SOVEREIGN METALS LIMITED - ASX: SVM

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Description

Sovereign Metals Limited is a recently ASX listed copper, gold and uranium exploration company with four key exploration projects covering 2037 square kilometres located in the Cloncurry-Mt Isa area in North West Queensland. The highly prospective projects include tenements along strike from Cudeco’s Rocklands Copper Project and a tenement immediately to the south of Summit Resources’ Andersons uranium resource. The Company is also a participant in the Carpentaria Joint Venture with Xstrata Copper which is targeting significant copper mineralisation in the Cloncurry-Mt Isa district. Sovereign is committed to creating shareholder wealth by aggressively exploring its highly prospective tenement holdings and the ongoing development of new business opportunities.

Project Overview

Sovereign holds interests in 15 tenements forming four projects in the Cloncurry–Mount Isa area of Northwest Queensland. The projects are prospective for major deposits of both base and precious metal mineralisation. The projects are named by their geographic locations: Cloncurry North, Cloncurry Central, Cloncurry South, and Mount Isa Southeast.

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Six of the tenements comprise the Carpentaria Joint Venture (CJV), an exploration joint venture between Mount Isa Mines Limited (Xstrata Copper) and Sovereign. Sovereign acquired its interest in the joint venture from Fusion Resources Limited ("Fusion") in 2006. Xstrata Copper is the manager of the joint venture and has earnt a 51% interest in the tenements through a farm-in agreement. Xstrata Copper and Sovereign are now contributing to ongoing exploration of the tenements on a 51:49 basis. Since the commencement of the joint venture in 2002, Xstrata Copper have drilled a total of 94 holes for 11,360m on CJV tenements.

A number of tenements in the CJV are located close to the Rocklands Project, from which significant intersections of copper mineralisation have recently been announced.

The remaining tenements will be explored by Sovereign and exploration activities will commence once tenements are granted.

In addition to Sovereign's interest in projects in the Cloncurry-Mount Isa area, the Directors have elected to proceed with an agreement to farmin to the Tate River Gold Project in Northern Queensland currently owned by Fusion.

The Tate River Gold Project consists of 3 contiguous tenements encompassing an area of 780km2 located approximately 200km west of Cairns in north Queensland.

The agreement with Fusion provides for Sovereign to earn a 50% interest by spending $1.45M over a two year period and up to an additional 25% interest by spending a further $1.5M. Fusion may elect to maintain its interest at each stage of the farmin once Sovereign has earned a 50% interest.

Sovereign’s projects are distributed throughout the Mesoproterozoic Mount Isa and Georgetown Provinces, which contain the world-class metal deposits of Mount Isa (Cu and Pb-Zn-Ag) and Century (Zn-Pb-Ag), in addition to a number of other major deposits, including George Fisher and Hilton (Zn-Pb-Ag), Cannington (Pb-Zn-Ag), Dugald River (Zn-Pb-Ag), and Ernest Henry (Cu-Au).

Mine For

copper, gold, uranium

Location of operation(s)

Queensland

Address

Level 9 , BGC Centre , 28 The Esplanade
PERTH, WA, AUSTRALIA

Phone

(08) 9322 6322

Email

Website

http://www.sovereignmetals.com.au

Last Updated

27/01/2011