in
core is oriented and the updated MRE. The total PT holes
if so, by what method, contributing to the updated MRE are
etc). 488 for 4,669m.
A total of 182 AC holes for 4,404m
were completed in six locations across
the Kasiya deposit deemed likely to
fall into mining pit areas. The results
are included in this updated MRE.
Placer has reviewed SOPs for HA, PT
and AC drilling and found them to be
fit for purpose and support the resource
classifications as applied to the MRE.
Sample handling and preparation techniques
are consistent for PT and coring samples.
Two similar designs of HA drilling
equipment are employed. HA drilling
with 75mm diameter enclosed spiral
bits (SOS) with 1m long steel rods
and with 62mm diameter open spiral
bits (SP) with 1m long steel rods.
Drilling is oriented vertically by
eye.
Each 1m of drill sample is collected
into separate sample bags and set aside.
The auger bits and flights are cleaned
between each metre of sampling to avoid
contamination.
Core-drilling is undertaken using a
drop hammer, Dando Terrier MK1. The
drilling generated 1m runs of 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.
AC drilling was completed by Thompson
Drilling utilising a Smith Capital
10R3H compact track-mounted drill.
The drilling is vertical and generates
1m samples with care taken in the top
metres to ensure good recoveries of
the high-grade surface material. Each
1m sample bag is immediately transported
back to Sovereign's field laydown yard
where they await processing.
--------------------------------- -----------------------------------------------------------------
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.
HA and PT drilling is ceased when recoveries
become poor once the water table has
been reached. Water table and recovery
information is included in lithological
logs.
Core drilling samples are actively
assessed by the driller and geologist
onsite for recoveries and contamination.
AC drilling recovery in the top few
metres 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
or once Saprock or refusal has been
reached.
--------------------------------- -----------------------------------------------------------------
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 PT drilling, core is extruded into
core trays; slough is actively removed
by the driller at the drilling rig
and core recovery and quality is recorded
by the geologist.
AC samples are recovered in large plastic
bags. The bags are clearly labelled
and delivered back to sovereign's laydown
yard at the end of shift for processing.
--------------------------------- -----------------------------------------------------------------
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 1m HA 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 1m interval
and placed in appropriately labelled
chip trays for future reference.
All individual 1m PT core intervals
are geologically logged, recording
relevant data to a set log-chief template
using company codes.
Half core remains in the trays and
is securely stored in the company warehouse.
All individual AC 1-metre intervals
are geologically logged, recording
relevant.
data to a set log-chief 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.
--------------------------------- -----------------------------------------------------------------
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 PT 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 HA, PT and AC 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 Field duplicate, laboratory replicate
of samples. 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 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 (HLS) of the
HM is no longer required and a HM result
is not reported in the updated MRE.
The HMC prepared via wet-table, gravity
separation at the Lilongwe Laboratory
provides an ideal sample for subsequent
magnetic separation and XRF.
All 8,855 samples (not 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
7,904 of the 8,855 samples received
the following workflow undertaken on-site
in Malawi
* Pass +45um -600mm (sand fraction) across wet table to
generate a HMC.
* Dry HMC in oven for 30 minutes at 105
Bag HMC fraction and send to Perth,
Australia for quantitative chemical
and mineralogical determination.
951 of the 8,855 samples received the
following workflow undertaken at Perth
based Laboratories (superseded).
* Split 150g of sand fraction for HLS using
Tetrabromoethane (TBE, SG 2.96g/cc) as the liquid
heavy media to generate HMC. Work undertaken at
Diamantina Laboratories.
4,738 of the 8,855 samples received
magnetic separation undertaken at Allied
Mineral Laboratories in Perth, Western
Australia.
* Magnetic separation of the HMC by Carpco magnet @
16,800G (2.9Amps) into a magnetic (M) and
non-magnetic (NM) fraction.
4,117 of the 8,855 samples received
magnetic separation undertaken on-site
in Malawi.
* Magnetic separation of the HMC by Mineral
Technologies Reading Pilot IRM (Induced Roll
Magnetic) @ 16,800G (2.9Amps) into a magnetic (M) and
non-magnetic (NM) fraction.
All 8,855 routine samples received
the following chemical analysis in
Perth, Western Australia.
* The routine NM fractions are sent to ALS Metallurgy
Perth for quantitative XRF analysis. Samples receive
XRF_MS and are analysed for: TiO(2,) Al(2) O(3,) CaO,
Cr(2) O(3) , Fe(2) O(3) , K(2) O, MgO, MnO, SiO(2) ,
V(2) O(5) , ZrO(2,) HfO(2.)
Graphite
8,078 graphite samples are processed
at Intertek-Genalysis Johannesburg
and 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 TGC.
An Eltra CS-800 induction furnace infra-red
CS analyser is then used to determine
the remaining carbon which is reported
as TGC as a percentage.
--------------------------------- -----------------------------------------------------------------
For geophysical tools, Acceptable levels of accuracy and precision
spectrometers, handheld have been established. No pXRF methods
XRF instruments, etc., are used for quantitative determination.
the parameters used in
determining the analysis
including instrument
make and model, reading
times, calibrations factors
applied and their derivation,
etc.
--------------------------------- -----------------------------------------------------------------
Nature of quality control 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.
Three Rutile CRMs are used by Sovereign
and range from 35% - 95% TiO(2) .
Three Graphite CRMs are used by Sovereign
and range from 3% - 25% TGC.
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 Results are reviewed in cross-section
of sampling significant intersections using Datamine Studio RM software and
& assaying by either independent any spurious results are investigated.
or alternative company The deposit type and consistency of
personnel. 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 in all drill methods represent
4% of the 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.
--------------------------------- -----------------------------------------------------------------
Documentation of primary All data are collected electronically
data, data entry procedures, using coded templates and logging software.
data verification, data This data is then imported to a cloud
storage (physical and hosted Database and validated automatically
electronic) protocols. and manually.
A transition to electronic field and
laboratory data capture has been achieved.
--------------------------------- -----------------------------------------------------------------
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 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 collars. Daily capture
points drill holes (collar and at a registered reference marker ensures
down-hole surveys), trenches, equipment remains in calibration.
mine workings and other No downhole surveying of any holes
locations used in Mineral is completed. Given the vertical nature
Resource estimation. and shallow depths of the 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 wireframing a 20m-by-20m
lidar drone survey point array, commissioned
by SVM in March 2022. Major cultural
features were removed from the survey
points file prior to generating the
topographical wireframe for resource
model construction. The ultra-high
resolution 3D drone aerial survey was
executed utilising a RTK GPS equipped
Zenith aircraft with accuracy of <10cm
ground sampling distance (GSD). Post-processing
includes the removal of cultural features
that do not reflect material movements
(pits, mounds, etc)
The DTM is suitable for the classification
of the resources as stated.
--------------------------------- -----------------------------------------------------------------
Data Data spacing for reporting The HA collars are spaced at nominally
spacing of Exploration Results. 400m along the 400m spaced drill-lines
& distribution with the PT 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 AC collars are spaced on a 200m
x 200m grid which is deemed to adequately
define the mineralisation.
The PT 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 Kriging neighbourhood analysis completed
procedure(s) and classifications using Supervisor software informs the
applied. 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
1,357 HA holes. 488 PT core holes have
been sampled at a regular 2m interval
to provide greater control on mineralisation
for the Indicated Resource.
Individual 1m intervals have been composited,
based on lithology, at a max 2m sample
interval for the 182 AC holes.
The DH Compositing tool was utilised
in Supervisor software to define the
optimal sample compositing length.
A 2m interval is applied to 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 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. 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 The CP Richard Stockwell 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 Mr Stockwell. Field and in-country
lab visits have been completed by Mr
Stockwell in May 2022. A high standard
of operation, procedure and personnel
was observed and reported.
Sovereign Metals Managing Director
Julian Stephens and Exploration Manager
Samuel Moyle have 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 Licence Applications
with third parties such as joint (APLs) under the Mines and Minerals
ventures, partnerships, overriding Act 2019, held in the Company's
royalties, native title wholly-owned, Malawi-registered
interests, historical sites, subsidiaries: EL0561, EL0492, EL0609,
wilderness or national park and EL0582, EL0545, EL0528, EL0657 and
environment settings. APL0404.
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, or have been,
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 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 grades. The resource is reported
grade 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 financial assessment
should 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 Rutile Equivalent (RutEq)
reporting of metal equivalent values Formula : Rutile Grade x Recovery
should be clearly stated. (97%) x Rutile Price (US$1,346/t) +
Graphite Grade x Recovery
(62%) x Graphite Price (US$1,085/t) /
Rutile Price (US$1,346/t).
Commodity Prices:
Rutile price: US$1,308/t
Graphite price: US$1,085/t
Metallurgical Recovery:
Rutile Recovery: 98%
Graphite Recovery: 62%
All assumptions taken from the
Company's 2022 Expanded Scoping Study
released 16 June 2022.
The Modifying Factors included in the
JORC Code were assessed as part of
the Scoping Study,
including mining, processing,
infrastructure, economic, marketing,
legal, environmental, social
and government factors. The Company
has received advice from appropriate
experts when assessing
each Modifying Factor.
Following an assessment of the
results of the Scoping Study, the
Company has formed the view
that the next stage of feasibility
studies is justified for Kasiya.
Feasibility Studies will
provide the Company with far more
comprehensive assessment of a range
of options for the technical
and economic viability of Kasiya
which by international standards
should be sufficient detail
for project development financers to
base an investment decision.
-------------------------------------- --------------------------------------
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 at Kasiya
North and N-S at Kasiya South. It
lies in a laterally
extensive superficial blanket with
high-grade zones reflecting the broad
bedrock strike orientation
of 045deg in the North of Kasiya and
360deg in the South of Kasiya.
-------------------------------------- --------------------------------------
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
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 the full
scales) and tabulations of intercepts announcement and in previous
should be included releases. These are accessible on
for any significant discovery being the Company's 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 just under 2% of the HA/PT drill
treatment; metallurgical test database, No drilling refusal was
results; bulk density, groundwater, recorded above the saprock
geotechnical and rock interface by AC drilling.
characteristics; potential Slimes (-45 um ) averages 46wt% in
deleterious or contaminating the Indicated Resource at a 0.7%
substances. rutile bottom cut. 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.
Several generations of QEMSCAN
analysis of the NM performed at ALS
Metallurgy fraction shows
dominantly clean and liberated rutile
grains and confirms rutile is the
only titanium species
in the NM fraction.
-------------------------------------- --------------------------------------
Further work The nature and scale of planned Further AC drilling will allow
further work (e.g. test for lateral the definition of a more
extensions or depth extensions extensive saprock-interface
or large-scale step-out drilling). basement
and should continue to deliver
additional resources below the
HA/PT-drilled regions.
A greater understanding of the
lithological character and
extent of those basement units,
where high-grade (>1%) rutile
persists at the saprock
interface, may assist in
focussing further
resource definition and
exploration targeting.
Further metallurgical assessment
is suggested to characterise
rutile quality and establish
whether any chemical variability
is inherent across the deposit.
Trialling drill definition at a
100m spacing is suggested for
Measured Resource assessment.
-------------------------------------- --------------------------------------
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 SOP's and conforming
corrupted by, for example, to company field names and classifications.
transcription or keying These are then migrated to Datashed5
errors, between its cloud-hosted database managed internally
initial collection and by the Company 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 Perth Laboratory visits have been completed
visits undertaken by by the Competent Person, Mr Richard
the Competent Person Stockwell. Field and in-country lab
and the outcome of those visits were complete over a 1-week period
visits. in May 2022. A high standard of operation,
procedure and personnel was observed
and reported.
-------------------------------------
If no site visits have From the discovery of Kasiya in late
been undertaken indicate 2019 through to early 2022, the Australian
why this is the case. and Western Australian Governments restricted
unnecessary international travel due
to the global Covid19 pandemic.
During this time the company 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 AC, PT core
and HA samples. Satellite imagery and
airborne geophysical data provided guidance
for interpreting the strike continuity
of the deposit.
Drill hole intercept logging and assay
results (AC, PT and HA), stratigraphic
interpretations from drill core and
geological logs of drill data have formed
the basis for the geological interpretation.
The drilling exclusively targeted the
SOIL, FERP, MOTT and SAPL weathering
horizons, with no sampling of the SAPR
and below the upper level of the fresh
rock (FRESH) domain.
------------------------------------- ----------------------------------------------------
Nature of the data No assumptions were made.
used 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 The mineral resource is constrained
in guiding and controlling by the drill array plus one interval
Mineral Resource estimation. in each of the X, Y and Z axes.
The topographical DTM constrains the
vertical extent of the resource. Rutile,
enriched at surface by deflation and
elluvial processes, is constrained internally
by a hard boundary at the base of the
SOIL and FERP horizons that overly 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 effective drill depth
plus one (average sample width) interval
in the Z orientation in HA/PT drilling.
The effective drill depth is where HA
drilling intersects the static water
table, rather than being a true depth
to un-mineralised basement. Deeper drilling
using the AC method has shown rutile
enrichment persists to bedrock and a
material resource increase is anticipated
upon application of this method to a
broader area.
A base to mineralisation of BOH plus
2.7m (-2.7 RL) is retained for this
estimate, where drilled by HA/PT methods.
This basement horizon is interpreted
on 200m north sections and accounts
for artifacts of ineffective drilling
terminating in soil or ferp horizons.
It is applied consistently to both Indicated
and Inferred resource areas.
AC drilling has accurately defined depth
to basement at the saprock interface,
which has been modelled where intersected
in the updated MRE.
------------------------------------- ----------------------------------------------------
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 at Kasiya
North and 360 degrees at Kasiya South,
which mimics the underlying basement
source rocks and residual topography.
Rutile varies across strike as a result
of the layering of mineralised and non-mineralised
basement rocks.
------------------------------------- ----------------------------------------------------
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 201km(2) .
(along strike or otherwise),
plan width, and depth Depth to basement is described previously.
below surface to the
upper and lower limits
of the Mineral Resource.
------------------------------------- ----------------------------------------------------
Estimation The nature and appropriateness Datamine Studio RM and Supervisor software
and modelling of the estimation technique(s) are used for the data analysis, variography,
techniques applied and key assumptions, geological interpretation and resource
including treatment estimation. Key fields are interpolated
of extreme grade values, into the volume model using a range
domaining, interpolation of parameters and interpolation methods
parameters and maximum to establish best fit for the deposit.
distance of extrapolation For the Kasiya MRE update, the Inverse
from data points. If Distance weighting (power 4) method
a computer assisted was seen to perform a superior interpolation
estimation method was of informing data and replication of
chosen include a description the high-value and thin, surface (SOIL/FERP)
of computer software grade distribution. This was assisted
and parameters used. by the (customary) application of a
Dynamic Anisotropy search, informed
by the results of variography, Suitable
limitations on the number of samples
and the impact of those samples, was
maintained.
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 fourth MRE for the Kasiya
check estimates, previous Deposit.
estimates and/or mine
production records and Pilot plant-scale test work has been
whether the Mineral completed and results support the view
Resource estimate takes of the Competent Person that an economic
appropriate account deposit of readily separable, high-quality
of such data. 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 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 is
model interpolation, equivalent to the average drill hole
the block size in relation spacing within the Indicated Resource
to the average sample (200m*200m). Cell size in the Z-axis
spacing and the search is established to cater for the composite
employed. 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. Both parent
cell and sub-cell interpolations were
completed and reported. The sub-cell
interpolation was again applied to this
MRE as it better reflected the geological
interpretation and a reasonable graduation
of informing data through intermediate
cell areas.
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 synthetic
topsoil generation for rehabilitation.
------------------------------------- ----------------------------------------------------
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 Interpolation was constrained by hard
the 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, 9 September 2020 and
It is always necessary 7 December 2021), relating to the company's
as part of the process ability to produce a high-grade rutile
of determining reasonable product with a high recovery via simple
prospects for eventual conventional processing methods. Sovereign
economic extraction engaged AML to conduct the metallurgical
to consider potential test work and develop a flowsheet for
metallurgical methods, plant design considerations.
but the assumptions
regarding metallurgical An initial sighter metallurgical test-work
treatment processes program was undertaken in June 2019
and parameters made on a 180kg sample of saprolite-hosted
when reporting Mineral rutile from an area representative of
Resources may not always the style of mineralisation at the Wofiira
be rigorous. Where this prospect. This test work focused on
is the case, this should generating saleable product specifications
be reported with an and demonstrated that a high-quality
explanation of the basis commercial Rutile product can be produced
of the metallurgical using conventional mineral sands processing
assumptions made. 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.
------------------------------------- ----------------------------------------------------
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 Density was calculated from 310 full
determined. If assumed, core samples taken from geographically
the basis for the assumptions. and lithologically-diverse sites across
If determined, the method the deposit. Density is calculated using
used, whether wet or a cylinder volume wet and dry method
dry, the frequency of performed by Sovereign in Malawi and
the measurements, the calculations verified by Placer Consulting.
nature, size and representativeness
of the samples. Density data was loaded into an Excel
file, which was flagged against weathering
horizons and mineralisation domains.
These results were then averaged, by
domain and applied to the MRE.
------------------------------------- ----------------------------------------------------
The bulk density for As above.
bulk material must have
been measured by methods
that adequately account
for void spaces (vughs,
porosity, etc.), moisture
and differences between
rock and alteration
zones within the deposit.
------------------------------------- ----------------------------------------------------
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 domain,
1.58 t/m(3) for the FERP domain, 1.66
t/m(3) for the MOTT domain, 1.69 t/m(3)
for the PSAP domain, 1.97 t/m(3) for
the SAPL domain, and 1.95 t/m(3) for
the LAT domain. Density data are interpolated
into the resource estimate by the nearest
neighbour method.
------------------------------------- ----------------------------------------------------
Classification The basis for the classification Classification of the M RE is at an
of the Mineral Resources Indicated and Inferred category. Minor
into varying confidence regions of unclassified material occur
categories. in sparsely drilled, typically extraneous
regions of the resource area. These
are excluded from the resource inventory.
------------------------------------- ----------------------------------------------------
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 Results appropriately reflects a reasonable
appropriately reflects and conservative view of the deposit.
the Competent Person's
view of the deposit
------------------------------------- ----------------------------------------------------
Audits The results of any Independent audit of the MRE construction
or reviews audits or reviews of was contracted to Datamine Australia
Mineral Resource estimates. by Placer prior to delivery to SVM.
A third party is engaged by SVM for
a further verification of the MRE.
------------------------------------- ----------------------------------------------------
Discussion Where appropriate a Substantial additional resource material
of relative statement of the relative is expected to occur below the effective
accuracy/ accuracy and confidence depth of drilling (water table).
confidence level in the Mineral
Resource estimate using A high-degree of uniformity exists in
an approach or procedure the broad and contiguous lithological
deemed appropriate by and grade character of the deposit.
the Competent Person. Drilling technique have been expertly
For example, the application applied and data collection procedures,
of statistical or geostatistical density assessments, QA protocols and
procedures to quantify interpretations conform to industry
the relative accuracy best practice with few exceptions.
of the resource within
stated confidence limits, Assay, mineralogical determinations
or, if such an approach and metallurgical test work conform
is not deemed appropriate, to industry best practice and demonstrate
a qualitative discussion a rigorous assessment of product and
of the factors that procedure. The development of a conventional
could affect the relative processing flowsheet and marketability
accuracy and confidence studies support the classification of
of the estimate. 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
---------------------------------------------------------------
ESS Expanded Scoping Study
---------------------------------------------------------------
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 or Spiral 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
---------------------------------------------------------------
m(2) Square Metre
---------------------------------------------------------------
m(3) 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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END
UPDGZGGDZDNGFZZ
(END) Dow Jones Newswires
April 05, 2023 02:00 ET (06:00 GMT)
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