Giyani Announces Maiden Mineral Resource Estimate For The K.Hill Manganese Deposit
Giyani Announces Maiden Mineral Resource Estimate For The K.Hill
Manganese Deposit
OAKVILLE, Ontario, Sept. 28, 2018 -- Giyani Metals Corp. (TSXV:WDG, GR: A2DUU8) (“Giyani” or the “Company”) is pleased
to announce its maiden mineral resource estimate for its 88% owned K.Hill manganese deposit in Botswana. The mineral
resource estimate, prepared by the South Africa based MSA Group, includes an inferred resource of 1.1 million tonnes grading
31.2% manganese oxide (MnO) at a cut-off grade of 18% MnO.
Robin Birchall, CEO of Giyani Metals Corp. commented:
“This maiden resource at K.Hill represents a significant milestone in the development of our company. The scale of this
resource gives us confidence to immediately proceed with a preliminary economic assessment (PEA). We now have a proven
tangible asset that adds intrinsic value to our shareholders. Giyani will grow from this point onwards with the goal of becoming
an independent, vertically integrated, manganese supplier to the battery market. By developing the K.Hill prospect into its full
potential and continuing to prove other prospects within our large property, we are putting Giyani on the map as an active
player in the growing battery electric vehicle market.”
Mineral Resource summary
The Mineral Resource estimate was based on geochemical analyses and density measurements of core samples obtained by
diamond drilling undertaken by Giyani from 16 April 2018 to 2 July 2018. A total of eighteen vertical holes were drilled at K-Hill.
Two of the drill holes were collared outside the Mineral Resource area, one was drilled for metallurgical purposes and twelve of
the drill holes intersected the manganese shale. The intersections obtained from ten drill holes were used to estimate the
grade of the Mineral Resource. The remainder were used in defining the extent of the mineralization.
A three dimensional geological model of the major stratigraphic units was constructed using the drillhole logging data. The
mineralized envelope within the manganese shale was defined by a 15% MnO threshold and a three dimensional
mineralization model was constructed. The grades of MnO, Fe 2O3, Al 2O3, SiO 2 as well as Loss on Ignition (LOI) and density
were estimated using inverse distance squared into a block model based on the geological and mineralization model. An
adjustment to the modelled tonnage was made in order to account for depletion by historical mining.
The Mineral Resource was estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Best Practice
Guidelines and is reported in accordance with the 2014 CIM Definition Standards, which have been incorporated by reference
into National Instrument 43-101 – Standards of Disclosure for Mineral Projects (NI 43-101). The Mineral Resource is classified
into the Inferred category as shown in Table 1 below.
Table 1: K-Hill Mineral Resource at a cut-off grade of 18% MnO, 27 September 2018
Category Tonnes MnO Al2O3 SiO2 Fe2O3 LOI
(Millions) % % % % %
Inferred 1.1 31.2 8.9 26.3 16.9 8.8
Footnotes:
1. All tabulated data have been rounded and as a result minor computational errors may occur.
2. Mineral Resources which are not Mineral Reserves have no demonstrated economic viability.
3. LOI = Loss on ignition.
4. Density determination was on undried samples and tonnages are reported as wet.
The cut-off grade calculation was based on the following assumptions: EMM price of USD2,500/t (FOB), mining cost of
USD35/t, processing cost of USD75/t, G&A cost of USD20/t, transport cost of USD50/t EMM, metallurgical recovery of 60% of
the contained manganese.
Dr. Ian Flint, who lead Giyani’s hydrometallurgical testing, states that “ the laboratory scale test-work on samples from the
hole drilled for metallurgical test-work indicates that the manganese mineralization and leach chemistry are well suited for
solvent extraction. A manganese recovery of over 95% was achieved at this stage.: It is envisaged that this would be further
processed to electrolytic manganese metal (EMM).
The Mineral Resource is reported at a cut-off grade of 18% MnO, which is the lowest grade block estimate within the
mineralization model. Given reasonably assumed high-level cost and revenue assumptions, MSA considers that mineralization
at this cut-off grade will satisfy the test for reasonable prospects for eventual economic extraction.
The Inferred Mineral Resource has been tabulated using a number of cut-off grades as shown in Table 2.
Table 2: K-Hill Inferred Mineral Resource Grade-Tonnage Table
Cut-Off Grade Tonnes MnO Al2O3 SiO2 Fe2O3 LOI
MnO % (Millions) % % % % %
18 1.1 31.2 8.9 26.3 16.9 8.8
20 1.1 31.2 8.9 26.2 16.9 8.9
25 1.1 31.5 9.0 25.6 17.1 8.9
30 0.6 35.0 8.1 22.7 17.0 9.3
Footnotes:
1. All tabulated data have been rounded and as a result minor computational errors may occur.
2. Mineral Resources which are not Mineral Reserves have no demonstrated economic viability.
3. LOI = Loss on ignition.
4. Density determination was on undried samples and tonnages are reported as wet.
Giyani will be filing an NI 43-101 Technical Report on the K-Hill Project within 45 days of this news release.
Qualified Persons / NI 43-101 Statements
Jeremy C. Witley, Pr Sci Nat. of MSA Group is the Company’s Qualified Person (as that term is defined by National
Instrument 43-101) for the K-Hill Project. Mr. Witley has reviewed and approved the scientific and technical content contained
in this press release, and verified the underlying technical data. Mr. Witley is independent of the Company.
Drill cores were sawn in half and one half was sampled and placed in a plastic bag along with a sample tag. Bags were sealed
with a single use tie. Samples were securely stored prior to shipping to SGS laboratories in Randfontein, Johannesburg, South
Africa. Samples were crushed and milled prior to analysis by borate fusion and XRF. The samples were subjected to a quality
assurance and quality control (QAQC) program consisting of the insertion of blank samples, certified reference materials and
coarse duplicates. The primary laboratory assay values were confirmed by 40 duplicate samples assayed by a second
laboratory (Intertek Genalysis, Maddington, Australia). The Qualified Person is satisfied that the assay results are of sufficient
accuracy and precision for use in Mineral Resource estimation.
About Giyani
Giyani Metals Corp. is a Canadian based junior exploration company focused on creating shareholder value by accelerating
the development of its battery-grade manganese projects in the Kanye Basin, Botswana, Africa.
Additional information and corporate documents may be found on www.sedar.com and on Giyani Metals Corp. website:
http://giyanimetals.com/ .
On behalf of the Board of Directors of Giyani Metals Corp.
Robin Birchall, CEO
Contact:
Giyani Metals Corporation
Robin Birchall
CEO, Director
+447711313019
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Forward-Looking Statements
This news release may contain forward-looking statements including but not limited to comments regarding the timing and
content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes,
the financial picture of the Company etc. Forward-looking statements address future events and conditions and therefore,
involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such
statement.
This news release also contains references to estimates of Mineral Resources. The estimation of Mineral Resources is
inherently uncertain and involves subjective judgments about many relevant factors. Mineral Resources that are not Mineral
Reserves do not have demonstrated economic viability. The accuracy of any such estimates is a function of the quantity and
quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation, which
may prove to be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical inferences that
may ultimately prove to be inaccurate. Mineral Resource estimates may have to be re-estimated based on, among other
things: (i) fluctuations in mineral prices; (ii) results of drilling; (iii) results of metallurgical testing and other studies;(iv) the
possible failure to receive required permits, approvals and licences, or changes to any such permits, approvals or licences;
and (v) changes in laws, rules or regulations.