TIDMSVML
RNS Number : 0394C
Sovereign Metals Limited
08 June 2023
SOVEREIGN METALS LIMITED
NEWS RELEASE | 8 JUNE 2023
KASIYA GRAPHITE SHOWS EXCELLENT SUITABILITY FOR USE IN LITHIUM
ION BATTERIES
-- Downstream testwork on Kasiya's graphite co-product
demonstrated it to have superior qualities showing excellent
suitability for use in lithium-ion batteries
-- Key outcomes were:
o Near perfect crystallinity - an indicator of battery anode
performance
o Above benchmark >99.95% carbon purity achieved
o No critical impurities or deleterious elements commonly found
in other natural graphite sources
-- Further testwork underway to optimise concentrate grade and
confirm optimal purification process
-- In 2022, the lithium-ion battery anode market became the
biggest end-market for natural flake graphite. Demand for anodes
grew by 46% in 2022 compared to only 14% growth in natural flake
graphite supply
Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or
Sovereign) is pleased to report recent outcomes of downstream
testwork on Kasiya's graphite co-product.
The Kasiya Project (Kasiya) has the potential to be the one of
the world's lowest cost and lowest global warming potential (GWP)
sources of natural graphite. The Kasiya project is the largest
natural rutile deposit and one of the largest flake graphite
deposits in the world. Both minerals are critical to several of the
world's economies and decarbonisation targets.
Kasiya has a geological benefit with both natural graphite and
rutile hosted in soft, friable saprolite material at surface that
can be mined, beneficiated, and purified with a considerably lower
carbon footprint than hard-rock operations or synthetic graphite
production.
The results of the recent initial downstream testwork conducted
by an independent German industrial mineral specialist demonstrated
superior qualities and excellent suitability as feedstock for use
in lithium-ion batteries.
In 2022, the lithium-ion battery anode market became the biggest
end-market for natural flake graphite. Greater capacity batteries,
such as those required for electric vehicles, are expected to drive
significant demand for graphite over the coming years.
Sovereign's Managing Director Dr Julian Stephens commented :
"The latest graphite downstream testwork confirms the superior
crystallinity and purity of Kasiya's natural graphite. Kasiya will
potentially be one of the lowest cost flake graphite projects in
the world and is also estimated to have one of the lowest global
warming potentials of any current and future graphite projects.
Producers and end users of lithium-ion batteries are already
closely monitoring the carbon footprint associated with the raw
materials that feed into battery technology.
"These results bolster Kasiya's competitive advantage,
indicating that not only does the project have the potential to be
a dominant rutile supplier, but also a dominant supplier of
graphite suitable for the lithium-ion battery industry. Kasiya's
PFS is progressing well with the Company looking forward to
releasing the outcomes of the study in coming months."
Classification: 2.2 This announcement contains Inside
Information
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 Ingram
Mariela Jaho
Christian Dennis
KEY OUTCOMES
Downstream testwork was conducted by an independent German
industrial mineral specialist across crystallinity and purity - two
key attributes of natural graphite used for anode feedstock in
lithium-ion battery anodes.
Crystallinity
Crystallinity is an indicator of electrical conductivity which
affects battery performance. This result is critical to the
usability in the lithium-ion battery sector as the higher the
crystallinity i.e. the more "perfect" the flakes/crystals, the
better the electrical conductivity and battery performance.
The testwork shows that Kasiya graphite is classed as near
perfect, fully ordered graphite, confirming it should possess the
best electrical conductivity attributes.
Purity
Purity denotes the product's total carbon content and the amount
of residual key impurities including sulphur and iron which are
important in anodes. Purification is achieved via either leaching
or heat treatment.
Testwork achieved >99.95% purity which is above the benchmark
required for graphite in lithium-ion batteries. The results also
demonstrated very low sulphur content in this material due to the
graphite being hosted in soft saprolite - a key differential from
graphite purified from hard-rock deposits.
TECHNICAL BACKGROUND
Graphitic carbon exhibits a large range of structures and
chemical compositions, from amorphous-like compounds through to
crystalline graphite in high-grade metamorphic belts. Broadly,
these reflect the geological setting and conditions under which the
graphite formed. Flake graphite is associated mostly with high
grade metamorphic rocks where original organic carbon deposited
within sediment was transformed into graphite by pressures
typically exceeding 5 kbar and temperatures above 650 degC.
The widely varying structure and chemistry of graphitic carbon
controls the remarkably diverse range in its physical properties.
Natural graphite is a key component in high-performance refractory
linings for steel manufacture, high-charge capacity anodes for
lithium-ion batteries, and a feedstock for graphene.
Crystallinity
The original paragneiss host rocks at Kasiya have experienced
high grade metamorphism having been heated to above 650degC and
subject to very high pressures above 13kbar. The rocks experienced
very slow cooling which has resulted in growth of coarsely
crystalline graphite and rutile.
In graphite, the degree of crystallinity is exhibited by the
interlayer distance between individual graphite layers - denoted
d002 when measured in Raman spectroscopy. Values of d002 of near
3.35 Å are considered fully ordered or highly crystalline graphite.
Kasiya graphite has a measured d002 of 3.348, classifying it as
near perfect, fully ordered graphite.
Fully ordered graphite, mostly free of natural defects, such as
that from Kasiya has the best electrical conductivity attributes of
all natural graphite types and thus shows excellent suitability as
feedstock for lithium-ion battery anodes. The other obvious and
more easily observed attribute of fully ordered graphite is the
shape, where hexagonal flakes indicate perfect or near-perfect
crystallinity - another attribute of the Kasiya graphite
products.
Purity
Purification of graphite concentrates grading 95-98% C(t) can be
performed by either heat treatment or reagent leaching. It is
desirable to have very low levels of critical impurities including
sulphur and metal ions - specifically iron in the final product
which should also grade +99.95% C(t) . Heat treatment purification
tests on Kasiya graphite have been successful in achieving high
levels of purification up to "four 9s" i.e. 99.995%+ purity, with
very low levels of critical impurities.
For purifying via reagent leaching, hydrofluoric acid (HF) has
traditionally been used as a key reagent. Due to HF's high
reactivity and dangerous nature current leaching test work in the
battery anode sector is focusing on reagent regimes containing no
HF. Sovereign has trialled some of these regimes and had success
with caustic bake and sulphuric acid leach stages achieving 99.92%
C(t) - very close to the 99.95% required for commercial products.
Further optimisation of this reagent regime is planned in order to
achieve commercial purity for lithium-ion battery anode
feedstock.
KASIYA'S GWP TO BE AMONGST THE LOWEST IN THE WORLD
The GWP of producing one tonne of flake graphite concentrate at
Kasiya estimated to be 0.2 tonnes of CO2 equivalent emissions
(CO2e). Kasiya has the lowest GWP compared with currently known and
planned future natural graphite projects:
-- Up to 60% lower than currently reported GWP of graphite
producers and developers, including suppliers to Tesla Inc.
-- 3x less polluting than proposed Tanzanian natural graphite
production from hard rock sources.
-- 6x less polluting than current Chinese natural graphite
production which accounts for up to 80% of current global graphite
supply.
The cradle-to-gate life cycle assessment (LCA) was carried out
by Minviro comparing current natural graphite production from China
which produces almost 80% of the world's natural graphite, and
proposed near-term production from Tanzania, which offers a
regional benchmark against Kasiya in Malawi. The LCA study followed
ISO 14067:2008 guidelines and was critically reviewed by a panel of
three independent experts.
A number of graphite producers and explorers/developers have
conducted their own LCAs, with conclusions of a select number being
made public. Kasiya's graphite product currently has the lowest GWP
of publicly reported current and future potential graphite
production.
The benchmarking study found that the total GWP of 0.2 tonnes
CO(2) e per tonne of natural flake graphite concentrate produced at
Kasiya is significantly lower than the total GWP per tonne produced
in Heilongjiang Province, China (1.2 tonnes CO(2) e) and the total
GWP per tonne produced in Tanzania (0.6 tonnes CO(2) e).
Why is Kasiya's Graphite able to achieve such a low
carbon-footprint?
The GWP for Kasiya's flake graphite product was based on the
ESS. The significantly lower GWP for Kasiya graphite is due to the
fact that it is hosted in soft, friable saprolite material which
will be mined via hydro methods (high pressure water monitors)
powered by predominantly renewable energy sources - hydro power
from the Malawi grid and on-site solar power. This is opposed to
the production in Heilongjiang Province, China where hard-rock ore
requires drilling, blasting, excavation, trucking, crushing, and
grinding - overall high CO(2) e activities.
NEXT STEPS
Sovereign has further testwork underway as the Company continues
to qualify the graphite product for possible markets. Key
activities include:
-- Optimisation of process flowsheet to increase the concentrate grade
-- Analysis of purification process to optimise parameters
focusing on achieving the most sustainable outcome
-- Micronisation, spheronisation and coating testwork
-- Bulk sample generation program
Competent Persons' Statements
The information in this report that relates to Exploration
Results is based on information compiled by Mr Samuel Moyle, a
Competent Person who is a member of The Australasian Institute of
Mining and Metallurgy (AusIMM). Mr Moyle is the Exploration Manager
of Sovereign Metals Limited and a holder of ordinary shares and
unlisted performance rights in Sovereign Metals Limited. Mr Moyle
has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity being undertaken, to qualify as a Competent Person as
defined in the 2012 Edition of the 'Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves'. Mr
Moyle consents to the inclusion in the report of the matters based
on his information in the form and context in which it appears.
The information in this report that relates to Metallurgical
Results is based on information compiled by Mr Paul Marcos, a
Competent Person who is a member of the AusIMM. Mr Marcos is an
employee of Sovereign Metals Limited and a holder of ordinary
shares and unlisted performance rights in Sovereign Metals Limited.
Mr Marcos 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
Marcos consents to the inclusion in the report of the matters based
on his information in the form and context in which it appears.
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.
This ASX Announcement has been approved and authorised for
release by the Company's Managing Director, Dr Julian Stephens.
To view this announcement in full, including all illustrations
and figures, please refer to
http://www.investi.com.au/api/announcements/svm/fe3830af-843.pdf
.
Appendix 1: JORC Code, 2012 Edition - Table 1
SECTION 1 - SAMPLING TECHNIQUES AND DATA
Criteria JORC Code explanation Commentary
Sampling Nature and quality of Metallurgical Composite Sample: Graphite
Techniques sampling (e.g. cut channels, product test work was completed on
random chips, or specific a composited sample from raw primary
specialised industry 1-metre reserve material from the Kasiya
standard measurement Deposit.
tools appropriate to The sample was a composite of 13 Hand
the minerals under Auger (HA) holes reserve material drilled
investigation, in 2020 and 2021.
such as down hole gamma Samples were selected based on rutile
sondes, or handheld XRF grade, weathering, and location within
instruments, etc). These pit areas 13, 15 and 16. The weathering
examples should not be units contributed the following percentages,
taken as limiting the SOIL/FERP 42%, MOTT 39% and PSAP 19%.
broad meaning of sampling. Specifically, the composite sample
consisted of selected rutile mineralised
zones from holes, NSHA0004, 0009, 0035,
0055, 0056, 0095, 0119, 0200, 0222,
0224, 0225, 0261 and 0262. These holes
are located in the southern area of
the mineralised footprint.
The reserve 1-metre raw samples were
used to create a composite sample of
mass circa 237kg with a grade of 1.16%
TGC modelled from the mineral resource
sample assays as a weighted average.
--------------------------------- -----------------------------------------------------------------
Include reference to Placer Consulting (Placer) Resource
measures taken to ensure Geologists have reviewed Standard Operating
sample representivity Procedures (SOPs) for the collection
and the appropriate calibration of drill samples and found them to
of any measurement tools be fit for purpose.
or systems used. Drilling and sampling activities are
supervised by a suitably qualified
Company geologist who is present at
all times. All bulk 1-metre drill samples
are geologically logged by the geologist
at the drill site.
Each 1m of sample is dried and riffle-split
to generate a total sample weight of
3kg for analysis, generally at 2 -
5m intervals. This primary sample is
then split again to create a 3kg composite
to provide a 1.5kg sample for both
rutile and graphite analyses. The excess
material is then stored as reserve.
The primary metallurgical composite
sample is considered representative
for this style of mineralisation.
--------------------------------- -----------------------------------------------------------------
Aspects of the determination HA drilling was used to obtain 1-metre
of mineralisation that samples. The bulk metallurgical sample
are Material to the Public was a composite of selected reserve
Report. In cases where samples from routine resource drilling.
'industry standard' work Existing rutile exploration results
has been done this would were used to determine the 1-metre
be relatively simple intervals suitable to contribute to
(e.g. 'reverse circulation the 237kg bulk sample composite.
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, Placer has reviewed SOPs for HA drilling
Techniques reverse circulation, and found them to be fit for purpose.
open -- hole hammer, HA drilling with 75mm diameter enclosed
rotary air blast, auger, spiral bits (SOS) with 1-metre long
Bangka, sonic, etc) and steel rods and with 62mm diameter open
details (e.g. core diameter, spiral bits (SP) with 1-metre long
triple or standard tube, steel rods. Drilling is oriented vertically
depth of diamond tails, by eye.
face -- sampling bit Each 1m of drill sample is collected
or other type, whether into separate sample bags and set aside.
core is oriented and The auger bits and flights are cleaned
if so, by what method, between each metre of sampling to avoid
etc). contamination.
--------------------------------- -----------------------------------------------------------------
Drill Method of recording Samples are assessed visually for recoveries.
Sample and assessing core and Overall, recovery is very good. Drilling
Recovery chip sample recoveries is ceased when recoveries become poor
and results assessed. once the water table has been reached.
--------------------------------- -----------------------------------------------------------------
Measures taken to maximise The Company's trained geologists supervise
sample recovery and ensure auger drilling on a 1 team 1 geologist
representative nature basis and are responsible for monitoring
of the samples. all aspects of the drilling and sampling
process.
--------------------------------- -----------------------------------------------------------------
Whether a relationship No bias related to preferential loss
exists between sample or gain of different materials has
recovery and grade and occurred.
whether sample bias may
have occurred due to
preferential loss/gain
of fine/coarse material.
--------------------------------- -----------------------------------------------------------------
Logging Whether core and chip All individual 1-metre auger intervals
samples have been geologically are geologically logged, recording
and geotechnically logged relevant
to a level of detail data to a set template using company
to support appropriate codes.
Mineral Resource estimation
mining studies and metallurgical
studies.
--------------------------------- -----------------------------------------------------------------
Whether logging is qualitative All logging includes lithological features
or quantitative in nature. and estimates of basic mineralogy.
Core (or costean, channel, Logging is generally qualitative.
etc.) photography.
--------------------------------- -----------------------------------------------------------------
The total length and 100% of samples are geologically logged.
percentage of the relevant
intersection logged
--------------------------------- -----------------------------------------------------------------
Sub-sampling If core, whether cut Not applicable - no core drilling conducted.
techniques or sawn and whether quarter,
and sample half or all core taken.
preparation
--------------------------------- -----------------------------------------------------------------
If non-core, whether Primary individual 1-metre samples
riffled, tube sampled, from all HA holes drilled were sun
rotary split, etc. and dried and homogenised. The 1-metre
whether sampled wet or raw sample not used in the generation
dry. of a primary assay composite are stored
as reserve.
--------------------------------- -----------------------------------------------------------------
For all sample types, Metallurgical Composite Sample: 1-metre
the nature, quality and intervals selected for the 237kg metallurgical
appropriateness of the sample were divided into weathering
sample preparation technique. units.
MOTT and PSAP material were combined
and homogenised in preparation for
dispatch to Australian laboratory Intertek
for TGC assay.
Per Australian import quarantine requirements
100kg of the contributing SOIL/FERP
material from within 2m of surface
was kept separate to undergo quarantine
heat treatment at Intertek Laboratory
on arrival into Australia.
The two sub samples (SOIL/FERP and
MOTT/PSAP) were then dispatched from
Intertek to AML Laboratory (AML). AML
sub-sampled and assayed the individual
lithologies prior to combining and
homogenising the sample in preparation
for test-work.
--------------------------------- -----------------------------------------------------------------
Quality control procedures The sample preparation techniques and
adopted for all sub-sampling QA/QC protocols are considered appropriate
stages to maximise for the nature of this test-work.
representivity
of samples.
--------------------------------- -----------------------------------------------------------------
Measures taken to ensure The sampling best represents the material
that the sampling is in situ.
representative of the
in situ material collected,
including for instance
results for field
duplicate/second-half
sampling.
--------------------------------- -----------------------------------------------------------------
Whether sample sizes The sample size is considered appropriate
are appropriate to the for the nature of the test-work.
grain size of the material
being sampled.
--------------------------------- -----------------------------------------------------------------
Quality The nature, quality Metallurgical Composite Sample :
of assay and appropriateness of The following workflow was used to
data and the assaying and laboratory generate a pre-concentrate graphite
laboratory procedures used and whether feed at AML:
tests the technique is considered * Wet screen at 2mm to remove oversize
partial or total.
* Two stage cyclone separation at a cut size of 45um to
remove -45um material
* Pass +45um -2mm (sand) fraction through Up Current
Classifier (UCC)
* Pass UCC O/F through cyclone at cut point of 45um
* Pass UCC O/F cyclone U/F (fine) over MG12 Mineral
Technologies Spiral
* Pass UCC U/F (coarse) over MG12 Mineral Technologies
Spiral
* Spiral cons are combined for further processing.
Fine and coarse gravity tailing samples
contain approximately 75%-80% of the
graphite present in the feed sample.
The majority of the graphite lost is
contained in the -45um fines.
Coarse and fine gravity tailings are
sent to ALS for graphite flotation
testwork.
The following workflow at ALS was used
to generate a graphite product;
* The gravity tail from AML underwent the following
processing at ALS in two differing flowsheets;
* Flowsheet 1 (ALS tests AM3358 and AM3359)
o Separate coarse and fine rougher
graphite flotation
o Separate polishing grind of coarse
and fine rougher graphite concentrate
o Separate cleaner flotation of coarse
and fine graphite
o Cleaner concentrate sizing at 180um
o Regrind of separate +180um/-180um
fractions
o Separate three stage recleaner flotation
of +180um/-180um fractions
* Flowsheet 2 (ALS tests AM3360, AM3361, AM3362 and
AM3359)
o Combined coarse and fine rougher
graphite flotation
o Combined polishing grind of rougher
graphite concentrate
o Combined cleaner flotation
o Floatation of cleaner concentrate
sizing at 180um
o regrind of separate +180um/-180um
fractions
o Separate three stage recleaner flotation
of +180um/-180um fractions
The grade of the concentrate was 94.3%
TGC (ALS). A 506.7 gram sample of this
concentrate was provided to Dorfner
Anzaplan for the downstream testwork
--------------------------------- -----------------------------------------------------------------
For geophysical tools, Acceptable levels of accuracy and precision
spectrometers, handheld have been established. No handheld
XRF instruments, etc., methods 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 Accuracy monitoring is achieved through
procedures adopted (e.g. submission of certified reference materials
standards, blanks, duplicate, (CRM's).
external laboratory checks)
and whether acceptable Intertek uses internal CRMs and duplicates
levels of accuracy (i.e. and SVM inserts randomized certified
lack of bias) and precision bespoke graphite CRMs at 1 in 20.
have been established.
--------------------------------- -----------------------------------------------------------------
Verification The verification of No drilling intersections are being
of sampling significant intersections reported.
& assaying by either independent
or alternative company
personnel.
--------------------------------- -----------------------------------------------------------------
The use of twinned holes. No twin holes complete.
--------------------------------- -----------------------------------------------------------------
Documentation of primary All data was collected initially on
data, data entry procedures, paper logging sheets and codified to
data verification, data the Company's templates. This data
storage (physical and was hand entered to spreadsheets and
electronic) protocols. validated by Company geologists. This
data was then imported to a Microsoft
Access Database then validated automatically
and manually.
--------------------------------- -----------------------------------------------------------------
Discuss any adjustment No adjustment to assay data has been
to assay data. made.
--------------------------------- -----------------------------------------------------------------
Location Accuracy and quality A Trimble R2 Differential GPS was used
of data of surveys used to locate to pick up the hand auger collars.
points drill holes (collar and No downhole surveying of auger holes
down-hole surveys), trenches, is completed. Given the vertical nature
mine workings and other and shallow depths of the auger holes
locations used in Mineral drill hole deviation is not considered
Resource estimation. to significantly affect the downhole
location of samples.
--------------------------------- -----------------------------------------------------------------
Specification of the WGS84 UTM Zone 36 South.
grid system used.
--------------------------------- -----------------------------------------------------------------
Quality and adequacy DGPS pickups are considered to be high
of topographic control. quality topographic control measures.
--------------------------------- -----------------------------------------------------------------
Data Data spacing for reporting Metallurgical Composite Sample : The
spacing of Exploration Results. hand-auger holes contributing to this
& distribution metallurgical were selected from pit
area, 13, 15 and 16 (as per the Expanded
Scoping Study mine plan) and broadly
represent the early years of mining.
It is deemed that these holes should
be broadly representative of the
mineralisation style in the general
area.
--------------------------------- -----------------------------------------------------------------
Whether the data spacing Not applicable, no Mineral Resource
and distribution is sufficient or Ore Reserve estimations are covered
to establish the degree by new data in this report.
of geological and grade
continuity appropriate
for the Mineral Resource
and Ore Reserve estimation
procedure(s) and classifications
applied.
--------------------------------- -----------------------------------------------------------------
Whether sample compositing Metallurgical Composite Sample : Raw
has been applied. primary 1-metre sample reserve from
13 hand auger holes drilled for the
purpose of mineral exploration have
been composited together to create
a circa 237kg sample for metallurgical
analysis.
--------------------------------- -----------------------------------------------------------------
Orientation Whether the orientation No bias attributable to orientation
of data of sampling achieves of sampling has been identified.
in relation unbiased sampling of
to geological possible structures and
structure the extent to which this
is known considering
the deposit type
--------------------------------- -----------------------------------------------------------------
If the relationship All holes were drilled vertically as
between the drilling the nature of the mineralisation is
orientation and the orientation horizontal. No bias attributable to
of key mineralised structures orientation of drilling has been identified.
is considered to have
introduced a sampling
bias, this should be
assessed and reported
if material.
--------------------------------- -----------------------------------------------------------------
Sample The measures taken to Samples were stored in secure storage
security ensure sample security from the time of drilling, through
gathering, compositing and analysis.
The samples were sealed as soon as
site preparation was completed, and
again securely stored during shipment
and while at Australian laboratories.
--------------------------------- -----------------------------------------------------------------
Audits The results of any audits It is considered by the Company that
or reviews or reviews of sampling industry best practice methods have
techniques and data been employed at all stages of the
exploration.
--------------------------------- -----------------------------------------------------------------
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 Not applicable
reporting of metal equivalent values
should be clearly stated.
-------------------------------------- --------------------------------------
Relationship between mineralisation These relationships are particularly The mineralisation has been released
widths & intercept lengths important in the reporting of by weathering of the underlying,
Exploration Results. layered gneissic bedrock
that broadly trends NE-SW 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 previous
scales) and tabulations of intercepts releases. These are accessible on the
should be included Company's webpage.
for any significant discovery being
reported. These should include, but
not be limited to
a plan view of the drill collar
locations and appropriate sectional
views.
-------------------------------------- --------------------------------------
Balanced reporting Where comprehensive reporting of all All results are included in this
Exploration Results is not report 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 Sample quality (representivity) is
deleterious or contaminating established by geostatistical
substances. analysis of comparable sample
intervals.
-------------------------------------- --------------------------------------
Further work The nature and scale of planned Further AC drilling will allow the
further work (e.g. test for lateral definition of a more extensive
extensions or depth extensions saprock-interface basement
or large-scale step-out drilling). 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 previous
areas of possible extensions, releases. These are accessible on the
including the main geological Company's webpage.
interpretations and future drilling
areas, provided this information is
not commercially sensitive.
-------------------------------------- --------------------------------------
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