Giyani Metals Corp (TSX-V:EMM, OTC:CATPF) CEO Danny Keating joined Proactive to discuss the latest developments at the company's K.Hill manganese project in Botswana.
Keating provided an update on the progress at the demonstration plant site, where the company is installing nine process module skids.
He also discussed the recent completion of an infill drilling program at K.Hill, aimed at converting indicated resources into the measured category for the first five years of production.
Proactive: You're out with the demo plants updates and that follows last week's news that you've completed infill drilling at your K.Hill manganese project in Botswana. So, making good progress.
Danny Keating: It's fantastic progress. I had the good fortune a few days ago to do a visit around the demo plant site. It's fantastic to see the progress that's being made. Overall, we're looking to install nine process module skids. These are the units, the infrastructure that holds all the vessels, the pumps, all of the processing infrastructure. Of the nine that we will install, we're up to seven now. So that's five more than when we updated everyone before. So that's a lot of progress. We kind of building the plant in reverse order. So, from the point of crystallization, which makes the final product, then we move our way forward, or sort of back to where we would actually put the ore and the milling sections. As we complete the process of installing the skids, we then, at the same time, start at the crystallization section and do all the complex piping and instrumentation work. So, we're attacking it on both sides. As the skids are installed, the instrumentation piping follows, and then we're able to start some of the earlier commissioning parts in the process. So, it's very exciting to see it come together.
And on top of that, it starts to give us a sense of the scale. We stand in the plant, and we've seen the plans, we've all seen it on paper, but to see how big this plant is in real life is quite inspiring. So, it was a very exciting visit, and we're excited to put this news out into the market.
You are on track for commissioning in the fourth quarter of the year?
100%. That's the target that the whole team is under pressure to achieve. That's our commitment. We're working very hard. We've modified our team in terms of driving some efficiencies. We had a bit of a check and balance with our contractor, and we said we're kind of inefficient there. Why don't we put the whole team together and drive that forward? So, we've made some changes there, and the team is now working very well together. It's been fantastic to see, all with kind of one team driving to achieve this one objective: product by the end of the year. It's a good target. It's not easily done, but that's what we're focused on, and that's what we're aiming for by the end of the year.
In the meantime, you completed infill drilling at K.Hill. What was the aim of that program?
Well, as with the demonstration plant, we are going through to de-risk every aspect we can, whether it's around process or project financing. With the drilling, we were very conscious that often banks, when they lend or investors in the first five to six years of the project, want to make sure that the resource base is covered by its measured resource. So, we went through a drilling program to make sure we could convert indicated into that measured category, at least for the first five years, to cover that kind of debt period. When investors look and say, okay, what are the risks in this project? This is one more way we were able to reduce risk further, making sure that the overall project is as de-risked as we can. Historically, our previous MRE was based on about 10,000 meters of drilling, and we've just done about 3,000. So, you can see the scale of infill that we've done to make sure we can prove up this targeted, measured resource.
Are you confident you'll be able to do that?
Well, the geologists tell me that. Confidence. So, we are. Yes. The scale of drilling is quite comprehensive, 3,000 meters. We're quite comfortable that we've done enough drilling to meet that, yes.
You also recently announced that you've secured the surface rights. So, another milestone for the company.
Absolutely. We're going through quite a few of these at the moment. Yes. We secured the surface rights, about 1,000 hectares of land, and also the rights to an adjacent solar farm. Obviously, we're very conscious as an energy transition company, that we are also very conscious about the carbon footprint that we have and the development of solar power. The use of solar power is very important to us. So, we have the rights for that.
When we look at comparator projects, which can often have issues around securing the surface rights and the ability to work with the community and gain access and be able to establish the project, those can sometimes take years. But we've done this in less than 12 months, with great support from the community who want to see this project developed. It's quite a lot of land for us to put all the infrastructure that we need. So, yes, it's another great milestone for the company. In the progress and the progression that we have towards project financing, this is a key milestone to secure the surface rights.
So, what's the next milestone that investors should be watching out for?
As always, it's the demonstration plant. Through August, the work continues. It's not like the northern hemisphere where people are away on break. This team is working night and day almost to make sure the plant is moving forward. The demonstration plant is the most active there. We keep an eye on mining licenses that have been submitted, as you know. So, we're waiting for feedback on that. A few other things, but principally, it's the demonstration plant in progress now.
Quotes have been lightly edited for clarity and style