Sovereign Metals Ltd (ASX:SVM, AIM:SVML) hit a record high after delivering a 1.8-billion-tonne resource in an updated mineral resource estimate (MRE), confirming that the Kasiya rutile deposit in Malawi is the world’s largest rutile deposit ever discovered as well as the second-largest flake graphite deposit.
The Kasiya mega-deposit with a grade of 1.01% rutile now hosts 18 million tonnes of contained rutile – tripling from the previous MRE.
SVM has confirmed that a total of 662 million tonnes (37%) of the total MRE is in the indicated category with the remainder in the inferred category.
And what's more ... the project's contained flake graphite by-product now stands at 23 million tonnes.
Kasiya boasts a high global resource grade of 1.64% rutile equivalent and this takes into account recovered rutile and recovered graphite.
Looking ahead, Sovereign will update its scoping study to reflect the substantial MRE scale increase to examine the impact of higher grades, increased production volumes and increased mine life.
Shares have traded as much as 35% higher intraday to A$0.81, a new record high.
“Highly strategic”
Sovereign managing director Dr Julian Stephens said: “It is a really remarkable achievement by our team to have made the largest natural rutile discovery ever in just two years since initial identification.
“The JORC MRE of this scale and grade is clearly highly strategic, Tier 1 and of global significance in a market where natural rutile is in extreme supply deficit.
“The step-change in scale will now allow us to examine potentially higher-grade throughput, increased production levels and a longer mine life in the upcoming scoping study update.
“The company is targeting a large-scale, low-carbon footprint and environmentally sustainable natural rutile and graphite operation which will also positively impact the environmental footprint of titanium pigment and other industries and provide a significant contribution to the economy of Malawi.”
MRE summary
Sovereign’s MRE has broad zones of very high-grade rutile which occurs contiguously across a very large area of more than 180 square kilometres
Rutile mineralisation lies in laterally extensive, near-surface, flat 'blanket' style bodies in areas where the weathering profile is preserved and not significantly eroded.
Overall, the updated MRE shows several new large, but generally discrete high-grade rutile zones, particularly in the southern parts and eastern parts of the resource area.
Notably, a total of 662 million tonnes (37%) of the total MRE reports to the indicated category at 1.05% rutile and 1.43% total graphite carbon, with a recovered grade of 1.73% rutile equivalent.
The highlighted cut-off of 0.70% presents 1.8 billion tonnes at a rutile grade of 1.01% with high-grade components providing more than 352 million tonnes at a rutile grade of 1.44% at a 1.20% cut-off
Therefore, the overall recovered rutile equivalent grade for the MRE at the global 0.7% cut-off is 1.64% rutile equivalent.
Scarce commodity
Natural rutile is a genuinely scarce commodity, with no other known large rutile dominant deposits being discovered in more than half a century
Kasiya is now shown to be the largest single rutile deposit in the world, with central Malawi now hosting the largest known rutile province in the world.
There are limited new deposits forecast to come online, meaning supplies of natural rutile are likely to remain in extreme structural deficit.
Graphite by product
The 23.4 million tonnes of contained graphite in the Kasiya MRE now places it as the second-largest flake graphite deposit in the world.
Graphite rich mineral pre-concentrate will be produced from the light fraction of the gravity spiral tails and processed in a separate graphite flotation plant to produce a high-quality flake graphite by-product.
A very coarse-flake and high-grade graphite product at 96% TGC can be produced via this simple flowsheet.
As well as being a very coarse flake, the Kasiya graphite is also highly crystalline and of high purity
Interestingly, These are both important features required for use in lithium-ion battery anodes.
Next steps
Sovereign is rapidly continuing its work programs with the following near and medium-term targets and developments:
- An updated scoping study is targeted for completion this quarter to build on the 2021 Scoping Study. This will be driven by the significant increase in the MRE, providing the opportunity to assess higher grade throughput, increased production rates and longer mine life.
- Initial pre-feasibility study (PFS) activities are commencing and include metallurgical programs and hydrogeological studies. Other study elements will begin shortly with major technical consultant site visits starting this month. The PFS is targeted for completion in early 2023.
- Drilling programs are planned to continue, testing depth and lateral extensions at Kasiya. These include an aircore drilling rig set to be mobilised in mid-May, with a planned 300 hole/10,000-metre program with the aim of deepening the better high-grade areas in order to add to the next MRE upgrade. Continued infill and step-out hand-auger drilling aimed at expanding the overall mineralised footprint with drill teams to mobilise this month.
- The company continues to work with potential offtakers and strategic partners in the pigment, welding and titanium metal industries to secure further agreements regarding future offtakes.
- Continued strong focus on ESG and sustainability - initial ESIA activities to begin shortly including environmental and community baseline surveys, which will inform the upcoming PFS, with continued focus on developing low carbon-footprint operations taking advantage of renewable power supply and soft-friable saprolite mineralisation to produce natural rutile and graphite with far lower Global Warming Potential than alternative products.