Sovereign Metals Limited · ASX:SVM
Sovereign Metals — 121 Mining Investment Cape Town 2017
24 slides from Sovereign Metals's conference presentation, Feb 7, 2017
Slide 1: Targeting Low Cost Production of Premium Quality Flake Graphite
SOVEREIGN METALS LIMITED TARGETING LOW COST PRODUCTION OF PREMIUM QUALITY FLAKE GRAPHITE ] MINING INVESTMENT 6-7 FEBRUARY 2017 WELGEMEEND, GARDENS DISTRICT ASX:SVM
Slide 2: Agenda
1. INTRODUCTION 2. MALINGUNDE PROJECT 3. VALUE PROPOSITION 4. CORPORATE & NEWSFLOW 5. SUMMARY 1
Slide 3: Malawi Flake: A World-Class Graphite Opportunity
MALAWI FLAKE A WORLD-CLASS GRAPHITE OPPORTUNITY. The Malingunde world class saprolite-hosted deposit has the potential to provide material mining and processing cost benefits versus our hard rock peers. Potential for low cost will allow optimal path to development and access to diverse graphite mark
Slide 4: What is Saprolite and What Are Its Benefits?
WHAT IS SAPROLITE AND WHAT ARE ITS BENEFITS? Sovereign’s Malingunde deposit is a preserved, coherent body of saprolite-hosted flake graphite mineralisation. As graphite is non-reactive during the weathering process, it is preserved whilst most of the silicate gangue minerals are altered to clays. Sm
Slide 5: Dominant Ground Position in the World-Class East African Flake Graphite Province
DOMINANT GROUND POSITION IN THE WORLD-CLASS EAST AFRICAN FLAKE GRAPHITE PROVINCE. In addition, there is immense upside for further discoveries of saprolite-hosted flake graphite across the large (3,788km2) and 100%-owned tenement package. 4
Slide 6: Agenda
1. INTRODUCTION 2. MALINGUNDE PROJECT 3. VALUE PROPOSITION 4. CORPORATE & NEWSFLOW 5. SUMMARY 5
Slide 7: Enviable Infrastructure
ENVIABLE INFRASTRUCTURE. MALINGUNDE IS LOCATED WITHIN 20KM OF MALAWI’S CAPITAL, LILONGWE. RAIL, POWER & PLENTIFUL FRESH WATER ARE ALL AVAILABLE. J s0do00mé Kamuzu <x \\~ Powerline International Rail to Nacala Port Airport National Highway ‘Secondary Road | Electricity River | Sub-Station'? Tenement
Slide 8: Malingunde Saprolite-Hosted Graphite Deposit
MALINGUNDE SAPROLITE-HOSTED GRAPHITE DEPOSIT. High-grade, near surface flake graphite has been defined by hand auger drilling over 3.4km strike length with cumulative across strike widths averaging around 120m. Diamond and aircore drilling assays have confirmed that high grades of saprolite continue
Slide 9: Recent Drilling Confirms the Robust and Coherent Nature of the Deposit
RECENT DRILLING CONFIRMS THE ROBUST AND COHERENT NATURE OF THE DEPOSIT. AIRCORE DRILL RESULTS INCLUDE: DIAMOND DRILL RESULTS INCLUDE: MGAC0019 13m @ 17.8% TGC MGDD0007: 25m @ 15.1% TGC MGAC0020 23m @ 16.1% TGC incl. 15m @ 19.7% TGC MGAC0030 30m @ 15.3% TGC incl. 10m @ 20.8% TGC MGDD0006: 20m @ 13.7%
Slide 10: Wide and Vertically Thick Mineralisation Profile
WIDE AND VERTICALLY THICK MINERALISATION PROFILE. Vertical saprolite depths averaging 20-30m. Thickness & consistency of saprolite indicates substantial overall tonnage potential. Large, coherent and high grade deposit with a number of discrete, high grade zones. 9
Slide 11: Soft, Friable Saprolite Material Can Be Easily Disaggregated
SOFT, FRIABLE SAPROLITE MATERIAL CAN BE EASILY DISAGGREGATED. 10
Slide 12: Initial Metallurgy Results
INITIAL METALLURGY RESULTS. Results from the initial flotation test program on this material showed: High grade concentrate across all flake size fractions grading 98.2% C(t). Large flake ~55% of the concentrate in the jumbo and large size fractions (i.e. +149µm). Simple process flowsheet – no prima
Slide 13: Malingunde – A Unique Flake Graphite Deposit
MALINGUNDE – A UNIQUE FLAKE GRAPHITE DEPOSIT. Excellent quality concentrate produced by a simple flowsheet highlights the metallurgical & processing simplicity. Thick and consistent preserved saprolite profile – large tonnage potential. Free-dig mining and very low strip ratios with mineralised mate
Slide 14: Agenda
1. INTRODUCTION 2. MALINGUNDE PROJECT 3. VALUE PROPOSITION 4. CORPORATE & NEWSFLOW 5. SUMMARY 13
Slide 15: Sovereign Metals Significant Competitive Advantage Versus Peers
SOVEREIGN METALS SIGNIFICANT COMPETITIVE ADVANTAGE VERSUS PEERS. TARGETING BEST IN CLASS MARGINS. Low cost base will ensure project viability; strong margins protect against global graphite pricing volatility. TARGETING LOW CAPEX. Low capex and high margins will enable a short payback period and fac
Slide 16: Massive Valuation Upside
MASSIVE VALUATION UPSIDE. Undiluted Market Capitalisation $850m SIGNIFICANT NEWSFLOW AHEAD – RESOURCE AND SCOPING STUDY DUE H1 2017 $312m $41.2m $42.7m $49.0m $20.6m COMPANY SVM KNL VRC BKT MNS SYR (ASX CODE) Feasibility PFS Scoping Study Feasibility Development Country Malawi Tanzania Tanzania Tanz
Slide 17: Agenda
1. INTRODUCTION 2. MALINGUNDE PROJECT 3. VALUE PROPOSITION 4. CORPORATE & NEWSFLOW 5. SUMMARY 16
Slide 18: Market Information
MARKET INFORMATION. ASX : SVM SHARE PRICE MOVEMENT CAPITAL STRUCTURE Current Shares on Issue * 217,329,083 $1M 0.16 5 Unlisted Options PLACEMENT TO MAJOR ($0.10 to $0.47) 14,916,667 INSTITUTIONAL FUND 0.14 Performance Rights 1,400,000 $4M 4 Un-Diluted Market A$20.6 m 0.12 PLACEMENT TO SOPHISTICATED
Slide 19: Forward Plan and News Flow for Malingunde
FORWARD PLAN AND NEWS FLOW 2017 FOR MALINGUNDE. Q1 Q2 Q3 Q4 6,000m aircore and diamond drill program RESOURCE complete. Thicknesses & high-grade saprolite- Complete DRILLING hosted graphite mineralisation confirmed. Further assays pending. Maiden Malingunde JORC resource estimate from RESOURCE all 2
Slide 20: Agenda
1. INTRODUCTION 2. MALINGUNDE PROJECT 3. VALUE PROPOSITION 4. CORPORATE & NEWSFLOW 5. SUMMARY 19
Slide 21: Sovereign Metals Significant Competitive Advantage Versus Peers
SOVEREIGN METALS SIGNIFICANT COMPETITIVE ADVANTAGE VERSUS PEERS. TARGETING A HIGH QUALITY, LOW COST NATURAL FLAKE GRAPHITE OPERATION AT MALINGUNDE, MALAWI. QUALITY OPEX CAPEX INFRA. MARKETS High-grade Free dig with low No crushing or Enviable access Targeting Li-B deposit strip ratio prima
Slide 22: Competent Persons Statement & Disclaimer
COMPETENT PERSONS STATEMENT & DISCLAIMER. COMPETENT PERSONS STATEMENT The information in this report that relates to Malingunde Exploration Results is extracted from the reports dated 29 August 2016, 5 September 2016, 12 October 2016, 26 October 2016 and 18 January 2017. These reports are available
Slide 23: Management Team with a Proven Track Record of Success
MANAGEMENT TEAM WITH A PROVEN TRACK RECORD OF SUCCESS. IAN MIDDLEMAS JULIAN STEPHENS MATTHEW WHEELER COLLIN DAVY DOMINIC ALLEN Chairman Managing Director Technical Manager Exploration Manager - Business Malawi Development Manager Mr Middlemas is a Dr Stephens is a Mr Wheeler is a Mr Davy is a Geolog
Slide 24: Sovereign Metals Limited | ASX: SVM
Sovereign Metals Limited | ASX : SVM T: +61 8 9322 6322 | F: +61 8 9322 6558 E: info@sovereignmetals.com.au | www.sovereignmetals.com.au Level 9, BGC Centre, 28 The Esplanade, PERTH WA 6000 | ABN: 71 120 833 427 FOLLOW US
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