Sovereign Metals Limited: Drilling Increases High-Grade Rutile Envelope at Kasiya by 35 %

Sovereign Metals Limited (the Company or Sovereign) is pleased to announce Phase 9 drill results from Kasiya, the Company’s flagship, large, high-grade rutile deposit in Malawi. This large batch of over 200 drill-holes has further substantially extended the high-grade mineralised envelope to 89km2.

Sovereign’s very large and expanding rutile footprint in Malawi could prove to be one of the world’s most significant sources of the highest purity and most environmentally sustainable titanium feedstock.

HIGHLIGHTS

-                Phase 9 drilling has increased the size of the high-grade mineralised envelope at Kasiya by ~35% to 89km2 from the previous 66km2

-                The Company has now reported a total ~114km2 drilled area of high-grade rutile mineralisation (Kasiya 89km2 + Nsaru 25km2)

-                All drill results for the maiden Mineral Resource Estimate (MRE) at Kasiya now received

-                Resource estimation for the MRE at Kasiya well underway with the resource expected to cover a large portion of the 89km2 mineralised envelope and targeted for completion in coming weeks

-                Phase 9 results display numerous areas with greater than 1.5% rutile in the top 4-5m from surface. Results include:

-                Further step-out drilling at Kasiya and Nsaru continues with multiple field drilling teams deployed targeting additional rutile mineralisation that will potentially add to future resources

Sovereign’s Managing Director Dr Julian Stephens commented:

“This drilling has served to significantly further increase the high-grade, near surface rutile mineralisation at Kasiya. We now have a grand total of well over a hundred square kilometres of mineralisation defined across Kasiya and Nsaru. This is the final batch of results we have been awaiting in order to complete the dataset required for our maiden Kasiya JORC resource estimate.”

“These very large, high-grade areas of mineralisation may well become one of the largest primary rutile deposits in the world. Unlocking a new, globally significant source of direct feed natural rutile could help meet the growing demand for low carbon feedstock across the titanium industry supply-chain.”

ENQUIRIES

Figure 1. Map of the Kasiya deposit showing the drill-defined mineralised envelope and the newly defined extensions to the north, east and south.

KASIYA DRILLING – PHASE 9

The Phase 9 drilling results reported comprise a further 204 hand-auger holes for a total of 1,797m. With the inclusion of Phase 9, the total number of holes reported from Kasiya to date is now 507 with 4,820m drilled.

The Phase 9 drilling has increased the size of the high-grade rutile mineralised envelope at Kasiya by ~35% to 89km2 with extensions defined on the north, east and southern parts of the deposit (Figure 1).

The Company now has a total of ~114km2 of drilled, high-grade rutile mineralisation (Kasiya 89km2 + Nsaru 25km2).

Figure 2. The Kasiya – Nsaru area showing outlines of the drilled mineralised envelopes and the location of the operating rail line, paved highway and power line.

Drilling is complete at Kasiya for the time being, with this final batch of results to be incorporated into the maiden JORC MRE. Modelling and estimation is underway and well-advanced, with the MRE expected to cover a large portion of the 89km2 mineralised footprint at Kasiya.

Drill results continued to demonstrate that significant rutile enrichment occurs in the top ~8 metres from surface with very-high grades, commonly greater than 1.5% rutile occurring in the top 3-5m from surface. In most cases, drill depth was restricted by the hand-auger drilling equipment capacity and it is assumed that free-dig rutile mineralisation should continue vertically to the base of saprolite estimated at approximately 25m depth from surface.

Figure 3. Drone photo above Kasiya showing the generally very flat terrain.

Step-out drilling at Kasiya and Nsaru is continuing with multiple field drilling teams deployed. Additional rutile mineralisation delineated will potentially result in future additions to the MRE.

The peripheral zones at Kasiya with nominal 800m x 800m may need further infill drilling before they can be included in a future MRE. The Nsaru deposit also requires further infill and extensional drilling before it will be brought in to the MRE.

CONCLUSIONS & FORWARD PLAN

The Phase 9 drill results have substantially expanded the drilled mineralised envelope at Kasiya by ~35% to 89km2.

Ongoing work programs for Kasiya and Nsaru are focused on completion of the MRE to be followed by a Scoping Study. Work programs planned and underway include;

-                The maiden MRE for Kasiya, expected to cover a large portion of the 89km2 mineralised envelope is underway and well advanced with completion expected in the coming weeks.

-                Extensional and infill hand-auger and core drilling to increase the MRE confidence and grow tonnages.

-                Commencement of long-lead elements of the Scoping Study including;

-                 Mining method and pit optimisation studies

-                 Tailings disposal design and methodology studies

-                 Continued metallurgical test-work focused on variability

-                 Investigation of a potential graphite by-product from Kasiya

Figure 4. Sovereign team members hand-auger drilling at Kasiya being observed by a journalist from the Malawi Broadcasting Corporation (MBC)

DRILL RESULTS

Drilling results from Phase 9 at Kasiya are shown below in Table 1.

You can find the complete press release here: https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02373406-6A1032503?access_token=83ff96335c2d45a094df02a206a39ff4

Competent Person’s Statement

The information in this announcement that relates to Exploration Results is 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, unlisted options and performance rights in Sovereign. 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 this announcement 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 announcement has been approved and authorised for release by the Company’s Managing Director, Julian Stephens.