Name of the Project
K. Hill manganese project.
Location
The Kanye basin, in south-eastern Botswana.
Project Owner/s
Giyani Metals Corp.
Project Description
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 preliminary economic assessment (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 Metals has published an updated indicated mineral resource estimate of 1.6-million tonnes and an inferred mineral resource estimate of 1.4-million tonnes for the K.Hill manganese oxide project.
The company has also completed a three-hole diamond drilling programme totalling 260 m, after discovering a new mineralised horizon at the K.Hill Extension in September.
The samples from this drill programme will soon undergo X-ray fluorescence analysis at a laboratory in South Africa, while more metallurgical testwork will be completed prior to the release of maiden resources for this area.
The mineral resource estimate does not take into account any additional resources from the K.Hill Extension.
CEO Robin Birchall says as Giyani completes another phase in its exploration of the K.Hill Extension, the company is enhancing its understanding of the potential of just one of three Botswana manganese prospects.
“Our previously updated PEA for the K.Hill project does not reflect the expanded mineral resource base and we are in discussions with consultancy SRK to prepare a revised report to include the new numbers.
“The economics of the K.Hill project are already highly attractive, but we expect that they will continue to increase in value as the resource grows,” he notes.
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.