[Video] Eritrea's Potash Mine will help feed Africa, Asia and Europe

Danakali enhances outlook of imminent potash DFS

By Proactiveinvestors

A string of new resource and operational testwork milestones at Danakali’s (ASX:DNK) Colluli potash project in Eritrea has further improved the outlook for a definitive feasibility study (DFS) due in Q4 2015.

A two-phase development approach rapidly being progressed for the DFS has prioritised opportunities that are being investigated for inclusion in the study to enable a highly robust, optimised and construction ready report.

This work has delivered an important rock salt resource and a 60% reduction in plant water requirements as well as advancements in the local approvals process, mine planning progress and several operational flowsheet optimisations.

Recently, this has included completion of a pilot plant test program which further demonstrated the robustness of the process to input variations and ability to reliably produce high-purity potassium sulphate.

The pilot trials resulted in over 300 kilograms of high-purity Colluli product at over 98% SOP (greater than 52% K2O equivalent). SOP, or “sulphate of potash”, is a high quality potash fertiliser carrying a price premium over the more common potassium chloride (MOP).

Materials handling trials have also been completed to determine the anti-caking requirements for the final product. The product generated from the pilot runs, which was delivered in soluble, standard and granular forms, is being showcased around the world.

All geotechnical testwork related to on-site and off-site infrastructure – including foundations, borrow locations and pond construction materials – was likewise completed during the September quarter. This followed successful completion of all geotechnical testwork related to mine design.

Infrastructure testwork has confirmed the suitability of the on-site base material on which the processing plant, the camp and supporting infrastructure will be built, the suitability and locality of structural fill aggregate and the suitability and low permeability of site materials for pond base construction.

Concurrent with the DFS has been the finalisation of the baseline reports for the social and environmental impact assessment along with the engagement of a consortium of social, cultural, marine and wildlife experts to establish the social and environmental management plan.

These milestones will enable a rapid transition from DFS completion to mining licence application.

Detailed scheduling is well advanced and balances plant feed requirements with even mining face development. The scheduling is designed to maintain efficient benches on which the surface miners can operate, produce low stockpile volumes, deliver a low and consistent strip ratio and also prepare the pit for early backfilling.

Waste dumping within the pit void coupled with localised rock salt stockpiling for potential commercialisation will help maintain low mining costs by keeping haulage distances short.

Colluli resources now stand at 1.289 billion tonnes at 11% K2O for 260 million tonnes of contained SOP. This includes an estimated at 1.1 billion tonnes of reserves, comprising 287 million tonnes in the proved category and 820 million tonnes in the probable category.

Mineralisation begins at just 16 metres below surface, making Colluli one of the most accessible potash deposits globally.

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