Sovereign Metals Ltd (ASX:SVM, AIM:SVML) has intersected high-grade rutile mineralisation in deeper aircore drilling at Kasiya Project in Malawi, confirming that extensive mineralisation remains at depth outside the current mineral resource estimate and pit shells.
Results from the 191-hole program showed that rutile mineralisation is continuous in many pit areas from surface down to the top of saprock between 20 metres and 30 metres from surface.
The drilling program was completed in two phases from May to August 2022 by Thompson Drilling aimed at upgrading the mineralisation into the indicated category, which could convert to probable reserves in the forthcoming pre-feasibility study (PFS).
Highlights from the initial 32-hole for 814 metres sighter phase include:
- 28 metres at 1.05% including 5 metres at 1.78% rutile;
- 25 metres at 1.06% including 13 metres at 1.15% rutile;
- 20 metres at 1.26% including 16 metres at 1.37% rutile;
- 22 metres at 1.15% including 8 metres at 1.51% rutile;
- 20 metres at 1.29% including 6 metres at 1.27% rutile; and
- 26 metres at 1.18% including 6 metres at 1.66% rutile.
Assays from a second more expansive and targeted 159-hole for 3,846 metres phase are pending.
Drilling sample collection and mineralised weathering profile displayed in a chip tray.
Multi-generational project
Sovereign managing director Dr Julian Stephens said: “The early results from this deeper drilling re-asserts the truly remarkable Tier 1 nature of Kasiya in terms of size, grade and mineralisation consistency.
“We have now answered the question on the potential to deliver additional tonnes for the mineral resource at depth.
"Kasiya continues to grow and will likely become a multi-generational project capable of supplying a reliable and sustainable source of high-purity titanium as natural rutile.”
Work in progress
Numerous technical work packages are in progress for the Kasiya PFS including:
- Further drilling to refine and extend the mineral resource estimate (MRE) and then the final PFS mining inventory.
- Preliminary hydrogeological pilot and test boreholes.
- Continued metallurgical test-work focused on the planned first 10 years of mining.
- Site visits throughout September by the principal PFS consultants.
- Updated JORC resource estimate planned for the first quarter of 2023.
- Ongoing product marketing with further offtake MOUs expected to be executed.
Performance rights plan
Sovereign will seek shareholder approval in November to amend the terms of all existing performance rights currently on issue to ensure that management is not disadvantaged by the impact of COVID-19 and its decision to complete the expanded scoping study (ESS), which was based on the substantial MRE update announced in April 2022.
The decision to complete the ESS has further enhanced Kasiya’s economics but delayed the commencement of the PFS and subsequent definitive feasibility study (DFS).
Furthermore, the amendment will ensure that the performance rights continue to incentivise and retain existing key management personnel and to ensure continuing alignment between the strategic goals of the company and the creation of shareholder value.
Sovereign is not expecting the full life of each tranche of performance rights to satisfy the relevant performance conditions, but the amendment will give it maximum flexibility to ensure the highest quality PFS and DFS can be completed while also allowing time to consider any funding opportunities or other corporate transactions.
The company expects to complete the PFS in the second quarter of 2023.