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NEWS RELEASE
I 12 JUNE
2024
PILOT PHASE SITE CONSTRUCTION ON
SCHEDULE
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Kasiya's pilot mining and land rehabilitation program is
progressing with site establishment on schedule
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Mobile fleet is currently constructing the test pit, water
storage pond and ore stockpile
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Free-dig nature of soft saprolite ore confirms the ease of
mining with no drilling or blasting required
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Eight boreholes have been commissioned and are ready to supply
the water storage pond
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Key
contractors and consultants across major disciplines have now been
appointed
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Empirical data generated from the Pilot Phase will assist in
determining optimal project excavation, material handling,
processing, backfilling and rehabilitation
approaches
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Classification 2.2: This
announcement includes Inside Information
![](https://dw6uz0omxro53.cloudfront.net/3075473/0474132e-5e3b-4b38-814f-7642b49947d8.png)
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.
![An aerial view of a dirt area Description automatically generated](https://dw6uz0omxro53.cloudfront.net/3075473/6f7e46c7-62d1-49a2-b3b5-faed1bc54a44.png)
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.
![A aerial view of a construction site Description automatically generated](https://dw6uz0omxro53.cloudfront.net/3075473/f4a76dbf-c59b-4d01-91be-09d55462ee9c.png)
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-CO2 footprint
and sustainable operation to supply highly sought-after natural
rutile and natural graphite to the global markets.
![A map of a building Description automatically generated](https://dw6uz0omxro53.cloudfront.net/3075473/4bf91177-ee26-435f-a96c-f78077f3b037.png)
Figure 4: Planned site
layout
ENQUIRIES
Frank Eagar (South
Africa/Malawi)
Managing Director
+61(8) 9322 6322
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Sam Cordin (Perth)
+61(8) 9322 6322
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Sapan Ghai (London)
+44 207 478 3900
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Nominated Adviser on AIM and
Joint Broker
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SP Angel Corporate Finance
LLP
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+44 20 3470 0470
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Ewan Leggat
Charlie Bouverat
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Joint
Brokers
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Stifel
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+44 20 7710 7600
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Varun Talwar
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Ashton Clanfield
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Berenberg
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+44 20 3207 7800
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Matthew Armitt
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Jennifer Lee
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Buchanan
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+ 44 20 7466 5000
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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.