Sovereign Metals on Track with Pilot Program, Paving the Way for Sustainable Rutile & Graphite Production

• Sovereign Metals' pilot mining and land rehabilitation program at Kasiya Rutile-Graphite Project in Malawi is progressing on schedule
• Site construction is underway with ground fleet excavating water storage pond and test areas
• Soft saprolite ore enables easy mining without drilling or blasting, contributing to low operating costs
• The company has appointed key contractors across major disciplines for pilot program
• Pilot phase will provide data for optimizing excavation, handling, processing, backfilling and rehabilitation approaches

About Sovereign Metals

Sovereign Metals Limited (ASX:SVM) is an emerging producer of critical minerals rutile and graphite, aiming to develop its flagship Kasiya Rutile-Graphite Project in Malawi into a sustainable, low-CO2 footprint operation. Kasiya boasts the world's largest natural rutile deposit and the second-largest flake graphite deposit. The company is committed to responsible mining practices, land rehabilitation, and creating value for all stakeholders.

The Pilot Mining and Land Rehabilitation Program currently underway at Kasiya marks a significant milestone for Sovereign, demonstrating its execution capabilities in Malawi and paving the way for a sustainable, large-scale operation.

Pilot Site Construction on Track

Sovereign recently announced that the pilot site construction at Kasiya is progressing on schedule, with groundworks well underway. The 9.9-hectare site is buzzing with activity as the construction fleet, consisting of excavators, trucks, bulldozers, and a motor grader, moves earth to excavate the water storage pond and construct the test areas.

The site's perimeter fence has been erected to maintain health and safety standards, with Sovereign's strategic investor, Rio Tinto, assisting in establishing and implementing protocols. Eight water extraction boreholes have been commissioned and are ready to fill the water storage pond, which is being excavated and sealed using natural clay from the site to minimize the use of plastic lining.

Easy Mining in Soft Saprolite Ore

One of the key advantages of the Kasiya project is the free-dig nature of the soft saprolite ore, which confirms the ease of mining without the need for drilling or blasting. This characteristic is expected to contribute significantly to low operating costs, as the mobile fleet is already demonstrating its effectiveness in moving 5,000 cubic metres of earth daily.

Key Contractors Appointed

To ensure the smooth execution of the Pilot Phase, Sovereign has appointed key contractors and consultants across all major disciplines:

• Mota Engil Group, a multinational engineering and construction company, will perform all excavation work for site establishment, water storage pond, test pit, rehabilitation pits, and site closure.
• Fraser Alexander (Pty) Ltd, a South Africa-based consultancy, has been contracted to complete the hydraulic mining phase.
• Epoch Resources (Pty) Ltd, a South African residue management solutions consultancy, will assess backfill, storage, and tailings management.
• DRA Global Limited, an international engineering company, will oversee and provide engineering and design services.

Comprehensive Pilot Phase Activities

The Pilot Phase will include a range of activities designed to optimize mining, processing, and rehabilitation methods:

1. Test Pit: A 120m by 110m pit will be excavated to a depth of 20m to optimize hydraulic and dry mining excavation methods.
2. Stockpiles: Excavated material will be temporarily stored in four stockpiles for dry mining material, wet slimes, and two sizes of sand fractions from hydraulic mining.
3. Backfilling and Grading: Material will be placed back into the pit, and all areas will be graded.
4. Rehabilitation Demonstration: Eight small rehabilitation demonstration pits will be constructed to demonstrate multiple rehabilitation approaches.
5. Temporary Laydown Areas: Four areas will be used for temporary laydown, offices, and associated infrastructure.
6. Communication: The Pilot Phase will serve as an educational opportunity for project stakeholders, with Sovereign undertaking stakeholder visits and consultations.

Focusing on Sustainable Land Rehabilitation

Sovereign's objective is to restore land post-mining to conditions that achieve the same or better agricultural yields than existing land uses. The Pilot Phase will demonstrate successful land rehabilitation for agricultural use to local communities, forming an integral component of the ongoing optimization study.

The results will help Sovereign determine the best excavation and backfill approaches, providing critical information for the upcoming Definitive Feasibility Study. By prioritizing sustainable practices and land rehabilitation, Sovereign aims to minimize its environmental impact and create a positive legacy for the local communities.

Conclusion

Sovereign Metals presents a compelling investment opportunity for those seeking exposure to the growing demand for critical minerals like rutile and graphite. With the world's largest natural rutile deposit and the second-largest flake graphite deposit at Kasiya, the company is well-positioned to become a significant supplier to global markets.

The ongoing Pilot Phase demonstrates Sovereign's commitment to responsible mining, sustainable practices, and stakeholder engagement. As the project progresses, investors can expect regular updates on the Pilot Phase results, which will inform the Definitive Feasibility Study and guide the development of the Kasiya project.

With a strong management team, strategic partnerships, and a focus on sustainability, Sovereign Metals is poised to create long-term value for shareholders while contributing to the global transition towards a low-carbon future.