Graphite Marketing Ramps up on Completion of Pilot Plant

(firmenpresse) -
Sovereign Metals Limited (the Company or Sovereign) is pleased to announce the successful completion of its graphite pilot plant program conducted at SGS Lakefield in Canada. The program produced over four tonnes of high-quality graphite concentrates from the world-class Malingunde saprolite-hosted graphite project in Malawi. Completion of the pilot plant has allowed a ramp up in graphite sales and marketing activities, with the distribution of concentrates to numerous potential offtake partners already commenced.

The Companys current operational focus is on our recently discovered rutile prospects whilst at the same time progressing graphite offtake, financing and permitting requirements.

HIGHLIGHTS:

- Production of over four tonnes of graphite concentrate for distribution to potential offtake partners and for vendor testing to maximise the robustness of process plant design input.
- Strong response from potential offtake customers with 10+ parties having already requested and been provided samples for assessment.
- Sizing and grade specification produced by the pilot plant are highly marketable and fit within the current traditional industrial market and Li-ion battery feedstock requirements.
- The Company is now able to provide large quantities of product on-demand for immediate testing and qualification to groups with which it has an existing relationship and to new potential offtake customers.
- Sovereign is well advanced in discussions with numerous Tier 1 end users and traders of graphite, particularly in the industrial space and primarily for coarser flake material.
- Confirmation of a highly robust process flow sheet with bulk samples across a range of lateral areas and vertical depths producing consistent products and high recoveries.
- The results of the pilot plant program confirmed the flowsheet that employs standard mineral processing equipment and that will be used in the detailed engineering of the Definitive Feasibility Study (DFS).

Sovereigns Managing Director Dr Julian Stephens commented:

The results of the pilot plant program show a very robust, simple and now proven process flowsheet. The high-grade, soft, free-dig saprolite-hosted ore, requiring no primary crush or grind provides us with a significant advantage over our hard-rock peers. This best practice level of process testwork has provided informative data to further validate and refine the production pathway which will be incorporated into the DFS. The strong response for concentrate samples by potential offtake partners is extremely encouraging and the Company looks forward to updating the market as these discussions continue to advance.

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

Pilot Plant Results

The primary objective of the pilot plant program was to produce a significant mass of representative flake graphite products in order to provide samples to a substantial number of potential offtakers in various industrial sectors. The pilot plant had the added benefit of providing detailed information for plant design and product specifications that can be produced at a large scale for input into the feasibility study.

The program, undertaken at globally recognised SGS Lakefield in Canada, produced over four tonnes of high-quality graphite concentrates from approximately 40 tonnes of representative feed material. The metallurgical response of the Malingunde mineralisation was highly robust with bulk samples across a range of lateral areas and vertical depths producing consistent products, yielding high recoveries averaging >94% with an average carbon grade of 96.6%.

A size distribution range of ~45% to ~70% +150µm of flake graphite was able to be produced. A key area of further interest derived from the program centres around the final attritioning stage of the flowsheet (Figure 2) which plays a significant role in determining the product grade and flake size distribution. This is important as it will allow the Company to optimise its processing plant to produce graphite products to the particular specifications of each separate customer.

Potential industrial customers for Sovereigns graphite products collectively require large variations in product specifications. Required grades vary between 85% and 99% C and product sizing varies across the entire spectrum.

The Company has received a very strong response from potential offtake customers with numerous parties requesting samples for assessment. Sovereign is advanced in discussions with a number of these Tier 1 end users and traders of graphite, particularly in the industrial space and primarily for coarser flake material. To date, 10+ sample batches of the Companys high-quality graphite concentrates has already been despatched to offtakers for their assessment and qualification.
https://www.irw-press.at/prcom/images/messages/2019/48902/190920 Pilot Plant and Marketing Update_FINAL DRAFTPRcom.001.png


Figure 1: Photographs of the pilot plant in operation at SGS Lakefield
https://www.irw-press.at/prcom/images/messages/2019/48902/190920 Pilot Plant and Marketing Update_FINAL DRAFTPRcom.002.jpeg


Figure 2: Simplified process flowsheet for Malingunde.

Competent Person Statement
The information in this report that relates to Metallurgical Testwork Results 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 report 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 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.

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 Sovereigns 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.

Appendix 1: JORC Code, 2012 Edition - Table 1

SECTION 1 - SAMPLING TECHNIQUES AND DATA

Criteri JORC Code Hand Auger Drilling Commentary
a explanation

SamplinNature and quality Samples from the 65cm diameter
g of sampling (e.g. spiral auger drilling were taken
Techni cut channels, on 1 metre intervals. Each sample
ques random chips, or was manually quartered with each
specific component of the sample
specialised separately
industry standard bagged.
measurement tools
appropriate to the
minerals under
investigation, such
as down hole gamma
sondes, or handheld
XRF instruments,
etc). These
examples should not
be taken as
limiting the broad
meaning of
sampling.


Include reference to Sample representivity was achieved
measures taken to through manual
ensure sample quartering.

representivity and
the appropriate
calibration of any
measurement tools
or systems
used.


Aspects of the Weathering and lithological
determination of information logged from the
mineralisation that 1-metre auger sample was used to
are Material to the define the compositing
Public Report. In intervals.
cases where
industry standard
work has been done
this would be
relatively simple
(e.g. reverse
circulation
drilling was used
to obtain 1 m
samples from which
3 kg was pulverised
to produce a 30 g
charge for fire
assay). In other
cases more
explanation may be
required, such as
where there is
coarse gold that
has inherent
sampling problems.
Unusual commodities
or mineralisation
types (e.g.
submarine nodules)
may warrant
disclosure of
detailed
information.


DrillinDrill type (e.g. A custom-made 65cm diameter spiral
g core, reverse auger bit was connected to a
Techni circulation, standard air-core drilling rig,
ques open though no air or compressors were
hole hammer, rotary used or required for this style
air blast, auger, of drilling. The auger bit were
Bangka, sonic, etc) cleaned between each metre of
and details (e.g. sampling to avoid contamination.
core diameter,
triple or standard
tube, depth of
diamond tails,
face
sampling bit or
other type, whether
core is oriented
and if so, by what
method,
etc).


Drill Method of recording Samples are assessed visually for
Sample and assessing core recoveries. Overall, the recovery
Recove and chip sample was very good.
ry recoveries and
results
assessed.


Measures taken to The companys trained geologists
maximise sample supervise the spiral auger
recovery and ensure drilling. No issues with recovery
representative were
nature of the identified.
samples.


Whether a No bias related to preferential
relationship exists loss or gain of different
between sample materials has
recovery and grade occurred.
and whether sample
bias may have
occurred due to
preferential
loss/gain of
fine/coarse
material.


LoggingWhether core and All individual 1-metre auger
chip samples have intervals are geologically
been geologically logged, recording relevant data
and geotechnically to a set template using company
logged to a level codes. A small representative
of detail to sample was collected for each 1m
support appropriate interval and placed in
Mineral Resource appropriately labelled chip tray
estimation mining for future reference.
studies and
metallurgical
studies.


Whether logging is All logging includes lithological
qualitative or features and estimates of basic
quantitative in mineralogy.

nature. Core (or Logging is generally qualitative.
costean, channel,
etc.)
photography.


The total length and 100% of samples were geologically
percentage of the logged.
relevant
intersection
logged


Sub-samIf core, whether cut Not applicable - not core drilling
pling or sawn and whether
techni quarter, half or
ques all core
and taken.
sample
prepar
ation

If non-core, whether Samples were manually coned and
riffled, tube quartered to obtain
sampled, rotary representative
split, etc. and sub-samples.
whether sampled wet
or
dry.

For all sample This method is considered
types, the nature, appropriate for this style of
quality and bulk sample
appropriateness of drilling.
the sample
preparation
technique.


Quality control Samples were manually coned and
procedures adopted quartered to obtain
for all representative
sub-sampling stages sub-samples.
to maximise

representivity of
samples.


Measures taken to Duplicate samples were obtained
ensure that the and stored on site. The auger bit
sampling is w
representative of as cleaned between each metre of
the in-situ sampling to avoid contamination.
material collected,
including for
instance results
for field
duplicate/second-hal
f
sampling.


Whether sample sizes The sample size is considered
are appropriate to appropriate for the material
the grain size of sampled
the material being and for the pilot plant
sampled.


QualityThe nature, quality · The plant was setup using the
of and appropriateness flowsheet shown in
assay of the assaying and
data laboratory Figure 2.
and procedures used and · The metallurgical performance of
labora whether the the circuit was controlled with
tory technique is hourly grab assays and full
tests considered partial circuit surveys approximately
or every 12 hours of
total. operation.

· The plant was fed at a rate of
approximately 200
kg
/hr and treated a total of
approximately 40
tonnes
of raw ore.
· The pilot plant was operated as
a fully integrated circuit
treating as received ore to final
graphite concentrate filter cake
and combined tailings


· Since the ore yielded a high
moisture content, compositing and
feeding was done manually at a
rate of 10 kg every 3
minutes

· The plant treated three
different composites namely a
life of mine (LOM), Year 1 +2,
and a North
composite

· Although feed grades and visual
appearance of the ore was highly
variable, the metallurgical
response was consistent


· The pilot plant campaign
confirmed the suitability of the
flowsheet that was developed in
two laboratory scale
programs

· The pilot plant campaign
produced a total concentrate mass
of approximately 4.1
tonnes

· Intermediate concentrate and
tailings streams have been
d
espatched for vendor testing to
confirm equipment selection and
sizing


· Concentrate samples have been des
patched to potential off-take
partners for
evaluation

For geophysical No non-laboratory devices were
tools, used for
spectrometers, analysis.
handheld XRF
instruments, etc.,
the parameters used
in determining the
analysis including
instrument make and
model, reading
times, calibrations
factors applied and
their derivation,
etc.


Nature of quality Internal standards were used by
control procedures SGS Lakefield. No interrogation
adopted (e.g. has been undertaken on these
standards, blanks, standards in this case.
duplicate, external
laboratory checks)
and whether
acceptable levels
of accuracy (i.e.
lack of bias) and
precision have been
established.


VerificThe verification of Significant mineralisation
ation significant intersections were verified by
of intersections by qualified, alternative company
sampli either independent personnel.
ng & or alternative
assayi company
ng personnel.


The use of twinned The 8 spiral auger holes were all
holes. twins of existing air-core
holes.



Documentation of All data was collected initially
primary data, data on paper logging sheets and
entry procedures, codified to the Company''s
data verification, templates. This data was hand
data storage entered to spreadsheets and
(physical and validated by Company geologists.
electronic) This data was then imported to a
protocols. Microsoft Access Database then
validated automatically and
manually.


Discuss any No assay adjustment has occurred.
adjustment to assay
data.



LocatioAccuracy and quality A Trimble R2 Differential GPS was
n of of surveys used to used to pick up the bulk of the
data locate drill holes hand auger collars containing
points (collar and significant mineralisation. A
down-hole surveys), smaller number of samples were
trenches, mine surveyed using a standard hand
workings and other held GPS.
locations used in
Mineral Resource
estimation. No downhole surveying of the
spiral auger holes is completed.
Given the vertical nature and
shallow depths of the auger holes
drill hole deviation is not
considered to significantly
affect the downhole location of
samples.


Specification of the WGS84 UTM Zone 36 South.
grid system
used.


Quality and adequacy DGPS pickups are considered
of topographic adequate topographic control
control. (metres above mean sea
level).


Data Data spacing for The 8 bulk sample spiral auger
spacin reporting of holes were drilled in areas
g & Exploration designed to represent the life of
distri Results. mine ore feed as identified in
bution the PFS (pre-feasibility
study).


Whether the data Not applicable - no Mineral
spacing and Resource or Ore Reserve
distribution is estimations are covered by the
sufficient to drilling in this
establish the report.
degree of
geological and
grade continuity
appropriate for the
Mineral Resource
and Ore Reserve
estimation
procedure(s) and
classifications
applied.

Whether sample Individual 1-metre spiral auger
compositing has samples were composited into 3
been bulk samples representative of
applied. life of mine ore
feed.


OrientaWhether the No bias attributable to
tion orientation of orientation of sampling has been
of sampling achieves identified.
data unbiased sampling
in of possible
relati structures and the
on to extent to which
geolog this is known
ical considering the
struct deposit
ure type


If the relationship No bias attributable to
between the orientation of drilling has been
drilling identified.
orientation and the
orientation of key
mineralised
structures is
considered to have
introduced a
sampling bias, this
should be assessed
and reported if
material.


Sample The measures taken Samples were stored in secure
securi to ensure sample storage from the time of
ty security drilling. The samples were
sealed as soon as compositing was
completed, and again securely
stored awaiting
shipment.


Audits The results of any It is considered by the Company
or audits or reviews that industry best practice
review of sampling methods have been employed at all
s techniques and stages of the
data exploration.
SECTION 2 - REPORTING OF EXPLORATION RESULTS

CriteriaExplanation Commentary
Mineral Type, reference The Company owns 100% of 7 Exclusive
tenemen name/number, Prospecting Licences (EPLs) in
t & location and Malawi. EPL0355 renewed in
land ownership 201
tenure including 9 for 2 years, EPL0372 renewed in 2018
status agreements or for 2 years and EPL0413 renewed in
material issues 2017 for 2 years. EPL0492 and EPL0528
with third were granted in 2018 for an initial
parties such as period of three years (renewable).
joint ventures, EPL0537 and EPL0545 were granted in
partnerships, 2019 for an initial period of three
overriding years
royalties, (renewable).
native title
interests,
historical
sites,
wilderness or
national park
and environment
settings.

The security of The tenements are in good standing and
the tenure held no known impediments to exploration
at the time of or mining
reporting along exist.
with any known
impediments to
obtaining a
licence to
operate in the
area.

ExploratAcknowledgement No other parties were involved in
ion and appraisal exploration.
done of exploration
by by other
other parties.
parties


Geology Deposit type, The graphite deposit type could be
geological termed a weathered
setting and paragneiss.
style of
mineralisation Graphite at Malingunde occurs in a
mostly topographically flat area west
of Malawis capital known as the
Lilongwe Plain where a deep tropical
weathering profile is preserved. A
typical profile from top to base is
generally soil (SOIL 0-1m)
ferruginous

pedolith (FERP, 1-4m), mottled zone
(MOTT, 4-7m), pallid

saprolite (PSAP, 7-9m), saprolite (S
APL, 9-25m),

saprock (SAPR, 25-35m) and fresh
rock (FRESH
>35m).

Drill A summary of all Hole Easting Northing RL Depth
hole information ID
informa material to the
tion understanding MGSA00571575 8436200 1125 18.3
of the 1
exploration
results MGSA00571330 8436399 1129 24
including a 2
tabulation of
the following MGSA00572775 8434999 1088 18
information for 3
all Material
MGSA00570751 8437000 1132 21
drill holes: 4
easting and
northings of MGSA00570610 8437000 1133 19
the drill hole 5
collar;
elevation or RL MGSA00570621 8436900 1135 23
(Reduced 6
Level-elevation
above sea level MGSA00572575 8435110 1096 7
in metres of 7
the drill hole
collar); dip MGSA00570531 8437097 1132 21
and azimuth of 8All holes were vertical. Grid system
the hole; down is WGS 84, Zone 36
hole length and South.
interception
depth; and hole
length

If the exclusion No information has been excluded.
of this
information is
justified on
the basis that
the information
is not Material
and this
exclusion does
not detract
from the
understanding
of the report,
the Competent
Person should
clearly explain
why this is the
case

Data In reporting No grade weighting or lower or upper
aggrega Exploration cuts were
tion Results, used.
methods weighting
averaging
techniques,
maximum and/or
minimum grade
truncations
(e.g. cutting
of high-grades)
and cut-off
grades are
usually
Material and
should be
stated.

Where aggregate Not applicable to these bulk
intercepts metallurgical
incorporate results.
short lengths
of high-grade
results and
longer lengths
of low grade
results, the
procedure used
for such
aggregation
should be
stated and some
typical
examples of
such
aggregations
should be shown
in
detail.

The assumptions No metal equivalent values are used in
used for any this
reporting of report.
metal
equivalent
values should
be clearly
stated.

RelationThese It is considered that the
ship relationships mineralisation lies in laterally
between are extensive, near surface, moderate to
mineral particularly shallowly dipping flat bodies in
isation important in areas where the entire weathering
widths the reporting profile is preserved and not
& of Exploration significantly
interce Results. eroded.
pt
lengths

If the geometry Not applicable to this near-surface
of the style of mineralisation and drilling
mineralisation style.
with respect to
the drill hole
angle is known,
its nature
should be
reported.

If it is not Downhole widths approximate true
known and only widths, though all mineralisation
the down hole currently remains open at
lengths are depth.
reported, there
should be a
clear statement
to this effect
(e.g. ''down
hole length,
true width not
known''.

DiagramsAppropriate maps Refer to ASX Announcement titled Bulk
and sections Sample Drilling for Pilot Plant
(with scales) Commences at
and tabulations Malingunde
of intercepts dated 28 August 2018.
should be
included for
any significant
discovery being
reported. These
should include,
but not be
limited to a
plan view of
the drill
collar
locations and
appropriate
sectional
views.


BalancedWhere All results have been reported in this
reporti comprehensive report
ng reporting of and included in ASX Announcement
all Exploration titled
Results is not
practicable, Bulk Sample Drilling for Pilot Plant
representative Commences at
reporting of Malingunde
both low and dated 28 August 2018.
high-grades
and/or widths
should be
practiced to
avoid
misleading
reporting of
exploration
results.

Other Other No other substantive exploration data
substan exploration is
tive data, if available.
explora meaningful and
tion material,
data should be
reported
including (but
not limited to:
geological
observations;
geophysical
survey results;
geochemical
survey results;
bulk samples -
size and method
of treatment;
metallurgical
test results;
bulk density,
groundwater,
geotechnical
and rock
characteristics;
potential
deleterious or
contaminating

substances.
Further The nature and Further work involves working with
work scale of numerous potential off-take partners
planned further to understand their product
work (e.g. test specifications required. This
for lateral information will then feed in to the
extensions or final plant design to allow as much
depth product specification flexibility as
extensions or possible in order to meet customer
large-scale needs.
step-out
drilling).

Diagrams clearly Refer to diagrams in the body of this
highlighting report.
the areas of
possible
extensions,
including the
main geological
interpretations
and future
drilling areas,
provided this
information is
not
commercially
sensitive.

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