Sovereign starts PFS at Malingunde graphite project
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This product is classified as ‘very high risk’ in nature due to its location and geopolitical situation of the region. FinFeed advises that extra caution should be taken when deciding whether to engage in this product, however if you are not sure whether it is suitable for you we suggest you seek independent financial advice.
Sovereign Metals Limited (ASX:SVM) today announced it had commenced the Pre-feasibility Study for the low-cost Malingunde saprolite-hosted graphite project in Malawi.
The PFS is intended to build on the promising results that came from the recently completed Scoping Study. That study provided further evidence of the project’s potential to become a very low cost operating mine, producing an annual graphite concentrate production of ~44,000 tonnes over an initial 17 years.
The below graphic indicates the key information gleaned from the Scoping Study at the Malingunde project:
SVM is currently fully funded to see it through both the PFS as well as a subsequent DFS (definitive feasibility study), due to a recent A$6.5 million capital raise. It has now appointed the appropriate personnel for both studies, as well as consultants for the metallurgical, environmental, groundwater and tailings aspects of the project.
It should be noted here that SVM remains a speculative stock and investors should seek professional financial advice if considering this stock for their portfolio.
Several programs are already underway to ensure the PFS can be fast-tracked to completion by mid-2018, including baseline environmental studies and a metallurgical program. Approximately 6000 metres of resource infill and regional exploration drilling are pegged to start in the near-term.
The purpose of the PFS program will be to increase the resource classification level for the Malingunde mine plan, as well as test a number of the surrounding prospects for high-grade saprolite-hosted graphite mineralisation.
The full scope of the program has now been finalised. It will include mine design; a substantial metallurgical program; process design and engineering works based on metallurgy results; planning of on-site infrastructure requirements; the continuation of environmental baseline studies; and the commencement of a major stakeholder engagement program.
Regarding today’s announcement, SVM Managing Director, Dr Julian Stephens said “Sovereign is now fully funded to complete all the required technical studies on the 100%-owned, world class Malingunde saprolite hosted graphite project in Malawi. The PFS will build on the outcomes of the Scoping Study that clearly demonstrated the Project’s world-class potential centred on very low operating and capital costs, with high revenues derived from a premium graphite product.”
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