Sovereign Metals Limited · ASX:SVM
Sovereign Metals — Investor Presentation (August 2020)
27 slides from Sovereign Metals's investor presentation, August 2020
Slide 1: August 2020 Company Presentation
AUGUST 2020 ABN: 71 120 833 427 I ASX : SVM
Slide 2: Sovereign Metals – A New Force in Rutile
Sovereign Metals – A New Force in Rutile KASIYA DEPOSIT MULTIPLE HUGE STRONG SIMPLE AN EMERGING INFRASTRUCTURE HIGH-GRADE EXPLORATION MARKET MINING AND COMPANY IN PLACE RUTILE PROSPECTS UPSIDE FUNDAMENTALS PROCESSING MAKER 2
Slide 3: A Genuinely Scarce Commodity
A Genuinely Scarce Commodity Rutile: The rarest, highest grade and most valuable titanium source Rutile primarily is used as pigment (paints, plastics and paper), welding rods and for titanium metal Global supply of rutile in structural deficit Mature mines with declining grades General lack of new
Slide 4: Natural Rutile has a Far Lower Carbon Footprint
Natural Rutile has a Far Lower Carbon Footprint Natural rutile is the cleanest, purest form of titanium dioxide. It is favoured by pigment producers over higher energy and carbon intensive “upgraded” titanium feed-stocks such as synthetic rutile or titanium slag Mined natural rutile is extracted in
Slide 5: Kasiya Rutile Discovery – An Emerging Company Maker
Kasiya Rutile Discovery – An Emerging Company Maker Kasiya has the characteristics of a company making asset: large, high-grade and at surface All mineralisation occurs from surface and is hosted in soft, free-dig, friable saprolite Mineralised zone: +7.5km strike length with surface widths up to ~3
Slide 6: Kasiya Deposit – High-Grade & Expansive
Kasiya Deposit – High-Grade & Expansive Recent drilling has significantly increased high-grade rutile areas Key Results • 10m @ 1.53% rutile inc. 3m @ 2.31% rutile from surface • 14m @ 1.24% rutile inc. 4m @ 1.95% rutile from surface • 7m @ 1.27% rutile inc. 3m @ 1.80% rutile from surface • 5m @ 1.4
Slide 7: Exceptionally High-Grades from Surface
Exceptionally High-Grades from Surface 11m @ 1.33% rutile incl. 5m @ 1.79% rutile 11m @ 1.14% rutile 11m @ 1.37% rutile 9m @ 1.19% rutile 13m @ 1.32% rutile incl. 3m @ 1.77% rutile incl. 5m @ 1.82% rutile incl. 3m @ 1.86% rutile incl. 4m @ 1.58% rutile A large percentage of intercepts remain open at
Slide 8: Kasiya – Conventional Proven Flowsheet
Kasiya – Conventional Proven Flowsheet Significantly de-risked Simple, conventional flowsheet Each drill-sample processed represents a mini metallurgical test in its own right Single heavy mineral product = simplified back-end mineral separation plant (MSP) Final rutile product 96% TiO2 (1.16% of fe
Slide 9: Premium Rutile Product For All End Markets
Premium Rutile Product For All End Markets Comparison of Sovereign’s Rutile Specifications to Initial metallurgical results on Leading Global Producers saprolite-hosted mineralisation show Constituent Malawi Rutile (Sovereign) Sierra Rutile (Iluka) RBM (Rio Tinto) Kwale (Base Resources) Namakwa Sand
Slide 10: Malawi – Stable, Transparent Jurisdiction
Malawi – Stable, Transparent Jurisdiction A stable, transparent jurisdiction Increasingly attracting international investment Significant potential and appetite for mining Excellent operating infrastructure in place 10
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 MoU in place with rail & port operator Paved roads surrounding project locations Grid power becoming available across license areas Established labour p
Slide 12: Kasiya – Simple and Lower Risk
Kasiya – Simple and Lower Risk Mining Processing Progressive Rehabilitation High-grade rutile Simple, conventional Positioned for effective ESG mineralisation from surface flowsheet already outcomes demonstrated Soft, friable material – Tailings show excellent should be suitable for Single heavy min
Slide 13: A New Rutile Province Discovered
A New Rutile Province Discovered Sovereign has identified a potentially globally significant, strategic rutile province across its large Malawi ground holding The Malawi Rutile Province features two confirmed, discrete rutile mineralisation styles; - Residual saprolite which is soft, friable weather
Slide 14: Solid Knowledge Base Paving the Way
Solid Knowledge Base Paving the Way Sovereign has been active in Malawi for over 8 years, taking a saprolite- hosted graphite project to PFS and then DFS - technical level. The data gathered gives us a substantial head start and offers significant benefits in terms of cost and time savings to progre
Slide 15: Ongoing Work Programs
Ongoing Work Programs Maiden JORC Mineral Resource estimate for Kasiya is targeted for late Q3, 2020 Bulk-scale metallurgical test-work on a 1 tonne sample from Kasiya is near completion with results expected in the coming weeks Push-tube drilling at Kasiya to twin hand-auger holes also to obtain co
Slide 16: Sovereign – A Compelling Rutile Opportunity
Sovereign – A Compelling Rutile Opportunity KASIYA: LARGE SCALE, HIGH-GRADE & AT SURFACE SIMPLE MINING & PROCESSING NEW, GLOBALLY SIGNIFICANT RUTILE PROVINCE RUTILE MARKET IN DEFICIT EXCELLENT INFRASTRUCTURE STABLE, TRANSPARENT JURISDICTION 16
Slide 17: Thank You
THANK YOU
Slide 18: Appendices
APPENDICES 18
Slide 19: Rutile – Rarest, Highest Value & Grade Titanium Mineral
Rutile – Rarest, Highest Value & Grade Titanium Mineral Titanium dioxide occurs in nature predominantly as ilmenite & much Highest Grade Highest Value Rarest less commonly as 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 2
Slide 20: 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 21: 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 22: 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’s sales constrained by $2,000 $1,800 $1,600 $1,400 $1,200 High Mid “ production in 2019” 1 US$/t Low $1,000 $800 $600 “Rutile demand remains stron
Slide 23: Huge Exploration Upside
Huge Exploration Upside Advanced Targets Significant number of untested targets across the Company’s very large ground package Regional exploration continues to identify new rutile prospects Majority of key prospects and targets are located near key infrastructure Huge exploration upside – large amo
Slide 24: Bua Channel Prospect
Bua Channel Prospect Drilling confirms Bua Channel as a high-grade, rutile dominant, sand-hosted, channel placer deposit within the emerging Malawi Rutile Province. Exploration well underway Excellent grades of rutile and high-quality chloride ilmenite with a TiO2 content of ~60% Further extensional
Slide 25: Corporate Information
Corporate Information CORPORATE INFORMATION CAPITAL STRUCTURE Management team with a proven track record of success Shares on Issue 1 394,237,561 Mr Middlemas was a Senior Group Executive for Normandy Mining for more than ten Unlisted Options 1 years, which was Australia’s largest gold miner before
Slide 26: 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 27: 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
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