Sovereign Metals Ltd (ASX:SVM, OTC:SVMLF, AIM:SVML) has progressed to the pilot phase of an ongoing optimisation study for the Kasiya Rutile-Graphite Project in Malawi with a pilot mining and land rehabilitation program underway.
Results from this work will allow Sovereign to determine optimal excavation, backfill and land rehabilitation approaches and will provide critical information for the upcoming definitive feasibility study (DFS) and once commenced, will shorten the time to its completion.
This phase will also serve as a demonstration to local communities of the successful rehabilitation of land for agricultural use post-mining.
“Important milestone”
Managing director Frank Eagar said: “Advancing to a pilot phase is an important milestone for Kasiya. This covers the full spectrum of engineering and design, logistics, materials handling, water and environmental approvals, stakeholder engagement, livelihood restoration, tailings management and land rehabilitation.
"The successful permitting is a testament to the strong owner’s team we have assembled.”
Trial mining
The pilot phase will see Sovereign excavate approximately 150,000 bench cubic metres of ore from a test pit over a three-month period using a combination of dry and hydraulic mining techniques.
This will enable the company to optimise mining methods by the construction of a pilot-scale open pit on a 9.9-hectare site of 120 metres by 110 metres over the current ore reserve and close to the maximum depth of the reserves at 20 metres.
The excavated material will be temporarily stored in four stockpiles, namely all dry mining material, wet slimes (in a pond) and two sizes of sand fractions from the hydraulic mining.
Processing and rehabilitation
It will be processed on-site and at Sovereign’s laboratory in Malawi and will also provide additional bulk samples for graphite product qualification.
Through this procedure, the company will scale-up existing in-country processing capability by the installation of commercial scale spirals to produce additional bulk samples for graphite product qualification and will optimise the tailings management and storage designs.
The test pit will then be backfilled and multiple rehabilitation strategies will be implemented to demonstrate successful restoration of agricultural land. These include optimising land rehabilitation, soil restoration and selection of revegetation species.
Permitting completed
Commencement of the pilot phase follows the receipt within three months of all relevant approvals and permissions from the Malawi Environment Protection Authority (MEPA), National Water Resources Authority (NWRA), the Ministry of Mines, and the local community, thereby demonstrating strong support for mining projects in Malawi.
The pilot phase will be undertaken in accordance with Malawian Law and IFC Performance Standards, which will include protecting local communities and the natural environment.
"We are progressing Kasiya into a totally new phase of development. The scale and results from this phase will significantly enhance our knowledge base from the previous laboratory-based studies,” Eagar said.
"I want to thank the Malawi Government for an efficient approvals process, demonstrating just how important Kasiya is to all stakeholders.”
About Kasiya
Kasiya is the world's largest natural rutile deposit and the second-largest flake graphite deposit. Sovereign aims to develop a low-CO2 and sustainable operation to supply highly sought-after natural rutile and graphite to global markets.
Results of the PFS, released in late 2023, demonstrated Kasiya’s potential to become the world’s largest rutile producer at 222,000 tonnes per annum and one of the world’s largest natural graphite producers (ex-China) at 244,000 tonnes per annum.
The PFS delivered compelling economics with a post-tax NPV8 of US$1.6 billion and a post-tax IRR of 28%.
This long-life, multi-generational operation will generate more thanUS$16 billion of revenue based on an initial 25-year life-of-mine and delivers an average annual EBITDA of US$415 million per annum.