A preliminary economic assessment on Giyani Metals Corp.'s K. Hill manganese project in Botswana delivered a posttax net present value, discounted at 10%, of US$285 million, with a 90.6% internal rate of return and a 1.5-year payback period.
The project is estimated to produce 245,000 tonnes of high-purity electrolytic manganese metal, or HPEMM, with a potential 9-year operating life.
Total project capital is expected at US$141.3 million, including US$108.5 million of pre-production capital, US$9.9 million of sustaining capital, US$17.8 million of contingency at 15%, and US$5 million of closure costs.
The study assumed an average price of US$4,700 per tonne for HPEMM of 99.9% manganese over the project life, and is based on the September 2018 inferred mineral resource estimate of 1.1 million tonnes.
The company plans to continue hydrometallurgical testing with electro-refining to produce HPEMM samples for testing by battery makers and upgrade K. Hill to a mineral reserve through a targeted reserve drilling campaign.
Giyani will then kick off an environmental impact assessment and feasibility study to prepare for the mine permit application in 2020.
The company secured final approvals in late July to implement its environmental management plans at the K. Hill and Otse manganese prospects.