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- Sovereign Metals (SVM) has tabled the initial Scoping Study results for its Kasiya Rutile Project, saying it could bring in US$161 million (A$224.9 million) in average earnings
- The study was based on 38 per cent of the defined mineralisation at the project and it estimated an annual throughput of 12 million tonnes of rutile over the 25-year mine life
- The Malawi-based rutile asset would cost US$332 million (A$463.8 million) capital expenditure and offer a 36 per cent internal rate of return (IRR)
- SVM welcomed the initial results and says it validated the company’s claim that Kasiya is a globally significant deposit, with additional resource growth expected in 2022
- Shares in Sovereign Metals are down 5.79 per cent at 57 cents each
Sovereign Metals (SVM) has tabled the initial Scoping Study results for its Kasiya Rutile Project in the African nation of Malawi.
The company said the open pit mine design could bring in US$161 million (A$224.9 million) in annual average life of mine earnings before interest, taxes, depreciation and amortisation (EBITDA).
The scoping study was based on 38 per cent of the drill-defined mineralisation at the rutile project and it estimated an annual throughput of 12 million tonne of rutile over the 25 year mine life.
Kasiya is estimated to cost US$332 million (A$463.8 million) in capital expenditure, with an operating cost of US$5.96 per tonne of rutile mined, and offer a 36 per cent internal rate of return (IRR).
Sovereign Metals Managing Director Julian Stephens has welcomed the initial scoping study results, saying it validated the company’s claim that Kasiya was a globally significant deposit.
“To have achieved this fantastic Scoping Study milestone for the Kasiya Rutile Project within just 20 months of the initial discovery is a huge result for Sovereign,” he said.
“The Kasiya Rutile Project is the largest undeveloped natural rutile resource in the world and is therefore highly strategic in an environment of severe global supply deficit.”
Mr Stephens added that the rutile deposit resource was expected to be significantly expanded across 2022.
“We believe that Kasiya is also just the beginning of the story in the new Central Malawi Rutile Province,” he said.
“We will expand our resource significantly early next year with the addition of the Nsaru
Rutile Deposit and potentially other regional prospects.”
Shares in Sovereign Metals were down 5.79 per cent at 57 cents each at 1:55 pm AEDT.
