New High-Grade Discovery Expands Rutile Province - Funding Secured Through Institutional Placement
(firmenpresse) -
This ASX announcement is not for release to US wire services or distribution in the United States
Sovereign Metals Limited (the Company or Sovereign) is pleased to announce the discovery of a significant new area of high-grade rutile mineralisation in initial wide-spaced drilling. The new zone called Nsaru is located within the same geological domain as Kasiya, the Companys flagship, large, high-grade rutile deposit. Sovereigns very large and expanding rutile footprint in Malawi could prove to be one of the worlds most significant source of the highest purity and most environmentally sustainable titanium feedstock.
HIGHLIGHTS
- New area of high-grade rutile mineralisation discovered at Nsaru, located within kilometres of the very large and high-grade Kasiya deposit.
https://www.irw-press.at/prcom/images/messages/2021/57548/210330Sovereign_PRCOM.001.jpeg
Figure 1. Map of the new, high-grade rutile discovery at Nsaru.
- At this early stage of discovery, Nsaru is showing high-grade rutile mineralisation from surface with widths of up to 5.5km across and a current strike length of about 9km
- Mineralisation remains open to the north and importantly to the south at its widest zone
- The area of drilled mineralisation to date at Nsaru is approximately 25km2 and combined with Kasiyas footprint of 66km2 gives a total mineralised area of approximately 91km2
- A total of 39 wide-spaced, reconnaissance holes were drilled to depths of up to 14 metres. 34 holes showed high-grade rutile with very high-grades shown in the top 3-5m from surface including;
- 8m (at) 1.10% inc. 4m (at) 1.27% rutile -11m (at) 1.24% inc. 5m (at) 1.56% rutile
- 12m (at) 1.22% inc. 4m (at) 1.63% rutile- 9m (at) 1.38% inc. 4m (at) 1.43% rutile
- 12m (at) 1.15% inc. 3m (at) 2.05% rutile-11m (at) 1.30% inc. 4m (at) 1.48% rutile
- 13m (at) 1.27% inc. 4m (at) 1.62% rutile- 9m (at) 1.05% inc. 4m (at) 1.37% rutile
- 10m (at) 1.11% inc. 4m (at) 1.48% rutile - 5m (at) 1.88% rutile
Strategic funding secured through Institutional Placement
- Sovereign has secured commitments for A$8.0 million (gross proceeds) from Northern Hemisphere-based institutional investors to subscribe for 20,000,000 new ordinary shares at an issue price of A$0.40 plus a one-for-two unlisted option with an exercise price of A$0.50 and 12 month expiry (Placement).
- Sprott Capital Partners LP acted as exclusive financial adviser to the Placement, with affiliates of the Sprott Group participating in the Placement.
- The Placement will fund exploration and development activities on the Companys strategic rutile province in Malawi with the maiden Mineral Resource Estimate (MRE) at Kasiya expected in the next quarter.
Sovereigns Managing Director Dr Julian Stephens commented:
The new high-grade rutile discovery at Nsaru confirms we have one of the largest and globally significant rutile provinces on our hands. We are looking forward to the maiden JORC resource estimate for Kasiya next quarter, which we believe will put the Company on the path toward eventually delineating one of the largest rutile deposits in the world. The emergence of this new, globally significant rutile province has been strongly endorsed by the high-calibre of the investors who participated in the Placement. We are now well funded to continue accelerating our activities, with a number of key milestones to be met over the coming months.
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
The Nsaru prospect was identified by the Companys geological team as an area with strong potential for rutile mineralisation using the proprietary geological exploration targeting model developed 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 for a total of 371m to test the Nsaru target. Over 87% of the holes drilled intersected high-grade rutile mineralisation generally in the top 8-12m of the weathering profile. These results are similar to those received at Kasiya, with the majority of the highest rutile grades in the top 3-5m from surface. Moderate grade rutile mineralisation also extends to depth where it generally remains open in most holes.
https://www.irw-press.at/prcom/images/messages/2021/57548/210330Sovereign_PRCOM.002.jpeg
Figure 2. Map of new mineralised area at Nsaru showing its relationship to the large Kasiya rutile deposit.
At this very early stage of exploration, Nsaru shows a high-grade mineralised envelope with widths of up to 5.5km across and a strike length of about 9km. Mineralisation remains open along strike to the north and importantly to the south at its widest zone. The area of high-grade rutile mineralisation identified by drilling to date at Nsaru is approximately 25km2.
When added to the mineralised area at Kasiya of 66km2, Sovereigns total high-grade mineralised footprint is approximately 91km2 and is expected to keep growing with further drilling. The Companys maiden Mineral Resource Estimate (MRE) for Kasiya is advancing and will be based on a substantial portion of the extensive Kasiya footprint.
Given these excellent initial results from Nsaru, the Company has commenced a further, more systematic drill program aimed at bringing the drill spacing down to at least 800m by 400m in order to incorporate the results into a future MRE.
INSTITUTIONAL PLACEMENT
Sovereign has secured commitments for A$8.0 million (gross proceeds) from Northern Hemisphere based institutional investors to subscribe for 20,000,000 new ordinary shares of the Company at an issue price of A$0.40 plus a one-for-two unlisted option with an exercise price of A$0.50 and 12 month expiry (Placement).
Sprott Capital Partners LP acted as exclusive financial advisor with affiliates of the Sprott Group (Sprott) participating in the Placement. Sprott is a leading North American-based asset management firm with an enviable track record of identifying and funding successful early stage resource projects.
The Placement will fund exploration and development activities on the Companys globally significant, strategic rutile province in Malawi.
The Company will issue the shares utilising its existing capacity under Listing Rule 7.1.
CONCLUSIONS & FORWARD PLAN
Sovereigns view is that it has discovered a potentially globally significant rutile province with the Kasiya deposit and the new discovery at Nsaru. Securing this additional funding will allow the Company to continue with the ongoing work programs for Kasiya, Nsaru and the other prospects which include;
- A maiden Mineral Resource Estimate for Kasiya, expected to cover a substantial portion of its extensive 66km2 mineralised footprint;
- Continued step-out and extensional drilling at Kasiya, Nsaru and the broader surrounding area to identify extensions and discover new regional mineralised zones;
- Mining and tailings studies continue and will feed into a future Scoping Study;
- Metallurgical variability test-work is in the final planning stages on three separate samples representative of the different regolith units from Kasiya;
- Investigation and further test-work for a potential coarse-flake graphite by-product from Kasiya; and
- Re-examination of the Companys Malingunde Graphite Project in light of renewed market interest for graphite, particularly related to sustainability and the Li-ion battery sector.
https://www.irw-press.at/prcom/images/messages/2021/57548/210330Sovereign_PRCOM.003.jpeg
Figure 3. Sovereigns field team hand-auger drilling at Nsaru.
DRILL RESULTS
Drilling results from Phase 1 at Nsaru are shown below in Table 1.
Hole ID Interval Rutile % From (m) Comments Purpose
Thickness Downhole
NSHA0001 8 0.93 surface open at exploration
depth
incl 4 1.16 surface
NSHA0002 8 1.10 surface open at exploration
depth
incl 4 1.27 surface
NSHA0003 9 0.88 surface open at exploration
depth
incl 3 1.04 surface
NSHA0004 11 1.24 surface open at exploration
depth
incl 5 1.56 surface
NSHA0005 12 1.22 surface open at exploration
depth
incl 4 1.63 surface
NSHA0006 13 0.79 surface open at exploration
depth
incl 5 1.18 surface
NSHA0007 5 0.78 surface exploration
NSHA0008 10 0.84 surface open at exploration
depth
incl 4 1.03 surface
NSHA0009 9 1.38 surface open at exploration
depth
incl 4 1.43 surface
NSHA0010 5 1.88 surface open at exploration
depth
NSHA0011 4 1.39 surface exploration
NSHA0012 9 0.91 surface open at exploration
depth
incl 7 0.97 surface
incl 3 1.14 surface
NSHA0013 12 0.94 surface open at exploration
depth
incl 5 1.09 surface
NSHA0014 no significant results exploration
NSHA0015 11 0.95 surface open at exploration
depth
incl 4 1.06 surface
NSHA0016 9 1.05 surface open at exploration
depth
incl 4 1.37 surface
NSHA0017 12 1.15 surface open at exploration
depth
incl 7 1.42 surface
incl 3 2.05 surface
NSHA0018 10 1.11 surface open at exploration
depth
incl 4 1.48 surface
NSHA0019 9 0.92 surface open at exploration
depth
incl 3 1.32 surface
NSHA0020 10 0.90 surface exploration
incl 4 1.51 surface
NSHA0021 10 0.63 surface exploration
NSHA0022 11 0.67 surface exploration
incl 3 1.02 surface
NSHA0023 no significant results exploration
NSHA0024 no significant results exploration
NSHA0025 4 0.64 surface exploration
NSHA0026 4 0.67 surface exploration
NSHA0027 no significant results exploration
NSHA0028 5 0.80 surface exploration
NSHA0029 3 0.74 surface exploration
NSHA0030 12 0.96 surface open at exploration
depth
incl 4 1.41 surface
NSHA0031 3 0.93 surface open at exploration
depth
NSHA0032 4 1.03 surface exploration
NSHA0033 10 0.70 surface open at
depth
NSHA0034 no significant results exploration
NSHA0035 13 1.27 surface open at exploration
depth
incl 8 1.46 surface
incl 4 1.62 surface
NSHA0036 6 0.93 surface exploration
incl 3 1.34 surface
NSHA0037 4 0.86 surface exploration
NSHA0038 11 1.30 surface exploration
incl 7 1.23 surface
incl 4 1.48 surface
NSHA0039 4 0.99 surface open at exploration
depth
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Competent Persons Statement
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, 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.
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.
Not for release to US wire services or distribution in the United States
This announcement has been prepared for publication in Australia and may not be released in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any securities described in this announcement have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or sold in the United States except in transactions exempt from, or not subject to, the registration of the US Securities Act and applicable US state securities laws.
This ASX Announcement has been approved and authorised for release by the Companys Managing Director, Dr Julian Stephens.
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