A definitive feasibility study on potash explorer Danakali’s Colluli project in Eritrea has found a 30 per cent reduction in development costs to $US 298 million.
Danakali, which owns the Colluli project in a 50:50 joint venture with the Eritrean National Mining Corporation, said phase one development costs had been reduced by 30 per cent, with the project expected to produce about 425,000 tonnes per annum of sulphate of potash (SOP) when commissioned at the end of 2018.
Phase two of the project is expected to begin after six years of production and boost the project’s output to 850,000t/year of SOP at an additional cost of $US 175 million.
Michael Hopley, Chief executive of Sunridge Gold Corp (CVE:SGC), says he is delighted the firm’s partner has secured three key mining licences in Eritrea for its Asmara project. Asmara Mining (AMSC), a joint venture 60% owned by the Canadian group, has been awarded licences encompassing four advanced deposits – namely Emba Derho, Adi Nefas, Gupo Gold and Debarwa.
NEVSUN Resources recently announced a new Volcanogenic Massive Sulphide (VMS) discovery 20 kilometres to the southwest of its operating Bisha Mine in Eritrea.
We already knew the Bisha project was a VMS project and all VMS-projects occur in one large deposit (in this case the Bisha mine) but also contain several smaller satellite deposits as a cluster around the main deposit. Since 2012, Nevsun Resources has been focusing on effectively finding those satellite deposits. Continue reading Nevsun and its Zinc Processing Plant in Eritrea (Update-III)→
SOUTH Boulder Mines (ASX:STB) is well positioned to complete the Definitive Feasibility Study for its Colluli potash project in Eritrea with shareholders applying for $1.8 million worth of shares under its rights offer priced at $0.25.
SUNRIDGE Gold (SGC-V, SGCNF-OTCQX) is a successful explorer orphaned by the market but that could soon change. The company is working in Eritrea. Sunridge made several discoveries on its Asmara project and has advanced them to feasibility level.
The feasibility numbers look great. Asmara has a Net Present Value of US$692 million pre-tax (US $428 million post-tax) and an IRR of 34% pre-tax (27% post-tax) using a 10% discount rate. Sunridge owns a 60% interest in the project. That equates to a post-tax NPV of US$257 million attributable to SGC shareholders against a current market valuation of US$25 million. Continue reading Sunridge Gold’s Milestone Could Completely Re-rate the Stock→