Colluli is located in the Danakil Depression region of Eritrea and is approximately 230km by road south-east of the port of Massawa, which is Eritrea’s key import/export facility. The Danakil Depression is an emerging potash province, which commences in Eritrea and extends south across the border into Ethiopia.
Colluli is located approximately 75km from the Red Sea coast, providing unrivalled future logistics potential. The Project resides on the Eritrean side of the border, giving Colluli a significant advantage relative to the other potash development projects in the Danakil Depression, which need to ship from the Tadjoura Port in Djibouti – over 790km by road from the closest project on the Ethiopian side of the border. Colluli boasts the shallowest evaporite mineralisation globally and consequently has significant mining, logistics and, in turn, capital and operating cost benefits over other potash development projects in the Danakil Depression and elsewhere.
The resource is amenable to open-cut mining: a proven, high productivity mining method. Open-cut mining provides higher resource recoveries relative to underground and solution mining methods, and is generally safer and more easily expanded.
The Project carries a significantly lower level of complexity due to predictable processing plant feed grade, predictable production rates – given low reliance on weather conditions – and simple, commercially proven mineral processing technology.
Colluli is fully permitted following the signing of the Mining Agreement in February 2017; and the subsequent awarding of the requisite Mining Licenses. The project is rapidly progressing to construction.
The Colluli resource comprises three potassium bearing salts in solid form: sylvinite, carnallitite and kainitite. These salts are suitable for high yield, low energy production of SOP, which is a high quality potash fertiliser carrying a price premium over the more common MOP. Potassium sulphate has limited production centres around the world and is suitable for application to fruits, vegetables, coffee plants and other chloride intolerant crops.
The salt composition in the Danakil region also provides the ability to produce a suite of potash products including SOP, Sulphate of Potash-Magnesia (SOP-M) and MOP. Such potash product diversification cannot be achieved by any other known potash region in the world.
The JORC-2012 compliant mineral resource estimate for Colluli stands at 1.289Bt @ 11% K2O for 260Mt of contained SOP. The JORC-2012 compliant ore reserve estimate for Colluli stands at 1.100Bt @ 10.5% K2O for 203Mt of contained SOP. The Measured and Indicated Mineral Resources are inclusive of those Mineral Resources modified to produce the Ore Reserves.
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