Danakali Ltd (ASX:DNK) (LON:DNK) (OTCMKTS:SBMSF) has not been resting on its laurels during the COVID-19 restrictions with potential optimisation opportunities identified for the Colluli Potash Project in Eritrea and investigations are underway to improve outcomes.

During EPCM Phase 2 work project owner Colluli Mining Share Company (CMSC), a 50:50 JV between Danakali and Eritrean National Mining Corporation (ENAMCO), identified and began additional test-work.

Maintaining momentum

This work was planned to be undertaken as part of the Phase 3 detailed engineering process but CMSC took the opportunity with COVID-19 travel restrictions to advance these items immediately.

The output of this test-work supports environmental and capital optimisation opportunities and contracts have been awarded in support of this work.

These proactive steps by CMSC maintain forward momentum of the project development within this period.

WITA opportunity

Within the Water Intake Treatment Area (WITA), a number of potential opportunities have been identified to improve environmental outcomes.

Key opportunities are the use of filtered seawater in the processing plant and using beach wells as the water intake alternative with a desktop study underway to evaluate the latter.

The use of filtered seawater in the process plant is being assessed as part of the additional test-work that has commenced.

EPCM Phase 2

With EPCM Phase 2 work, preliminary materials have been delivered by DRA Global, which provide contemporary information allowing advancement to the next phase of project development.

This work also identifies focus areas to manage the design and process risks during the Detailed Design phase.