Name of the Project
Kasiya rutile/graphite project.

Location
Central Malawi.

Project Owner/s
Sovereign Metals and Rio Tinto.

Rio Tinto invested in Sovereign in July 2023, resulting in an initial 15% shareholding and options, and expiring within 12 months of initial investment, to increase its position to 19.99%. Under the investment agreement, Rio Tinto will provide assistance and advice on technical and marketing aspects of Kasiya, including on Sovereign’s graphite co-product, with a primary focus on spherical purified graphite for the lithium-ion battery anode market.

Project Description
Kasiya is the biggest natural rutile deposit, and second-largest flake graphite deposit, in the world. The project has an inferred resource of 609-million tonnes grading 0.9% rutile and 1.1% graphite, for total contained tonnages of 5.7-million and 6.5-million for the two minerals respectively.

A prefeasibility study has confirmed a potentially major critical minerals project, with an extremely low CO2 footprint delivering significant volumes of natural rutile and graphite while generating significant economic returns.

The proposed large-scale operation will process 24-million tonnes of ore a year to produce an estimated 245 000 t of natural rutile, and 288 000 t of natural graphite, a year at steady state, for an initial mine life of 25 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $1.61-billion and an internal rate of return of 28%, with a payback of 4.3 years from the start of production.

Capital Expenditure
Capital costs to first production are estimated at $597-million. Expansion capital is estimated at $287-million.

Planned Start/End Date
Not stated.

Latest Developments
Sovereign Metals has completed an infill drilling programme at the project to support ongoing technical studies.

The programme included the drilling of 281 holes for 5 607 m. Aircore drilling, supported by hand auger, push tube and diamond core drilling, has now been completed in the southern part of Kasiya.

The drilling was focused on the designated pits proposed to provide ore feed in the first eight years of the project’s production schedule.

Ore reserves in these areas are expected to convert from the probable to proven category with an upgrade of the current mineral resource estimate (MRE) from indicated to the measured category under the Joint Ore Reserves Committee Code (2012). 

Off-site laboratories in South Africa and Australia will assay all samples for rutile and graphite.

The drilling programme’s results and subsequent resource upgrade are expected in early 2025.

Key Contracts, Suppliers, and Consultants
SocialEssence (continued development of Sovereign’s stakeholder relations, social performance objectives and its corporate social responsibility framework); and Fraser Alexander (mining trial).

Contact Details for Project Information
Sovereign Metals, Tel +61 8 9322 6322, or email info@sovereignmetals.com.au.