Sovereign Metals Ltd (ASX:SVM, OTC:SVMLF, AIM:SVML, FRA:SVM) shares rose 25% to 38p after the company revealed the successful recovery of high-value heavy rare earths from tailings at its Kasiya project in Malawi, a development that could add a third revenue stream at near-zero cost.
Monazite concentrate extracted during rutile processing was found to contain exceptional levels of dysprosium, terbium and yttrium — rare earths critical to defence, aerospace and advanced electronics.
Preliminary assays show 2.9% combined DyTb and 11.9% yttrium, making Kasiya one of the highest-grade sources of these strategic elements globally, with content far exceeding that of the five largest producers, including China's Bayan Obo and the US’s Mountain Pass.
Importantly, the concentrate was recovered using Kasiya’s existing flowsheet, without the need for costly standalone rare earth processing. Current prices for DyTb and yttrium exceed $850,000, $3.6 million, and $270,000 per tonne, respectively.
CEO Frank Eagar said the find “fundamentally enhances Kasiya’s strategic significance,” especially as China tightens export controls and Western supply chains seek diversification.
Kasiya already hosts large-scale rutile and graphite resources. The addition of heavy rare earths reinforces its potential as a globally significant critical minerals hub. Further metallurgical and economic studies are now underway.