K.Hill Project
K.Hill Project Investment Highlights
Well positioned to leverage the growth in the battery electric vehicle market
Low carbon, sustainable resource project in mining friendly jurisdiction
Experienced management and board with a track record of successful project delivery
Robust economic returns: A post tax NPV8 of US$481M (C$649M) and a post tax IRR of 28%
Low capital intensity of US$281M (C$379M) for one of the largest HPMSM projects in the world
*Feasibility Study November 2022
Significant geological upside offers potential to expand Project
Demonstration Plant on track to produce HPMSM samples for testing by H2 2023
OWNERSHIP
100% interest in an extensive land package covering 2,588km2 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 Flyover
FEASIBILITY STUDY (November 2022)
Net Present Value | Post‑tax NPV8 of US$481M (C$649M) |
Internal Rate of Return | 28% after tax |
Capex | US$281M (C$379M), including contingency of US$32M (C$43M) |
Payback | 3.6 years |
Project Life | 11 years |
Average Annual Production | 73kt of High Purity Manganese Sulphate Monohydrate |
Mining Method | Open pit, free-digging mining |
PROJECT MILESTONES ACHIEVED
Jan. 2021
Mar. 2021
Apr. 2021
Jun. 2021
Aug. 2021
Sep. 2021
Nov 2021
Dec. 2021
Feb 2022
Mar. 2022
Jun. 2022
Order of 2nd crystallizer unit for Demo Plant
Sep. 2022
Construction Contract signed K.Hill Demo Plant
Sep. 2022
Results of Life Cycle Assessment Study for K.Hill
Nov. 2022
Release of Feasibility Study Results
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
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