Sovereign Metals Limited · ASX:SVM
Sovereign Metals — 121 Cape Town (February 2020)
20 slides from Sovereign Metals's conference presentation, February 2020
Slide 1: Unlocking Malawi
UNLOCKING MALAWI Potentially Significant New Rutile Province FEBRUARY 2020 DECEMBER 2019 ABN: 71 120 833 427 I ASX : SVM
Slide 2: Sovereign Metals – A New Rutile Province Discovered
Sovereign Metals – A New Rutile Province Discovered Discovery of a new province hosting a genuinely scarce commodity MULTIPLE RUTILE 2020 – A COMPANY HUGE STRONG MARKET INFRASTRUCTURE PROSPECTS DEFINING YEAR EXPLORATION FUNDAMENTALS IN PLACE UPSIDE Four advanced rutile Targeting maiden Huge explorat
Slide 3: Rutile – Rarest, Highest Grade & Value Titanium Mineral
Rutile – Rarest, Highest Grade & Value Titanium Mineral Titanium dioxide occurs in nature predominantly as ilmenite and Highest Grade Highest Value Rarest scarcely as purely natural rutile TiO2 mineral TiO2 mineral TiO2 mineral ~95% TiO2 +$1,200/t 0.7Mt Mined 20171 50-55% TiO2 ~$200/t 2.0Mt Mined 20
Slide 4: Malawi – Open for Business
Malawi – Open for Business A stable, transparent jurisdiction Increasingly attracting international investment Significant potential and appetite for mining Excellent operating infrastructure in place 3,713km2 4
Slide 5: A Rutile Province - Double the Opportunity
A Rutile Province - Double the Opportunity Two discrete styles of rutile mineralisation discovered with multiple high-grade prospects identified 5
Slide 6: Two Distinct Rutile Mineralisation Styles
Two Distinct Rutile Mineralisation Styles Targeting substantial rutile resources to support long life, large scale rutile operations Saprolite-Hosted Rutile Prospects Sand-Hosted Rutile Prospect KASIYA, RAILROAD, RAILROAD WEST AND OTHER LOCATIONS BUA CHANNEL 6
Slide 7: Multiple Highly Prospective Rutile Zones Discovered
Multiple Highly Prospective Rutile Zones Discovered SHALLOW DRILLING SAMPLE PREPARATION DE-SLIMING WET TABLING XRF, WEIGHING & MAGNET SEPARATION HIGH-QUALITY RUTILE 7
Slide 8: Saprolite-Hosted Rutile Prospects
Saprolite-Hosted Rutile Prospects Kasiya Prospect Very large soil anomaly with very high observed rutile content Shallow drilling underway – results pending on first batch Strong indication of scale potential - regional proximity to Railroad and Railroad West Railroad and Railroad West Mineralised f
Slide 9: Sand-hosted Placer Rutile prospect
Sand-hosted Placer Rutile prospect Bua Channel Prospect Vast Channel − 50km in length (8km drilled to date) − 300m to 700m wide Highest grade rutile zones remain open at depth NEW EXPLORATION LICENCE New exploration licence just granted +50km 8km length drilled to date 9
Slide 10: Bua Channel Prospect
Bua Channel Prospect 8km KEY RESULTS Potential additional 40km of mineralised channel in new exploration licence • 7m @ 0.81% rutile, 1.0% ilmenite & 0.11% zircon (from surface) Inc. 3m @ 1.03% rutile (from 4m) • 5m @ 0.72 % rutile, 0.9% ilmenite & 0.09% zircon (from 2m) Exploration activities comme
Slide 11: Operation-Ready Infrastructure
Operation-Ready Infrastructure Infrastructure in place to connect Sovereign to global rutile markets Established rail network direct to Nacala Port Paved roads surrounding project locations Grid power becoming available across license areas Established labour pool and other industrial services Plent
Slide 12: Rutile – A Genuinely Scarce Commodity
Rutile – A Genuinely Scarce Commodity No high-grade rutile discoveries in over a decade… until now Global rutile supply/demand ‘000 TiO2 Units SUBSTANTIAL MARKET 1,200 SPACE FOR A NEW 1,000 RUTILE PRODUCER 800 Global supply of rutile in structural deficit 600 Mature mines with declining grades 400 G
Slide 13: Rutile’s Scarcity Means Limited Comparable Projects
Rutile’s Scarcity Means Limited Comparable Projects Two projects with the most similarities make up over 32%* of global rutile production Sierra Rutile (Sierra Leone) Kwale (Kenya) * 20% 12% * of world’s annual rutile production of world’s annual rutile production Assemblage – Current rutile resourc
Slide 14: Very Strong Rutile Market Fundamentals
Very Strong Rutile Market Fundamentals The natural rutile market has recently shifted to a supply deficit “ Historical and Forecast Rutile Pricing “Iluka was fully sold in the first $2,000 $1,800 $1,600 $1,400 $1,200 High Mid “ half, with sales constrained by production volumes.” US$/t Low $1,000 $8
Slide 15: Premium Rutile Product For All End Markets
Premium Rutile Product For All End Markets Comparison of Sovereign’s Rutile Specifications to Initial metallurgical results show Leading Global Producers highly favourable, premium rutile Constituent Malawi Rutile (Sovereign) Sierra Rutile (Iluka) RBM (Rio Tinto) Kwale (Base Resources) Namakwa Sands
Slide 16: 2020 – A Company Defining Year
2020 – A Company Defining Year Ongoing work programs Laboratory processing of 2019 and 2020 drill samples Commence drilling on several new saprolite-hosted prospects Additional air-core drilling to extend known rutile mineralisation at depth and along strike Mining and tailings studies in advance of
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Slide 18: Corporate Information
Corporate Information CORPORATE INFORMATION CAPITAL STRUCTURE Management team with a proven track record of success Shares on Issue 1 382,287,561 Mr Middlemas was a Senior Group Executive for Normandy Mining for more than ten years, which was Australia’s largest gold miner before merging with Newmon
Slide 19: Disclaimers & Disclosures
DISCLAIMERS & DISCLOSURES AUTHORISATION STATEMENT This presentation has been approved and authorised for release by the Company’s Managing Director, Dr Julian Stephens. DISCLAIMER NOTICE This presentation has been prepared as a summary only, and does not contain all information Sovereign Metals Limi
Slide 20: Sovereign Metals Limited
SOVEREIGN METALS LIMITED Sovereign Metals Limited | ASX : SVM T: +618 9322 6322 | F: +618 9322 6558 E: info@sovereignmetals.com.au | www.sovereignmetals.com.au Level 9, 28 The Esplanade, PERTH WA 6000 | ABN: 71 120 833 427