K.Hill Project Investment Highlights

Manganese oxide deposit in a supportive mining investment jurisdiction

Manganese oxide deposit in a supportive mining investment jurisdiction

Robust project economics: 82% IRR and C$389M NPV10

Robust project economics: 82% IRR and C$389M NPV10

Low project capex of C$155M*

Low project capex of C$155M*

*PEA April 2020
Low operating costs of us$1,866/t HPEMM

Low operating costs of us$1,866/t HPEMM

Feasibility Study due H1 2021

Feasibility Study due H1 2021

Mining friendly jurisdiction

Mining friendly jurisdiction

Experienced management and board with a track record of successful project delivery

Experienced management and board with a track record of successful project delivery

Well positioned to leverage the growth in the battery electric vehicle market

Well positioned to leverage the growth in the battery electric vehicle market

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OWNERSHIP

100% interest in an extensive land package covering 2,641km2 in south-eastern Botswana

PROJECT PIPELINE

3 battery-amenable manganese Prospects (K.Hill, Otse & Lobatse), as well as several additional targets, provides optionality for increasing the overall resource size and extending the project life

ROUTE TO MARKET

5 seaports accessible by rail and road with cost effective shipping to Asia, Europe and North America

INFRASTRUCTURE

The K.Hill Project is located near the 45,000-inhabitant town of Kanye, which hosts good rail and road connections, sufficient water supply, a 167-bed hospital and reliable power connectivity

JURISDICTION

Botswana is consistently rated as one of the most attractive African countries for supporting investment in mining, due to favourable tax regulations and efficient government processes 

Only African country with investment grade credit rating. Established mining industry since independence in the 1960s. Very low levels of corruption - ranked 34 of 198 countries by transpency.org (highest in Africa)

K.Hill Walkaround

K.Hill Flyover

PROJECT PEA (April 2020)

Net Present Value
C$389M (US$275M)* after tax
C$505M (US$357M)* pre tax
Internal Rate of Return
82.1% after tax
Capex
C$155M (US$110M)* Capex
C$7M (US$5M)* closure cost
Cash Costs
us$1,866/t HPEMM
LOM Average Revenue
us$4,700/t HPEMM
Payback
within year 3
Project Life
10 years
Planned Production Rate
30 - 40kt per annum of High Purity Electrolytic Manganese Metal
Mining Method
Open pit, free-digging mining (no blasting required)

PROJECT MILESTONES ACHIEVED

Dec. 2017

Appointment of Mr. Robin Birchall as CEO & Director

Sep. 2018

Completed resource drilling & exploration drilling at K.Hill & Otse

Sep. 2018

 Completion of K.Hill maiden Mineral Resource estimate; 1.1M tonnes at 31.2% MnO

Aug. 2019

Completed K.Hill PEA with NPV10 of C$379M & IRR of 90%

Dec. 2019

Commencement of K.Hill Feasibility Study & ESIA

Apr. 2020

Updated K.Hill PEA increasing resource & project economics to NPV10 of C$389M & IRR of 82%

Aug. 2020

Completed high purity manganese market analysis, price forecasting & route to market studies

Nov. 2020

Commenced hydrometallurgical & in-fill drilling at K.HIll

Dec. 2020

Received approval for ESIA Scoping & Terms of Reference by DEA

Other Prospects

OTSE

  • High-grade supergene podiform manganese oxide mineralisation, with a high manganese to iron ratio of ~8:1
  • The licenses includes two small-scale historically mined pits (<20m depth x ~70m long), which are 2km apart
  • Mineralisation at surface and in present in the old pits
  • Work to date consists of 6 diamond core drill holes and geophysical survey 
  • 40km from K.Hill 
  • Within 2km of a railway the A1 highway 
Geological overview of the Otse Prospect by Chief Geologist Luhann Theron

LOBATSE

  • Manganese oxide mineralisation hosted in a siliceous shale (similar mineralisation style to K.Hill)
  • Outcropping at surface and dipping at ~30 degrees towards the east
  • Strike length ~2km
  • Work to date consists of 3 diamond core exploration drill holes
  • Historical artisanal mining in the area
  • 50km from K.Hill 
  • Adjacent to the A1 highway and 1km from the border with South Africa
Geological overview of the Lobatse Prospect by Chief Geologist Luhann Theron