BY DANAKALI LTD
Danakali Limited (ASX:DNK) is pleased to advise that pre-construction geotechnical work has commenced at the future Colluli mine site.
Cone penetrometer testing, excavator test pits, and Shelby tube testing is underway to refine the geotechnical engineering properties of the soils and the delineating soil stratigraphy to support the refined brine recovery pond foundation design and locations as part of the front-end engineering design (FEED) process which is being overseen by Fluor.
Significant characterisation work was completed during both the pre-feasibility and definitive feasibility studies.
The FEED work will refine the recovery pond sizes, locations and construction volumes following the completion of the optimisation process which is well progressed.
Knight Piésold (“KP”) are providing technical support and have geotechnical engineers on site working with the Colluli technical team.
KP have a degree of knowledge of, and technical familiarity with the project from their involvement in the pre-feasibility study and definitive feasibility study phases where they focussed on the infrastructure foundation, pond and tailings components of the project.
The current program serves as the final extension of geotechnical understanding before construction commences.
In addition to the work progressing on the refinement of the pond sizes and locations, Fluor logistics and construction teams have completed site visits during March 2017 to optimise the construction equipment transportation routes and delivery methods and engage with in country service providers and other key stakeholders.
The work completed to date will tighten the construction schedule accuracy.
Colluli is fully permitted and is the most advanced stage greenfield primary sulphate of potash (SOP) project in the world. The Mining Agreement was signed and Mining Licenses for the project were granted in February 20171.
The project, which is 100% owned by the Colluli Mining Share Company (“CMSC”) is advancing funding, offtake and pre-construction activities.
Pre-construction activities including the front-end engineering design process and advancement of major operational contracts are progressing well, in conjunction with funding and offtake discussions.
Power generation bids are currently under evaluation and the expressions of interest process for the mining contract has been completed.
Danakali Limited, in conjunction with the Eritrean National Mining Corporation (ENAMCO), is developing the World Class Colluli Potash Project located in the Danakil region of Eritrea, East Africa.
Colluli is the largest and shallowest known evaporite deposit in the world with a solid form ore reserve estimate of over 1.1bn tonnes.
Globally recognised, and highly reputable engineering and construction firm, Fluor has been appointed as the lead for the FEED process for the project.
Fluor is a highly reputable, globally recognised engineering and construction firm with extensive experience in potash and Africa.
The FEED team is also supported by Global Potash Solutions, Knight Piésold and Elemental Engineering.
