Sovereign Metals: Outstanding Metallurgical Results at Kasiya

Sovereign Metals Limited (the Company or Sovereign) is pleased to report the results of further bulk scale metallurgy test-work from the large Kasiya Rutile Project in Malawi (Kasiya).

The test-work confirms the outstanding metallurgical results with modifications to the process flowsheet resulting in very high recoveries of premium quality rutile products and production of a high-grade, coarse flake graphite by-product.

HIGHLIGHTS

-              Premium grade rutile produced via simple and conventional process flow sheet

-              World-class specification rutile products ranging from 95.0% to 97.2% TiO2 with low impurities

-              Stand-out metallurgical recoveries ranging from 94% to 100%

-              Outstanding results now demonstrated over two separate bulk programs on samples representative of run-of-mine grade mineralisation at Kasiya

-              Product marketing ramping up with significant interest received from tier 1 rutile off-takers in the pigment, titanium metal and welding industries

-              High-grade, coarse flake graphite by-product, with 60% +150µm, recovered from rutile gravity tails fractions using a conventional graphite flowsheet

Sovereign’s Managing Director Dr Julian Stephens commented:

“Consistently achieving premium rutile specifications with stand-out recoveries via conventional “off the shelf” processing methods reinforces the robustness of metallurgical and processing performance of the Kasiya rutile mineralisation ahead of the upcoming Scoping Study.”

“These continued very high-quality product specifications should generate further interest from end-users across the titanium sector as the global structural deficit in natural rutile supply continues to widen.”

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

RUTILE METALLURGICAL TEST-WORK PROGRAM

This phase of bulk sample test-work was designed to confirm and improve on the previous, very successful, bulk metallurgy program completed in late 2020.

Results again confirm premium grade rutile can be produced via a simple and conventional process flow sheet and are consistent with previous results. World-class product chemical specifications are reported at 95.0% to 97.2% TiO2 with low impurities and stand-out metallurgical recoveries ranging from 94% to 100%.

The test-work program was again conducted at globally recognised Allied Mineral Laboratories (AML) in Perth, Australia. A 1.6 tonne mineralised sample was produced from a composite of multiple drill holes across the core areas of the Kasiya Rutile Deposit. The sample was selected to be representative of run-of-mine material and had a head grade of 1.19% rutile.

Figure 1: High-level flowsheet developed in the test-work program

A simple two-stage cyclone circuit was used with over 92% of the -45µm material rejected at the deslime stage. Thickening and dewatering centrifuge test-work was undertaken on the fines fraction. Thickener underflow densities of 40% solids (w/w) were achieved during the test-work performed by Outotec Metso. The high underflow density negates the need to include centrifuge dewatering in the flowsheet.

Gravity separation using a combination of up-current classifier (UCC) and spirals efficiently separated rutile and other heavy minerals in the sand fraction. Gravity separation was effective at concentrating graphite to a “light mineral concentrate” spiral tail due to its low specific gravity (~2.2 t/m³).

The dry mineral separation (Mineral Separation Plant) test-work showed very high recoveries of rutile with premium chemical specifications using a very simple flowsheet incorporating electrostatic and magnetic methods.

Figure 2: Photomicrograph of high purity rutile product 97.2% TiO2

RUTILE MARKETING AND OFF-TAKE

The premium chemical parameters of the rutile produced indicates the product should be suitable for all major natural end-use markets including TiO2 pigment feedstock, titanium metal and welding sectors. Demand and pricing for natural rutile are both very strong as the global structural deficit in supply continues to widen.The Company is ramping up product marketing with significant interest received from tier 1 off-takers across all three market sectors.

Graphite BY­-PRODUCT

Coarse-flake graphite has been identified throughout the Kasiya rutile deposit with recent assays received confirming grades averaging about 1% TGC within the rutile MRE area.

Gravity separation was effective at concentrating graphite to a “light mineral pre-concentrate” due to its low specific gravity (~2.2 t/m³) at circa 6.3% TGC.

A program at SGS Lakefield in Canada was undertaken in order to confirm that the graphite gravity pre-concentrate can be upgraded into a coarse flake graphite by-product via a conventional graphite flotation flowsheet.

The test-work was extremely successful, and a very coarse-flake graphite concentrate at 96.3% TGC was produced. Greater than 60% of the graphite concentrate is in the large to super-jumbo fractions, suggesting a high combined basket value (Table 1). The overall graphite recovery from the raw sample to product was 62%.

Given the very successful results achieved via a simple and traditional flowsheet the Company now intends to incorporate a coarse-flake graphite by-product in the upcoming Scoping Study.

Figures 3 & 4: Very coarse-flake graphite in +600µm sample fraction (L), graphite floating on soaking drill sample (R)

CONCLUSIONS

The ability to repeat and improve on previous metallurgical test-work results consolidate Sovereign’s view of the quality of the Kasiya project and the project’s outstanding metallurgical characteristics.

The successful graphite by-product test-work adds valuable product stream to the operation, enhancing the commercial potential of this globally significant rutile project. This test-work has confirmed that rutile and graphite mineralisation at Kasiya is highly amenable to processing via conventional metallurgical flowsheets utilising “off the shelf” components.

Overall, the superior metallurgical performance overall is likely due to;

-               Coarse, highly crystalline rutile grains that are naturally well-liberated and largely free of inclusions or attachments

-               Low chemical impurities in the rutile crystal lattices

-               Simple Heavy Mineral Concentrate (HMC) mineralogy with very little difficult or near-density gangue minerals present

-               Deslimed and very coarse, well liberated graphite flakes present in the graphite gravity pre-concentrate

Sovereign is now well advanced with the Scoping Study (Study) for Kasiya which is targeting a large-scale natural rutile operation to fill part of the major existing supply deficit with the purest and most environmentally sustainable titanium feedstock. The majority of technical disciplines for the Study have now been completed with the JORC MRE, mining optimisation and capital and operating cost estimations currently being finalised.

The Company looks forward to presenting the results of the Study in the coming weeks which will incorporate the excellent results achieved in the recent rutile and graphite by-product test-work programs. Additionally, the premium chemical parameters of the rutile produced indicates the products should be suitable for all major natural end-use markets including TiO2 pigment feedstock, titanium metal and welding sectors. Sovereign is ramping up product marketing with significant interest received from tier 1 off-takers across all three market sectors.

Figure 5: Final rutile product from the test-work ready for despatch to potential off-takers

Appendix 1: RUTILE SPECIFICATIONS

“Iluka” is Iluka Resources Limited; “Rio Tinto” is Rio Tinto plc; “Base Resources” is Base Resources Limited; “Tronox” is Tronox Holdings plc. “b/d” is below the analytical level of detection,“-“ is not disclosed. Sources: RBM data from World Titanium Resources Ltd TZMI Conference Presentation November 2011 (Updated January 2012); Sierra Rutile, Kwale and Namakwa Sands data from BGR Assessment Manual titled “Heavy Minerals of Economic Importance” 2010.

Figure 6: Location of drill holes used in the bulk sample composite.

Competent Persons’ Statements

The information in this report that relates to Metallurgical test-work Results - Rutile is based on information compiled by Mr Paul Marcos, a Competent Person who is a member of the AusIMM. Mr Marcos is an employee of Sovereign and a holder of performance rights in Sovereign. Mr Marcos 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'. Mr Marcos 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 this report that relates to Metallurgical test-work Results – Graphite is based on information compiled by Mr Oliver Peters, M.Sc., P.Eng., MBA, who is a Member of the Professional Engineers of Ontario (PEO), a ‘Recognised Professional Organisation’ (RPO) included in a list promulgated by the ASX from time to time. Mr Peters is a consultant of SGS Canada Inc. (SGS). SGS is engaged as a consultant by Sovereign Metals Limited. Mr Peters has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which 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'. Mr Peters 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 this announcement that relates to Exploration Results - Rutile are extracted from announcements dated 26 May 2020, 22 June 2020, 13 July 2020, 21 September 2020 and 4 February 2021. These announcements are available to view on www.sovereignmetals.com.au. Sovereign confirms that a) it is not aware of any new information or data that materially affects the information included in the announcements; b) all material assumptions included in the announcement continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons’ findings are presented in this report have not been materially changed from the announcements.

The information in this announcement that relates to Exploration Results - Graphite are extracted from the announcement dated 22 November 2021. The announcement is available to view on www.sovereignmetals.com.au. Sovereign confirms that a) it is not aware of any new information or data that materially affects the information included in the announcement; b) all material assumptions included in the announcement continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons’ findings are presented in this report have not been materially changed from the announcement.

The information in this announcement that relates to the Mineral Resource Estimate is extracted from the announcement dated 9 June 2021 which is available to view at Sovereign’s website at www.sovereignmetals.com.au. Sovereign confirms that a) it is not aware of any new information or data that materially affects the information included in the announcement; b) all material assumptions included in the announcement continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons’ findings are presented in this report have not been materially changed from the 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 ASX Announcement has been approved and authorised for release by the Company’s Managing Director, Julian Stephens.

The full-length press release is available at: https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02463301-6A1067337?access_token=83ff96335c2d45a094df02a206a39ff4