Giyani Announces Positive Results from Processing Trade-off Study
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Not for distribution to U.S. newswire services or for dissemination in the United States
Giyani Announces Positive Results from Processing Trade-off Study
OAKVILLE, Ontario, September 03, 2 020 -- Giyani Metals Corp. (T SXV:EMM, GR:A2DUU8) ("Giyani" or
the " Company") is pleased to announce that as part of the ongoing Feasibili ty Study ( "FS") work, a
processing trade-off study (“Study”) has been completed for its K.Hill manganese project in Botswana (the
“Project”). The results from the Study do not materially change the robust project economics from the
Project’s Preliminary Economic Assessment, as announced on 28 April 2020 (“PEA”).
Highlights
The post-tax Project net present value at a 10% discount rate (“NPV”) from the PEA is US$275m
($35
9m), with an IRR of 82% and a capex of US$110m ($143m).
The operating and capital cost estimates modelled in the Study are in-line with those used in the
PEA. Therefore, the Project NPV is unchanged and continues to be robust.
The Study was conducted by Tetra Tech, together with Royal IHC , (the “ Engineering
Cons
ultants”) to identify the optimal processing route for the Project in the FS.
The Study only focussed on the reductant phase of the process, which occurs upstream of solvent
extra
ction and electrowinning. The following three reductive leaching processes were considered;
o Sulphur dioxide (SO2)
o
Sulphuric acid leaching with reducing sugars
o Carbothermic reduction (rotary kiln), followed by sulphuric acid leaching
The PEA assumed a sulphuric acid and reducing sugar-based proc ess. The Study assessed two
additional alternatives, as well as the PEA process. The study showed that the sulphur dioxid e
based
process is the optimal route, as there is less process ri sk. The operating costs and ca pital
asso
ciated with this route were also in line with those modelled in the PEA. Therefore, the sulphur
dioxi
de process has been selected for the FS.
There is no alternative trade-o ff to the solvent extraction an d electrowinning process for the
production of high purity electrolytic manganese metal (HPEMM).
The study included a financial comparison of the three process options, taking into consideration capital
cost, operating cost, recovery and incremental NPV over a 10-year Project life. The Engineering
Consultants’ analysis also included qualitative considerations such as flow sheet simplicity, level of
complexity, security of reagent supply and market acceptance.
The PEA is considered preliminary in nature and includes Inferred Mineral Resources that are considered
too speculative geologically to have the economic consideration s 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.
Robin Birchall, CEO of Giyani Metals Corp. commented:
"I would like to congratulate the Giyani team and the Engineering Consultants for their work on the Study.
The change in the reductant process means that we have reduced our process risk, without any increase
to capital or operating costs. We are fortunate that our proc ess is simple, thanks to the deposit’s grade,
quality and proximity to the processing plant.
Following recent insights into the direction that cathode manufacturers and battery electric vehicle
manufacturers are moving, we will update the PEA in due course to include high purity manganese sulphate
monohydrate (HPMSM) as an additional product stream. We expect to further increase the NPV, as well
as improve the operating and capital costs as a result of this work.
The Engineer ing Consultants will al so be including the addition of HPMSM into the FS, which will be
released after the updated PEA, expected in H1 2021.”
NI 43-101 Disclosures
EUR ING Andrew Carter BSc, CEng, MIMMM, MSAIMM, SME Technical Director Coffey Geotechnics Ltd
– A Tetra Tech Company, is a Qualified Person under National In strument 43-101 and has reviewed and
approved the scientific and technical information in this news release.
About Giyani
Giyani Metals Corp. is a mineral resource company focused on th e development of its K. Hill, Lobatse &
Otse manganese oxide prospects 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 ingred ients for batteries in the expanding
electric vehicle (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:
Giyani Metals Corporation
Robin Birchall
CEO, Director
+447711313019
Neither the TSX Venture Exchange (the "TSXV") nor its Regulation Services Pr ovider (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 su ch term is defined in Regulati on S promulgated under the U.S.
Securities Act ("U.S. Persons"), except in compliance with t he regis tration requirements of the U.S. Sec urities 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 acc ount of benefit of, persons in the
United States or U.S. Persons.
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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 histo rical fact, that address events or developments that Giyani
expects to occur, are "forward-looking statements". Forward-loo king statements are statements t hat are not historical facts
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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, imp ortant risk factors and uncert ainties, 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 achievem ents to be materially differen t from those expressed or implied by such forward-looking
statements. In the case of Giyani , these facts include their an ticipated 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 an d 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; ri sks relating to competition from larger companies with greater
financial and technical resources; risks relating to the inabil ity to meet financial obligations under agreements to which the y
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 co nflicts of interests. This list is not exhaustive of the factor s
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 statem ents are made, and Giyani does not assume any obligation to update forward looking
information if circumstances or management's beliefs, expectati ons 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-lookin g 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.
GIYANI METALS CORP.
1155 North Service Road West, Unit 11
Oakville, Ontario L6M 3E3
T: 289-291-4032
www.giyanimetals.com TSX.V-EMM