Danakali reveals mining bid costs are well aligned to the DFS estimates
27 Nov 2017
Colluli is located in the Danakil Depression region of Eritrea.
Danakali shares have doubled over the past year to $0.72
Danakali Ltd (ASX:DNK) and 50:50 joint venture partner, the Eritrean National Mining Corporation (ENAMCO), continue to advance the Tier-1 Colluli Potash Project in Eritrea.
Following a comprehensive bidding process for the Colluli mining contract, the technical and commercial compliance process is complete.
Most important is that the mining bid costs are well aligned to the DFS cost estimates which validates the quality of the work completed during the study.
The bids are both technically and commercially compliant and have been fully evaluated by AMC Consultants.
The real contract bids will be included in the front end engineering design (FEED) economics, and the FEED process is now drawing to a conclusion.
Final reviews of direct and indirect development capital costs are underway and a revised Ore Reserve will be completed in December / January in accordance with the requirements of JORC-2012.
Paul Donaldson, managing director, commented:
"We are very happy to have progressed our bidding process and commercial and technical evaluation of the mining bids.
"We are also very happy to have real bids supporting the FEED economics and that they are very well aligned to our DFS estimates."
Next steps for Danakali are the completion of commercial negotiations to identify a preferred service provider.