K.Hill Project
K.Hill Project Investment Highlights
Manganese oxide deposit in a supportive mining investment jurisdiction
Robust project economics: 82% IRR and C$389M NPV10
Low project capex of C$155M*
Low operating costs of us$1,866/t HPEMM
Feasibility Study due H1 2021
Mining friendly jurisdiction
Experienced management and board with a track record of successful project delivery
Well positioned to leverage the growth in the battery electric vehicle market
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
Sep. 2018
Sep. 2018
Aug. 2019
Dec. 2019
Apr. 2020
Aug. 2020
Nov. 2020
Dec. 2020
Project Images
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