EGME is part of Essel Group, the Indian multinational conglomerate. In 2015, it acquired the Bada potash exploration license located in the Danakil region of Eritrea.
Essel Group ME Limited (‘EGME’) is pleased to announce that it has appointed Colonnade Mining Group (Eritrea) Limited (‘Colonnade’) as drilling contractor for its Bada potash project, located in the northern Danakil region of Eritrea, East Africa (‘Bada’).
EGME’s subsidiary, Interu Mining, has signed a contract with Colonnade under which the latter will carry out a core sample drilling programme at Bada, marking a significant step in the project’s development.
The drilling programme will comprise of five bore holes, each 200 metres deep with a vertical incline or 75 degree angle. Core samples will be sent to an external laboratory for analysis to examine the occurrence of evaporate strata beneath the overburden layer. This will build on previous testing, providing EGME with a better understanding of Bada’s geology and potash-bearing potential.
Colonnade will supply the drill and necessary equipment, with mobilization of the equipment already underway. Colonnade has instructions to commence drilling by the 3rd week of October, for an expected period of 30 days.
>> MUST READ : EGME Bada Potash Project to Commence Production in 2018
EGME is seeking further opportunities to invest in forward international integration in the potash industry, particularly in Turkey and India, due to the commodity’s strong long-term fundamentals.
Punkaj Gupta, Joint Managing Director and Group CEO, Essel Group ME, commented:
“I am very pleased to be partnering with Colonnade, a leading drilling contractor in the region, at this exciting time for Bada. The core sample drilling programme marks a key milestone for the project, and will provide us with enhanced data to help fully understand the asset’s geology and potential.
“I am extremely excited about Bada’s prospects and its scope to possess significant potash resources and reserves. Its favourable geographical location and proximity to both transport infrastructure and key end users make this project even more promising. I look forward to providing further updates once the drilling programme and core sample analysis have been completed.”
About The Bada Eritrea Asset
EGME acquired the exploration license for the Bada potash mine in May 2015. The license area comprises 626km, and is located in the northern most part of the Danakil region of Eritrea, East Africa.
The Danakil Depression is world renowned for possessing significant accumulations of potash salts. Several potash projects to the south of Bada and across the border in Eritrea have significant proven potash reserves. Based on the physiographic features and location of the Bada basin, it is clear that the area possesses a suitable depositional environment for potash accumulation.
The license area is approximately 330km by road from the capital city Asmara and 230km from the port of Massawa. This proximity to established infrastructure links provides the means to service the strong demand for potash in India and China. EGME estimates that Bada possesses approximate reserves of more than one billion metric tons of potassium-bearing salts and production is anticipated to commence at the end of 2017.
