Giyani Announces Significant Mineral Resources Increase and Upgrade for K.Hill Project
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Giyani Announces Significant Mineral Resources Increase and Upgrade
for K.Hill Project
TORONTO, Ontario, February 16, 2022 -- Giyani Metals Corp. (TSXV:EMM, GR:A2DUU8) ("Giyani"
or the "Company"), developer of the K.Hill manganese oxide project (“K.Hill Project”) in Botswana, is
pleased to announce an updated Mineral Resource Estimate (“MRE”) for the K.Hill Project that
incorporates its recently discovered southerly extension (“K.Hill Extension”).
Highlights
• A 31% increase in Indicated Resources for the K.Hill Project to 2.1 million tonnes (“Mt”) at an
average grade of 19.3% manganese oxide (“MnO”), which equates to approximately 0.41Mt of
contained manganese oxide or roughly 1.0Mt of High Purity Manganese Sulphate Monohydrate
(“HPMSM”), before processing recoveries are applied.
• A 121% increase in Inferred Resources to 3.1Mt at an average grade of 1 6.9% MnO, which
equates to approximately 0.53Mt of contained manganese oxide or roughly 1.3Mt of HPMSM,
before processing recoveries are applied.
• Infill drilling across the K.Hill Extension area to upgrade Inferred Resource material to Indicated
Resources has recently commenced and is currently expected to be completed by the end of
the first half of 2022.
• Metallurgical test work for the feasibility study of the K.Hill Project (“ FS”) remains ongoing and
has now reached the final stages.
The MRE has been prepared by SRK Consulting (“SRK”) in accordance with the CIM Code and National
Instrument 43-101 (“NI 43-101”) and also includes the results of mineralogical test work on the
previously announced additional mineralized horizon (“B Horizon”) located below the main ore body of
the K.Hill Project. The K.Hill Project is being developed to produce HPMSM, a precursor chemical used
in the manufacture of rechargeable battery cathodes for electric vehicles.
Major Mineral Resource Upgrade
Following completion of the reverse circulation (“RC”) extensional drilling program over the K.Hill
Extension in 2021 and mineralogical analysis of samples from the B Horizon, SRK has developed an
updated MRE for the enlarged K.Hill Project, encompassing results from all zones of the K.Hill Project,
including the B Horizon and the new K.Hill Extension area. SRK has also updated the geological model
in the FS to include the expanded Indicated Resources.
The MRE reported has been restricted to all classified material falling within an optimized 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.
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SRK notes that pit optimization 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 MRE Statement, reported within an optimized shell and at a cut-off grade of 7.3%
MnO, as of February 2022
Classification
Tonnage
(Mt)
Grade
MnO (%)
Contained
MnO (Mt)
Indicated Mineral
Resources 2.1 19.3 0.41
Inferred Mineral
Resources 3.1 16.9 0.53
Footnotes:
(1) The Indicated and Inferred Mineral Resources are reported above a cut-off grade of 7.3% MnO as of
February 2022 Classification
(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 optimized pit shell based on an HPMSM price of USD1,588 /t and the following
technical-economic parameters:
a. Mining Cost – USD3.46 /t rock
b. Processing Cost – USD213 /t ore
c. Selling cost – 3% and a freight cost of USD60 /t HPMSM
d. G&A – USD20 /t ore
e. Discount Rate – 10%
f. Processing Recovery – 90.7%
g. Mining Recovery – 98%
h. Mining Dilution – 3%
i. 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 Mineral Resource reported. In
light of the lack of sensitivity of the MRE to the selling price above a HPMSM price of circa USD1,000 /t,
this is not considered to be a material risk in reporting the Mineral Resource 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. SRK is
not aware of any factors (environmental, permitting, legal, title, taxation, socio-economic, marketing,
political, or other relevant factors) that have materially affected the MRE.
(7) It is uncertain if further exploration will convert Inferred Mineral Resources to higher confidence
categories.
(8) The northern domains have a higher average density than the southern extension domains. Limited
density measurements are part of the reason for Inferred classification of the majority of the south
extension. Infill drilling and additional density measurements may result in an increase or decrease of
calculated tonnage for this area.
K.Hill Extension Infill Drilling
Following completion of exploration drilling at the Company’s Otse prospect (“Otse”), 50 kilometres
from the K.Hill Project, the drilling rigs have been mobilised to the K.Hill Extension area and have
commenced an infill drilling program currently planned to consist of 55 RC holes and 10 diamond core
holes for a total of approximately 7,150 metres (“m”). The program is planned to be completed using
two RC drill rigs and one diamond core drill rig and expected to be completed in Q2 2022.
The objective of the program, which is designed on a 75 x 75m grid spacing, is to determine the
correlation between the southern mineralized horizons and the northern resource horizons to establish
continuity in order to convert the majority of Inferred Resources in the K.Hill Extension to Indicated
Resources. These Indicated Resources could then be factored into any future optimized mine
development plan for the K.Hill Project.
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Feasibility Study
As the Company has continued its successful exploration programs, work on the FS is progressing.
Engineering study work over the proposed process flowsheet has been completed for mining, acid
leaching and base metals precipitation. Final stage metallurgical test work on polishing and
crystallization is nearing conclusion.
The objective of this final stage of test work is to achieve the optimal specifications for Giyani’s HPMSM
product and finalize the process flowsheet to be included in the FS. Giyani has developed target
specifications based on discussions with a number of the world’s largest battery makers and automotive
companies. Analysis of preliminary HPMSM crystals has indicated that almost all of the Company’s
target specifications have been met and it is anticipated that these final stages of test work should
achieve the optimal specification.
Robin Birchall, CEO of the Company, commented:
“This year, with the expected publication of the FS and commencement of construction of our
demonstration plant, will arguably be the most important in Giyani’s history and this major resource
upgrade is an excellent start. Our ambition is to become a responsible, premium producer of a highly
important battery material and by increasing our scale we could become a company of global
significance in the HPMSM market.
The progress that we have made in increasing the size of the K.Hill Project in less than 12 months has
been exceptional. In the space of a year we have not only moved a substantial amount of our Inferred
Resource to Indicated, but the discoveries of the B Horizon and K.Hill Extension have also added
substantial new Inferred Resources. If results from Otse confirm its potential, and with the K.Hill
Extension resource still open to the south-west, we could be in a position to review options for ramping
up production beyond our initial assumed capacity of 120kt of HPMSM per annum and unlocking
additional material value.
Before we can consider optimizing our operation, however, our priority is to complete the metallurgical
test work and finalize the process flowsheet. The ability to produce HPMSM on site directly from ore is
a significant barrier to entry and only one other company outside of China is currently able to achieve
this. Producing HPMSM of the highest possible quality, with the lowest possible carbon footprint, can
make Giyani a premier producer and we look forward to updating shareholders on the test work and FS
in due course.”
About Giyani
Giyani is a mineral resource company focused on becoming one of Africa’s first low-carbon producers
of high-purity 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 April 12, 2021 with a post-tax NPV of USD332 million and
post-tax IRR of 80%, based on a development plan to produce around 891,000 tonnes of HPMSM 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 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
Mr Peter Gleeson , AIGS, MIMMM (CP), a Corporate Consultant (Resource Geolo gy) with SRK. Mr
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Gleeson 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 is not
aware of any factors (environmental, permitting, legal, title, taxation, socio -economic, marketing,
political, or other relevant factors) that have material ly 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 313019
George Donne
VP Business Development
+44 7866 591 897
Judith Webster
Corporate Secretary
+1 416 453 8818
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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,
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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.