TSX-V-listed Giyani Metals has reported positive definitive feasibility study (DFS) results for its 100%-owned K.Hill battery-grade manganese project in Botswana.

Giyani notes that highlights from the DFS indicate strong economic returns, with a post-tax net present value (NPV), at an 8% discount rate, of $481.5-million and a post-tax internal rate of return (IRR) of 20.3%.

The DFS also indicates strong free cash flow and operating margins, with net free cash flow over the life of project (LoP) estimated at $1.6-billion with an operating margin of 46%.

The plant is designed to process 220 000 t/y of dry run-of-mine ore extracted from the K.Hill openpit. The process plant primarily produces two main products, namely high-purity manganese sulphate monohydrate (HPMSM) and high-purity manganese oxide (HPMO).

Giyani notes that inferred resources of 4.4-million tonnes are excluded from the LoP, providing potential to extend mine life and support a higher-grade production profile for a longer period.

Additionally, the company says the successful operation of the demonstration plant has been fundamental in supporting the final development of the process that now serves as the basis for the DFS.

Giyani explains that manganese recovery is 87%, with additional testwork planned to further improve economics.

Other initiatives include front-end engineering design work including plant layout optimisation, increased use of solar power, evaluation of lower-carbon reagent sourcing options and expanded international procurement activities, all aimed at reducing capital requirements and further lowering operating costs.

“We are pleased to announce the results of the DFS for our K.Hill battery-grade manganese project in Botswana.

“These results demonstrate strong economic returns and endorse K.Hill as a unique, mine-to-market battery-grade supplier of manganese to meet growing Western demand and provide a solid foundation for further optimisation and continued development of the project,” says Giyani interim executive chairperson Nigel Robinson.

Building on the successful production of both HPMO and HPMSM from the company’s demonstration plant in Johannesburg, Robinson says Giyani is now well-positioned to meet the evolving requirements of the battery and energy storage markets.

He explains that, with China controlling 95% of manganese processing capacity, access to non-China supply of this critical material is constrained. Hence, he says the DFS marks a significant step towards a viable solution.

Alongside the optimisation work that the company will now be looking to undertake in the next phase of the project’s delivery, Robinson says Giyani will be progressing its discussions with strategic partners and evaluating opportunities within the battery-grade manganese sector that have the potential to enhance value for its shareholders.

“We look forward to continuing to strengthen our relationship during the next phase of Giyani’s development. The Giyani team has also worked tirelessly to advance each of the key workstreams leading up to the publication of the DFS, and I would like to thank them for their dedication and continued commitment throughout the process,” says Robinson.