Sovereign Metals Limited: Drilling Continues To Rapidly Expand Kasiya Rutile Deposit

Sovereign Metals Limited (the Company or Sovereign) is pleased to report further high-grade rutile drilling results from Kasiya, the Company’s flagship, large, high-grade rutile deposit in Malawi. These results continue to rapidly grow and define the deposit footprint, which is now over 7.5km long and up to 3km wide.

HIGHLIGHTS

-         Phase 6 drilling has extended the strike length of high-grade rutile mineralisation a further 1km, with the mineralised envelope now defined over 7.5km by up to ~3km.

-         Rutile mineralisation at Kasiya remains open along strike to the north, south west, south east and laterally to the east.

-         Key Phase 6 extensional drilling results from surface along the south west trend and a new emerging zone of mineralisation to the far west of Kasiya include;

-            8m @ 0.94% rutile inc. 2m @ 1.80% rutile

-            3m @ 2.50% rutile

-            3m @ 1.47% rutile

-          11m @ 0.91% rutile

-          10m @ 0.92% rutile

-         Infill drilling in the central zone of Kasiya also continues to produce high-grade results as expected and provides further definition of the mineralised envelope. Key infill results include;

-          11m @ 1.52% rutile inc. 7m @ 1.99% rutile inc. 2m @ 2.55% rutile

-          13m @ 1.18% rutile inc. 6m @ 1.46% rutile inc. 3m @ 1.70% rutile

-          12m @ 1.29% rutile inc. 7m @ 1.40% rutile

-          14m @ 1.10% rutile inc. 3m @ 1.59% rutile

-          11m @ 1.08% rutile inc. 5m @ 1.24% rutile

-          11m @ 0.99% rutile inc. 5m @ 1.25% rutile

-         Initial assays on seven selected infill drill-holes show low-grade graphite averaging around 2% TGC within the high-grade rutile zones. Potential recovery of graphite as a by-product will be investigated as part of on-going technical studies.

Sovereign’s Managing Director Dr Julian Stephens commented:

“We continue to grow the Kasiya rutile deposit with further high-grade results extending the mineralised footprint to south-west. Infill holes in the central zone also have returned high-grades and thick intercepts, as expected. The Company is at a very exciting stage as we progress a number of work programs to culminate in the maiden JORC Mineral Resource for Kasiya towards the end of the quarter.”

Figure 1. Kasiya drill plan showing extents of rutile mineralisation with the new extended areas defined by the Phase 6 extensional and infill drill-holes.

ENQUIRIES

Dr Julian Stephens (Perth)

Managing Director

+61(8) 9322 6322 

Sam Cordin (Perth)

+61(8) 9322 6322 

Sapan Ghai (London)

+44 207 478 3900

KASIYA EXTENSIONAL & INFILL DRILL PROGRAM – PHASE 6

Phase 6 results from Kasiya include infill, extensional and regional drilling comprising a further 42 (26 extensional, 9 regional and 7 infill) hand-auger holes for 366m total. The total number of holes reported from the Kasiya area to date (Phases 1 through 6 combined) is 151 with over 1,400m drilled.

These results continue to demonstrate high-grade rutile from surface across the large mineralisation footprint at Kasiya, with further extensions emerging to the south west. The strike length of high-grade mineralisation has been extended by 1km, with the total length now exceeding 7.5km with widths of the mineralised envelope ranging up to ~3km. The mineralised envelope continues to remain open along strike to the north, south-west, south-east and open laterally to the east. New zones of rutile mineralisation are also beginning to emerge and include an area about 3km west of Kasiya.

The high-grade rutile drill results are all from surface to as deep as 14m in some holes. Significant rutile enrichment is generally present in the 0-8m from surface range. In most cases, the drill depth was restricted by the hand-auger drilling equipment capacity and it is assumed that high-grade, free-dig rutile mineralisation should continue vertically to the base of saprolite at approximately 25m depth.

Key Phase 6 extensional drilling results from surface along the south west trend and a new emerging zone of mineralisation 3km west of Kasiya include;

-          8m @ 0.94% rutile inc. 2m @ 1.80% rutile

-          3m @ 2.50% rutile

-          3m @ 1.47% rutile

-          11m @ 0.91% rutile

-          10m @ 0.92% rutile

Phase 6 infill drilling in the central zone continues to produce high-grade results from surface as expected and provides further definition on the mineralised envelope. Key infill results from surface include;

-          11m @ 1.52% rutile inc. 7m @ 1.99% rutile inc. 2m @ 2.55% rutile

-          13m @ 1.18% rutile inc. 6m @ 1.46% rutile inc. 3m @ 1.70% rutile

-          12m @ 1.29% rutile inc. 7m @ 1.40% rutile

-          14m @ 1.10% rutile inc. 3m @ 1.59% rutile

-          11m @ 1.08% rutile inc. 5m @ 1.24% rutile

-          11m @ 0.99% rutile inc. 5m @ 1.25% rutile

The second round of infill resource drill results continue to demonstrate the quality, broad scale and high-grade of the Kasiya Deposit. The central zone shows a broad blanket of high-grade rutile mineralisation at surface which remains open at depth in some areas (Figure 2).

The successful results of both extensional and regional drilling significantly increases the Company’s confidence in its refined geological exploration model. This now gives Sovereign’s geological team the ability to predict, with some accuracy, new areas of rutile mineralisation prior to any soil sampling or drilling. If the Company’s geological exploration model holds true regionally, the potential across Sovereign’s exploration licences is immense.

CROSS SECTION

Section 8479600 in two parts

Figure 2. Cross Section of the complete drill line showing the broad high-grade mineralisation with multiple holes open at depth and mineralisation open laterally in both directions. The width of mineralisation has necessitated breaking this cross-section into two parts. 

GRAPHITE ASSAYS

The Company assayed an initial seven selected infill drill-holes across a single drill line, within a known high-grade rutile zone and where visual, coarse-flake graphite had been identified. The assays show the occurrence of graphite across the entire zone with an average of around 2% total graphitic carbon (TGC) associated with high-grade rutile (in the top 8m or so). The potential for a graphite by-product will be investigated as part of ongoing technical studies.

See Table 2 in the Appendix for the complete graphite assay results from Kasiya.

Figure 3. Logging of rutile hand-auger samples at Kasiya.

FORWARD PLAN

The ongoing rutile work programs for Kasiya and the Company’s other prospects within the Malawi Rutile Province include;

-         Continued analyses and reporting of drill samples over the coming weeks ahead of the maiden Mineral Resource Estimate for Kasiya which is on target for late Q3 2020;

-         Step-out and regional drilling at Kasiya and the broader surrounding area to identify extensions and satellite mineralised zones;

-         Bulk-scale metallurgical test-work on a 1 tonne sample from Kasiya is near completion with results expected in the coming weeks;

-         Push-tube drilling at Kasiya to twin hand-auger holes and to obtain cored samples for specific gravity (SG) determination and initial geotechnical analysis;

-         Mining and tailings studies are ongoing which will feed into a future Scoping Study; and

-         The Company is using its refined geological exploration model to target more high-grade, Kasiya-like rutile mineralisation further afield.

-         Investigation of the potential for a coarse-flake graphite by-product from Kasiya

Figure 4. Drill plan showing completed Phases 1-6 of reported and pending shallow hand-auger holes at Kasiya.

A NEW RUTILE PROVINCE

Additional to the flagship Kasiya rutile deposit, numerous other prospects and targets have been identified by the Company. Sovereign believes it has now discovered a globally significant, strategic rutile province across its large Malawi ground holding.

The Malawi Rutile Province features two confirmed, discrete rutile mineralisation styles hosted respectively in sand and saprolite (soft, friable weathered material) which are both amenable to conventional processing. Rutile mineralisation identified to date has generally not been spatially constrained by drilling at either of the two main prospects, Kasiya (saprolite) and the Bua Channel (sand). The Company is targeting large resources that could support long-life, large-scale rutile production.

Figure 5. Map of the broader Kasiya and Bua Channel area showing the multiple rutile deposits, prospects and targets and proximity to the Nacala Rail Corridor.

This potentially globally significant rutile province is located in Malawi, a stable, transparent jurisdiction, increasingly attracting international investment with significant potential for mining to contribute to the country’s economic growth and development. The country hosts excellent existing infrastructure (grid power, road network and established labour pool) as well as the Nacala Logistics Corridor passing through Malawi to the Indian Ocean (Nacala Port) providing a low-cost transportation solution and access to all major international export markets.

COVID-19 UPDATE

As previously reported, Sovereign is maintaining operations in Malawi on a reduced and basis with safety paramount. The Company continues to actively evaluate the situation for all risks to employees, communities and general operational safety and will make any required adjustments as the situation evolves, or as required by the Government of Malawi.

Figures 6-7. Sovereign team members hand-auger drilling at Kasiya.

DRILL RESULTS - RUTILE

Rutile drilling results from Phase 6 at Kasiya are shown below in Table 1.

DRILL RESULTS – GRAPHITE

Graphite assay results from Kasiya are shown below in Table 2.

TGC: Total Graphitic Carbon

Competent Person’s Statement

The information in this report that relates to Exploration Results are based on information compiled by Dr Julian Stephens, a Competent Person who is a member of the Australian Institute of Geoscientists (AIG). Dr Stephens is the Managing Director of Sovereign Metals Limited and a holder of ordinary shares and unlisted options in Sovereign Metals Limited. Dr Stephens 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'. Dr Stephens consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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.

This ASX Announcement has been approved and authorised for release by the Company’s Managing Director, Julian Stephens.

APPENDIX 1: DRILL HOLE DATA

* All holes were vertical.