OAKVILLE, Ontario, Nov. 12, 2018 (GLOBE NEWSWIRE) -- Giyani Metals Corp. (TSXV:WDG, GR: A2DUU8) (“Giyani” or the “Company”) is pleased to announce the filing of a National Instrument 43-101 technical report titled “Mineral Resource Estimate for the K.Hill Manganese Project, Botswana”. The mineral resource estimate, prepared by the South Africa based MSA Group, was announced on September 28, 2018 and it demonstrated an inferred resource of 1.1 million tonnes grading 31.2% manganese oxide (MnO) at a cut-off grade of 18% MnO.
Giyani began exploration on its 8,135 square kilometer property in May, 2017 with a mapping and sampling program which resulted in identifying the K.Hill area as a priority prospect. Since then, the Company has undertaken mineralogical and hydrometallurgical testing and carried out an exploration and resource drilling campaign in which 1,832 m was drilled. Drilling was focused on K.Hill where a total of 1,109.03 m was drilled, with 368 core samples assayed together with 57 quality control (QC) samples.
Robin Birchall, CEO of Giyani Metals Corp. commented:
"We are encouraged by the results of mineral resource estimate. The initial size of this inferred resource allows us to proceed with a preliminary economic assessment (PEA) to establish the base economics of this project. More importantly, the nature of the manganese mineralization at K.Hill appears to be amenable to the hydrometallurgical process that could produce electrolytic manganese metal (EMM). This bodes well with the Company’s strategy to become an independent, vertically integrated, supplier of manganese metal to the battery electric vehicle market.”
Mineral Resource summary
The manganese mineralization at K.Hill occurs primarily as a supergene enriched manganiferous shale (the Mn-Shale) occurring in the upper portion of a shale horizon within the Black Reef Quartzite Formation of the Transvaal Supergroup. The K.Hill deposit is more or less kidney shaped, with a northern and a southern portion. The manganese shale outcrops along the northerly scarp slope of the Kgwakgwe Hill and dips into the hill. The northerly portion is elongated northwest over an area of approximately 400 m by 300 m and the average thickness of the targeted mineralization (the high-grade portion of the Mn-Shale) in this area is 3.5 m. The southerly area of mineralization is elongated northeast over an area of approximately 570 m by 200 m, and has an average thickness of 2.0 m. The manganese shale outcrops along the easterly scarp slope of the hill. Figure 1 below shows a 3D blockmodel of K.Hill
A total of eighteen vertical holes were drilled at K.Hill. Two of the drillholes were collared outside the Mineral Resource area, one was drilled for metallurgical purposes and twelve of the exploration drillholes intersected the Mn-Shale. Out of these, eleven holes intersected the high-grade mineralization in the Mn-Shale, but only ten were used for estimation due to poor recovery observed in DDKH18_0006. Drillholes not included in the grade estimate were used in defining the extent of the mineralization and for estimating the low-grade Mn-Shale and surrounding un-mineralized lithologies.
A Mineral Resource for the high-grade layer of the Mn-Shale has been reported in accordance with NI 43-101 as shown in Table 1 below:
K.Hill Mineral Resource at a cut-off grade of 18% MnO, 27 September 2018
- All tabulated data have been rounded and as a result minor computational errors may occur.
- Mineral Resources which are not Mineral Reserves have no demonstrated economic viability.
- LOI = Loss on ignition
- Density determination was on undried samples and tonnages are reported as wet.
The cut-off grade calculation was based on the following assumptions: EMM price of USD2,500/t (FOB, Port Elizabeth, South Africa), mining cost of USD35/t, processing cost of USD75/t, G&A cost of USD15/t, transport of USD50/t EMM, metallurgical recovery of 60% of the contained manganese.
The Mineral Resource is reported at a cut-off grade of 18% MnO, which is the lowest grade block estimate within the mineralization model. Given reasonably assumed high-level cost and revenue assumptions, the QP considers that mineralization at this cut-off grade will satisfy the test for reasonable prospects for eventual economic extraction (RPEEE). It should be noted that the cost and revenue assumptions are conceptual in nature and would not satisfy the requirements of a Preliminary Economic Assessment (PEA) in terms of NI 43-101.
The results of preliminary metallurgical test-work suggest that the manganese mineralization at K.Hill may be amenable to processing to produce manganese metal that may be suitable for the battery market.
The company will commence a preliminary economic assessment (PEA) to improve the understanding of the economic merits of the project with a focus on additional hydrometallurgical studies.
Qualified Persons / NI 43-101 Statements
Jeremy C. Witley, Pr Sci Nat. of MSA Group is the Company’s Qualified Person (as that term is defined by National Instrument 43-101) for the K.Hill Project. Mr. Witley has reviewed and approved the scientific and technical content contained in this press release and verified the underlying technical data. Mr. Witley is independent of the Company.
Drill cores were sawn in half and one half was sampled and placed in a plastic bag along with a sample tag. Bags were sealed with a single use tie. Samples were securely stored prior to shipping to SGS laboratories in Randfontein, Johannesburg, South Africa. Samples were crushed and milled prior to analysis by borate fusion and XRF. The samples were subjected to a quality assurance and quality control (QAQC) program consisting of the insertion of blank samples, certified reference materials and coarse duplicates. The primary laboratory assay values were confirmed by 40 duplicate samples assayed by a second laboratory (Intertek Genalysis, Maddington, Australia). The Qualified Person is satisfied that the assay results are of sufficient accuracy and precision for use in Mineral Resource estimation.
Giyani Metals Corp. is a Canadian based junior exploration company focused on creating shareholder value by accelerating the development of its battery-grade manganese projects in the Kanye Basin, Botswana, Africa.
On behalf of the Board of Directors of Giyani Metals Corp.
Robin Birchall, CEO
Giyani Metals Corporation
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, the financial picture of the Company etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statement.
This news release also contains references to estimates of Mineral Resources. The estimation of Mineral Resources is inherently uncertain and involves subjective judgments about many relevant factors. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The accuracy of any such estimates is a function of the quantity and quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation, which may prove to be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical inferences that may ultimately prove to be inaccurate. Mineral Resource estimates may have to be re-estimated based on, among other things: (i) fluctuations in mineral prices; (ii) results of drilling; (iii) results of metallurgical testing and other studies;(iv) the possible failure to receive required permits, approvals and licences, or changes to any such permits, approvals or licences; and (v) changes in laws, rules or regulations.
GIYANI METALS CORP.
277 LAKESHORE ROAD EAST, OAKVILLE, Ontario L6J 1H9
T:289-837-0066 F: 289-837-1166