Sovereign Metals Limited High Grad Rutile Recovered from Malingunde Graphite Tailings

(firmenpresse) - HIGH GRADE RUTILE RECOVERED FROM MALINGUNDE GRAPHITE TAILINGS

Sovereign Metals Limited (the Company or Sovereign) is pleased to report the discovery and successful metallurgical separation of high grade rutile (TiO2) from within the soft, saprolite-hosted graphite deposit at Malingunde in Malawi.

The Company is focused on future low-cost production of high quality graphite concentrates at Malingunde. Recent testwork highlighted the potential to produce rutile as a valuable co-product from the graphite tailings. Importantly, clean rutile concentrates are produced (with no cross-contamination with graphite) via a simple process flowsheet using traditional flotation for graphite and typical mineral sands separation methods.

HIGHLIGHTS:
- Rutile (TiO2 95%-97%) and leucoxene (TiO2 70%-92%) are high-value, premium natural titanium products normally mined from mineral sands deposits which are commonly consumed in the pigment industry (paint, paper, cosmetics, plastics)
- According to the worlds largest rutile producer, Iluka Resources, supplies of natural rutile are in structural deficit1
- Rutile (TiO2) is a highly sought after, high grade titanium feed source currently fetching ~US$900 - $1,050/tonne and projected to reach long term pricing of US$1,250/tonne (FOB) by 20192. Leucoxene is priced at a discount to the prevailing rutile price, generally based on TiO2 content.
- Results for a limited number of diamond drill-holes analysed to date include;
o MGDD0003: 31m (at) 1.26% TiO2 as rutile-leucoxene & 7.1% TGC from surface
o MGDD0006: 25m (at) 1.45% TiO2 as rutile-leucoxene & 11.3% TGC from surface
o MGDD0007: 29m (at) 1.37% TiO2 as rutile-leucoxene & 13.1% TGC from surface
- Initial proof of concept metallurgical testwork conducted on tailings from bulk graphite flotation tests indicate that;
o all TiO2 mineral species are rutile or leucoxene
o market specification rutile-leucoxene concentrates with TiO2 content ranging from 78% to 90% can be easily produced by a simple, industry-standard flowsheet

- The Company controls a very large, >4,000km2 ground position in central Malawi, providing significant potential for additional graphite-rutile/leucoxene discoveries

Sovereigns Managing Director Dr Julian Stephens commented, Sovereign is focused on developing the world-class, low-cost graphite operation at Malingunde. The discovery of rutile-leucoxene as a potential co-product, produced from the graphite tailings via a simple process flowsheet provides the potential for additional revenue streams and enhanced project value. The Company intends to undertake further studies to advance work on this discovery, without compromising the focus upon the development of graphite operations at Malingunde.

ENQUIRIES---Dr Julian Stephens - Managing Director
+618 9322 6322--Sam Cordin - Business Development Manager

INTRODUCTION
During recent chemical analyses of bulk graphite metallurgical samples for flotation test-work from Malingunde it was noted that TiO2 levels were significantly elevated. It was hypothesised that the elevated TiO2 may be due to the presence of rutile and/or leucoxene, as the company had previously identified rutile within its Duwi graphite deposit, some 30km to the north-east of Malingunde (Figure 1).

Rutile (TiO2) is a highly sought after, high grade titanium feed source with concentrates currently fetching ~US$900 - 1,050/tonne and projected to reach long term pricing of US$1,250/tonne (FOB) by 20192. Leucoxene is priced at a discount to the prevailing rutile price, generally based on TiO2 content.

http://www.irw-press.at/prcom/images/messages/2018/44275/180813 Rutile Graphite Tailings_Final_PRCOM.001.jpeg
http://www.irw-press.at/prcom/images/messages/2018/44275/180813 Rutile Graphite Tailings_Final_PRCOM.002.png
Figure 1(a). Coarse rutile grains in thin section of graphitic saprolite. Each rutile grain is approximately 100um across. rt - rutile, cy - clay, qz - quartz, gp - graphite. Field of view is about 800um across.

Figure 1(b). Rutile concentrate from south composite HTR non-magnetic fraction grading 89.93% TiO2. Field of view is approximately 2,000um (2mm) across.

The Company undertook a program to test the hypothesis that elevated TiO2 levels at Malingunde were due to the presence of rutile and /or leucoxene, and if so, whether it may be recoverable as a saleable co-product to the graphite operation.
The following work program was undertaken;
- Selection of 80 samples from 5 diamond drill holes and multi-element chemical analysis, specifically targeting TiO2
- Heavy liquid separation (HLS) work was undertaken at Allied Mineral Laboratories (AML) in Perth on 10 of the 80 samples above
- XRD (semi-quantitative) for bulk mineralogy on the 10 HLS concentrates
- Primary and secondary wet table separation on a composite tailings sample (South Composite)
- XRD mineralogy on 3 splits (concentrate, middlings and tailings) for the South Composite. TGC (total graphitic carbon) by Eltra on the 6 splits. Na-peroxide fusion ICP OES/MS on the 6 splits.
- Electrostatic (HTR) separation of the combined concentrate and middlings fraction for the South Composite
- Magnetic separation on the HTR middlings and conductor for the South Composite to produce final products.
-
ASSAY OF DRILL SAMPLES
A total of 5 sections of drill core (MGDD0003-MGDD0007) were selected for multi-element analysis and totalled 80 samples. These samples were also selected to represent a range of graphite grades from 0 to 30% and to cover all of the different weathering zones identified at Malingunde.

Significant results from within soft, free-dig saprolite analysed to date include;
- MGDD0003: 31m (at) 1.26% TiO2 as rutile-leucoxene & 7.1% TGC from surface
- MGDD0006: 25m (at) 1.45% TiO2 as rutile-leucoxene & 11.3% TGC from surface
- MGDD0007: 29m (at) 1.37% TiO2 as rutile-leucoxene & 13.1% TGC from surface

Holes MGDD0004 and MGDD0005 also showed similarly high TiO2 values, however, these sections are mainly hosted in more competent saprolite and saprock and hence are not considered economically important. All assay results are listed in Appendix 1 with holes MGDD0006 and 0007 depicted in Figure 2.

http://www.irw-press.at/prcom/images/messages/2018/44275/180813 Rutile Graphite Tailings_Final_PRCOM.003.png

Figure 2. Cross-section showing high-grade TiO2 (rutile-leucoxene) from selected drill intercepts within the broad, high grade saprolite-hosted graphite resource at Malingunde.

Overall, results show a minimum of 0.75%, a maximum of 2.52% and an average of 1.33% TiO2 content. There appears to be a slightly negative correlation of TiO2 to graphite (TGC) with a clearer negative correlation below about 10% TGC. TiO2 appears highly enriched in soil (SOIL), and possibly enriched in the near surface ferruginous pedolith (FERP), both in areas where there is little to no graphite.

http://www.irw-press.at/prcom/images/messages/2018/44275/180813 Rutile Graphite Tailings_Final_PRCOM.004.png


Figure 3. Graph of TiO2 content v TGC content across various weathering zones. SOIL = soil normally 0-1m vertical, FERP = ferruginous pedolith 1-4m, MOTT = mottled saprolite 4-7m, SAPL = saprolite 7-25m, SAPR = saprock 25-35m, FRESH = fresh rock >35m.

HEAVY LIQUID SEPARATION
Heavy liquid separation (HLS) work was carried out at AML in Perth on 10 selected samples, making up the key MOTT and SAPL zones, of the 80-sample suite assayed and reported in the preceding section. The samples were subject to a standard deslime prior to the HLS work. Results are presented below in Appendix 2. Significant results include;

- Slimes range between 17% and 34% with higher slimes recorded in the near surface mottled zone (MOTT)
- Total heavy minerals (HM) recovered to concentrate ranged from 2.4% to 15.3%
- The TiO2 content in the HM concentrates ranged from 5.4% to 28.1%
- TiO2 recovery to the HM concentrate ranged from 52% to 79%
- Semi-quantitative XRD by Intertek Perth showed rutile content was between 5% and 22% of the total mass of the HM concentrates.
- Leucoxene was not discernible or quantifiable but was suspected to be present
- Overall TiO2 recoveries to HLS concentrate ranged between 33% and 70%

WET TABLE, ELECTROSTATIC AND MAGNETIC SEPARATION
The encouraging results from the HLS work, where recovered rutile-leucoxene grades ranged between 0.5% and 0.9% (as a % of original ore), led the Company to initiate a program on bulk samples at AML in Perth.

This program involved taking two bulk composite samples split from graphite flotation test-work tailings. These were then subject to a primary wet table separator, with the primary middlings also subject to a secondary wet table separation for both samples.

XRD mineralogy was then undertaken on 3 splits (concentrate, middlings and tailings) for each of the South and North Composites (6 in total). TGC by Eltra and Na-peroxide fusion ICP OES/MS was conducted on the 6 splits.

Electrostatic (HTR) separation of the combined concentrate and middlings fraction for the North and South composites was completed.

Finally, magnetic separation on the HTR middlings and conductor for the South composite, and on the conductor for the North composite was completed (not enough mass to process the HTR middlings for the North composite).

Overall, results were highly encouraging and indicated that;
South composite (1.49% TiO2) produced a 0.86% recovered grade (from ore) to final concentrate of TiO2, with 83.2% TiO2 grade (combined HTR middlings and conductor fractions). These components separately represent 0.45% (from ore) (at) 77.90% TiO2 and 0.41% (at) 89.93% TiO2 for the middlings and conductor fractions respectively
North composite (1.41% TiO2) produced a 0.55% recovered grade (from ore) to concentrate of TiO2, with a 76.7% TiO2 grade from conductor non-mag fraction only. The middlings fractions did not have enough mass to conduct magnetic separation, so the result for this composite is only a partial result.

CONCLUSION AND NEXT STEPS
Rutile is a relatively common accessory mineral in reduced paragneisses and schists such as these in central Malawi. However, the occurrence of potentially economically recoverable grades of rutile-leucoxene at Malingunde and throughout the Lilongwe Plains area (mainly controlled by Sovereign) hosted within saprolite appears relatively unique.

The test-work program has shown that overall recovered grades of TiO2 from raw ore into rutile-leucoxene concentrates, was 0.86% (South Composite).

Concentrates produced to date from these initial sighter tests (78% to 90% TiO2) highlight the potential for the commercial production of leucoxene concentrate as a co-product produced from the graphite tailings. Further work needs to be undertaken to determine if high grade +95% TiO2 rutile concentrates can be produced from the Malingunde tailings material.

Recovery of rutile-leucoxene from Malingunde tails should be further investigated as a possible, future extension to the proposed graphite operation at Malingunde.

Additionally, the regional rutile-leucoxene potential would seem substantial and is economically interesting for a number of reasons;

The average in ground grade from samples analysed from Malingunde is about 1.3% TiO2
There appears to be no association to a weakly negative association of elevated TGC to TiO2 indicating the high TiO2 levels are likely to be widespread across these weathered rock-types in the area

The relatively well-developed weathering profile appears to have concentrated rutile-leucoxene within the upper 5-10m parts of the weathering profile in the SOIL, FERP and possibly MOTT units
The paragneiss rock package with mostly preserved weathering profile has substantial areal extent, in the order of 3,000km2, the vast majority of which is controlled by Sovereign
The Company intends to undertake further studies to determine whether; a +95% TiO2 concentrate can be produced from the Malingunde graphite tails
sufficient additional project value could be added by incorporating a small plant to recover rutile-leucoxene from the graphite tails there could be large volumes at economic grades of rutile-leucoxene in rivers draining the Lilongwe Plain within the Sovereigns large >4,000km2 ground package

Competent Persons Statements
The information in this report that relates to Exploration Results is based on information compiled by Dr Julian Stephens, a Competent Person who is a member of the Australian Institute of Geoscientists (AIG). Dr Stephens is the Managing Director of Sovereign Metals Limited and a holder of shares, options and performance rights in Sovereign Metals Limited. Dr Stephens has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr Stephens consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Metallurgical Results is based on information compiled by Mr Gavin Diener, a Competent Person who is a member of the AusIMM. Mr Diener is the Chief Operating Officer of TZMI, an independent mineral sands consulting company and is not a holder of any equity type in Sovereign Metals Limited. Mr Diener has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Diener consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Forward Looking Statement
This release may include forward-looking statements, which may be identified by words such as "expects", "anticipates", "believes", "projects", "plans", and similar expressions. These forward-looking statements are based on Sovereigns expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Sovereign, which could cause actual results to differ materially from such statements. There can be no assurance that forward-looking statements will prove to be correct. Sovereign makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.

References
1 https://www.fnarena.com/index.php/2018/01/30/2018-looks-bright-for-iluka-resources/
2Credit Suisse 2017. Mineral Sands Forecast - Research Analyst Matthew Hope.

Appendix 1
Table A. Diamond Drill Hole Collar Details
Hole ID Easting NorthinRL Final Dip Azi Hole
UTM g AMSL Depth (UTM) Type
(Zone (m)
36S) UTM (m)
(Zone
36S)

MGDD0003571,934 8,436,01,140 47.6 -90 360 PQ3
02

MGDD0004570,753 8,437,01,151 53.8 -45 270 PQ3
01

MGDD0005570,637 8,437,01,152 47.5 -45 270 PQ3
01

MGDD0006570,635 8,437,01,152 29.4 -45 270 PQ3
00

MGDD0007570,758 8,437,01,150 29.4 -45 270 PQ3
00

Table B. TGC and TiO2 assays for 80 selected samples from 5 diamond drill-holes
HoleID From (m)To (m) Width WeatheriTGC % TiO2 %
(m) ng

MGDD00030.00 2.45 2.45 SOIL 0.6 2.20
MGDD00032.70 6.15 3.45 FERP 1.8 1.23
MGDD00036.40 7.26 0.86 SAPL 7.0 1.55
MGDD00038.61 9.75 1.14 SAPL 7.1 1.30
MGDD000310.00 10.91 0.91 SAPL 6.5 1.15
MGDD000311.61 13.00 1.39 SAPL 7.1 1.23
MGDD000313.00 15.00 2.00 SAPL 6.4 1.17
MGDD000315.00 16.00 1.00 SAPL 4.9 0.75
MGDD000316.25 17.61 1.36 SAPL 3.1 1.72
MGDD000318.16 20.00 1.84 SAPL 9.0 1.20
MGDD000320.00 22.00 2.00 SAPL 5.5 1.22
MGDD000322.00 24.00 2.00 SAPL 11.8 1.07
MGDD000324.00 26.00 2.00 SAPL 12.9 1.07
MGDD000326.00 27.60 1.60 SAPL 9.7 0.82
MGDD000327.85 30.00 2.15 SAPL 9.9 1.07
MGDD000330.00 31.00 1.00 SAPL 20.7 0.98
MGDD000331.00 32.00 1.00 SAPR 19.4 1.20
MGDD000332.25 34.00 1.75 SAPR 8.8 1.37
MGDD000334.00 36.00 2.00 FRESH 4.8 1.42
MGDD000336.25 38.00 1.75 FRESH 8.1 0.92
MGDD000338.00 40.97 2.97 FRESH 19.2 0.85
MGDD000341.20 42.00 0.80 FRESH 4.8 1.58
MGDD000342.00 44.00 2.00 FRESH 16.5 1.00
MGDD000344.00 46.00 2.00 FRESH 17.4 1.12
MGDD000346.25 47.61 1.36 FRESH 5.6 1.10
MGDD000428.00 29.00 1.00 SAPL 7.3 1.12
MGDD000429.00 30.00 1.00 SAPL 3.7 1.99
MGDD000430.00 31.75 1.75 SAPL 4.1 1.95
MGDD000432.00 34.00 2.00 SAPL 3.1 1.58
MGDD000434.00 36.00 2.00 SAPL 0.1 2.42
MGDD000436.00 37.55 1.55 SAPL 3.9 1.92
MGDD000437.80 39.75 1.95 SAPR 0.3 1.67
MGDD000439.75 42.00 2.25 SAPR 0.4 1.70
MGDD000442.00 44.00 2.00 SAPR 2.0 1.03
MGDD000444.00 46.15 2.15 SAPR 10.8 1.00
MGDD000446.37 48.00 1.63 SAPR 9.5 0.90
MGDD000448.00 49.67 1.67 SAPR 7.5 1.12
MGDD000449.92 52.00 2.08 SAPR 7.1 1.02
MGDD000452.00 53.79 1.79 SAPR 15.5 1.08
MGDD000528.30 30.00 1.70 SAPR 7.5 1.27
MGDD000530.25 31.70 1.45 SAPR 8.3 1.37
MGDD000531.70 33.00 1.30 SAPR 2.4 1.20
MGDD000533.00 36.00 3.00 SAPR 6.7 1.53
MGDD000536.00 38.52 2.52 SAPR 5.1 1.55
MGDD000538.52 40.00 1.48 SAPR 20.3 1.05
MGDD000540.00 41.75 1.75 SAPR 23.4 0.85
MGDD000542.00 44.52 2.52 SAPR 24.1 0.80
MGDD000544.52 46.41 1.89 SAPR 3.9 0.80
MGDD000546.41 47.52 1.11 SAPR 9.6 1.33
MGDD00060.86 2.00 1.14 SOIL 0.3 2.52
MGDD00062.00 4.25 2.25 FERP 1.2 1.57
MGDD00064.50 6.84 2.34 MOTT 9.6 1.07
MGDD00066.84 8.40 1.56 MOTT 7.2 1.65
MGDD00068.40 10.38 1.98 MOTT 8.1 1.23
MGDD000610.61 12.05 1.44 MOTT 16.6 1.43
MGDD000612.05 14.00 1.95 SAPL 8.0 1.20
MGDD000614.25 16.38 2.13 SAPL 14.6 1.38
MGDD000616.38 18.00 1.62 SAPL 15.2 1.68
MGDD000618.00 20.00 2.00 SAPL 27.2 1.50
MGDD000620.00 21.98 1.98 SAPL 22.2 0.93
MGDD000622.23 24.00 1.77 SAPL 7.7 1.70
MGDD000624.00 25.18 1.18 SAPL 3.6 1.75
MGDD000625.18 26.81 1.63 SAPR 4.4 1.70
MGDD000627.03 29.40 2.37 SAPR 6.8 1.25
MGDD00070.00 2.62 2.62 SOIL 0.8 2.37
MGDD00072.95 4.25 1.30 FERP 1.1 1.52
MGDD00074.25 5.75 1.50 MOTT 12.1 1.52
MGDD00076.00 8.42 2.42 MOTT 16.7 1.30
MGDD00078.42 10.62 2.20 MOTT 4.4 1.40
MGDD000710.62 12.00 1.38 SAPL 3.7 2.12
MGDD000712.00 13.32 1.32 SAPL 4.5 1.20
MGDD000713.54 14.55 1.01 SAPL 3.7 1.20
MGDD000714.55 16.00 1.45 SAPL 24.2 0.98
MGDD000716.00 18.00 2.00 SAPL 27.5 0.97
MGDD000718.00 19.06 1.06 SAPL 30.1 0.80
MGDD000719.31 20.00 0.69 SAPL 25.4 1.07
MGDD000720.00 22.00 2.00 SAPL 25.7 1.08
MGDD000722.00 24.00 2.00 SAPL 18.9 1.18
MGDD000724.00 26.80 2.80 SAPL 15.6 0.98
MGDD000726.80 29.42 2.62 SAPL 5.2 1.65

Table C. HLS sample details with TGC (by Eltra) and TiO2 (by Na-peroxide fusion ICP OES/MS)
Hole From To (m) Sample weight TGC (%) TiO2%
(m) ID (g)

MGDD000313 15 1650 1959 6.40 1.17
MGDD000320 22 1655 2217 5.50 1.22
MGDD000324 26 1657 2178 12.90 1.07
MGDD00076 8.42 1687 2076 16.70 1.30
MGDD000716 18 1694 1760 27.50 0.97
MGDD000724 26.8 1700 2727 15.60 0.98
MGDD00068.4 10.38 1731 1557 8.10 1.23
MGDD000612.0514 1734 1858 8.00 1.20
MGDD000618 20 1738 2105 27.20 1.50
MGDD000622.2324 1741 2109 7.70 1.70

Table D. Sample type, slimes (-53um) & sand (+53um) fractions and mass of HM in sand fraction
WeatheriSample Start +53µm -53µm +53µm -53µm Mass %
ng ID weight weight weight% % HM in
(g) (g) (g) (sand) (slime +53
s) µm
fracti
on

SAPL 1650 1938.7 1601.6 337.1 82.61 17.39 5.23
SAPL 1655 2196 1596.5 599.5 72.7 27.3 7.66
SAPL 1657 2156.8 1682.8 474 78.02 21.98 3.02
MOTT 1687 2055.5 1358 697.5 66.07 33.93 9.76
SAPL 1694 1740.3 1437.8 302.5 82.62 17.38 5.58
SAPL 1700 2689.2 2176.4 512.8 80.93 19.07 11.51
MOTT 1731 1536.6 1151.4 385.2 74.93 25.07 19.26
PSAP 1734 1837.1 1438.4 398.7 78.3 21.7 19.55
SAPL 1738 2083.1 1609.8 473.3 77.28 22.72 3.44
SAPL 1741 2084.1 1619.2 464.9 77.69 22.31 5.64


Table E. Total calculated HM as % of original ore samples, TiO2 in HM concentrate (ICP), TiO2 recovered to HM concentrate as % of original ore samples, semi-quantitative rutile % as measured by XRD, TiO2 in original ore samples recovered as rutile
SampleTot Calc. ICP % TiO2TiO2 rXRD % % TiO2
ID calc. HM TiO recovecover Rutil Rutil
HM weigh2 in ered y % e % e recove
% t HM to to in recovred
% HLS HLS HLS ered conc.
to
HLS

1650 4.3 83.8 16.75 0.72 61.98 13.00 0.56 48.10%
1655 5.6 122.3 14.46 0.81 66.15 11.00 0.61 50.30%
1657 2.4 50.8 26.43 0.62 58.32 21.00 0.49 46.35%
1687 6.4 132.5 10.49 0.68 52.01 9.00 0.58 44.60%
1694 4.6 80.2 15.47 0.71 73.69 14.00 0.65 66.71%
1700 9.3 250.5 7.46 0.69 70.58 7.00 0.65 66.25%
1731 14.4 221.8 6.72 0.97 78.60 6.00 0.87 70.15%
1734 15.3 281.2 5.37 0.82 68.47 5.00 0.77 63.73%
1738 2.7 55.4 28.08 0.75 49.72 22.00 0.58 38.96%
1741 4.4 91.3 17.05 0.75 43.91 13.00 0.57 33.48%

Table F. South and North Composite wet table, electrostatic and magnetic separation results.
SampleDescriRutileTiO2 X% % TiO2 RRecoveTiO2 RRecove
ID ption XRD RF head head ecoverry of ecoverry of
(tail (raw ed TiO ed TiO
s) ore) grade2 to c grade2 to c
feed feed from onc from onc
tails from ore from
tails ore

North Composite
#0534 HTR 49 71.53 1.51 1.07 - - - -
Cond

#0535 HTR 47 63.47 0.40 0.28 - - - -
Mid

#0536 HTR 6 8.56 0.77 0.55 - - - -
Non
Cond

#0537 (Cond)30 46.16 0.51 0.36 - - - -
IRM
Mag

#0538 (Cond)62 76.72 1.00 0.71 0.77% 51.50%0.55% 36.61%
IRM
Non
Mag

South Composite
#0539 HTR 57 73.41 0.83 0.67 - - - -
Cond

#0540 HTR 55 69.49 1.03 0.82 - - - -
Mid

#0541 HTR 5 7.31 1.76 1.41 - - - -
Non
Cond

#0542 (HTR 32 42.92 0.31 0.25 - - - -
Mid)
IRM
Mag

#0543 (HTR 57 77.90 0.72 0.57 0.56% 37.46%0.45% 30.01%
Mid)
IRM
Non
Mag

0544 (HTR 40 53.43 0.31 0.25 - - - -
Cond)
IRM
Mag

#0545 (HTR 69 89.93 0.57 0.46 0.52% 34.61%0.41% 27.72%
Cond)
IRM
Non
Mag

HTR Mi- 83.25 - - 1.07% 72.07%0.86% 57.73%
d+Cond
combi
ned
(calc
.)


Appendix 2: JORC Code, 2012 Edition - Table 1
Section 1 Sampling Techniques and Data
Criter JORC Code Commentary
ia explanation

SampliNature and PQ triple tube (PQ3) Diamond Drilling
ng quality of (DD) was employed to obtain drill
Techn sampling (e.g. core from surface, which was
iques cut channels, subsequently geologically and
random chips,
or specific geotechnically logged. Whole diamond
specialised core has been quarter split and
industry sampled at nominal 2m
standard
measurement downhole intervals and submitted for
tools Total Graphitic Carbon (TGC) analysis
appropriate to by
the minerals
under Eltra (reported on 26th October 2016
investigation, and 15th March 2017). A selection of
such as down 80 pulps were taken from this work
and re-analysed by Na-peroxide fusion
hole gamma ICP OES/MS to specifically target
sondes, or TiO
handheld XRF 2 values. Remaining core was sealed in
instruments, layflat
etc.). These tubing and stored in-doors for future
examples should metallurgical
not be taken as
limiting the testwork.
broad meaning
of Heavy liquid separation (HLS) work was
sampling. undertaken at AML in Perth on 10
samples which were selected from
coarse rejects of the 80 pulps
Include analysed above. XRD
reference to (semi-quantitative) for bulk
measures taken mineralogy on the 10 HLS concentrates
to ensure was undertaken at
sample
Intertek Perth. Primary and secondary
representivity an wet table separation work was
d the undertaken on two ~20kg composite
appropriate tailings samples produced from
calibration of earlier graphite flotation test-work
any measurement (South Composite and North
tools or Composite). XRD mineralogy on 3
systems splits from each composite after
used. tabling (concentrate, middlings and
tailings) for the South Composite.
TGC (total graphitic carbon) by
Aspects of the
determination Eltra was conducted on the 6 splits.
of Na-peroxide fusion ICP OES/MS was
mineralisation also conducted on the 6 splits.
that are Electrostatic (HTR) separation of the
Material to the combined concentrate and middlings
Public Report. fractions for each composite was
In cases where undertaken, followed by magnetic
industry separation on the HTR middlings and
standard work conductors to produce final
has been done products.
this would be
relatively
simple (e.g.
reverse
circulation
drilling was
used to obtain
1 m samples
from which 3 kg
was pulverised
to produce a 30
g charge for
fire assay).
In other cases
more
explanation may
be required,
such as where
there is coarse
gold that has
inherent
sampling
problems.
Unusual
commodities or
mineralisation
types (e.g.
submarine
nodules) may
warrant
disclosure of
detailed
information.

DrilliDrill type (e.g. Conventional wireline PQ triple tube
ng core, reverse (PQ
Techn circulation, 3) Diamond Drilling (DD) was employed
iques openhole to obtain all drill
hammer, rotary
air blast, core from surface. Drilling was
auger, Bangka, undertaken with an Atlas
sonic, etc.)
and details Copco Christensen CT14 truck mounted
(e.g. core drilling rig. The nominal core
diameter, diameter is 83mm with a nominal hole
triple or diameter is 122mm. Coring was
standard tube, completed with standard diamond
depth of impregnated tungsten carbide drilling
diamond tails, bits. Drill runs were completed
facesampling employing either a 3.0 or 1.5m length
bit or other PQ core
type, whether barrel.
core is
oriented and if
so, by what
method,
etc.).

Drill Method of At the completion of each drill run
Sampl recording and the steel splits containing the drill
e assessing core core were pumped out of the retrieved
Recov and chip sample core tube. Core was then carefully
ery recoveries and transferred from the drill split into
results plastic sleeves
assessed. (
layflat) which were secured in rigid
PVC splits. The
Measures taken
to maximise layflat was securely bound and sealed
sample recovery with tape prior to transferring PVC
and ensure splits into plastic core trays. Core
representative recovery was then recorded separately
nature of the for each drilling
samples. run.

Whether a
relationship Core recovery was closely monitored
exists between during drilling particularly through
sample recovery the mineralised zones. Standard
and grade and industry drilling mud mixtures were
whether sample employed to improve core recovery
bias may have especially through the softer upper
occurred due to clay rich material and underlying
preferential
loss/gain of saprolitic horizon. Other measures
fine/coarse such as adjusting the quantity of
material. water used during drilling, the
amount of rotation used and use of
different drill bit types appropriate
for soft formation drilling were
employed during drilling to improve
core
recovery.


Drill hole MGDD0004 and MGDD0005 were
re-drilled due to core loss sustained
through a number of mineralised
zones. An overall core recovery of
89% was achieved for all drill holes
and the core recovery through
mineralised zones (>=5%

vv) averages 90%. Excluding MGDD0004
and MGDD0005, core recovery overall
increases to 91% and in mineralised
zones (>=5%vv) averages
95%.


LogginWhether core and All DD core was geologically logged,
g chip samples recording relevant data to a standard
have been template on a geological interval
geologically basis.
and
Hole MGDD0001-7 were geotechnically log
geotechnically loged by trained company geologists.
gged to a level
of detail to Hole MGDD0008-13 was geotechnically log
support ged by a qualified geotechnical
appropriate engineer and selected samples were
Mineral collected for laboratory strength
Resource tests. In addition, samples have been
estimation selected for bulk density
mining studies determinations. All logged data was
and codified to a set company codes
metallurgical system. This information is of a
studies. sufficient level of detail to support
appropriate Mineral Resource
Whether logging estimation mining studies and
is qualitative metallurgical
or quantitative studies.
in nature. Core
(or costean,
channel, etc.) Logging is both qualitative and
photography. quantitative. Geological logging
included lithological features, and
The total length volumetric visual estimates of
and percentage mineralisation percentages and flake
of the relevant characteristics. All drill
intersection
logged. core is digitally photographed prior
to sampling for future
reference.


100% of drill-hole samples have been
geologically
logged.


Sub-saIf core, whether Whole PQ3 drill core was manually
mpling cut or sawn and split and/or cut using a motorised
techn whether diamond blade core saw and quarter
iques quarter, half sampled for laboratory analysis.
and or all core Sample preparation is conducted at
sampl taken. the laboratory in Perth. Each entire
e sample is crushed to nominal 100%
prepaIf non-core, -3mm in a Boyd crusher then
ration whether pulverised to 85% -75µm in a LM5.
riffled, tube Approximately 100g pulp is collected
sampled, rotary and sent to
split, etc. and
whether sampled Intertek-Genalysis Perth for chemical
wet or analysis.
dry.

For all sample 10 heavy liquid separation (HLS) work
types, the samples were selected from coarse
nature, quality rejects of the 80 pulps analysed
and above. Primary and secondary wet
appropriateness table separation work was undertaken
of the sample on two ~20kg composite tailings
preparation samples produced from earlier
technique. graphite flotation test-work (South
Composite and North
Quality control Composite).
procedures
adopted for all
sub-sampling
stages to
maximise

representivity of
samples.

Measures taken
to ensure that
the sampling is
representative
of the in situ
material
collected,
including for
instance
results for
field
duplicate/second
-half
sampling.

Whether sample
sizes are
appropriate to
the grain size
of the material
being
sampled.

QualitThe nature, The assaying and laboratory procedures
y of quality and are considered to be appropriate for
assay appropriateness reporting titanium mineralisation,
data of the assaying according to industry best practice.
and and laboratory Each entire sample was crushed to
labor procedures used nominally 100% -3mm in a Boyd crusher
atory and whether the then pulverised to 85% -75µm.
tests technique is Approximately 100g pulp is collected
considered for analysis at
partial or
total. Intertek-Genalysis Perth. A sample of
0.2g is removed from the 100 gram
pulp and subject to by Na-peroxide
For geophysical fusion ICP OES/MS. Field QC
tools, procedures involve the use of
spectrometers, certified reference material assay
handheld XRF standards, blanks, duplicates,
instruments, replicates for company QC measures,
etc., the and laboratory standards, replicate
parameters used assaying and barren washes for
in determining laboratory QC measures. The insertion
the analysis rate of each of these averaged better
including than 1 in
instrument make 20.
and model,
reading times,
calibrations XRD for bulk mineralogy on the 10 HLS
factors applied concentrates is considered
and their semi-quantitative
derivation, only.
etc.

Na-peroxide fusion ICP OES/MS on pulps
Nature of and concentrate and tailings samples
quality control involves a full digest and is
procedures considered a complete analysis
adopted (e.g. technique.
standards,
blanks,
duplicate, Discrepancy between XRD rutile results
external and Na-peroxide fusion ICP OES/MS
laboratory TiO
checks) and 2 results is likely due to the
whether presence of leucoxene in the
acceptable concentrates.
levels of
accuracy (i.e.
lack of bias)
and precision
have been
established.

VerifiThe verification Significant mineralisation
cation of significant intersections were verified by
of intersections alternative company personnel.
sampl by either Twinned holes were not used for this
ing & independent or initial work on rutile-leucoxene.
assay alternative
ing company
personnel.
All data is initially collected on
The use of paper logging sheets and codified to
twinned the Company's templates. This data
holes. was hand entered to

Documentation of spreadsheets and validated by Company
primary data, geologists. This data was then
data entry imported to a Microsoft Access
procedures, Database then validated automatically
data and
verification, manually.
data storage
(physical and
electronic) No adjustments have been made to assay
protocols. data.

Discuss any
adjustment to
assay data.


LocatiAccuracy and Collars were tape measured from 20m
on of quality of separated DGPS surveyed auger holes
data surveys used to (accuracy 0.02m
point locate drill x/y).
s holes (collar
and down-hole
surveys), All collars will be picked-up by the
trenches, mine Companys consulting surveyor used a
workings and Leica GPS System 1200 in RTK mode to
other locations define the drill-hole collar
used in Mineral coordinates to centimetre accuracy.
Resource All down-hole surveying was carried
estimation. out using a Reflex

Specification of Ez-Trak multi-shot survey tool at 30m
the grid system intervals down
used. hole.

Quality and WGS84 (GRS80) UTM Zone 36 South is the
adequacy of grid system
topographic used.
control.

The Companys consulting surveyor used
a Leica DGPS System 1200 in RTK mode
to accurately locate the x, y, z of
drill collars. Previous checking of
Hand Auger holes with the Shuttle
Radar Topographic Mission (SRTM)
1-arc second digital elevation data
has shown that the Leica GPS System
produces consistently accurate
results. Given the low topographic
relief of the area it is believed
that this represents high quality
control.

Data Data spacing for Diamond core drill holes occur along
spaci reporting of east-west sections spaced at between
ng & Exploration 100-400m north-south between 35,400mN
distr Results. to
ibutio 37,200mN.
n Whether the data
spacing and No Mineral Resource Estimate (MRE) has
distribution is been completed for rutile-leucoxene
sufficient to mineralisation at
establish the
degree of Malingunde and the data distribution
geological and is not yet sufficient to establish
grade grade continuity appropriate for a
continuity MRE.
appropriate for
the Mineral
Resource and No sample compositing has occurred.
Ore Reserve
estimation
procedure(s)
and
classifications
applied.

Whether sample
compositing has
been
applied.

OrientWhether the No bias attributable to orientation of
ation orientation of sampling has been
of sampling
data achieves identified, however, it is also not
in unbiased yet possible to ascertain the
relat sampling of geological orientation of the
ion possible rutile-leucoxene
to structures and mineralisation.
geolo the extent to
gical which this is
struc known
ture considering the
deposit
type

If the
relationship
between the
drilling
orientation and
the orientation
of key
mineralised
structures is
considered to
have introduced
a sampling
bias, this
should be
assessed and
reported if
material.

SampleThe measures Samples are securely stored at the
secur taken to ensure Companys compound in Lilongwe.
ity sample Samples are labelled in accordance
security with HCS 2012 and kept for 5
years.

AuditsThe results of It is considered by the Company that
or any audits or industry best practice methods have
revie reviews of been employed at all stages of work.
ws sampling Reviews of metallurgical and
techniques and downstream test-work are undertaken
data by appropriately qualified
independent consultants on a regular
basis.

Section 2 Reporting of Exploration Results
Criter JORC Code Commentary
ia explanation

MineraType, The Company owns 100% of 4 Exclusive
l reference Prospecting Licences (EPLs) in Malawi.
tenem name/number, EPL0355 renewed in 2017 for 2 years,
ent & location and EPL0372 renewed in 2018 for 2 years and
land ownership EPL0413 renewed in 2017 for 2 years.
tenur including EPL0492 was granted in 2018 for an
e agreements initial period of three years
statu or material (renewable).
s issues with
third
parties such The tenements are in good standing and no
as joint known impediments to exploration or
ventures, mining
partnerships, exist.
overriding
royalties,
native title
interests,
historical
sites,
wilderness
or national
park and
environment
settings.

The security
of the
tenure held
at the time
of reporting
along with
any known
impediments
to obtaining
a licence to
operate in
the
area.

ExplorAcknowledgemenNo other parties were involved in
ation t and exploration.
done appraisal of
by exploration
other by other
parti parties.
es

GeologDeposit type, The rutile-leucoxene mineralisation
y geological occurs within graphitic gneisses, hosted
setting and within a broader Proterozoic
style of
mineralisatioparagneiss package. In the Malingunde area
n specifically, a deep tropical weathering
profile is preserved, resulting in
significant vertical thicknesses from
near surface of

saprolite-hosted rutile-leucoxene and
graphite
mineralisation.

Drill A summary of All material information is presented in
hole all Tables A though F in Appendix
infor information 1.
mation material to
the No material information has been excluded.
understanding
of the
exploration
results
including a
tabulation
of the
following
information
for all
Material
drill holes:
easting and
northings of
the drill
hole collar;
elevation or
RL (Reduced
Level-elevati
on above sea
level in
metres of
the drill
hole
collar); dip
and azimuth
of the hole;
down hole
length and
interception
depth; and
hole
length

If the
exclusion of
this
information
is justified
on the basis
that the
information
is not
Material and
this
exclusion
does not
detract from
the
understanding
of the
report, the
Competent
Person
should
clearly
explain why
this is the
case

Data In reporting A 0% TiO2 lower cut-off grade was
aggre Exploration applied.
gation Results,
metho weighting
ds averaging No short lengths of high grades occur.
techniques, No metal equivalent values are used in
maximum this
and/or report.
minimum
grade
truncations
(e.g.
cutting of
high-grades)
and cut-off
grades are
usually
Material and
should be
stated.

Where
aggregate
intercepts
incorporate
short
lengths of
high-grade
results and
longer
lengths of
low grade
results, the
procedure
used for
such
aggregation
should be
stated and
some typical
examples of
such
aggregations
should be
shown in
detail.

The
assumptions
used for any
reporting of
metal
equivalent
values
should be
clearly
stated.

RelatiThese All reported widths are down-hole widths.
onship relationships The orientation and geometry of the
betwe are rutile-leucoxene mineralisation is not
en particularly currently well
miner important in understood.
alisat the
ion reporting of
width Exploration
s & Results.
inter
cept If the
lengt geometry of
hs the
mineralisatio
n with
respect to
the drill

hole angle is
known, its
nature
should be
reported.

If it is not
known and
only the
down hole
lengths are
reported,
there should
be a clear
statement to
this effect
(e.g. 'down
hole length,
true width
not
known'.

DiagraAppropriate See Figures within the main text of this
ms maps and report.
sections
(with
scales) and
tabulations
of
intercepts
should be
included for
any
significant
discovery
being
reported.
These should
include, but
not be
limited to a
plan view of
the drill
collar
locations
and
appropriate
sectional
views.



BalancWhere Representative reporting of low and
ed comprehensive high-grades has been effected within
repor reporting of this
ting all report.
Exploration
Results is
not
practicable,
representativ
e reporting
of

both low and
high-grades
and/or
widths
should be
practiced to
avoid
misleading
reporting of
exploration
results.

Other Other No additional meaningful and material
subst exploration exploration data has been excluded from
antive data, if this report that has not previously been
explo meaningful reported to the
ration and ASX.
data material,
should be
reported
including
(but not
limited to):
geological
observations;
geophysical
survey
results;
geochemical
survey
results;
bulk samples
- size and
method of
treatment;
metallurgical
test
results;
bulk
density,
groundwater,
geotechnical
and rock
characteristi
cs; potential
deleterious
or
contaminating
substances.

FurtheThe nature The company is currently completing a
r and scale of pre-feasibility study on a potential
work planned flake graphite mining operation at
further work
(e.g. test Malingunde. Further work on the
for lateral possibility of recovering
extensions rutile-leucoxene from the deposit will
or depth include additional chemical analyses of
extensions concentrates and additional
or metallurgical test-work in order to try
large-scale to upgrade the concentrates to >95%
step-out TiO
drilling). 2. Additionally, a desk-top study is
planned to examine capital and operating
costs of adding a rutile-leucoxene
Diagrams recovery circuit to the proposed plant
clearly at
highlighting
the areas of Malingunde.
possible
extensions, See Figures within the main text of this
including report for possible extensions to
the main rutile-leucoxene
geological mineralisation.
interpretatio
ns and future
drilling
areas,
provided
this
information
is not
commercially
sensitive.

Unternehmensinformation / Kurzprofil:
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Datum: 14.08.2018 - 07:53 Uhr
Sprache: Deutsch
News-ID 579488
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contact information:
Town:

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Kategorie:

Business News

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"
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