REG - Sovereign Metals Ltd - Pilot Phase Site Construction on Schedule

Sovereign MetalsAnnouncement

12/06/2024 07:15

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RNS Number : 0852S  Sovereign Metals Limited  12 June 2024

NEWS RELEASE I 12 JUNE 2024

PILOT PHASE SITE CONSTRUCTION ON SCHEDULE

 ·         Kasiya's pilot mining and land rehabilitation program is progressing with site
           establishment on schedule
 ·         Mobile fleet is currently constructing the test pit, water storage pond and
           ore stockpile
 ·         Free-dig nature of soft saprolite ore confirms the ease of mining with no
           drilling or blasting required
 ·         Eight boreholes have been commissioned and are ready to supply the water
           storage pond
 ·         Key contractors and consultants across major disciplines have now been
           appointed
 ·         Empirical data generated from the Pilot Phase will assist in determining
           optimal project excavation, material handling, processing, backfilling and
           rehabilitation approaches

 

Classification 2.2: This announcement includes Inside Information

Figure 1: Pilot Phase site June 2024

Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is
pleased to announce that pilot site construction for the ongoing Pilot Mining
and Land Rehabilitation Program (Pilot Phase) at the Kasiya Rutile-Graphite
Project (Kasiya or Project) in Malawi is on schedule with groundworks
underway.

Managing Director Frank Eagar commented: "This Pilot Phase is a step-change
for Kasiya and demonstrates our ability to execute in Malawi.  The early
works are progressing as planned: on schedule and within budget. We are very
pleased with the progress and specifically how the mobile fleet is performing
in the soft saprolite ore, confirming our understanding of how simple mining,
with no drilling or blasting required, will contribute to low operating
costs."

The construction fleet is on-site with groundwork to excavate the water
storage pond and construct the test areas currently underway. Site equipment
is currently moving 5,000 cubic metres of earth daily. The fleet consists of
four excavators, 20 trucks and a support fleet, including two bulldozers and a
motor grader.

Figure 2: Dry mining stockpile area under construction

A perimeter fence around the 9.9-hectare pilot site has been erected to
maintain the necessary health and safety standards. Sovereign's strategic
investor, Rio Tinto, is assisting with establishing health and safety
protocols and implementation on a day-to-day basis.

Eight water extraction boreholes have been commissioned and are delivering
water to the site, with the filling of the water storage pond to follow. The
temporary water storage pond is currently being excavated and will be sealed
using natural clay from excavated material. This will minimise the use of
conventional plastic lining at the pilot site in accordance with Sovereign's
objectives for a sustainable operation at Kasiya.

 

Figure 3: Pilot Phase fleet and equipment excavating the water storage pond

Key contractors and consultants have been appointed across all major
disciplines essential for the Pilot Phase.

·      Multinational engineering and construction company Mota Engil
Group has been appointed to perform all excavation required for site
establishment, the water storage pond, the test pit, seven rehabilitation pits
as per Figure 4, site closure and general rehabilitation of the site. Mota
Engil Group operates in 21 countries with 54,000 employees and is ranked among
the world's largest construction companies.

·      South Africa-based consultancy Fraser Alexander (Pty) Ltd has
been contracted to complete the hydraulic mining phase.

·      Backfill, storage and tailings management will be assessed by
South African residue management solutions consultancy Epoch Resources (Pty)
Ltd, which has a 25-year track record, including working for Randgold
Resources Plc, Xstrata Plc and Anglo American Platinum Limited.

·      International engineering company DRA Global Limited has been
appointed to oversee and provide engineering and design services required
during the Pilot Phase.

The Pilot Phase is being undertaken on a 9.9-hectare site and will include the
following activities:

1.    Test Pit: A test pit of 120m by 110m will be excavated to a depth of
20m, allowing optimisation of hydraulic and dry mining excavation methods.

2.    Stockpiles: The excavated material will be temporarily stored in 4
stockpiles, namely all dry mining material, wet slimes (in a pond) and two
sizes of sand fractions from the hydraulic mining.

3.    Backfilling and Grading: The material will be placed back into the
pit, and all areas will be graded.

4.    Rehabilitation Demonstration: Sovereign will construct eight small
rehabilitation demonstration pits covering a combined area of 100m by 130m.
These will be used for water storage, excavated material storage, and
demonstration of multiple rehabilitation approaches.

5.    Temporary Laydown Areas: Four areas will be used as temporary laydown
areas, offices, and associated infrastructure.

6.    Communication: The Pilot Phase will be an educational opportunity for
Project stakeholders. Sovereign will undertake a series of stakeholder visits
and consultations for this purpose.

Sovereign's objective is to restore land after mining to conditions that
achieve the same or better agricultural yields than existing land uses and
crop yields. The Pilot Phase will demonstrate to local communities the
successful rehabilitation of land for agricultural use post-mining; land
rehabilitation will form an integral component of the ongoing optimisation
study. Results will also allow Sovereign to determine optimal excavation and
backfill approaches, providing critical information for the upcoming
Definitive Feasibility Study.

Kasiya is the world's largest natural rutile deposit and the second-largest
flake graphite deposit. Sovereign aims to develop a low-CO(2) footprint and
sustainable operation to supply highly sought-after natural rutile and natural
graphite to the global markets.

Figure 4: Planned site layout

 

ENQUIRIES

 Frank Eagar (South Africa/Malawi)  Sam Cordin (Perth)  Sapan Ghai (London)

Managing Director
+61(8) 9322 6322
+44 207 478 3900

 +61(8) 9322 6322

 

 Nominated Adviser on AIM and Joint Broker
 SP Angel Corporate Finance LLP             +44 20 3470 0470
 Ewan Leggat

 Charlie Bouverat

 Joint Brokers
 Stifel                                     +44 20 7710 7600
 Varun Talwar
 Ashton Clanfield

 Berenberg                                  +44 20 3207 7800
 Matthew Armitt
 Jennifer Lee

 Buchanan                                   + 44 20 7466 5000

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.

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 ('MAR'). Upon the publication of this
announcement via Regulatory Information Service ('RIS'), this inside
information is now considered to be in the public domain.

 

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