Giyani Metals is targeting the battery market with its maiden manganese resource
Lithium and cobalt have been riding a wave on the broad electric vehicle revolution, however there is another metal used as a battery component that has received lesser attention from the markets. That metal is manganese, a chemical element that is normally found together with iron. The latest up and coming technology to use manganese is the lithiated manganese dioxide (LMD) battery. A typical LMD battery uses 61% of manganese in its mix and only 4% lithium. LMDs have numerous benefits, including providing higher power output, thermal stability, and improved safety compared to regular lithium ion batteries.
Manganese is a metal with important industrial metal alloy uses, particularly in stainless steels. In more recent times due to the EV boom, lithium ion battery demand is boosting demand for manganese. Technavio forecasts the global manganese battery market is expected to grow at a CAGR of above 7% during the period 2018-2022.
Giyani Metals Kanye Manganese Project
Giyani Metals Corp. (TSXV: WDG) is currently developing three prospects (K. Hill, Otse, and Lobatse) within a large property covering over 8,000 sq km. Located in the Kanye basin in Botswana Africa these prospects include several past producing manganese mines. Giyani’s mission is to revive these dormant resources and bring them back into production with the goal to become a leading independent supplier of low cost, high grade feed-stock manganese for the battery industry.
Giyani’s Kanye Manganese Project has several advantages that make it unique including near surface deposition, low levels of impurities, access to infrastructure in a mining-friendly jurisdiction, and easy access to multiple shipping ports.
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The K. Hill Manganese Deposit
The most advanced of the 3 projects is underlain by rocks of the Transvaal Super-group in northern South Africa and southern Botswana. The Transvaal hosts roughly 80% of the world’s manganese reserves and has been identified in Botswana both under cover and beneath the Kalahari desert sands. This deposit is of particular interest to Giyani because it is proof of concept that manganese deposits exist in Botswana and that the manganese displays simple yet ideal chemical compositions and grade characteristics that would be attractive to battery manufacturers.
On September 28, 2018 Giyani announced a maiden resource for the 88% owned K. Hill deposit. The mineral resource estimate includes an inferred resource of 1.1 million tonnes grading 31.2% manganese oxide (MnO) at a cut-off grade of 18% MnO.
Robin Birchall, CEO of Giyani Metals Corp., commented: “This maiden resource at K. Hill represents a significant milestone in the development of our company. The scale of this resource gives us confidence to immediately proceed with a preliminary economic assessment (PEA). We now have a proven tangible asset that adds intrinsic value to our shareholders. We are putting Giyani on the map as an active player in the growing battery electric vehicle market.”
The Continuing Demand
Manganese will continue to be a key element in steel production, and the industry should continue to grow at a steady pace. On the technology side, electric vehicles, off grid power systems, and other energy storage applications will require significant amounts of high quality manganese. There is global shortage of manganese projects, and this could be the right time for investors to capitalize on this opportunity presented by Giyani. The increase in demand has started to rally flake manganese prices back to record highs.
Giyani Metals Corp. is a junior mineral exploration company, engaging in the acquisition, exploration, evaluation, and development of gold, manganese, and precious metal mining projects in South Africa and Canada and is headquartered in Oakville, Canada.
Matthew Bohlsen holds a Graduate Diploma in Applied Finance and Investment (similar to CFA), and a Graduate Diploma in Financial Planning. He has 30 years ... <Read more about Matthew Bohlsen>