Giyani Metals (TSXV: EMM) has published a preliminary economic assessment (PEA) for its 88%-owned K.Hill manganese project in Botswana.
The early-stage study forecast total production of 245,000 tonnes of high-purity, electrolyte manganese metal (HPEMM) over nine years.
Based on a projected average price of US$4,700 per tonne HPEMM, the K.Hill project would yield an after-tax, net-present value of $379 million at a 10% discount rate, and a 90.6% after-tax internal rate of return. Pre-production capex was pegged at $144.4 million.
The PEA is based on an inferred resource of 1.1 million tonnes grading 31.2% manganese oxide for 266,000 tonnes contained manganese.
The company says it will continue with a metallurgical testing program to produce HPEMM samples for battery makers. The study envisions a traditional truck-and-shovel operation.
The Canadian junior explorer is developing two other prospects on the 8,135-sq.-km K.Hill property: Otse and Lobatse. The property hosts several past-producing manganese mines, which the company hopes to bring back into production to supply manganese for the battery industry.
The K.Hill project is located just outside the town of Kanye, 2 km from the Trans Kalahari highway, which connects South Africa and Namibia.
At press time, Giyani's shares are trading at 26 ? in a 52-week range of 7 ? to 39 ?. The company has 85 million common shares outstanding for a $24.6-million market capitalization.