Modern Mining January 2017

MINING News

Fluor awarded FEED contract for Colluli experience in Africa, and potash-spe- cific experience will benefit the project significantly as it progresses towards construction.”

diversification potential. Sulphate of potash is a high quality potash fertiliser used for farming crop development and yield maximisation around the globe. The Colluli deposit is located in the Danakil region of Eritrea. It is approxi- mately 177 km south-east of the capital, Asmara, and 180 km from the port of Massawa (230 km by road), which is Eritrea’s key import-export entry. Danakali is the 50 % owner of Colluli and is developing the project in part- nership with the Eritrean National Mining Company (ENAMCO). 

Orion Gold acquires Agama Exploration ASX-listed Orion Gold has exercised its option to acquire Agama Exploration & Mining (Pty) Ltd which, through its subsidiary companies, ultimately holds an effective 73,33 % interest in the company holding prospecting rights over the historic Prieska Copper Mine (PC), located at Copperton in Northern Cape Province, and the Marydale gold-copper project, a volcanogenic gold-copper discovery located 60 km from PC. In July 2015, Orion announced the signing of a binding term sheet giving it the right to acquire Agama. During the option period, Orion under- took a comprehensive due diligence including conducting exploration programmes at both the PC and Marydale projects. In recent months, the company has announced very encouraging exploration results from the +105 Level Target (open pit) at the Prieska zinc-copper project. Orion says that 3D modelling of the mineralised zone intersected in drilling is now underway with the objective of producing mineral resources compliant with the JORC Code (2012) in early 2017 and feeding these resource estimates into a Pre-Feasibility Study with a target completion date of mid-2017. To aid these studies, a large diameter diamond core hole is being drilled to provide material for metallurgical testwork.  “We are delighted to be working with Fluor as we progress the Colluli project,” said Paul Donaldson, MD of Danakali. “The combination of Fluor’s values, people, reputation, optimisa- tion approach, mining and metals expertise, Fluor Corporation has been awarded a front-end engineering, design and optimisation (FEED) contract by ASX-listed Danakali for the Colluli potash project in Eritrea following a competi- tive tendering process initiated and completed in 2016. “Fluor will provide a highly qualified design and optimisation teamwith world-class process infrastructure credentials for this important fer- tiliser project,” said Rick Koumouris, President of Fluor’s Mining & Metals business. “In addi- tion to working with Danakali to maximise project capital efficiency during the study and execution phases of this project, Fluor will bring top-notch project financing expertise and assis- tance to help Danakali advance this project to the next phase.”

Colluli is one of the most advanced greenfield sulphate of potash devel- opments in the world and reportedly demonstrates outstanding econom- ics including industry leading capital intensity, bottom quartile operating costs, close proximity to the coast and key markets, and unrivalled product

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January 2017  MODERN MINING  17