Giyani Metals Corp. (TSXV:EMM, GR:A2DUU8)
("
Giyani" or the "
Company"),
developer of the K.Hill manganese project (“
K.Hill
Project”) in Botswana, is pleased to announce an updated
Mineral Resource Estimate (“
MRE”) for the K.Hill
Project as part of the feasibility study for the K.Hill Project
(“
FS”). The MRE has been prepared in accordance
with the CIM Code and National Instrument 43-101 (“
NI
43-101”).
Highlights
- Infill drilling
has resulted in the conversion of approximately 95% of the current
Inferred Mineral Resources for the K.Hill Project into the
Indicated Mineral Resources category and a 25% increase in total
contained manganese (“Mn”) metal.
- Indicated
Mineral Resources for the K.Hill Project’s main mineralized zone
are reported as 1.6 million tonnes (“Mt”) at an
average grade of 22.0% manganese oxide (“MnO”),
equivalent to approximately 0.4 Mt of contained Mn metal.
- Inferred Mineral
Resources, including the newly discovered mineralized horizon known
as the B Horizon, are reported as 1.4 Mt at an average grade of
13.9% MnO, equivalent to approximately 0.2 Mt contained Mn
metal.
- Total contained
Mn metal would equate to roughly 1.7 Mt of High Purity Manganese
Sulphate Monohydrate (“HPMSM”).
- Samples from the B Horizon are
currently undergoing detailed mineralogy and hydrometallurgical
testwork and may facilitate potential upgrade from the Inferred to
Indicated Mineral Resources category.
Following completion of the reverse circulation
infill drilling program, SRK Consulting (“SRK”)
has developed an updated MRE for the K.Hill Project. The MRE
includes results from the main K.Hill Project mineralized zone and
the new B Horizon only. Mineral Resources have not yet been
estimated or reported for the southerly extension of the K.Hill
Project (“K.Hill Extension”) as previously
announced on August 19, 2021.
The MRE has been restricted to all classified
material falling within an optimised pit shell representing a
long-term price for HPMSM of USD1,588/t, based on 2020 market data.
The shell also used various technical economic parameters, derived
from the ongoing technical studies for the K.Hill Project.
Additionally, the MRE is reported above a cut-off grade of 7.3%
MnO. This represents the material which SRK considers has
reasonable prospects for eventual economic extraction.
SRK notes that the pit optimisation and the pit
selected is relatively insensitive to changes in product pricing
above a HPMSM price of circa USD1,000/t (approximate 2% reduction
in reported metal using a pit at this price).
K.Hill SRK Mineral Resource Statement,
reported within an optimised shell and at a cut-off grade of 7.3%
MnO, as of August, 2021
Classification |
Tonnage(Mt) |
Grade MnO (%) |
Contained MetalMn (Mt) |
Indicated Mineral Resources |
1.6 |
22.0 |
0.35 |
Inferred Mineral Resources |
1.4 |
13.9 |
0.20 |
Footnotes:
(1) The Indicated and
Inferred Mineral Resources are reported above a cut-off grade of
7.3% MnO(2) All tonnages are reported as
dry(3) The MRE is constrained within estimation domains
based on geological modelling and grade and within a
Lerchs-Grossman optimised pit shell based on an HPMSM price of
USD1,588/t and the following technical-economic parameters:
- Mining Cost – USD3.46/t rock
- Processing Cost – USD213/t ore
- Selling cost – 3% and a freight cost of USD60/t HPMSM
- G&A – USD20/t ore
- Discount Rate – 10%
- Processing Recovery – 90.7%
- Mining Recovery – 98%
- Mining Dilution – 3%
- Geotechnical Slope Angle - 41°
(4) SRK notes that the long
term HPMSM price quoted is based on 2020 market data, which was
available at the time of reporting the MRE. SRK understands that
additional pricing information will be available for input into
subsequent technical studies, and this may impact on the MRE
reported. In light of the sensitivity of the MRE to the selling
price, this is not considered to be a material risk in reporting
the MRE and may present a further opportunity.(5) All
figures are rounded to reflect the relative accuracy of the
estimates.(6) Mineral Resources are not Mineral Reserves
and do not have demonstrated economic viability.(7) It
is uncertain if further exploration will convert Inferred Mineral
Resources to higher confidence categories.
Robin Birchall, CEO of the Company,
commented:
“Our maiden Indicated
Mineral Resources statement is another major milestone for Giyani
and another objective achieved towards our goal of becoming a low
carbon producer of battery-grade manganese for the rapidly
expanding electric vehicle market. Projects which have the
potential to be developed for the high purity manganese market are
rare and less than 1% of global manganese production currently
feeds the battery sector. Of this, around 90% is produced in
China.
The classification of
almost all of our previous Inferred Mineral Resources into the
Indicated category, with more than a 25% increase in total
contained manganese metal added in the Inferred category,
significantly derisks the K.Hill Project and demonstrates potential
for a much longer mine life than modelled in our PEA of April 2021
or the potential for a larger production over a similar time
period.
The reporting of
Indicated Mineral Resources also marks the completion of another
part of the FS for the K.Hill Project. With updated metallurgical
testwork results pending, we are confident of delivering the FS in
Q4 2021.
While this is a
significant step for our flagship project, we should not forget the
further potential of the K.Hill Extension, where we recently made a
new discovery, as well as the Otse Prospect. With a post-tax NPV of
USD332 million already estimated just for the K.Hill Project, the
economic potential of Giyani’s larger asset base could be
exceptional.”
About Giyani
Giyani is a mineral resource company focused on
becoming one of Africa’s first low-carbon producers of high-purity
electrolytic manganese precursor materials, used by battery
manufacturers for the expanding electric vehicle market, through
the advancement of its manganese assets in the Kanye Basin in
south-eastern Botswana, (the “Kanye Basin
Prospects”) through its wholly-owned Botswana subsidiary
Menzi Battery (Pty) Limited. The Company’s Kanye Basin Prospects
consist of 10 prospecting licenses and include the past producing
Kgwakgwe Hill mine and project, referred to as the K.Hill Project,
the Otse manganese prospect and the Lobatse manganese prospect,
both of which have seen historical mining activities.
The Company is currently undertaking a
feasibility study on the K.Hill Project, following an updated
preliminary assessment report announced on 12 April 2021 with a
post-tax NPV of USD332 million and post-tax IRR of 80%, based on a
development plan to produce around 0.89 Mt of high-purity manganese
sulphate monohydrate over a 10 year project life.
Additional information and corporate documents
may be found on www.sedar.com and on Giyani Metals Corp. website at
https://giyanimetals.com/.
Qualified Persons / NI 43-101
Disclosures
The Qualified Person (“QP”) in
accordance with the Canadian Institute of Mining, Metallurgy and
Petroleum Code (‘CIM Code’), with responsibility for the reporting
of the Mineral Resource Statement presented is Dr Lucy Roberts,
MAusIMM(CP), a Principal Consultant (Resource Geology) with SRK. Dr
Roberts has the relevant experience in reporting Mineral Resources
on various base, precious and ferrous metal assets globally.
Mineral Resources are not Mineral Reserves and
have not demonstrated economic viability. SRK are not aware of any
factors (environmental, permitting, legal, title, taxation,
socio-economic, marketing, political, or other relevant factors)
that have materially affected the MRE. It is uncertain if further
exploration will convert Inferred and Indicated Mineral Resources
to higher confidence categories.
An updated technical
report for the K.Hill Project will be filed n SEDAR at
www.sedar.com within 45 days of this announcement.
About SRK
SRK Consulting is an independent global mining
consulting firm that is owned by its worldwide employees and
specialises in technical studies that deliver added value and
reduced risk to all stakeholders. Website:
https://www.srk.co.uk/en
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 and Investor Relations+1 416 453 8818
jwebster@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 in how the world-wide economic and social impact
of COVID-19 is managed; 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 Annual
Information Form, all of which are filed on SEDAR at
www.sedar.com.
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