Kgwakgwe Hill Manganese Project Preliminary Economic Assessment Report
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KGWAKGWE HILL MANGANESE PROJECT PRELIMINARY ECONOMIC ASSESSMENT REPORT Prepared For Giyani Metals Corporation Report Prepared by SRK Consulting (Kz) Limited KZ647 changed the report name to work with the local application script 03.06.13 SRK Consulting K-Hill PEA - Details COPYRIGHT AND DISCLAIMER Copyright (and any other applicable intellectual property rights) in this document and any accompanying data or models which are created by SRK Consulting (Kz) Limited ("SRK") is reserved by SRK and is protected by international copyright and other laws. Copyright in any component parts of this document such as images is owned and reserved by the copyright owner so noted within this document. The use of this document is strictly subject to terms licensed by SRK to the named recipient or recipients of this document or persons to whom SRK has agreed that it may be transferred to (the “Recipients”). Unless otherwise agreed by SRK, this does not grant rights to any third party. 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Date: April, 2021 Project Number: KZ647 SRK Project Director: Martin Pittuck Corporate Consultant (Resource Geology) SRK Project Manager: Mike Beare Corporate Consultant (Mining Engineering) Client Legal Entity: Giyani Metals Corporation Client Address: 1155 North Service Road West - Unit 11, Oakville ON Canada L6M 3E3 KZ 647-30860 K-Hill PEA 43-101 v6.docx April, 2021 SRK Consulting K-Hill PEA – Table of Contents Executive Summary Table of Contents: Executive Summary 1 SUMMARY ........................................................................................................... I 1.1 Property Description, Location and Ownership ........................................................................ i 1.2 History .......................................................................................................................................ii 1.3 Geology and Mineralization ......................................................................................................ii 1.4 Drilling .......................................................................................................................................ii 1.5 Sample Preparation, Analysis and Security ............................................................................ iii 1.6 Data Verification ......................................................................................................................iv 1.7 Metallurgical Testwork and Plant Design ................................................................................iv 1.8 Mineral Resource Estimate ......................................................................................................iv 1.9 Mineral Resource Statement ...................................................................................................vi 1.10 Geology and Mineral Resource Risks .................................................................................... vii 1.11 Conclusions ........................................................................................................................... viii 1.12 Recommendations ...................................................................................................................ix List of Tables: Executive Summary Table ES 2-1: K-Hill SRK Mineral Resource, reported within an optimised shell and at a cut-off grade of 7.3% MnO, as of 15 March 2021.............................................................................. vi KZ 647-30860 K-Hill PEA 43-101 v6.docx April, 2021 Page 1 of 173 SRK Consulting (Kz) Limited 5th Floor Churchill House 17 Churchill Way City and County of Cardiff CF10 2HH, Wales United Kingdom E-mail: [email protected] URL: www.srk.com Tel: + 44 (0) 2920 348 150 EXECUTIVE SUMMARY KGWAKGWE HILL MANGANESE PROJECT PRELIMINARY ECONOMIC ASSESSMENT REPORT 1 SUMMARY SRK Consulting (Kz) Ltd was commissioned by Giyani Metals Corporation (hereafter referred to as Giyani, the Company, or the Client) to undertake a Preliminary Economic Assessment (hereafter referred to as the PEA) for the viability of the Kgwakgwe Hill Project (hereafter referred to as K-Hill, or the Project), which is located in the Republic of Botswana. In addition to the PEA, SRK has undertaken an updated Mineral Resource Estimate (MRE) to include new RC drilling data acquired since the previous MRE reported by SRK in February 2020. The previous MRE relied on the block model from the maiden MRE reported by MSA group (MSA) in 2018 and applied a number of adjustments before rereporting. This MRE comprises an entirely new SRK authored geological model interpretation and block model. This report presents the findings, conclusions, and recommendations that resulted from the updated MRE and PEA. SRK notes that this PEA is preliminary in nature, and that the findings and conclusions should be treated as preliminary as well. Any scheduled tonnes and grades in this document do not represent an estimate of Mineral Reserves and are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorised as Mineral Reserves. There is no certainty that the preliminary economic assessment will be realised. Giyani Metals Corp (Giyani) has commissioned Coffey Geotechnics Ltd, a Tetra Tech Company to provide Item 13 - Mineral Processing and Metallurgical Testing. Tetra Tech is currently working with SRK on upgrading the technical work at K-Hill to an FS level that will be completed in Q3 2021. 1.1 Property Description, Location and Ownership K-Hill is located next to the town of Kanye, which is the administrative center of the Southern District of the Republic of Botswana in southern Africa. The Project area is accessed by a short section of unpaved roads and tracks from a network of paved national roads, namely the A1 and A2, with the A2 highway being just a few kilometres from the Project. Registered Address: 21 Gold Tops, City and County of Newport, NP20 4PG, Group Offices: Africa Wales, United Kingdom. Asia SRK Consulting (UK) Limited Reg No 01575403 (England and Wales) Australia Page 1 of 189 Europe North America South America SRK Consulting K-Hill PEA – Executive Summary The mineral rights are owned by the Republic of Botswana. Giyani, through Menzi Battery Minerals, holds the exclusive right to engage in prospecting activities for “Metals” within the Project area through the issued prospecting permit in terms of Section 16 of the Mines and Minerals Act of the Republic of Botswana. The K-Hill Project is located within Prospecting Licence No. 322/2016. The K-Hill prospecting area is 444 km2 of the total area of approximately 2,600 km2 that Menzi Battery Minerals holds prospecting rights to. All prospecting licenses were granted on the 1st July 2020 and were valid until the 30th of June 2022, with the exception of PL258/2017 which was granted on 1st January 2021 and expires on the 31st of December 2022. Giyani owns an 88% stake in Menzi Battery Minerals, while the other 12% is owned by Marcell Holdings. 1.2 History Historical mining in the Kanye area took place from 1957 to 1971. The first company to operate at Kgwakgwe Hill was Marble Lime and Associated Industries (Marble Lime), which also developed the asbestos mine at Moshaneng, northwest of Kgwakgwe Hill. Marble Lime mostly mined manganiferous shale, which was beneficiated before it was sold. Marble Lime ceased mining activities around 1967 (Aldiss, 1989). In 1981, Rand London Manganese investigated the possibility of mining the manganiferous shale deposits at Kgwakgwe, Otse and Gopane (near Lobatse) together feeding a single planned processing plant at Lobatse. The Kgwakgwe deposit was considered to require further drilling for evaluation, but no further work was completed and the licence