Sovereign Metals Ltd (ASX:SVM) made strong progress during the September quarter and is well-funded with A$5.86 million in cash to advance exploration and development activities at its globally significant rutile province in Malawi.
During the period, the company advanced the Kasiya project scoping study that is on track for completion in the current quarter targeting a large-scale natural rutile operation.
Strong rutile drilling results were also reported from the recently discovered Nsaru deposit adjacent to, and within the same geological domain as Kasiya.
The company is also working towards a potential listing on the AIM Market of the London Stock Exchange and will provide further details shortly.
“Strong natural rutile market”
Sovereign managing director Dr Julian Stephens said: “Sovereign is strongly positioned moving into the final quarter of 2021, with the fast-approaching completion of the scoping study to reveal the potential economics of this globally significant rutile discovery.
“Continued success in our exploration campaigns at Nsaru and Kasiya suggests strong potential for near future, substantial resource growth.
“Further, a very strong natural rutile market continues driven by both strong demand and shortages in supply.
“The company is looking forward to presenting the Kasiya Scoping Study during the December quarter as well as updating the market on its exploration activities and introducing new capital markets to its global scale rutile province through its planned AIM listing.”
. Map of the extensive, drill-defined mineralised footprint at Kasiya and Nsaru.
Scoping study
Sovereign has completed all major technical disciplines with capital raising and operating cost estimations being finalised.
During the quarter, the company reported the outcomes of a logistics study by an independent expert on the logistics and infrastructure solutions for Kasiya as part of the scoping study.
The logistics study confirmed a reliable, efficient and high-standard rail and port solution using the high-quality existing infrastructure.
The Nacala Logistics Corridor connecting Sovereign’s projects to global markets.
An updated mineral resource estimate (MRE) targeting conversion of existing inferred resources to the higher-confidence indicated category is expected in the coming weeks.
Drilling at Nsaru
Drilling results from the recently discovered Nsaru rutile deposit within the Malawi rutile province have expanded the mineralised footprint.
The drilling is made up of reconnaissance and extensional drilling which continues to intersect high-grade rutile mineralisation generally from surface to up to 14 metres depth.
Step-out drilling has increased the Nsaru rutile-mineralised footprint to 40 square kilometres, offering potential resource increases.
During the quarter, the company completed a multi-core rig drilling program at Kasiya. A total of 244 core holes for 2,484 metres were drilled.
This program is designed to bring the central, high-grade areas of rutile mineralisation at Kasiya into the JORC indicated category to underpin the study.
Drilling was completed by Malawi drill contractors Geoconsult with additional support from Bamboo Rock Drilling.
Rutile market
Demand for high-grade titanium dioxide feedstocks continued to remain strong, and along with supply shortages has led to continued rutile price appreciation, with some sales in the spot market exceeding US$2,000 per tonne.
The company’s product development and marketing activities have ramped up with the Phase 2 bulk program metallurgy program near completion with further product samples available to potential future off-takers for assessment.
Government delegation visit
Dr Julian Stephens explaining geological logging and sampling protocols on Kasiya core samples to the Malawi Government delegation.
In August, the company’s managing director Dr Julian Stephens led a site visit with Malawian Government officials at the company’s operations in Malawi.
The government delegation was headed by Malawi’s Honourable Minister of Mining Rashid Gaffar, and included the principal secretary and Commissioner of Mines.
The visit included the viewing of the core drilling program and a tour of the company’s laboratory, logging and sampling facilities demonstrating Sovereign’s sample processing flowsheet for drill samples.