SOVEREIGN METALS (SVM-ASX, A$85m Mkt Cap) – Sovereign has released step out highlights of 10m @ 1.53% rutile (including 3m @ 2.3%) averaging ~6.4m @ 0.9%, with infill highlights of 12m @ 1.3% rutile and averaging ~9m @ 1.0%. Today’s results provide a nice balance of growth to the SW in particular, but also continued infill working toward a mid-2H20 maiden JORC. We see this as the leading mineral sands discovery globally, so expect the maiden resource to act as a catalyst and trigger to a wider investor base, along with a potential overseas listing. Combined with the quick-and-cheap drilling from surface, there isn’t a lot not to like on this name. Our internal estimates already put this at over 300Mt de-risked by the drill bit (including between wide spaced lines), with ‘already drilled’ 178Mt likely to grow after today’s results.
Hmmm....
the leading mineral sands discovery globally
I LIKE IT!
Cheers
SVM Price at posting:
23.5¢ Sentiment: Buy Disclosure: Held
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