Giyani Metals Corp. (TSXV:EMM, GR:A2DUU8)
("
Giyani" or the "
Company"),
developer of the K.Hill manganese oxide project (the
“
K.Hill Project”) in Botswana, is pleased to
announce an update on its operational and commercial activities.
Highlights
- Metallurgical
testwork up to the stock solution stage completed and a specialist
engineering firm engaged to undertake the crystallisation testwork
to finalise the process flowsheet for the feasibility study
(“FS”) on the K.Hill Project and construction of
the demonstration plant.
- 26 of the
planned 56 reverse circulation (“RC”) drill holes
completed at the Otse manganese oxide prospect
(“Otse”). Initial results show high grade
mineralisation in multiple holes with intersections in excess of
60% manganese oxide (“MnO”).
- Data and
sample-sharing agreements signed with several major European
original equipment manufacturers (“OEMs”) and
cathode producers.
- Giyani welcomed
into membership of the European Battery Alliance EBA250
network.
K.Hill Project
Metallurgical Testwork
Optimised
metallurgical test work and final process flowsheet design, as part
of the FS on the K.Hill Project, has been completed by Mintek in
South Africa. This phase of the testwork does not include
crystallisation. A specialist engineering firm has been engaged to
undertake crystallisation testwork with a view to finalising the
process flowsheet for the FS and the demonstration plant.
Once the process
flowsheet is finalised, Giyani will proceed to contracting an
engineering firm for the construction of the demonstration plant.
Following a peer review of the process flowsheet, it is anticipated
that the design-build contract for the demonstration plant will be
signed with the objective for the plant to be operational in H1
2022.
Otse RC
Drilling
Otse is the site of
two historic mine workings, namely Otse North and Otse South.
Giyani is conducting the first exploration drilling at these sites
with a planned 56-hole RC drilling campaign, following up on
targets identified with an induced polarization survey. To date, 26
RC holes have been completed at Otse South, proximate to historic
mine workings and defined by a chargeability anomaly trending
northwest-southeast.
Nearly all holes
drilled to date have shown visible mineralization, confirmed by
portable x-ray fluorescence (“pXRF”) analysis.
From the holes analysed so far, the best results include:
Hole ID |
Interval, From-To |
AveragepXRF Grade |
Including: |
RCOT21_006 |
29.5m – 36.5m |
48% MnO |
32.5 – 35.0m @ 58% MnO |
RCOT21_015 |
18.0m – 35.5m |
54% MnO |
23.0 – 25.5m @ 65% MnO |
A further 12 holes
will be drilled at the southern target, before the two drill rigs
move to Otse North, also proximate to the historic workings. The
campaign is expected to be completed in the next six weeks.
Otse is located
approximately 40 kilometres east of the K.Hill Project and is
connected by a well-maintained, sealed road network. Any future
production from Otse can easily be trucked to the location of the
proposed process plant adjacent to the K.Hill Project.
Giyani
Commercial Activities
Giyani has been in
discussions with a number of OEMs and other potential offtakers and
trading groups as regards to potential binding product purchase
agreements. Giyani’s operations in Botswana have the potential to
supply in excess of 100,000 tonnes of high purity manganese
sulphate monohydrate (“HPMSM”) for the manufacture
of lithium-ion battery cathodes
Currently, Giyani is
engaging directly with a leading global automobile OEM on material
evaluation, including the delivery of representative samples. The
Company has also signed a non-disclosure agreement with a major
prospective European producer of battery cathodes for further
product information sharing.
The Company is also
pleased to announce that it has been welcomed into membership of
the EBA250, the industrial development programme of the European
Battery Alliance (“EBA”). The EBA was launched in
2017 to create a competitive and sustainable battery cell
manufacturing value chain in Europe.
Robin Birchall, CEO of the Company,
commented:
“As we increase the
size and quality of our resource, the metallurgical testwork by
Mintek is now completed paving the way for the finalization of the
process flowsheet and the start of construction of the
demonstration plant. The demonstration plant will produce around
250 kilograms per day of final HPMSM product to share with
potential customers for preliminary product testing and we are
already assembling interested parties.
While our flagship
project is being de-risked, initial results from Otse appear to
confirm our expectations for significant further resource
expansion, with some of the intersections offering truly
spectacular grades. Otse is a different form of mineralization to
the K.Hill Project and will not have the same uniformity, but such
high MnO content will provide options to high-grade plant feed and
blend lower quality material to increase average run-of-mine
grade.
The fact that major
OEMs and cathode manufacturers are engaging with us now to share
data speaks to their recognition of the quality of our projects and
the critical nature of sustainable HPMSM supply. Currently, only a
very small number of companies outside of China produces HPMSM
directly from ore and so Giyani will be a valuable and important
source of responsible, transparent and low carbon HPMSM. We are
also delighted to be joining the EBA network and look forward to
playing an active part in the European critical supply chain.”
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, all
of which have seen historical mining activities.
The Company is currently undertaking a
feasibility study on the K.Hill Project, following an updated PEA
announced on April 12, 2021 with a post-tax NPV of USD332 million
and post-tax IRR of 80%, based on a current development plan to
produce around 0.89 Mt of high-purity manganese sulphate
monohydrate over a 10 year project life. The PEA did not include
any production from the B Horizon, the K.Hill Extension or the Otse
or Lobatse prospects.
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
Mr. Luhann Theron,
MSc., Pr.Sci.Nat. 400184/15, of Lambda Tau is registered with the
SACNASP. Mr. Theron is currently at site and is a qualified person,
as defined by National Instrument 43-101. Mr. Theron is the Chief
Geologist for the Company and has reviewed and approved the
scientific and technical content contained in this press release
but is not independent for the purposes of NI 43-101.
About Lambda Tau
Lambda Tau Botswana is a locally based
geological services and exploration consulting services provider,
offering services across Southern Africa. For more information
visit https://www.lambdatau.co.za.
On behalf of the Board of Directors of Giyani
Metals Corp.
Robin Birchall, CEO
Contact:
Robin Birchall CEO, Director+44 7711
313019rbirchall@giyanimetals.com
George DonneVP
Business Development+44 7866 591 897gdonne@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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