Sovereign Metals Limited (ASX: SVM) is into the identification, exploration, development, and appraisal of mineral resource projects in Australia and Malawi. It has made new and significant graphite discovery through its drilling techniques manually using hand auger. The deposit is located at Malingunde, which is nearby Lilongwe, Malawi’s capital city. It has access to infrastructures which is of high class.
On 25 January 2019, the company has presented its quarterly report for the period ended 31 December 2018. The company is currently focussing on the world-class Malingunde Saprolite project which is situated in Malawi. The pre-feasibility study of the project shows that it has low capital and very low operating costs.
The world-class status has been attributed to the project by the company based on several findings. It is a maiden ore reserve as declared by the company with a high-grade reserve with 32 percent in the Proven and 68 percent in the Probable categories. The feasibility study is fully based on reserves. Moreover, it has a little operating cost derived from the advantages of the soft saprolite-hosted deposit. It has a low technical risk since it is free-dig mining and has a low strip ratio with simply proven process flowsheet.
Moreover, the project has high quality concentrates with the sales are targeted to traditional industrial sector as well as the emerging Li-ion battery sector. The project has huge scalability and expansion opportunities as well.
Based on the positive results of the preliminary feasibility study, the company has started the definitive feasibility study on the Malingunde Saprolite project. A pilot plant program has been started to provide significant quantities of material, for assessment by potential offtake partners and confirm the flowsheet at a large scale. Approximately 40 tonnes of ROM material for pilot plant purposes has arrived at SGS Lakefield in Canada.
The company is also engaged in discussion with several Tier 1 potential offtake partners. The pilot program has been driven by significant demand from these organizations as they look out for greater quantities of product for a continuation and upscaling of testing and qualification.
On 24 January 2019, the company reported that re-assaying of historical hand-auger holes had demonstrated high-grade rutile mineralization hosted in free dig, near surface saprolite material across the Company’s fully-owned central Malawi exploration licenses.
Now let us quickly have a look at the Sovereign Metals Limited’s stock performance and the returns it has posted over the last few months. The stock is currently trading at a price of $0.079, with a market capitalization of ~$21.87 million. The stock opened at $0.080 with its day high of $0.082 and a day’s low price of $0.079. The stock has yielded a YTD return of 16.18% and posted returns of -10.23%, 3.95% and 21.54% over the last six months, three months and one-month period respectively. It has a 52-week high price of $0.140 and a 52-week low of $0.063, with an average volume of 161,890 approximately.
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