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Danakali announces lucrative fertiliser supplement

7 December 2021
ASX: DNK
Rueben Hale

The MgCl2, extractable from process brine or tailings, will be icing on the cake for operation from the commenced project’s almost 57 million tonnes life-of-mine operation with the purified magnesium oxide not accounted as part of current financial, economic, or front-end engineering and design studies.

The company, sitting on an eye-watering 1.1 billion tonne JORC compliant reserve, targets 450,000 tonnes per annum as a direct by-product of 472,000/t of yearly SOP production destined local and export markets.

“Colluli is a tremendously large, rich and versatile ore body,” chairman Seamus Cornelius said.

“We remain focused on funding the development of the Colluli Project to produce high-quality SOP in the first instance, but we know that Colluli has the potential to produce many other valuable products.

“If an economic analysis of the beneficiation of our MgCl2 from the bischofite brine stacks up, our current mass balance equations suggest we could potentially produce up to 115ktpa of Mg from the MgCl2 produced from SOP module 1.

“Beneficiation to Mg will require substantial energy input which may be satisfied from the geothermal potential in the area.”

COMPANY OVERVIEW

Danakali is a resource company focused on Colluli SOP Project in Eritrea, East Africa. Their strategy targets development of a world class potash project that will become pivotal for Global and African agriculture. Colluli is expected to provide an outstanding economic, social and community dividend through positive impact on infrastructure, job creation and sustainability in Eritrea.

COMPANY INFORMATION

ASX: DNK

Website

https://danakali.com.au/
https://www2.asx.com.au/markets/company/dnk

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