Sovereign Metals identifies 8km extension of mineralisation at world’s biggest rutile and second largest flake graphite deposit

Reconnaissance drilling has defined an 8km extension of mineralisation outside the current Kaysia resource
Sovereign Metals says results are testament to the world-class scale of Kaysia
Meanwhile, optimisation study work is continuing

Special Report: Reconnaissance drilling outside the current 1.8Bt resource at the Kaysia deposit in central Malawi has defined several mineralisation zones, ranging from 400m to 2km wide, boosting the strike length to over 37km.

Sovereign Metals’ (ASX:SVM) Kaysia project is already the biggest natural rutile deposit and second largest flake graphite deposit in the world with a current resource of 1.8Bt @ 1% rutile and 1.4% graphite.

A PFS released in late 2023 highlighted the deposit’s potential to produce 222,000tpa of rutile and 244,000tpa of natural graphite, based on a 25-year life of mine with a post-tax NPV of US$1.6bn.

This long life, multi-generational operation was modelled to initially generate over US$16bn of revenue and provide an average annual EBITDA of US$415 million.

Potential to grow resource further

SVM managing director Frank Eagar says the company continues to test the extent of regional mineralisation via low-cost hand auger drilling, which has the potential to increase the large Kaysia resource even further.

Latest drilling results have identified an 8km extension of mineralisation to the south, which remains open along strike and at depth, such as:

14m @ 1.03% and 1.35% rutile from surface, including 2m @ 1.35% rutile from surface;
17m @ 1.01%, including 2m @ 1.42% rutile from surface; and
9m @ 0.92%, including 2m @ 1.58% rutile from surface.

Sovereign Metals (ASX:SVM) — Southern newly defined mineralised extensions at Kasiya. Pic: Supplied (SVM)

“These drilling results re-confirm the significant scale of the Kasiya deposit with the strike now stretching over 37km long,” Eagar says.

All newly defined mineralisation is expected to continue to the saprock boundary, normally between 20m and 30m from surface.

What’s next?

SVM’s focus remains on the optimisation study alongside strategic investor Rio Tinto (ASX:RIO) as well as permitting works with the Malawian Interministerial Committee.

NOW READ: Sovereign receives a $40.4m shot in the arm from Rio Tinto

This article was developed in collaboration with Sovereign Metals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.