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 PEA (2021) project economics: post tax 80% IRR and USD330M NPV10
Low project capex USD118m start-up capex
Two significant exploration discoveries in 2021 increased resource base from 1.7mt Inferred to 2.1mt Indicated and 3.1mt Inferred
Feasibility Study due in 2022
Demonstration plant construction to start in 2022
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
PROJECT PEA (April 2021)
Net Present Value | CAD442M (USD332M)* after tax CAD573M (USD431M)* pre tax |
Internal Rate of Return | 80% after tax |
Capex | CAD159M (USD118M)* Capex CAD7M (USD5M)* closure cost |
Cash Costs | USD583/t HPMSM Produced |
Payback | within year 3 |
Project Life | 10 years |
Planned Production Rate | 40 - 115kt per annum of High Purity Electrolytic Manganese Metal |
Mining Method | Open pit, free-digging mining (no blasting required) |
PROJECT MILESTONES ACHIEVED
Jan. 2021
Mar. 2021
Apr. 2021
Jun. 2021
Aug. 2021
Sep. 2021
Nov 2021
Dec. 2021
Feb 2022
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