Danakali Limited delivers product milestones from Colluli

From: Semere Asmelash <semereasmelash_at_ymail.com_at_dehai.org>
Date: Mon, 22 Feb 2016 11:18:17 +0000 (UTC)

http://www.proactiveinvestors.com.au/companies/news/67122/danakali-limited-delivers-product-milestones-from-colluli-67122.html

Danakali Limited delivers product milestones from Colluli

Monday, February 22, 2016 by Proactive Investors

Danakali Limited (ASX:DNK) has now outlined the product specification sheets for potassium magnesium sulphate (Sulphate of Potash Magnesia or SOP-M) for the Colluli Potash Project in Eritrea, access here.

With a second chloride free, multi-nutrient potash fertiliser, this highlights the Colluli resource potential to produce a broad range of agri-products.

Colluli is a 50/50 joint venture between the Eritrean National Mining Company (ENAMCO).

The project is located in the Danakil Depression region, 75 kilometres from the Red Sea coast, making it one of the most accessible potash deposits globally.

Mineralisation commences at just 16 metres, making it the world’s shallowest potash deposit, and amendable to open pit mining.

Paul Donaldson, managing director, commented:

“We are delighted to release product specifications for our second premium, chloride free, multi-nutrient potash type.

"The ability to provide detailed specifications of products produced exclusively from Colluli salts is a major milestone internally and facilitates our ongoing marketing process.

"SOP-M is a high quality, chloride free, multi-nutrient potash type which achieves a price premium and ideal for magnesium deficient soils."

Details of the products

Chemical assays including for heavy metals have all been conducted to Australian Standards on the Colluli SOP-M product.

These were produced from pilot plant tests at the Saskatchewan Research Council.

Marketing

Danakali will now showcase the products generated around the world as part of the marketing process.

Substantial upside for the project exists from the exploitation of other contained products within the resource. These include high purity rock salt and magnesium chloride, and also gypsum (Calcium Sulphate).

Analysis

The production of SOP-M demonstrates Colluli’s product diversification potential, particularly with regard to premium multi-nutrient potash fertilisers.

The combination of salts within the resource, its shallow mineralisation and close proximity to coast, underpins the potential development of a multi agricommodity business of global significance.

Scoping work is underway on the integration of a SOP-M circuit within the second module.
Received on Mon Feb 22 2016 - 06:18:17 EST

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