Potash

Danakali Ltd. (ASX:DNK), on behalf of the Colluli Mining Share Company (CMSC), is pleased to announce the completion of the Mineral Resource estimate for rock salt within Area A of the Colluli resource.

Danakali Ltd. (ASX:DNK), on behalf of the Colluli Mining Share Company (CMSC), is pleased to announce the completion of the Mineral Resource estimate for rock salt within Area A of the Colluli resource.
As quoted in the press release:

HIGHLIGHTS

  • +300 million tonne JORC 2012 compliant rock salt Mineral Resource
  • Potential additional revenue stream for the project
  • Rock salt must be extracted and is currently considered waste material in the mine plan and project economics
  • Mineral Resource estimate completed for Area A only
  • 100% of the resource for first 30 years of mining in Measured and Indicated classifications
  • Cut-off grade of 95% NaCl applied • Average grade >96.5% NaCl
  • Grades suitable for de-icing and other applications
  • Favourable geography relative to Southern Europe and Scandinavian markets
  • Open cut mining method and surface miners highly suited to rock salt extraction and primary crushing
  • Further volume potential in Area B
  • The definition of the rock salt resource allows the JV partners to engage in discussions with potential off-takers for the product

The rock salt sits directly above the high value potassium bearing salts within the Colluli resource, and will be extracted using surface miners. The total rock salt Mineral Resource for Area A only is 347 million tonnes, comprising 28 million tonnes in the Measured Mineral Resource category, 180 million tonnes of Indicated Mineral Resource and 139 million tonnes classified as Inferred Mineral Resource. Mine planning work to date indicates the annual volume of rock salt to be mined is between 1 and 2 million tonnes per annum for a 425kt sulphate of potash (SOP) production module.

Danakali Managing Director, Paul Donaldson stated:

This material represents excellent upside potential for the project. The fact that this material will be mined from the deposit, is of suitable quality for de-icing and other applications in nearby jurisdictions, and is in close proximity to coast, means that the rock salt represents a potential additional revenue stream for the project. In addition, we believe that the favourable geographic location of the project and highly favourable ambient conditions provide the foundations to establish a salt business of relative significance over the passage of time.

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