Giyani Metals Corp. (TSXV:EMM, GR:A2DUU8)
("
Giyani" or the "
Company") is
pleased to announce its updated preliminary economic assessment
(“
Updated PEA”) to its previously
published PEA update in Q1 2020. The Updated PEA incorporates a 36%
increase in the Inferred Mineral Resource estimate resulting in a
21% increase in after-tax NPV from US$275 million to US$332 million
(at a 10% discount rate) and are driven by changes in the following
parameters:
- Change in 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 compared to 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 (“EV”) market
and aligns with the Company’s strategy to be a low or zero carbon
footprint producer.
- Associated changes in process flow,
CAPEX and OPEX for the production of HPMSM.
- A comprehensive remodelling of the
geological model, wireframes, and block model incorporating all
previously available drilling results as well as the results from
11 holes from the recently completed infill drilling program
available at the time of reporting.
- Reducing the cut-off grade to 7.3%
MnO.
- More accurate determination of the
depletion caused by historical mining.
The Updated PEA NI 43-101 Technical Report will
be filed on SEDAR under the Company’s profile by April 30,
2021.
Robin Birchall, CEO of the Company
commented:
“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 programs at the K.Hill extension and at Otse. I would
like to thank the team for all their hard work.”
Updated PEA Highlights
- Eight (8) year mine life and ten
(10) year project operating life, producing 891,000 tonnes of
HPMSM.
- Incorporates the 1.7 million tonnes
Inferred Mineral Resource estimate for K.Hill.
- Pre-tax NPV of US$431 million
(C$573 million) and Post-tax NPV of US$332 million (C$442 million),
using a 10% discount rate.
- Estimated US$153 million (C$203
million) in life of mine capital requirement, of which US$118
million (C$157 million), is pre-production capital.
- After-tax IRR of
80% and three (3) year payback period.
Updated Mineral Resource
Estimate
The updated Mineral Resource estimate is now 1.7
million tonnes grading 25.7% manganese oxide
(“MnO”) at a cut-off grade of 7.3% MnO. The table
below summarizes the K.Hill Inferred Mineral Resource:
K.Hill Mineral Resource Statement –
April 2021
Estimation Domain |
Category |
Tonnes(Millions) |
MnO% |
Al2O3% |
SiO2% |
Fe2O3% |
LOI% |
High-Grade Upper Mn Shale |
Inferred Mineral Resource |
1.1 |
31.9 |
9.8 |
21.9 |
18.6 |
10.0 |
Low-GradeUpper Mn Shale Top Margin |
Inferred Mineral Resource |
0.3 |
13.2 |
12.1 |
50.2 |
12.1 |
6.9 |
Low-Grade Upper Mn Shale Bottom Margin |
Inferred Mineral Resource |
0.2 |
12.6 |
11.7 |
49.3 |
14.6 |
5.3 |
TOTAL |
Inferred Mineral Resource |
1.7 |
25.7 |
10.5 |
30.9 |
16.8 |
8.7 |
Footnotes:
(1) The Inferred
Mineral Resource Estimate is reported above a cut-off grade of 7%
MnO.(2) Tonnages are considered to be dry.(3) The
Mineral Resource Estimate is constrained within grade based solids
and within a Lerchs-Grossman Optimised pit shell based on a HPMSM
price of US$1,588 / t and the following parameters:
- Mining cost – US$3.46 / t rock
- Processing cost – US$213 / t ore
- Selling cost – 3% Royalty and freight costs of US$60 /t
HPMSM
- G&A cost – US$20 / t ore
- Discount rate – 10%
- Processing recovery – 90.7%
- Mining recovery – 95%
- Mining dilution – 5%
- Geotechnical
slope angle - 45°
(4) All figures
are rounded to reflect the relative accuracy of the
estimate.(5) Mineral Resources are not Mineral Reserves and
do not have demonstrated economic viability.It is uncertain if
further exploration will convert Inferred Mineral Resources to
higher confidence categories
Comparison to Previously Reported
Resource Statements
Comparing the above mentioned Mineral Resource
estimate (“MRE”) to the previously reported MRE
dated April 2020, it can be seen that, by optimizing fundamental
parameters, the Company has been able to increase the Resource at
K.Hill. Specifically, as new data becomes available from the
metallurgical test work, a lower cut-off grade could be applied.
This is evident in the reduced average grade in the latest MRE.
Comparison of K.Hill Mineral Resource
Statement with Previous Revisions.
|
PEA Revision |
|
Sept. 2019 |
April 2020 |
April 2021 |
Resource Statement (Million Tonnes) |
1.10 |
1.24 |
1.70 |
Average MnO grade (%) |
31.2 |
27.3 |
25.7 |
Comparison to Previously Reported PEA
Economics
The economics are based on a projected average
price of US$1,588 / tonne for HPMSM of 32% purity over the project
life. The average price of the product is based on an independent
market study commissioned by the Company.
The following table compares the values of key
indicators from the updated and amended PEA alongside those from
the technical reports filed in September 2019 and April 2020.
Key Indicator |
PEA September 2019 |
PEA April 2020 |
PEA April 2021 |
Project Lifetime |
9 years |
10 years |
10 years |
Pre-tax NPV |
US$369 million |
US$357 million |
US$431 million |
After tax NPV |
US$285 million |
US$275 million |
US$332 million |
IRR |
90.6% |
82.1% |
80.0% |
The PEA is considered preliminary in nature and
includes Inferred Mineral Resources that are considered too
speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as Mineral
Reserves, and accordingly there is no certainty that the
preliminary economic assessment will be realized. The expected
accuracy of costs in the PEA is within a -35% to +45% level of
confidence, as is appropriate for the level of study and accuracy
of the input data provided.
Mineral Resources that are not Mineral Reserves
do not by definition have demonstrated economic viability.
Qualified Persons Statement
The Qualified Person (as that term is defined by
NI 43-101) responsible for preparing the Mineral Resource
statement, PEA and Amended Technical Report for K.Hill is Michael
John Beare, BEng, CEng, MIOM of SRK Consulting (Kz) Ltd. Mr. Beare
has reviewed and approved the scientific and technical content
contained in this press release and verified the underlying
technical data. Mr. Beare is independent of the Company.
About GiyaniGiyani Metals Corp.
is a mineral resource company focused on the development of its
K.Hill, Lobatse & Otse manganese oxide projects in the Kanye
Basin, Botswana, Africa. The Company's flagship K.Hill project is a
near-surface deposit currently going through a feasibility study to
produce high-purity electrolytic manganese metal and manganese
sulphate, both key cathode ingredients for batteries in the
expanding EV market.
Additional information and corporate documents
may be found on www.sedar.com and on Giyani Metals Corp. Website:
https://giyanimetals.com/.
On behalf of the Board of Directors of Giyani
Metals Corp.
Robin Birchall, CEO
Contact:Robin Birchall CEO, Director+44 7711
313019rbirchall@giyanimetals.com
Judith WebsterCorporate Secretary &
IR+416-453-8818jwebster@giyanimetals.com
Neither the TSX Venture Exchange (the "TSXV")
nor its Regulation Services Provider (as that term is defined in
the policies of the TSXV) accepts responsibility for the adequacy
or accuracy of this news release.
The securities described herein have not been
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act"), or any state securities laws,
and accordingly, may not be offered or sold to, or for the account
or benefit of, persons in the United States or "U.S. persons," as
such term is defined in Regulation S promulgated under the U.S.
Securities Act ("U.S. Persons"), except in compliance with the
registration requirements of the U.S. Securities Act and applicable
state securities requirements or pursuant to exemptions therefrom.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy any of the Company's securities to,
or for the account of benefit of, persons in the United States or
U.S. Persons.
Forward Looking Information
This press release contains "forward-looking
information" within the meaning of applicable Canadian securities
legislation. All statements in this news release, other than
statements of historical fact, that address events or developments
that Giyani expects to occur, are "forward-looking statements".
Forward-looking statements are statements that are not historical
facts and are generally, but not always, identified by the words
"expects", "does not expect", "plans", "anticipates", "does not
anticipate", "believes", "intends", "estimates", "projects",
"potential", "scheduled", "forecast", "budget" and similar
expressions, or that events or conditions "will", "would", "may",
"could", "should" or "might" occur. Specific forward-looking
statements and forward-looking information herein includes
completion of receipt of TSXV approval for the private placement
and completion of the private placement.
All such forward-looking statements are based on
the opinions and estimates of the relevant management as of the
date such statements are made and are subject to certain
assumptions, important risk factors and uncertainties, many of
which are beyond Giyani's ability to control or predict.
Forward-looking statements are necessarily based on estimates and
assumptions that are inherently subject to known and unknown risks,
uncertainties and other factors that may cause actual results,
level of activity, performance or achievements to be materially
different from those expressed or implied by such forward-looking
statements. In the case of Giyani, these facts include their
anticipated operations in future periods, planned exploration and
development of its properties, and plans related to its business
and other matters that may occur in the future. This information
relates to analyses and other information that is based on
expectations of future performance and planned work programs.
Forward-looking information is subject to a
variety of known and unknown risks, uncertainties and other factors
which could cause actual events or results to differ from those
expressed or implied by the forward-looking information, including,
without limitation: inherent exploration hazards and risks; risks
related to exploration and development of natural resource
properties; uncertainty in Giyani's ability to obtain funding;
commodity price fluctuations; recent market events and conditions;
risks related to the uncertainty of mineral resource calculations
and the inclusion of inferred mineral resources in economic
estimation; risks related to governmental regulations; risks
related to obtaining necessary licenses and permits; risks related
to their business being subject to environmental laws and
regulations; risks related to their mineral properties being
subject to prior unregistered agreements, transfers, or claims and
other defects in title; risks relating to competition from larger
companies with greater financial and technical resources; risks
relating to the inability to meet financial obligations under
agreements to which they are a party; ability to recruit and retain
qualified personnel; and risks related to their directors and
officers becoming associated with other natural resource companies
which may give rise to conflicts of interests. This list is not
exhaustive of the factors that may affect Giyani's forward-looking
information. Should one or more of these risks and uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those described in the
forward-looking information or statements.
Giyani's forward-looking information is based on
the reasonable beliefs, expectations and opinions of their
respective management on the date the statements are made, and
Giyani does not assume any obligation to update forward looking
information if circumstances or management's beliefs, expectations
or opinions change, except as required by law. For the reasons set
forth above, investors should not place undue reliance on
forward-looking information. For a complete discussion with respect
to Giyani and risks associated with forward-looking information and
forward-looking statements, please refer to Giyani's financial
statements and related MD&A, all of which are filed on SEDAR at
www.sedar.com.
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