Sovereign Metals Limited (“Sovereign”) (ASX: SVM) is focused upon developing the world’s lowest cost, high-quality graphite operation in Malawi.
The results of the PFS for the Company’s Malingunde saprolite-hosted graphite project confirmed:
- Extremely low operating costs: due to the advantages of the soft saprolite-hosted deposit.
- Low technical risk: free-dig mining, low strip ratio with simple, proven process flowsheet.
- High-quality concentrates: sales targeted to traditional industrial sector (refractories, foundries, expandables) as well as the emerging Lithium-ion battery sector.
- High grade maiden Ore Reserve declared: high grade Reserve with 32% in the Proven and 68% in the Probable categories. PFS based 100% on Reserves.
- Excellent existing infrastructure: Malingunde is able to leverage off existing rail, road and grid power (from 2024).
- Substantial upside: huge scalability and expansion opportunities.
The high-grade, soft, free-dig saprolite-hosted ore, requiring no primary crush or grind combined with a simple and proven flowsheet results in low capital intensity and extremely low operating costs (less than US$300/t FOB at steady state).
Based on the outstanding results of the PFS, the Company has commenced the DFS as well as continue well advanced discussions with Tier 1 and high-quality offtake partners, commenced permitting and community development and project finance.
Soft Saprolite Drill Core
Drilling at Malingunde