Giyani Metals announced its maiden mineral resource estimate for its 88% owned K.Hill manganese deposit in Botswana.
Southern Africa - 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.
“This maiden resource at K.Hill represents a significant milestone in the development of our company," comments Giyani Metals CEO, Robin Birchall.
"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 Metals 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 Metals on the map as an active player in the growing battery electric vehicle market," adds Birchall.
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 Metals 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 mineralisation.
A three dimensional geological model of the major stratigraphic units was constructed using the drillhole logging data.
The mineralised envelope within the manganese shale was defined by a 15% MnO threshold and a three dimensional mineralisation model was constructed.
The grades of MnO, Fe2O3, Al2O3, SiO2 as well as Loss on Ignition and density were estimated using inverse distance squared into a block model based on the geological and mineralisation model.
An adjustment to the modeled tonnage was made in order to account for depletion by historical mining.
The cut-off grade calculation was based on the following assumptions: EMM price of USD2,500/t, 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.
"The laboratory scale test-work on samples from the hole drilled for metallurgical test-work indicates that the manganese mineralisation and leach chemistry are well suited for solvent extraction," states Dr. Ian Flint, who lead Giyani Metals' hydrometallurgical testing.
A manganese recovery of over 95% was achieved at this stage and it is envisaged that this would be further processed to electrolytic manganese metal.
The Mineral Resource is reported at a cut-off grade of 18% MnO, which is the lowest grade block estimate within the mineralisation model.
Given reasonably assumed high-level cost and revenue assumptions, MSA considers that mineralisation at this cut-off grade will satisfy the test for reasonable prospects for eventual economic extraction.