TSX-V-listed Giyani Metals reports positive results from an updated preliminary economic assessment (PEA) at its K Hill manganese project, in Botswana.
The updated PEA incorporates a 36% increase in the inferred mineral resource estimate, resulting in a 21% increase in after-tax net present value (NPV) to $332-million.
The higher NPV was driven by changes in a number of parameters.
Firstly, there has been a change in the final saleable product from high-purity electrolytic manganese metal (HPEMM) to high-purity manganese sulphate monohydrate (HPMSM).
HPMSM requires fewer processing steps and consumes less energy than the production of HPEMM.
"Based on feedback from battery manufacturers during the last year, the company believes HPMSM is the preferred precursor material for the production of the nickel/cobalt/manganese (NCM) cathodes used in lithium-ion batteries, especially for the electric vehicle market, Giyani notes.
Secondly, there have been changes with regard to process flow, capital expenditure and operational expenditure as a result of the change to the production of HPMSM.
The estimated life-of-mine capital requirement has decreased to $153-million, of which $118-million is pre-production capital.
The updated PEA also estimates an eight-year mine life and a ten-year project operating life, producing 891 000 t of HPMSM.
“We are delighted with the results of the work by our team on the ground in Botswana and our team of consultants working on the revised process flowsheet and costing of the HPMSM salt option.
"The significant increase in the resource base is extremely pleasing and we hope to add additional tonnes as we complete the assaying of the resource holes and commence our exploration programmes at the K.Hill extension and at Otse," says CEO Robin Birchall.