Sovereign Metals releases updated resource estimate at Kasiya – now the largest rutile deposit in the world

Sovereign Metals (SVM.AX, SVML.L) has released an updated resource estimate on its Kasiya rutile project in Malawi. The exploration programs in the past few years have been exceptionally successful as the current total resource estimate at Kasiya stands at 1.8 billion tonnes of rock at an average grade of 1.01% rutile for a total rutile resource of 18 million tonnes. That’s three times higher than the total amount of contained rutile in the previous resource, and almost 40% of the current resource is in the indicated resource category.

The Kasiya project also contains 23 million tonnes of graphite and on a rutile-equivalent basis, this boosts the grade to 1.64% rutile-equivalent (although the graphite market is very volatile and prices can vary depending on the quality of the graphite content).

The expanded resource estimate should for sure have a positive impact on the economics of the project, and Sovereign is planning to release an updated scoping study later this quarter which will update the economics including the updated resource. This will just be an interim step as Sovereign is also guiding to have a pre-feasibility study completed in early 2023 and that should provide a more clear picture of the economics as a scoping study or PEA obviously is not as accurate as a pre-feasibility study.

Meanwhile the company will continue to work to make the project even more appealing, and a 10,000 meter drill program (using an AC rig) will be completed this summer to get a better understanding of the high-grade areas within the currently known mineralized envelope).  

Disclosure: The author has no position in Sovereign Metals. Please read our disclaimer.

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Author: CR Team