The Colluli deposit is located in the Danakil region of Eritrea, East Africa. The deposit is approximately 350km south of the country capital, Asmara and 180km from the port of Massawa, the country’s major import/export facility. The resource contains over 1.2 billion tonnes of potassium bearing salts suitable for the production of potash fertilisers, and is only 75km from the Red Sea coast making it one of the most accessible potash deposits in the world. The Danakil Depression is an emerging potash province with over 4 billion tonnes of potassium bearing salts identified in the region to date. South Boulder Mines and the Eritrean National Mining Company (ENAMCO) are 50-50 joint venture partners in the Colluli Mining Share Company (CMSC). CMSC owns 100% of the Colluli project and is focussed on the development and growth of the project using the principles of risk management, modulatory and full resource utilisation.
The Colluli concession covers over 200 square kilometers and contains a variety of salts including rocksalt, magnesium chloride, gypsum and potassium bearing salts suitable for the production of potash. Since exploration commenced in 2010, over 1 billion tonnes of potassium bearing salts have been identified and the joint venture is now focusing on the development of the project.
Mineralisation of the potassium bearing salts makes Colluli the shallowest known potash deposit in the world. Its unique combination of potassium bearing salts makes it suitable for the production of potassium sulphate, a premium potash fertiliser which sells at a premium to the more common potassium chloride. Potassium sulphate has limited production centres around the world and is suitable for application to fruits, vegetables, coffee plants and other chloride intolerant crops.
The diverse range of potassium salts within the resource also makes production of potassium magnesium sulphate, potassium chloride, and potassium chloride-magnesium sulphates potential growth opportunities for the future. These are well established potash fertilisers that are sold in various parts of the world.
A pre-feasibility study for the production of 425,000 tonnes per annum of potassium sulphate, with production expected to commence in 2018 was completed in February 2015, and demonstrated highly favourable economics. The modular development introduces a second module in 2023, and positions the substantial resource for decades of growth.
A definitive feasibility study is now underway and expected to be complete in Q3.
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