Fortuna Metals Establishes 298Mt Maiden Resource at Mkanda, Malawi

Fortuna Metals Delivers Maiden Resource at Mkanda, Confirming a Globally Significant Rutile-Graphite System

Fortuna Metals (ASX: FUN) has reported a maiden Inferred Mineral Resource Estimate at its Mkanda rutile-graphite project in Malawi, establishing the company's position in the global critical minerals sector. The Fortuna Metals Mkanda maiden mineral resource estimate rutile graphite Malawi announcement confirms the resource stands at 298 million tonnes at 1.57% rutile equivalent (RutEq) at a 0.7% rutile cut-off, containing 2.59 million tonnes of rutile at 0.87% grade, alongside a substantial graphite co-product.

The estimate, independently prepared by Placer Consulting Pty Ltd and peer-reviewed by Datamine Australia, is based solely on shallow hand-auger drilling to an average depth of 8.4 metres. Mineralisation remains open both laterally and at depth, indicating the resource carries meaningful scope for expansion through further drilling.

"I'm extremely pleased to deliver our maiden Inferred Mineral Resource estimate at Mkanda of 2.6 million tonnes of contained rutile at a high grade of 0.87%, and a corresponding rutile equivalent grade of 1.57% RutEq. When you combine the maiden MRE with the recent high purity 96.6% TiO₂ rutile product, the large high-grade graphite resource and potential additional streams of zircon and monazite, it is clear Mkanda is evolving into a strategic critical mineral project of significance," said Tom Langley, CEO of Fortuna Metals.

The Resource at a Glance: What the Numbers Tell Investors

The MRE has been reported across a range of rutile cut-off grades, giving investors a view of how the deposit's quality and scale interact at different thresholds.

RutEq formula: (Rutile Grade x Recovery x Rutile Price) + (Graphite Grade x Recovery x Graphite Price) / Rutile Price. Key assumptions applied: rutile price US$1,286.81/t, graphite price US$1,099.51/t, rutile recovery 97.6%, graphite recovery 70.4%. All mineralisation classified as Inferred.

Several observations stand out from this table. Even at the broadest 0.4% cut-off, the deposit encompasses 697 million tonnes containing 4.85 million tonnes of rutile and 7.27 million tonnes of graphite, pointing to the scale of the broader mineralised system.

The higher-grade shell at a 0.8% cut-off, at 159 million tonnes grading 0.98% rutile, shows a substantial higher-grade core with a RutEq of 1.62%. Graphite grades add meaningfully across all cut-offs, furthermore contributing between approximately 0.30 and 0.48 percentage points of rutile equivalent uplift on top of the rutile-only grade.

Understanding Rutile Equivalent: Why It Matters for Investors

What is Rutile Equivalent (RutEq)?

Rutile Equivalent is a combined grade metric that converts multiple commodities — in this case rutile and graphite — into a single comparable figure expressed in rutile terms. It weights each commodity according to its assumed price, metallurgical recovery, and payability relative to rutile.

What is the Formula Fortuna Has Applied?

RutEq = (Rutile Grade x Recovery x Rutile Price) + (Graphite Grade x Recovery x Graphite Price) ÷ Rutile Price

Why Does This Matter for the Resource?

At the 0.7% cut-off, rutile alone grades 0.87%, but once graphite is factored in under the stated price assumptions, the combined grade rises to 1.57% RutEq — an uplift of approximately 80 basis points. The company notes this is a material addition that can improve the project's overall economic profile and broaden its addressable commodity base, according to the announcement.

Fortuna has adopted the same RutEq assumptions used in Sovereign Metals' Kasiya Definitive Feasibility Study, released in April 2026, to allow direct comparison with the world's largest natural rutile deposit, located approximately 20km to Mkanda's north. The company has, however, cautioned that the RutEq calculation is intended solely as a comparative value metric and does not replace the separate reporting of individual rutile and graphite grades in accordance with the JORC Code (2012).

Glossary of Key Terms

• Inferred Mineral Resource: The lowest confidence category under the JORC Code (2012). Sufficient data exists to estimate tonnage and grade, but geological and grade continuity is implied rather than verified through closely spaced drilling.
• TGC (Total Graphitic Carbon): A measure of graphite content in a sample, expressed as a percentage.
• JORC Code: The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves — the reporting standard applied by ASX-listed resource companies.
• Eluvial/residual placer: A deposit formed through in-situ weathering of underlying rock, concentrating heavy minerals such as rutile near the surface without significant transport by water or wind.

The Geology: A Setting With Familiar Hallmarks

Mkanda sits on the Lilongwe Plain in central Malawi, underlain by metamorphic basement rocks of the Mozambique Belt — the same geological province hosting Sovereign Metals' Kasiya project. According to Sovereign Metals' own disclosures referenced in the announcement, Kasiya is described as the world's largest natural rutile deposit and second largest coarse flake graphite deposit.

The Mkanda and Kampini tenements cover 658 square kilometres and lie approximately 20km south of Kasiya, sharing the same weathered gneiss geological formation. Mineralisation at Mkanda is interpreted as a residual eluvial placer, where rutile and graphite have been concentrated near surface through prolonged tropical weathering that removed more mobile minerals and left resistant heavy minerals in the upper 8 to 10 metres of the weathering profile.

This geometry carries several implications from a mining perspective, based on the company's preliminary assessment:

• Mineralisation is interpreted to start from surface, potentially reducing the need for stripping to access ore
• The material is described as soft and free-dig, suggesting blasting may not be required
• Zones are laterally extensive and blanket-style, pointing to relatively consistent grade distribution
• Preliminary assumptions point to potential for shallow, low-strip-ratio mining methods, subject to future studies

The hand-auger results show similarities to Kasiya, specifically a geometry of higher-grade core zones extending to the base of drilling, flanked by shallower zones of surface mineralisation. This grade profile supports the company's view that the current resource is constrained by the depth capacity of hand-auger drilling rather than by a demonstrated geological limit.

The deposit currently extends approximately 24km along strike and 12km across strike at its widest point within a 141 square kilometre modelled area. The adjacent Kampini licence has not yet received meaningful drilling.

Metallurgical Quality: An Early Product Data Point

Alongside the Fortuna Metals Mkanda maiden mineral resource estimate rutile graphite Malawi announcement, Fortuna confirmed that Mkanda material can produce a rutile concentrate grading 96.6% TiO₂, as announced on 2 July 2026 following initial bulk metallurgical test work conducted by Mineral Technologies in Johannesburg, South Africa.

This is considered a meaningful early data point. Natural rutile is a premium feedstock in the titanium value chain, and products grading above 95% TiO₂ are generally sought after by titanium pigment producers, titanium metal manufacturers and welding electrode suppliers.

Graphite flotation test work is underway on a 50kg sample from the bulk sampling campaign, with results pending. In addition, zircon and monazite have also been identified as potential co-products, with process and recovery test work currently in progress.

Why Natural Rutile? The Demand Backdrop

Natural rutile is a high-grade titanium feedstock used in titanium pigment production, titanium metal, welding electrodes and advanced manufacturing. It commands a premium over lower-grade synthetic alternatives due to its higher TiO₂ content and compatibility with chloride pigment processes.

According to the announcement, several structural factors are shaping the supply outlook. Traditional rutile deposits are becoming depleted, with legacy producing operations in decline and few new discoveries of scale. The United States imports 100% of its titanium sponge, with imports reaching a reported 44,000 tonnes in 2025, and Japan supplies over 70% of these imports.

Western-qualified titanium sponge production has reportedly declined 9% to approximately 81,000 tonnes, while China's share of global production has risen to 70%. The announcement also notes growing titanium demand linked to robotics and advanced manufacturing applications, citing the metal's combination of light weight and durability as relevant to next-generation industrial equipment.

Infrastructure and Location Considerations

Mkanda's central Malawi location benefits from existing infrastructure that may be relevant to future project economics, though no formal studies have yet been completed.

The Nacala rail corridor connects to the Nacala deep-water port in Mozambique, a route used for mineral sands and graphite exports from the region.

Active Drilling and the Path to Resource Growth

Management has described the Fortuna Metals Mkanda maiden mineral resource estimate rutile graphite Malawi release as an initial step rather than a final outcome. Consequently, multiple drilling and study programmes are underway or planned to support resource growth.

Current Activity Includes:

1. An aircore drilling programme covering 5,000 metres on a 200m by 200m grid across higher-grade zones, running through July, August and September 2026, with results expected in the second half of the year.
2. Infill hand-auger drilling, with 648 holes completed in 2026 on a tighter 200m by 200m grid, compared with the 400m by 400m spacing used for the maiden MRE.
3. An in-country laboratory commissioned by Fortuna in Malawi to reduce assay costs and improve turnaround times, with a competent person audit completed and no outstanding items noted.

Planned Work for the Second Half of 2026:

The resource remains open at depth across the modelled area. Given hand-auger drilling was constrained to an average of 8.4 metres, deeper aircore drilling has the potential to extend the resource into the deeper saprolite profile, where the company has indicated moderate-grade rutile mineralisation is interpreted to continue, subject to confirmation.

The Multi-Commodity Story: More Than Just Rutile

Fortuna has positioned Mkanda as a multi-commodity project. While rutile remains the primary focus, three additional commodities add potential optionality.

Graphite is already captured within the MRE, with contained TGC of 3.55 million tonnes at 1.19% TGC at the 0.7% cut-off. Kasiya is described as hosting the world's second largest coarse flake graphite deposit, and Mkanda's graphite is expected by the company to share similar characteristics, subject to confirmation from ongoing flotation test work.

Zircon is a heavy mineral co-product commonly associated with rutile-bearing mineral sands deposits. Process and recovery test work is underway to assess potential zircon grades and quality at Mkanda.

Monazite, a rare earth-bearing mineral, has been identified at Kasiya and is now being assessed at Mkanda. Following the reported recovery of strategic heavy rare earths at Kasiya, Fortuna is directing further analysis toward potential rare earth mineralisation across the Mkanda project as a priority.

Investment Considerations

"Fortuna Metals has established a maiden resource of 298 million tonnes at 1.57% RutEq at Mkanda, alongside a confirmed 96.6% TiO₂ rutile concentrate from initial metallurgical test work. Mineralisation remains open in multiple directions, and the company has outlined a programme of drilling and studies intended to grow the resource base through the remainder of 2026 and into 2027."

Several factors are relevant to the project's development profile, based on the disclosed information. Mineralisation is interpreted to start from surface within soft, free-dig material — a geometry that may support lower capital intensity mining approaches, subject to future studies. The project sits within the same geological setting as Kasiya, providing a comparative framework for interpreting Mkanda's mineralisation style.

The confirmed 96.6% TiO₂ concentrate from bulk sample test work addresses an early technical question around product quality, though further metallurgical work is required to confirm recoveries and consistency across the resource. The current MRE is constrained by drilling depth rather than a demonstrated geological limit, and the modelled area of 141 square kilometres represents only a portion of the broader 658 square kilometre tenement package.

Multiple work streams — including drilling, metallurgical test work, conceptual mining and processing studies, and environmental baseline work — are running in parallel according to the company, with results anticipated to be reported through the second half of 2026 and into 2027. The Fortuna Metals Mkanda maiden mineral resource estimate rutile graphite Malawi project therefore remains a developing story, with considerable further newsflow expected as programmes advance.

Ready to Dig Deeper Into Fortuna Metals' Mkanda Project?

Fortuna Metals (ASX: FUN) has delivered a maiden Inferred Mineral Resource of 298 million tonnes at 1.57% RutEq at Mkanda — a multi-commodity critical minerals project in Malawi with mineralisation open in multiple directions, a confirmed 96.6% TiO₂ rutile concentrate, and an active programme of drilling and studies running through the remainder of 2026. With significant newsflow anticipated as work streams advance, investors looking to follow the development of this emerging rutile-graphite project can learn more by visiting fortunametals.limited.