NEWS
RELEASE I 19 FEBRUARY 2025
KASIYA'S GRAPHITE SUITABLE
FOR REFRACTORY USE
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Kasiya graphite concentrate confirmed to meet or exceed all
critical characteristics required for refractory
applications
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Refractories market is the second largest end-user of natural
graphite (24%) after batteries sector (52%)
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Refractories use coarser (larger) flake graphite products,
which typically attract a premium over smaller flake-size products
used in the batteries sector
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In
Q4 2024, graphite usable in refractories achieved prices up to
US$1,193/t versus smaller flake graphite used in the batteries
sector, which sold for US$564/t
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Kasiya's incremental cost of graphite production per the
recently announced Optimised Prefeasibility results is US$241/t
(FOB)
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Leading German laboratories ProGraphite and Dorfner Anzaplan
completed a comprehensive testwork program of Kasiya's graphite
concentrate
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Results will be used for customer engagement and potential
offtake discussions
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Previous testwork has already confirmed that Kasiya's graphite
can produce outstanding battery anode material
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Sovereign Metals Limited (ASX:SVM; AIM:SVML; OTCQX:
SVMLF) (Sovereign or the Company) is pleased to announce
that testwork completed on graphite from the Company's Kasiya
Rutile-Graphite Project (Kasiya or the Project) has confirmed Kasiya's
graphite has the key characteristics required for use in refractory
applications. The comprehensive testwork programs were completed by
ProGraphite GmbH (ProGraphite) and Dorfner Anzaplan
(DA) in Germany and
demonstrated that Kasiya graphite concentrate contains very low
sulphur levels and the absence of other impurities of concern,
providing a competitive advantage over other current and potential
sources of graphite supply.
Managing Director and CEO Frank Eagar commented:
"The refractories market is the second largest
end-user of natural graphite and requires larger, coarser graphite
flakes with specific chemical and physical properties. We know that
almost 70% of Kasiya's graphite meets the size requirements for
refractory applications. Today's results confirm that our graphite
product also meets or exceeds the key chemical and physical
properties required to sell into the refractory market.
Combining these results with the
excellent results for anode materials testing highlights the
premium quality of Kasiya graphite concentrate and provides a very
strong foundation for sales and marketing discussions."
Kasiya Graphite Testwork Update
Sovereign has now completed testwork
programs to confirm the suitability of graphite from Kasiya as a
product for the two largest end-use markets for natural flake
graphite i.e. refractory applications and anode material for use in
lithium-ion batteries. Together, these two sectors account for over
three-quarters of global natural graphite demand (see Figure
1).
Graphite products for refractory
applications typically require larger flake sizes than the smaller
graphite flake products used to produce battery anode materials.
Larger flake size graphite products tend to attract significantly
higher prices than smaller flake products.
In Q4 2024, Syrah Resources Limited
(the world's largest, publicly listed natural graphite producer
outside of China) reported a price for smaller flake graphite
concentrate to be used for battery anode production of US$564 per
tonne (CIF) based on third-party sales. In December 2024, large
flake graphite used in the refractory sector achieved prices of up
to US$1,193/t (based on data from Benchmark Mineral
Intelligence).
The incremental cost of producing a
tonne of graphite from Kasiya under Sovereign's recently announced
Optimised Prefeasibility Study is US$241/t (see ASX announcement
"Kasiya - Optimised PFS Results" dated 22 January 2025).
Figure 1: Uses of Graphite (Source: European Advanced
Carbon and Graphite Association)
Refractory Application Testwork Results
Summary
Flake graphite concentrate generated
from Kasiya samples were tested for traditional, refractory
applications at two leading European laboratories ProGraphite and
DA, with the following findings:
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Table 1: Graphite Requirements for Refractory
Applications
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Kasiya
Graphite
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High purity graphite concentrate with
little impurities
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High grade, large flakes within
graphite concentrate
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High melting temperature for flake
ash residue after combusting graphite
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High oxidation resistance of graphite
concentrate
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Low levels of volatiles in
concentrate
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Low levels of problematic mineral
impurities, including sulphur
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Low levels of "springback" from
compression
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Customer Engagement and Offtakes
The global refractory market is an
estimated €20 Billion worldwide industry and is the largest
traditional market for natural flake graphite. Natural flake
graphite is added to refractories to improve
performance.
Refractories are used to line
furnaces and vessels to support high-temperature processing across
a wide range of industries, including iron and steel production,
non-ferrous metals, cement and lime, glass, and
chemicals.
According to the global leader in
refractories, RHI Magnesita NV, steel production is the major
consumer of refractories, accounting for 60% of global demand. Each
tonne of steel requires approximately 10-15kg of
refractories.
Other key companies in the
refractories market include Vesuvius plc, Krosakai Harima
Corporation, Puyang Refractories Group, Chosun Refractories Co,
Imerys SA, Shinagwa Refractories, Saint-Gobain, Morgans Advanced
Materials and Calderys.
The successful assessment of Kasiya
coarse flake for refractory applications will be used for customer
engagement and offtake discussions.
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Enquires
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Frank Eagar, Managing Director & CEO
South Africa / Malawi
+ 27 21 140
3190
Sapan Ghai, CCO
London
+44 207 478 3900
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Nominated Adviser on AIM and
Joint Broker
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SP Angel Corporate Finance
LLP
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+44 20 3470 0470
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Ewan Leggat
Charlie Bouverat
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Joint
Brokers
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Stifel
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+44 20 7710 7600
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Varun Talwar
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Ashton Clanfield
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Berenberg
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+44 20 3207 7800
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Matthew Armitt
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Jennifer Lee
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Buchanan
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+ 44 20 7466 5000
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Competent Person Statement
The information in this report that relates to Metallurgical
Testwork is based on information compiled by Dr Surinder Ghag,
PhD., B. Eng, MBA, M.Sc., who is a Member of the Australasian
Institute of Mining and Metallurgy (MAusIMM). Dr Ghag is engaged as
a consultant by Sovereign Metals Limited. Dr Ghag has sufficient
experience, which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity which 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'. Dr Ghag 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 Exploration
Results is based on information compiled by Mr Malcolm Titley, a
Competent Person who is a member of The Australasian Institute of
Mining and Metallurgy (AusIMM). Mr Titley consults to Sovereign
Metals Limited and is a holder of ordinary shares and unlisted
performance rights in Sovereign Metals Limited. Mr Titley 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
Titley 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 operating
costs is extracted from an announcement dated 22 January 2025,
which is available to view at 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 original
announcement; b) all material assumptions and technical parameters
underpinning the Production Target, and related forecast financial
information derived from the Production Target included in the
original announcement continue to apply and have not materially
changed; and c) the form and context in which the relevant
Competent Persons' findings are presented in this presentation have
not been materially modified from the original
announcement.
Forward Looking Statement
This release may include forward-looking statements, which may
be identified by words such as "expects", "anticipates",
"believes", "projects", "plans", and similar expressions. These
forward-looking statements are based on Sovereign's expectations
and beliefs concerning future events. Forward looking statements
are necessarily subject to risks, uncertainties and other factors,
many of which are outside the control of Sovereign, which could
cause actual results to differ materially from such statements.
There can be no assurance that forward-looking statements will
prove to be correct. Sovereign makes no undertaking to subsequently
update or revise the forward-looking statements made in this
release, to reflect the circumstances or events after the date of
that release.
The information contained within this announcement is deemed
by the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK domestic law by virtue of the European Union (Withdrawal) Act
2018 ('MAR'). Upon the publication of this announcement via
Regulatory Information Service ('RIS'), this inside information is
now considered to be in the public domain.
Appendix 1: Detailed Refractory Application Testwork
Results
High purity graphite concentrate with little
impurities
Kasiya concentrate was determined to
have high purity (98%) with no observable natural mineral
impurities observed (see Figure 2). Talc, which is not an impurity
of concern for refractory applications, was determined to be the
minor impurity on analysis of the ash remaining from combusting the
graphite.
Figure 2: Kasiya Flake Graphite SEM highlighting clean
flakes
High grade, large flakes within graphite
concentrate
Natural flake graphite for
refractory applications requires high oxidation resistance.
Particle size and grade are the two key determinants of oxidation
resistance.
There are three different size
fractions applicable to refractory graphite products: +300 microns,
+180 microns and +150 microns. All three size fractions for Kasiya
graphite concentrate demonstrate very high grade, highlighting
coarse Kasiya flakes suitability for refractory
applications.
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Table 2: Size fraction analysis for Loss-on-Ignition (LOI) and
Fixed Carbon Grade
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Sample
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LOI
(%)
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Fixed Carbon
(%)
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+300
microns
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98.69
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98.50
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+180
microns
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98.83
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98.57
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+150
microns
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98.75
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98.49
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High melting temperature for flake ash
residue
Flake ash is the residue from
combusting (burning) graphite. A high flake ash melting temperature
is required for refractory applications.
Flake ash from coarse Kasiya flake
(>180 microns) has a melting temperature of 1,373°C, above that
for flake ash of commercial reference material (>1250°C), and
hemisphere temperature of 1,393°C and flow temperature of 1,429°C
(Figure 3) i.e. flake ash from coarse Kasiya concentrate exceeds
the melting characteristics specification.
Figure 3: Flake ash from Kasiya coarse flake melting
testing
High oxidation resistance of graphite
concentrate
As reported in the Company's ASX
Announcement dated 21 November 2024, entitled "Positive Initial
Test Results For Use Of Kasiya Graphite In Refractories", and as
expected from the high purity of Kasiya coarse fractions (Table 2),
Kasiya's coarse flake has excellent resistance to oxidation.
ProGraphite had confirmed Kasiya coarse flake exhibits:
No oxidation below 400°C, only a
6.4% mass loss after four hours at 650°C, and a very low oxidation
rate of 1.6% per hour at 650°C.
Comparative testing at DA showed
that only a coarse commercial reference material (>300 microns)
had a greater resistance than Kasiya coarse flake (>180
microns).
Low
levels of volatiles in concentrate
DA measured volatiles content at
0.2%, which is comparable or better than commercial reference
materials; ProGraphite measured volatile content at 0.19%-0.26% for
various size fractions, significantly lower than what is considered
"high volatiles content" at ~0.5% or higher.
High volatiles content can damage
the refractory, indicating that Kasiya coarse flake meets this
specification.
Low
levels of problematic mineral impurities
Sulphur content was measured at
0.03% at DA, noting that Kasiya graphite sulphur levels are low
compared to commercial reference material from other
sources.
Calcium carbonates (calcite,
dolomite) act as a flux, lowering the melting point of other
minerals and releasing CO2 when exposed to high
temperatures. Consequently, low levels are required in graphite
used for refractory applications. Calcium carbonates were not
detected in testing of Kasiya concentrate via a range of methods.
Other alkalis (sodium, potassium) which can also be reactive in
refractory applications were also at low levels.
Low
levels of "springback" from compression
Springback is an assessment of the
extent of graphite to increase its volume after compression. A low
springback is preferred for shape retention e.g. in producing
refractory bricks.
Springback of Kasiya graphite was
observed to be low and in line with results from Chinese
graphite's, decreasing with particle size (see Table 3).
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Table 3: Springback Analysis of Kasiya Coarse
Fractions
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Sample
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Springback
(%)
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+300
microns
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8.1%
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+180
microns
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9.2%
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+150
microns
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11.5%
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Conclusion
Testing of the broad range of
criteria on the suitability of natural graphite concentrates for
refractory applications confirmed that coarse Kasiya concentrate has the
characteristics required for refractory applications - it
has high purity, high oxidation resistance, high ash melting
temperatures, low levels of volatiles, sulphur and calcium
carbonates, and low springback.
Appendix 2: JORC CODE, 2012 EDITION - TABLE
1
SECTION 1 - SAMPLING TECHNIQUES AND DATA
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Criteria
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JORC Code
explanation
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Commentary
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Sampling Techniques
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Nature and quality of sampling (e.g.
cut channels, random chips, or specific specialised industry
standard measurement tools appropriate to the minerals under
investigation, such as down hole gamma sondes, or handheld XRF
instruments, etc). These examples should not be taken as limiting
the broad meaning of sampling.
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Metallurgical Composite
Sample:
The sample was a composite of 24
Hand Auger (HA) and Push Tube (PT) holes drilled in 2021 and 2022
in the Kingfisher pit.
All drilling samples within the pit
shell were added to the composite resulting in a sample of
2,498kg.
Specifically, the composite sample
consisted of selected rutile mineralised zones from holes,
NSHA0009, 0010, 0056, 0060, 0061, 0074, 0119, 0311, 0343, 0344,
0345, 0350 and NSPT 0011, 0013, 0014, 0015, 0017, 0020, 0021, 0023,
0024, 0025, 0026, 0027.
The following workflow was used to
generate a pre-concentrate graphite feed at AML:
· Wet screen at 2mm to remove oversize
· Two stage cyclone separation at a cut size of 45µm to remove -45µm material
· Pass +45µm -2mm (sand) fraction through Up Current Classifier
(UCC)
· Pass UCC O/F through cyclone at cut point of 45µm
· 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 -45µm fines.
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Include reference to measures taken
to ensure sample representivity and the appropriate calibration of
any measurement tools or systems used.
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Placer Consulting (Placer) Resource
Geologists have reviewed Standard Operating Procedures (SOPs) for
the collection of HA and PT drill samples and found them to be fit
for purpose.
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.
The primary metallurgical composite
sample is considered representative for this style of
mineralisation.
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Aspects of the determination of
mineralisation that are Material to the Public Report. In cases
where 'industry standard' work has been done this would be
relatively simple (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.
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HA drilling was used to obtain
1-metre samples. The bulk metallurgical sample was a composite of
selected samples from routine resource drilling.
Existing rutile and graphite
exploration results were used to determine the 1-metre intervals
suitable to contribute to the two bulk sample
composites.
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Drilling Techniques
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Drill type (e.g. core, reverse
circulation, open‐hole hammer, rotary air blast, auger, Bangka, sonic, etc) and
details (e.g. core diameter, triple or standard tube, depth of
diamond tails, face‐sampling bit or other type, whether core is oriented and if
so, by what method, etc).
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Hand-auger drilling is completed
with 75mm diameter enclosed spiral bits with 1-metrelong steel
rods. 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.
Placer has reviewed SOPs for
hand-auger drilling and found them to be fit for purpose and
support the resource classifications as applied to the
MRE.
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Drill Sample Recovery
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Method of recording and assessing
core and chip sample recoveries and results assessed.
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The configuration of drilling and
nature of materials encountered results in negligible sample loss
or contamination.
Samples are assessed visually for
recoveries. Overall, recovery is good. Drilling is ceased when
recoveries become poor generally once the water table has been
encountered.
Auger drilling samples are actively
assessed by the geologist onsite for recoveries and
contamination.
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Measures taken to maximise sample
recovery and ensure representative nature of the
samples.
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The Company's trained geologists
supervise auger drilling on a 1 team 1 geologist basis and are
responsible for monitoring all aspects of the drilling and sampling
process.
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Whether a relationship exists
between sample recovery and grade and whether sample bias may have
occurred due to preferential loss/gain of fine/coarse
material.
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No bias related to preferential loss
or gain of different materials has occurred.
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Logging
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Whether core and chip samples have
been geologically and geotechnically logged to a level of detail to
support appropriate Mineral Resource estimation mining studies and
metallurgical studies.
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All individual 1-metre auger
intervals are geologically logged, recording relevant
data to a set template using company
codes.
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Whether logging is qualitative or
quantitative in nature. Core (or costean, channel, etc.)
photography.
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All logging includes lithological
features and estimates of basic mineralogy. Logging is generally
qualitative.
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The total length and percentage of
the relevant intersection logged
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100% of samples are geologically
logged.
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Sub-sampling techniques and sample
preparation
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If core, whether cut or sawn and
whether quarter, half or all core taken.
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Not applicable - no core drilling
conducted.
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If non-core, whether riffled, tube
sampled, rotary split, etc. and whether sampled wet or
dry.
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Primary individual 1-metre samples
from all HA and PT holes drilled are sun dried, homogenised and
riffle split.
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For all sample types, the nature,
quality and appropriateness of the sample preparation
technique.
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Metallurgical Composite
Sample:
1-metre intervals selected for the
2,498kg metallurgical sample were divided into weathering
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 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.
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Quality control procedures adopted
for all sub-sampling stages to maximise representivity of
samples.
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The sample preparation techniques and
QA/QC protocols are considered appropriate for the nature of this
test-work.
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Measures taken to ensure that the
sampling is representative of the in situ material collected,
including for instance results for field duplicate/second-half
sampling.
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The sampling best represents the
material in situ.
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Whether sample sizes are appropriate
to the grain size of the material being sampled.
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The sample size is considered
appropriate for the nature of the test-work.
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Quality of assay data and laboratory
tests
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The nature, quality and
appropriateness of the assaying and laboratory procedures used and
whether the technique is considered partial or total.
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Metallurgical Composite
Sample:
The following workflow was used to
generate a graphite product;
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Coarse and fine rougher graphite
flotation
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Polishing grind of coarse and fine rougher
graphite concentrate
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Cleaner flotation of coarse and fine
graphite
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Cleaner concentrate sizing at 180µm
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Regrind of separate +180µm/-180µm
fractions
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Three stage recleaner flotation of +180µm/-180µm
fractions
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For geophysical tools, spectrometers,
handheld XRF instruments, etc., the parameters used in determining
the analysis including instrument make and model, reading times,
calibrations factors applied and their derivation, etc.
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Acceptable levels of accuracy and
precision have been established. No handheld methods are used for
quantitative determination.
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Nature of quality control procedures
adopted (e.g. standards, blanks, duplicate, external laboratory
checks) and whether acceptable levels of accuracy (i.e. lack of
bias) and precision have been established.
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Acceptable levels of accuracy and
precision have been established in the preparation of the bulk
sample composites.
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Verification of sampling &
assaying
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The verification of significant
intersections by either independent or alternative company
personnel.
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No drilling intersections are being
reported.
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The use of twinned holes.
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No twin holes completed in this
program.
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Documentation of primary data, data
entry procedures, data verification, data storage (physical and
electronic) protocols.
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All data was collected initially on
paper logging sheets and codified to the Company's templates. This
data was hand entered to spreadsheets and validated by Company
geologists.
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Discuss any adjustment to assay
data.
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No adjustment to assay data has been
made.
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Location of data points
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Accuracy and quality of surveys used
to locate drill holes (collar and down-hole surveys), trenches,
mine workings and other locations used in Mineral Resource
estimation.
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A Trimble R2 Differential GPS is
used to pick up the collars. Daily capture at a registered
reference marker ensures equipment remains in
calibration.
No downhole surveying is completed.
Given the vertical nature and shallow depths of the holes, drill
hole deviation is not considered to significantly affect the
downhole location of samples.
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Specification of the grid system
used.
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WGS84 UTM Zone 36 South.
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Quality and adequacy of topographic
control.
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DGPS pickups are considered to be
high quality topographic control measures.
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Data spacing &
distribution
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Data spacing for reporting of
Exploration Results.
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Metallurgical Composite Sample: The
hand-auger holes contributing to this metallurgical were selected
from pit area Kingfisher and broadly represent early years of
mining as contemplated in the OPFS (Approximately the first three
years).
It is deemed that these holes should
be broadly representative of the mineralisation style in the
general area.
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Whether the data spacing and
distribution is sufficient to establish the degree of geological
and grade continuity appropriate for the Mineral Resource and Ore
Reserve estimation procedure(s) and classifications
applied.
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Not applicable, no Mineral Resource
or Ore Reserve estimations are covered by new data in this
report.
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Whether sample compositing has been
applied.
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Metallurgical Composite
Sample:
The sample was composited as
described under Sampling Techniques in this Table.
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Orientation of data in relation to
geological structure
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Whether the orientation of sampling
achieves unbiased sampling of possible structures and the extent to
which this is known considering the deposit type
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No bias attributable to orientation
of sampling has been identified.
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If the relationship between the
drilling orientation and the orientation of key mineralised
structures is considered to have introduced a sampling bias, this
should be assessed and reported if material.
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All holes were drilled vertically as
the nature of the mineralisation is horizontal. No bias
attributable to orientation of drilling has been
identified.
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Sample security
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The measures taken to ensure sample
security
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Samples are stored in secure storage
from the time of drilling, through gathering, compositing and
analysis. The samples are sealed as soon as site preparation
is complete.
A reputable international transport
company with shipment tracking enables a chain of custody to be
maintained while the samples move from Malawi to Australia or
Malawi to Johannesburg. Samples are again securely stored once they
arrive and are processed at Australian laboratories. A reputable
domestic courier company manages the movement of samples within
Perth, Australia.
At each point of the sample workflow
the samples are inspected by a company representative to monitor
sample condition. Each laboratory confirms the integrity of the
samples upon receipt.
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Audits or reviews
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The results of any audits or reviews
of sampling techniques and data
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It is considered by the Company that
industry best practice methods have been employed at all stages of
the exploration.
Malawi Field and Laboratory visits
have been completed by Richard Stockwell in May 2022. A high
standard of operation, procedure and personnel was observed and
reported.
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SECTION 2 - REPORTING OF
EXPLORATION RESULTS
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Criteria
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Explanation
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Commentary
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Mineral tenement & land tenure
status
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Type, reference name/number, location
and ownership including agreements or material issues with third
parties such as joint ventures, partnerships, overriding royalties,
native title interests, historical sites, wilderness or national
park and environment settings.
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The Company owns 100% of the
following Exploration Licences (ELs) under the Mines and Minerals
Act 2019 (Malawi), held in the Company's wholly-owned,
Malawi-registered subsidiaries: EL0609, EL0582, EL0492, EL0528,
EL0545, EL0561, EL0657 and EL0710.
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.
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The security of the tenure held at
the time of reporting along with any known impediments to obtaining
a licence to operate in the area.
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The tenements are in good standing
and no known impediments to exploration or mining exist.
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Exploration done by other
parties
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Acknowledgement and appraisal of
exploration by other parties.
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Sovereign Metals Ltd is a
first-mover in the discovery and definition of residual rutile and
graphite deposits in Malawi.
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Geology
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Deposit type, geological setting and
style of mineralisation
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The rutile deposit type is
considered a residual placer formed by the intense weathering of
rutile-rich basement paragneisses and variable enrichment by
eluvial 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.
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Drill hole information
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A summary of all information material
to the understanding of the exploration results including a
tabulation of the following information for all Material drill
holes: easting and northings of the drill hole collar; elevation or
RL (Reduced Level-elevation above sea level in metres of the drill
hole collar); dip and azimuth of the hole; down hole length and
interception depth; and hole length
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All intercepts relating to the
Kasiya Deposit have been included in public releases during each
phase of exploration and in this report. Releases included all
collar and composite data and these can be viewed on the Company
website.
There are no further drill hole
results that are considered material to the understanding of the
exploration results. 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.
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If the exclusion of this information
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
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No information has been
excluded.
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Data aggregation methods
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In reporting Exploration Results,
weighting averaging techniques, maximum and/or minimum grade
truncations (e.g. cutting of high-grades) and cut-off grades are
usually Material and should be stated.
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No data aggregation was
required.
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Where aggregate intercepts
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.
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No data aggregation was
required.
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The assumptions used for any
reporting of metal equivalent values should be clearly
stated.
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Not applicable
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Relationship between mineralisation
widths & intercept lengths
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These relationships are particularly
important in the reporting of Exploration Results.
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The mineralisation has been released
by weathering of the underlying, 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 ~045° in
the North of Kasiya and 360° in the South of Kasiya.
No drilling intercepts are being
reported.
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If the geometry of the mineralisation
with respect to the drill hole angle is known, its nature should be
reported.
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The mineralisation is laterally
extensive where the entire weathering profile is preserved and not
significantly eroded. Minor removal of the mineralised profile has
occurred where alluvial channels cut the surface of the deposit.
These areas are adequately defined by the drilling pattern and
topographical control for the resource estimate.
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If it is not known and only the down
hole lengths are reported, there should be a clear statement to
this effect (e.g. 'down hole length, true width not
known'.
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No drilling intercepts are being
reported.
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Diagrams
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Appropriate maps and sections (with
scales) and tabulations of intercepts should be included for any
significant discovery being reported. These should include, but not
be limited to a plan view of the drill collar locations and
appropriate sectional views.
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In exploration results and plan view
for the samples used in relation to the metallurgical composite
test work conducted in this announcement, are included in
Sovereign's announcements dated 30 March 2021, 18 August 2021 and
15 March 2022.
These are accessible on the
Company's and on the ASX websites.
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Balanced reporting
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Where comprehensive reporting of all
Exploration Results is not practicable, representative reporting of
both low and high-grades and/or widths should be practiced to avoid
misleading reporting of exploration results.
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All results are included in this
report and in previous releases. These are accessible on the
Company's webpage.
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Other substantive exploration
data
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Other exploration data, if meaningful
and material, should be reported including (but not limited to:
geological observations; geophysical survey results; geochemical
survey results; bulk samples - size and method of treatment;
metallurgical test results; bulk density, groundwater, geotechnical
and rock characteristics; potential deleterious or contaminating
substances.
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Limited lateritic duricrust has been
variably developed at Kasiya, as is customary in tropical highland
areas subjected to seasonal wet/dry cycles. Lithological logs
record drilling refusal in just under 2% of the HA/PT drill
database. No drilling refusal was recorded above the saprock
interface by AC drilling.
Sample quality (representivity) is
established by geostatistical analysis of comparable sample
intervals.
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Further work
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The nature and scale of planned
further work (e.g. test for lateral extensions or depth extensions
or large-scale step-out drilling).
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Having recently completed an OPFS,
the Company is working towards completing a definitive feasibility
study.
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Diagrams clearly highlighting the
areas of possible extensions, including the main geological
interpretations and future drilling areas, provided this
information is not commercially sensitive.
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Refer to diagrams disclosed previous
releases. These are accessible on the Company's website as
discussed above.
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