Sovereign makes progress on its world-class graphite project in Malawi

Published at Dec 11, 2017, in Mining

Perth-based Sovereign Metals (ASX:SVM) says its best-in-class graphite concentrates project in Malawi is building upon its ‘outstanding results’ from its already completed Scoping Study.

Tests on graphite concentrates from SVM have raised expectations of SVM building out a low operating cost operation with annual graphite concentrate production of around 44,000 tonnes over an initial mine life of 17 years.

It is hoped SVM’s activities in the graphite space will translate into significant upside within the burgeoning growth in energy storage, made possible by lithium-ion batteries.

SVM says it has completed 210 holes for 6212 metres of aircore drilling to ‘upgrade the resource classification levels for the Pre-feasibility Study, as well as to test graphite mineralisation at Malingunde South Extension and other targets’.

However it is an early stage of this company’s development and if considering this stock for your portfolio you should take all public information into account and seek professional financial advice.

SVM’s first batch of assay results from Malingunde are expected early in the new year, and has already taken steps to initiate further evaluation of mine scheduling plans.

To develop its infrastructure, SVM is collaborating with SLR Consulting, to conduct a location study for the tailings storage facility (TSF), waste dumps, stockpiles and processing plant. SVM says a SLR hydrogeology team is currently on site at Malingunde for pump testing of approximately 17 new hydro-monitoring wells.

Earlier this year, SVM announced a maiden resource for Malingunde, confirming it as the world’s biggest reported soft saprolite-hosted graphite resource. According to SVM, the project has an indicated and inferred resource of 28.8 million tonnes at 7.1 per cent total graphitic carbon (TGC) including a high-grade component of 8.9 million tonnes at 9.9 per cent TGC.

Furthermore, a recent Scoping Study into the Malingunde Project highlighted a low capital cost of $US29 million and operating cost of $US301 per tonne concentrate.

Baseline specialist environmental studies have been ongoing since early 2017 with one wet season and one dry season of relevant data collected so far. On this front, field work is expected to commence shortly.

On the processing side, SVM has employed highly-respected Perth-based ALS Global, with a ‘metallurgical program underway focusing on the front-end scrubbing process’ says SVM in a market update, with additional variability test-work also going ahead at SGS Lakefield in Canada.

As part of its ongoing exploration work, SVM is in the process of selecting its nominated project engineering consultant with its preferred engineer to be appointed before the end of the year.

tags

GRAPHITE

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!

X