Name of the Project
Malingunde saprolite-hosted graphite project.

Location
The project is located about 20 km from Malawi’s capital Lilongwe.

Client
Sovereign Metals.

Project Description
A prefeasibility study (PFS) on Malingunde has shown that it offers a technically and economically robust, low-risk pathway to the production of premium-quality, coarse flake graphite concentrates.

The PFS is based on total proven and probable reserves of 9.5-million tonnes grading 9.5% total graphitic carbon.

Mining will be undertaken using conventional truck-and-shovel methods.

An initial contract mining strategy has been selected for the first seven years, transitioning to an owner-operator model thereafter.

Average plant throughput is estimated at 600 000 t/y.

Concentrate production is estimated at 52 000 t/y over a 16-year mine life.

The project has huge scalability, with a significant opportunity to increase the mine’s life by processing lower-grade material from the large resource base or by discovering additional high-grade resources within reasonable trucking distance to the proposed processing plant.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 10% discount rate, of $201-million and an internal rate of return of 56%, with a payback of three years from the start of production.

Value
Capital expenditure is estimated at $49-million.

Duration
Not stated.

Latest Developments
Sovereign Metals is hoping to raise A$4.3-million through a share placement to advance the development of its Malingunde project.

The company has completed a bookbuild and has secured commitment from investors for 66.7-million shares, at 6.5c each, which represents a discount of 11% to the company’s 30-day volume weighted average share price.

Sovereign will also undertake a share purchase plan to raise an additional A$1-million, giving shareholders the opportunity to subscribe for up to A$14 950 in new shares.

The funds will enable Sovereign to accelerate a graphite definitive feasibility study and advance the rutile potential.

Key Contracts and Suppliers
Minnovo (process plant design, process plant infrastructure and collation of study report); CSA Global (resource estimate); SGS Canada (metallurgical testwork); Orelogy Mining Consultants (mine design and scheduling); Peter O’Bryan & Associates (openpit geotechnical assessment); SLR Consulting (tailings storage facility and water studies); Dhamana Consulting (environmental studies management); AECOM (social studies and relocation action plan); and Grindrod Rail Consultancy Services (outbound logistics).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Sovereign Metals, tel +61 8 9322 6322 or email info@sovereignmetals.com.au.