Sovereign Metals Limited, expecting extensive potential

Team Veye | 22 May 2020 ASX - SVM
Sovereign Metals Limited, expecting extensive potential

Sovereign Metals Limited (ASX: SVM)

March 2020 Quarterly Report

Sovereign Metals Limited (ASX: SVM) (Company or Sovereign) on 24 April 2020 provided its quarterly report for the period ended 31 March 2020

(Chart source: TradingView)

Highlights

Major High-Grade Rutile Discovery at Kasiya 

  • Results received for two phases of drilling show the Kasiya Prospect (Kasiya) to be an extensive, high-grade zone of rutile from the surface in soft, free-dig saprolite. 
  • High-grade rutile mineralisation identified over +3.4km strike length and +1.8km surface width to date 
  • Mineralised zone is open along strike in both directions and open laterally to the south-east 
  • Results demonstrate the very large-scale potential of the Kasiya rutile discovery Significant drilling results (all from the surface) received to date include: 
  • 5m @ 1.43% rutile inc. 2m @ 2.04% rutile 
  • 7m @ 1.27% rutile inc. 3m @ 1.80% rutile 
  • 15m @ 1.12% rutile inc. 3m @ 1.46% rutile 
  • 11m @ 1.02% rutile inc. 3m @ 1.23% rutile 
  • 7m @ 1.13% rutile inc. 3m @ 1.55% rutile 
  • 10m @ 1.06% rutile inc. 4m @ 1.46% rutile 
  • 14m @ 0.92% rutile inc. 3m @ 1.38% rutile 
  • 8m @ 0.95% rutile inc. 4m @ 1.36% rutile 
  • Extensional and in-fill drilling at Kasiya continues with several additional sample batches already despatched to Australia for laboratory analysis (Data Source – Company Reports)

 

Veye’s Take

The Company is targeting large mineral resources that could support long-life, large-scale rutile production. Exploration and drilling programs working towards significant maiden rutile Mineral Resources in late Q3 2020. The new results from the Bua Channel are very encouraging and continue to confirm the extensive potential of the Bua Channel. The remaining significant upside with over 40km of channel length to be explored places the Company in an exciting position. It is looking forward to unlocking what it believes is a globally significant, strategic rutile province in Malawi, as it continues to advance the large, high-grade saprolite-hosted Kasiya Prospect and the sand-hosted Bua Channel Prospect. The stock is trading above 50MA on monthly charts. It has strong support above $0.135. It can have the potential of further moving up and giving good returns in the medium term. Veye recommends a "Speculative Buy" on “Sovereign Metals Limited” at the current price of $0.14 

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