Giyani releases K Hill Manganese Project latest PEA inferred Mineral Resources estimate increases by 36%

Recently, Giyani Metals reported the positive results of the latest preliminary economic assessment (PEA) of its K Hill manganese project in Botswana. The updated PEA increased inferred mineral resource estimates by 36%, increasing after-tax net present value ((NPV)) by 21% to $332 million. Higher NPV is driven by changes in many parameters.

First of all, the final marketable product has changed from high-purity electrolytic manganese metal (HPEMM) to high-purity manganese sulfate monohydrate (HPMSM). Compared with producing HPEMM, HPMSM requires fewer processing steps and consumes less energy.

Based on feedback from battery manufacturers last year, the company believes that HPMSM is the preferred precursor material for producing nickel / cobalt / manganese (NCM) cathodes for lithium-ion batteries, especially for the electric vehicle market. Secondly, due to the changes in HPMSM production, the process flow, capital expenditure and operating expenditure have changed.

The estimated capital requirements for mining life have been reduced to $153 million, of which $118 million is pre-production capital. The updated PEA also estimates the mine life of eight years and the project operating life of ten years, producing 891000 tons of HPMSM.

CEO Robin Birchall said: "We are pleased with the results of the work of the local team in Botswana and our consultant team's research on the revised process and the cost of the HPMSM salt option. The significant increase in the resource base is very pleasant and we hope to add more tonnage as we complete the determination of the resource hole and begin our exploration plan in the K.Hill expansion area and Otse. "