Shares in Sovereign Metals Limited (ASX: SVM) have held onto gains they saw in early trade after the company announced its flagship rutile deposit is among the world's largest. At the time of writing, the Sovereign Metals share price is trading 77 cents, 13.97% higher than yesterday's close.
Let's take a look at what may be driving the Sovereign Metals share price today.
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Today's news from Sovereign Metals
Today, the mineral exploration company released the maiden resource estimate for its Kasiya rutile deposit – located in Malawi.
The site's assay results include 644 metric tonnes at 1.01% rutile, including a high-grade component of 137 metric tonnes at 1.41% rutile.
According to Sovereign Metals, this makes Kasiya the second largest rutile resource in the world behind Iluka Resources Limited's (ASX: ILU) Sierra Rutile.
Sovereign Metals says the project's mineralisation occurs in a large, coherent deposit. A lot of the deposit's high-grade material exists just 5 metres from the surface.
The maiden resource estimate only covered 43% of the project's ~114 square kilometre rutile footprint.
Thus, the company is expecting future resource growth.
What's next?
A scoping study is currently examining the extent of the rutile deposit.
The study will focus on environmental, social, and governance measures and sustainability, and will be completed late this year.
Sovereign Metals is also undergoing an "aggressive" drilling program to allow for future resource upgrades and extensions at the deposit.
The company expects Kasiya's resource growth could make it the largest rutile deposit in the world.
Rutile's environmental benefits
Natural rutile is the purest form of titanium dioxide and the preferred feedstock for titanium pigment and metal. Titanium pigment can be found in paints, coatings, and plastics.
Rutile's scarcity has seen the titanium industry develop carbon intensive substitutes.
Therefore, the company believes one tonne of natural rutile can save 2.8 tonnes of carbon emissions from being created.
Commentary from management
Sovereign Metal's managing director Dr Julian Stephens commented on the findings, saying:
It is a remarkable result to achieve the maiden JORC mineral resource estimate of this scale, grade and global significance in under 18 months since discovery.
We believe this maiden resource is just the beginning and expect to upgrade and expand the resource over the coming quarters.
Sovereign Metals share price snapshot
2021 has been a good year so far on the ASX for the Sovereign Metals.
Currently, the Sovereign Metals share price is 109% higher than it was at the start of the year. It has gained 307% since this time last year.
The company has a market capitalisation of around $321 million, with approximately 414 million shares outstanding.
