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Danakali Ltd.
Summary
| Project: | Colluli | |
|---|---|---|
| Deposit: | Colluli | |
| Location: | Eritrea | |
| Commodities: | Magnesium-Potash-Halite | |
| Date: | 5/3/2017 | |
| Report Code: | JORC | |
| Report Type: | Optimisation Study | |
| Project Stage: | Mine Development | |
| Report details: | 3-5-2017: Danakali Ltd. announces a Optimisation Study report for its Colluli deposit at the Colluli project. Front-end engineering design optimisation increases Potash production capacity. Danakali Limited (ASX:DNK) and the Eritrean National Mining Corpo | |
| Resources: | (Resource, Total): 1289Mt @ 11% K2O%Eq at Colluli | |
| CP/QP: | [Resources]: Stephen Halabura, John Tyrrell (AMC Consultants Pty Ltd.) | |
| ABSTRACT: | Danakali Limited (ASX:DNK) and the Eritrean National Mining Corporation (“ENAMCO”) are pleased to advise that the optimisation phase of the front-end engineering design (“FEED”) process has been completed. In addition to identifying a number of significant development capital reduction opportunities, systematic debottlenecking of the definitive feasibility study (“DFS”) processing plant configuration has liberated an additional 47kt per annum of expected sulphate of potash (“SOP”) output capacity. The additional expected capacity has been confirmed by the FEED lead engineer and is the result of a comprehensive process engineering and infrastructure review. The additional capacity increases the expected Module I annual SOP output to 472kt per annum from the DFS planned output of 425kt per annum. In addition to the increase in expected product output, the value engineering and optimisation work has identified further opportunities to reduce development capital and water consumption, which have been incorporated into the optimised configuration and are being costed as part of the FEED. The FEED process is well advanced and progressing to schedule. Managing Director, Paul Donaldson said “This excellent result is a direct consequence of clever process plant design during the DFS. The liberation of over 10% production capacity with no expected increase in capital cost is clearly value accretive relative to the DFS and further improves on the industry leading capital intensity and outstanding economics demonstrated by the project. Refined and optimised pit schedules reflecting the optimised production rate will now be developed to support the mining contract tendering process. It is also pleasing that the optimisation work has been achieved with no impact on the expected delivery of the FEED.” | |
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