Name of the Project
K. Hill manganese project.

Location
The Kanye basin, in south-eastern Botswana.

Project Owner/s
Giyani Metals Corp.

Project Description
An updated preliminary economic assessment (PEA) has incorporated 1.70-million tonnes of inferred mineral resources into the project grading 25.70% manganese oxide, 10.50% aluminium oxide, 30.90% silicone oxide, 16.80% iron and 8.70% LOI.

The project is expected to produce 891 000 t of high-purity manganese sulphate monohydrate over its ten-year mine life.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The updated PEA has increased the project’s pretax net present value, at a 10% discount rate, from $357-million in the April 2020 PEA to $431-million in the April 2021 PEA. The internal rate of return has decreased from 82.10% to 80% after tax. The project has a payback of three years.

Capital Expenditure
The project will require a capital investment of about $153-million.

Planned Start/End Date
Not stated.

Latest Developments
Giyani has announced an updated mineral resources estimate for its K.Hill project as part of the feasibility study for the project.

Infill drilling has resulted in the conversion of about 95% of the current inferred mineral resources for K.Hill into the indicated mineral resources category and a 25% increase in total contained manganese metal.

Indicated mineral resources for the project’s main mineralised zone are reported as 1.6-million tonnes at an average grade of 22% manganese oxide, equivalent to about 400 000 t of contained manganese metal.

Inferred mineral resources, including the newly discovered mineralised horizon, known as the B Horizon, are reported as 1.4-million tonnes at an average grade of 13.9% manganese oxide, equivalent to about 200 000 t contained metal.

Total contained metal will equate to about 1.7-million tonnes of high-purity manganese sulphate monohydrate (HPMSM).

Samples from the B Horizon are undergoing detailed mineralogy and hydrometallurgical testwork and may facilitate a potential upgrade from the inferred to indicated mineral resources category.

Following completion of the reverse-circulation infill drilling programme, SRK Consulting has compiled an updated mineral resources estimate for K.Hill.

The estimate includes results from the main K.Hill project mineralised zone and the new B Horizon only.

Mineral resources have not yet been estimated or reported for the southerly extension of K.Hill as previously announced in August.

The mineral resources estimate has been restricted to all classified material falling within an optimised pit shell representing a long-term price for HPMSM of $1 588/t, based on 2020 market data.

The shell also used various technical economic parameters, derived from the ongoing technical studies for K.Hill.

Moreover, the mineral resources estimate is reported at above a cutoff grade of 7.3% manganese oxide.

This represents the material which SRK considers to have a reasonable prospect for eventual economic extraction.

Key Contracts, Suppliers and Consultants
Mintek (metallurgical testwork); and SRK Consulting ((updated mineral resources estimate).

Contact Details for Project Information
Giyani Metals Corp, tel +128 9291 4032 or email info@giyanimetals.com.