Sovereign: Malawi Rutile Province Continues to Expand with Latest Drilling Results from Nsaru

18 August 2021 - Sovereign Metals Limited (the Company or Sovereign) is pleased to report further drilling results from the recently discovered Nsaru rutile deposit within the Malawi rutile province. Nsaru is located adjacent to, and within the same geological domain as Kasiya where the Company recently reported the maiden Mineral Resource Estimate (MRE) of 644Mt at 1.01% rutile.

Step-out drilling has increased the Nsaru rutile-mineralised footprint to 40km2 (from 25km2 previously). Overall, the Company’s drilling at Kasiya and Nsaru has now defined a very large-scale area of high-grade rutile at 129km2. The Kasiya JORC MRE covers just 38% of this area, offering substantial resource growth potential.

HIGHLIGHTS

-          Phase 2 drilling confirms and expands the high-grade rutile discovery at Nsaru

-          A total of 98 exploration holes were drilled to depths of up to 14m. 94 holes showed high-grade rutile with very high-grades shown consistently in the top 3-5m from surface including;

-          Nsaru now shows consistent high-grade rutile mineralisation from surface with lateral widths of up to 9.0km across and a current strike length of about 11.5km.

-          The high-grade rutile envelope remains open to the north toward Kasiya and to the south.

-          The area of drilled mineralisation to date at Nsaru has grown from 25km2 to 40km2 – a 37% increase.

-          Combined with Kasiya’s footprint of 89km2 this gives a total mineralised area of 129km2. Only 49km2 (or 38%) of this area is in the current Kasiya MRE offering significant resource growth potential.

Sovereign’s Managing Director Dr Julian Stephens commented:

“The high-grade Nsaru rutile deposit builds on and continues to validate our view that we have discovered one of the world’s largest and most strategic natural rutile provinces. In parallel with the Company’s primary Scoping Study objectives at Kasiya, the team is rapidly progressing resource drilling at Nsaru in preparation for a JORC resource estimate toward the end of the year. This is an important step toward the Company’s objective of becoming a future supplier of premium grade natural rutile to the global titanium markets.”

Figure 1. Drill-hole location map showing the extensive and consistent high-grade rutile mineralisation at Nsaru.

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

NSARU RUTILE DISCOVERY

Nsaru was identified by the Company’s geological team as an area with strong potential for rutile mineralisation using the proprietary geological exploration targeting model developed in-house by Sovereign. Nsaru is located within just a few kilometres of the large and high-grade Kasiya rutile deposit and may eventually link up with Kasiya once more drilling has been completed.

Initially, 39 wide-spaced, reconnaissance hand-auger holes were drilled in Phase 1 for a total of 371m to test Nsaru. A further 98 holes for 842m in Phase 2 are reported now (Figure 1). This infill and extensional drilling program has continued to intersect high-grade rutile mineralisation generally from surface to up to 14m depth. In some zones, high-grade rutile remains open at depth with these zones also developing good coherency along strike.

Figure 2. Map of new mineralised area at Nsaru showing its relationship to the large Kasiya rutile deposit.

Nsaru now shows a high-grade mineralised envelope with widths of up to 9.0km across and a strike length of about 11.5km. Mineralisation remains open along strike to the north and to the south at its widest zone. The area of high-grade rutile mineralisation identified by drilling to date at Nsaru is now approximately 40km2.

When added to the mineralised area at Kasiya of 89km2, Sovereign’s total high-grade mineralised footprint is now approximately 129km2. Just 38% of this area is currently classified within the Kasiya MRE, suggesting significant resource growth potential.

The Company has commenced a systematic drill program at Nsaru aimed at bringing the drill spacing down to 400m by 400m to incorporate the results into a future MRE. A 100+ hole core drilling program has also been planned for completion at Nsaru later in the year to bring higher-grade areas to the JORC Indicated category.

FORWARD PLAN

The JORC MRE released in June 2021 confirmed Kasiya as one of the world’s largest undeveloped rutile deposits. The Company’s next major technical milestone is the Kasiya Scoping Study (Study) with completion targeted for late 2021. The objective is to develop a large-scale, long life, environmentally sustainable and socially responsible natural rutile operation.

In addition to the Study and supporting activities, the Company has the following work programs underway:

-         +2,000m core drilling program ongoing at Kasiya targeting Indicated JORC MRE category to feed into the Study.

-         Continued extensional and infill drilling at Nsaru and the broader surrounding area to identify extensions, discover new regional mineralised zones.

-         Further metallurgical test-work has now commenced on a bulk representative sample from Kasiya.

-         Investigation and further test-work for a potential coarse-flake graphite by-product from Kasiya.

Figure 3.  Drone image at the Nsaru area showing typical flat and open landscape of central Malawi.

DRILL RESULTS

Drilling results from Phase 2 at Nsaru are shown below in Table 1.

Table 1.

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 performance rights 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.

The information in the announcement that refers to the Kasiya MRE is extracted from an announcement dated 9 June 2021. This announcement is available to view on the Company’s website at www.sovereignmetals.com.au. The information in the original ASX Announcement that related to Mineral Resources were based on, and fairly represents, information compiled by Mr Richard Stockwell, a Competent Person, who is a fellow of the Australian Institute of Geoscientists (AIG). Mr Stockwell is a principal of Placer Consulting Pty Ltd, an independent consulting company. Mr Stockwell has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, 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’. The Company confirms that a) it is not aware of any new information or data that materially affects the information included in the original market announcement; b) all material assumptions included in the original announcement continue to apply and have not materially changed; and c) the form and context in which the Competent Person’s findings are presented have not been materially modified from the original announcement.

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.

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