Sovereign Metals Ltd (ASX:SVM, OTC:SVMLF, AIM:SVML) has identified an 8-kilometre-long extension to rutile and graphite mineralisation at the Kasiya Project in Malawi through new drilling results which have the potential to grow the already world-class scale of the project.
Regional reconnaissance drilling outside the JORC (2012) compliant mineral resource estimate (MRE) area delineated the extension to the south.
This extends across a number of parallel mineralised zones ranging from 400 metres to 2 kilometres in width … and it remains open along strike and at depth.
Hand-auger results
The wide-spaced regional hand-auger drilling returned:
- 14 metres at 1.03% including 2 metres at 1.35% rutile from surface;
- 17 metres at 1.01% including 2 metres at 1.42% rutile from surface;
- 9 metres at 0.93% including 2 metres at 1.58% rutile from surface;
- 12 metres at 1.31% including 3 metres at 1.97% rutile from surface;
- 13 metres at 1.02% including 3 metres at 1.16% rutile from surface; and
- 12 metres at 1.02% rutile and 4.5% graphite including 2 metres at 1.41% rutile from surface.
“Re-confirm significant scale”
Managing director Frank Eagar said: “These drilling results re-confirm the significant scale of the Kasiya deposit with the strike now stretching over 37 kilometres long.
"Sovereign continues to test the extent of regional mineralisation via low-cost hand-auger drilling, which has the potential to increase the already very large Kasiya resource.”
Mineralisation remains open
All newly defined mineralisation remains open at depth, due to the limitations of the hand-auger drilling method but is expected to continue to the saprock boundary normally between 20 and 30 metres vertical metres from surface.
These results demonstrate potential for a future increase of the Kasiya MRE, which is already the largest natural rutile deposit and second-largest flake graphite deposit in the world.
The current MRE of 1.8 billion tonnes at 1.0% rutile and 1.4% graphite comprises broad and contiguous zones of high-grade rutile and graphite that occur across an area of more than 201 square kilometres.
Robust PFS results
A pre-feasibility study (PFS) released in late 2023 demonstrated Kasiya’s potential to become the world’s largest rutile producer at an average of 222,000 tonnes per annum and one of the world’s largest natural graphite producers outside of China at an average of 244,000 tonnes per annum based on an initial 25-year life-of-mine (LOM).
READ: Sovereign Metals releases pre-feasibility study, highlights long-term mine life
The Kasiya PFS also delivered compelling economics with a post-tax NPV8 of US$1.6 billion and post-tax IRR of 28%.
This long-life, multi-generational operation was modelled to initially generate more than US$16 billion of revenue and provide an average annual EBITDA of US$415 million per annum.
The PFS modelling was limited to only 25 years with initial probable ore reserves declared of 538 million tonnes, only representing 30% of the total MRE.
Sovereign’s current focus at Kasiya remains the ongoing optimisation study alongside strategic investor Rio Tinto (ASX:RIO) and permitting work streams working with the Malawian Interministerial Committee.