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Danakali and partner advance Tier-1 Colluli sulphate of potash project

Colluli will be open cut mined giving superior resource to reserve ratios.

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Colluli is located in Eritrea

Danakali Ltd (ASX:DNK) and its 50:50 joint venture partner, the Eritrean National Mining Corporation (ENAMCO), continue to advance key operational contracts at the Colluli Sulphate of Potash Project.

Mining contract tendering documents have been issued to five potential tenderers who will visit the Colluli site.

This is one of the key operational contracts that will support the project and is a key input for ongoing funding discussions.

Paul Donaldson, managing director for Danakali, commented: "We are very pleased to be progressing our key operating and construction contract bidding processes as we continue to advance the Tier 1 Colluli Sulphate of Potash Project.

"In addition to firming up the project economics as the project advances towards construction, the operational contracts are key inputs to support our ongoing funding discussions."

Potential mining methods

Extensive test work completed throughout the pre-feasibility and definitive feasibility study phases confirmed both the suitability of the open cut mining method for the resource and the suitability of surface miners for the extraction of the suite of salts within the resource.

The open cut method provides superior resource to reserve conversion and allows selective extraction of the various salts within the resource.

Colluli is the only resource globally where primary production of sulphate of potash can be achieved with salts extracted in solid form.

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