Sovereign Metals (ASX:SVM) recovered a monazite product at its Lilongwe laboratory facilities containing high-value heavy rare earth elements from the tailings stream from electrostatic separation of a heavy mineral gravity concentrate of the Kasiya rutile-graphite project ore, according to a Wednesday Australian bourse filing.

The monazite by-product has the potential to add a third revenue stream to the Malawi project for near-zero incremental cost, requiring no additional complex processing.

Preliminary analysis confirmed the monazite concentrate contains heavy rare earth content averaging 2.9% grade, and up to 3.9% grade, of combined dysprosium-terbium, as well as averaging 11.9% grade, and up to 17.3% grade, of yttrium. It also contains light rare earth content, including 21.8% grade of neodymium-praseodymium.

Its shares rose 23% in recent trading on Wednesday.