TIDMDNK
RNS Number : 1525X
Danakali Limited
30 April 2021
Announcement Friday, 30 April 2021
============= ======================
QUARTERLY REPORT
For the period ending 31 March 2021
Danakali Limited (ASX: DNK, LSE: DNK, Danakali, or the Company)
is pleased to provide this quarterly update on the activities and
financial position of the Company and its Colluli Potash Project
(Colluli or the Project), located in Eritrea, East Africa. The
Project is 100% owned by the Colluli Mining Share Company (CMSC), a
50:50 joint venture between Danakali and the Eritrean National
Mining Corporation (ENAMCO). CMSC is progressing to become a
leading producer and exporter of Sulphate of Potash (SOP), the
premium potash type.
Highlights
Restructure of the Board and Executive
-- Mr Seamus Cornelius, re-appointed as Executive Chairman and
CEO position made redundant
-- Board size and fee rationalisation undertaken
Project Progress
-- Process test work, necessary to determine final process
equipment selection, undertaken during the quarter with completion
expected in Q2
-- Commencement of investigation to compress the project
development schedule
-- Completion of negotiations with Aggreko for the supply of a
12MW power plant
-- Negotiations with preferred camp provider, RA International (
RAI ), materially completed
Project Financing
-- Industry and financial investors engagement with regard to
securing a fully funded position for the Project
-- Further discussions with Africa Finance Corporation and
Afreximbank regarding increased participation in the Project
-- Subsequent to quarter end (29 April 2021), successful
Placement of A$20.3 Million to advance Colluli was announced
Environmental, Social and Governance (ESG)
-- Initial discussions on a Hybrid solution commenced with
Aggreko to assist the Company to deliver on its carbon net zero
target for SOP Production
Key activities planned for Q2 2021
Project Progress
-- Finalise contract with Aggreko for the supply of a 12MW power
plant
-- Finalise contract with RAI for the supply of Accommodation,
Support Services and other infrastructure
-- Finalise process test work, mass balance modelling and
process flow diagrams to determine process equipment selection
-- Finalise an optimisation opportunity to simplify
infrastructure through the use of sea water in processing
-- Finalise the investigation of the development schedule
compression opportunities with EPCM Contractor, DRA and Vendors
once processing equipment selection has been determined.
Project Financing
--
-- Industry and financial investors engagement with regard to
securing a fully funded position for the Project
-- Further discussions with Africa Finance Corporation and
Afreximbank regarding increased participation in the Project
Environmental, Social and Governance (ESG)
-- Advance commercial discussions with Aggreko regarding a
Hybrid power solution
Corporate & Financial
-- Cash balance of A$7.6M as of 31 March 2021
-- Release of the 2020 Financial Report
Project & Corporate Update
COVID-19
In response to lower cases, the Government of Eritrea has
relaxed many of the measures placed to curtail the spread of
COVID-19. Management of COVID-19 has been relatively effective to
date where total cumulative cases at the end of March were 3,285,
with 3,029 recovered and 10 fatalities. The controls left in place
are the opening of kindergarten through to secondary schools,
hotels and restaurants and the use of public transport.
These final measures are planned to be relaxed in April 2021
along with commercial flights to compliment the
charter flights which have continued during the pandemic on a
reduced basis.
Environmental & Social Governance
Clean Energy Zero Carbon SOP
As announced on 10 March 2021, the Company is continuing the
process of evaluating its renewable energy options of solar, wind
and geothermal energy with a view to becoming zero carbon in the
production of Sulphate of Potash (SOP).
Solar and Wind
The early assessment work on the solar and wind energy potential
of Colluli has been completed and this has confirmed that both of
these renewable energy sources can be incorporated into the future
generation of power for the Project.
Initially, the Company is working with its preferred power
provider, Aggreko, on further developing these solutions through
the investigation of a hybrid power solution.
Geothermal
Colluli is located in the Danakil depression which lies within
the East African Rift Valley, one of the world's most geothermally
endowed rifts. Significantly, the mining license area is in close
proximity to known geothermal gradients including at Alid, located
on the axis of the Danakil depression, between the Red Sea and the
Afar Triple Junction. Alid has been recognised by the Eritrean
Ministry of Mines and Energy (MoEM) as a potential high geothermal
resource due to the evidence of various surface manifestations and
the presence of underground magma.
In 1996, detailed geological and geochemical work funded by
USAID and conducted by United States Geological Survey (USGS) and
MoEM identified a high temperature reservoir at Alid. Samples
collected indicate a reservoir temperature of a
hydrothermal-convection system likely to be in the range of
250deg-300degC2, which is extremely promising as a geothermal power
source. Follow up work in 2015 demonstrated structural trends and
temperature permeability that are very favourable for an electric
grade geothermal resource.
The importance of geothermal and other renewable energy sources
is set out in Eritrea's national renewable energy policy and
development framework. Danakali will utilise the impressive body of
work already conducted in Eritrea to develop its plans and further
its commitment to carbon neutral SOP production.
E&S Management System Development
CMSC operational management systems will align with the Equator
Principles, IFC standard for Environmental and Social Performance
and the World Bank Group Environment, Health and Safety Guidelines.
During the quarter, the Company further advanced the Environmental
and Social Action Plan (ESAP) requirements, which is now
approximately 87% complete. ESAP closure is a one of the conditions
precedent to the US$200m Senior Debt and the senior lenders are
regularly engaged with regard to the progress.
Project
Preferred Power Contractor
Negotiations with Aggreko relating to the 12MW (Heavy Fuel Oil
(HFO)) power plant power contract were completed during the quarter
with the contract approval expected in Q2 2021.
Process Test Work
As announced on 2 September 2020, process test work is being
undertaken before EPCM Phase 3 (Detailed Design) commences to
increase the accuracy of equipment selection and process definition
allowing future schedule and plant commissioning risk mitigation.
The detailed test work was completed during Q1 with final reports
expected in Q2 2021.
Investigation of Schedule Compression
In parallel to the Test Work, the Company has identified that
the current development path contains some opportunities for
compression which have been investigated during the quarter.
Finalisation of this optimisation is subject to the selection of
equipment from the Test Work and a final review by Colluli's EPCM
Contractor, DRA Global.
Progress with Mine Site Accommodation Provider
As announced on 20 August 2020, RA International were appointed
as the preferred accommodation provider. Commercial discussions
have been materially completed during the quarter with the final
contract expected to be finalised in Q2 2021.
Corporate
Appointment of Executive Chairman and restructure of Board and
Executive
On 26 February 2021, the Company announced the following
management changes:
-- Non-Executive Chairman, Mr Seamus Cornelius, was re-appointed
as Executive Chairman
-- The role of Chief Executive Officer (CEO), held by Mr Niels
Wage, was made redundant as part of a reallocation of
responsibilities
-- Basic board fees were reduced by 33% for all board members
and board size to be reduced at the upcoming AGM
Executive Chairman
Mr Seamus Cornelius was appointed as Non-Executive Chairman of
the Company on 15 July 2013 and acted in the role of Executive
Chairman from 14 June 2018 to 25 June 2019. Mr Cornelius is a
corporate lawyer and former partner of one of Australia's leading
law firms. He has a high degree of expertise in cross-border
transactions, particularly in the resources and finance sectors. Mr
Cornelius is a member of the Company's Audit and Risk Committee,
Remuneration and Nomination Committee and is the Chairman of
CMSC.
On 26 March 2021, the Company confirmed that Mr Cornelius shall
be entitled to receive fixed remuneration of A$225,000 per annum
plus superannuation at the statutory rate. In addition, Mr
Cornelius will be eligible to participate in the Company's
incentive plans, the terms and operation of which are at the
discretion of the Board and subject to shareholder approval in the
case of securities. This remuneration package includes existing
director fees and executive services to be performed as part of the
expanded role.
CEO
With the ongoing serious disruption to international travel
caused by the Covid-19 pandemic, the Company advised that as part
of the restructure of roles and responsibilities, which will
increase efficiencies and reduce operating costs, the role of Mr
Niels Wage, the Company's Chief Executive Officer, was made
redundant. His responsibilities were assumed by the Executive
Chairman with support from other team members.
Mr Wage joined Danakali in June 2018 as Chief Commercial Officer
before assuming the role of CEO in March 2019. Highlights of Mr
Wage's tenure include leading the Company through signing of
documentation for the US$200m senior debt facility for CMSC from
African Export Import Bank and Africa Finance Corporation (AFC)
(refer announcement 23 December 2019) and while the Company secured
the US$21.5m equity investment from AFC (refer announcement 10
December 2019), Mr Wage also oversaw the commencement of the
development of the Project including the completion of EPCM Phases
1 and 2.
Mr Wage supported an orderly transition of his responsibilities
and intends to pursue other opportunities.
Project Financing
The Company maintained institutional and strategic equity
engagement during the quarter with a number of face-to-face
meetings with targeted investors in the United Kingdom, US and
Australia with Danakali's Executive Chairman, Seamus Cornelius,
Executive team, ESG Team and Corporate Development presenting and
attending.
With a continued focus on obtaining full funding for Colluli's
development through additional debt, equity and quasi-equity
investments, meetings with AFC were held to discuss a potential
further investment.
Capital
Cash
Consolidated cash on hand was A$7.6M as at 31 March 2021. Please
refer to the Appendix 5B for the quarter which estimates that
available funding is sufficient for more than 3 quarters.
Securities
As at 31 March 2021, there were a total of 319,688,347 fully
paid ordinary shares on issue. A total of 947,041 shares were
issued during the March 2021 Quarter upon the exercise of unlisted
options at $0.00 expiring 31 December 2021.
As at 31 March 2021, there were a total of 5,264,112 unlisted
options on issue at various exercise prices and expiry dates. The
following unlisted options were issued during the March 2021
Quarter:
-- 500,000 unlisted options exercisable at $0.527 expiring 29
January 2023
-- 250,000 unlisted options exercisable at $0.501 expiring 3
December 2023
-- 250,000 unlisted options exercisable at $0.780 expiring 24
March 2023
A total of 947,041 unlisted options at $0.00 expiring 31
December 2021 were exercised during the March 2021 Quarter. No
unlisted options lapsed during the March 2021 Quarter.
As at 31 March 2021, there were a total of 360,000 performance
rights on issue. No performance rights were issued or converted
during the period. A total of 900,000 performance rights lapsed
during the March 2021 Quarter.
Related Party Transactions
In accordance with ASX Listing Rule 5.3.5, payments to related
parties of the Company and their associates during the quarter
totaled A$0.117m. The Company advises that this relates to Director
fees. Refer to the Remuneration Report in the Financial Report for
further details on director remuneration.
Interests in mining tenements
The 7 Mining Licenses awarded to CMSC span over 60km(2) of the
100km(2) Mining Agreement area. There were no mining exploration
activities undertaken during the quarter.
Tenement holdings
Tenement Colluli,
Eritrea
==================== ================
Nature of interest Owned
==================== ================
License type Mining Licenses
==================== ================
Current equity 50%
==================== ================
There was no change in tenement holding during the March 2021
Quarter.
For more information, please contact:
Danakali
Seamus Cornelius Mark Riseley
Executive Chairman Head of Corporate Development
+61 8 6266 8368 +61 8 6266 8368
Visit the Company's website: www.danakali.com
Follow Danakali on LinkedIn:
www.linkedin.com/company/danakali-limited
Subscribe to Danakali on YouTube:
www.youtube.com/channel/UChGKN4-M4lOvPKxs9b-IJvw
Announcement authorised for release by the board of
Danakali.
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
Name of entity
-----------------------------------------------------
Danakali Limited
ABN Quarter ended ("current quarter")
--------------- ----------------------------------
57 097 904 302 31 March 2021
----------------------------------
Consolidated statement of cash Current quarter Year to date
flows
$A'000 (3 months)
$A'000
1. Cash flows from operating
activities
1.1 Receipts from customers - -
1.2 Payments for
(a) exploration & evaluation - -
(b) development - -
(c) production - -
(d) staff costs (662) (662)
(e) administration and corporate
costs (658) (658)
1.3 Dividends received (see note - -
3)
1.4 Interest received - -
1.5 Interest and other costs of - -
finance paid
1.6 Income taxes paid - -
1.7 Government grants and tax - -
incentives
1.8 Other (provide details if - -
material)
---------------- -------------
Net cash from / (used in)
1.9 operating activities (1,320) (1,320)
----------------- ----------------------------------- ---------------- -------------
2. Cash flows from investing
activities
2.1 Payments to acquire or for:
(a) entities - -
(b) tenements - -
(c) property, plant and equipment - -
(d) exploration & evaluation - -
(e) investments - -
(f) other non-current assets - -
2.2 Proceeds from the disposal
of:
(a) entities - -
(b) tenements - -
(c) property, plant and equipment - -
(d) investments - -
(e) other non-current assets - -
2.3 Cash flows from loans to other - -
entities
2.4 Dividends received (see note - -
3)
2.5 Other (funding of joint venture) (907)* (907)
---------------- -------------
Net cash from / (used in)
2.6 investing activities (907) (907)
----------------- ----------------------------------- ---------------- -------------
3. Cash flows from financing
activities
3.1 Proceeds from issues of equity
securities (excluding convertible
debt securities) - -
3.2 Proceeds from issue of convertible - -
debt securities
3.3 Proceeds from exercise of - -
options
3.4 Transaction costs related - -
to issues of equity securities
or convertible debt securities
3.5 Proceeds from borrowings - -
3.6 Repayment of borrowings - -
3.7 Transaction costs related - -
to loans and borrowings
3.8 Dividends paid - -
3.9 Other (provide details if - -
material)
---------------- -------------
3.10 Net cash from / (used in) - -
financing activities
----------------- ----------------------------------- ---------------- -------------
4. Net increase / (decrease)
in cash and cash equivalents
for the period
Cash and cash equivalents
4.1 at beginning of period 9,739 9,739
Net cash from / (used in)
operating activities (item
4.2 1.9 above) (1,320) (1,320)
Net cash from / (used in)
investing activities (item
4.3 2.6 above) (907) (907)
4.4 Net cash from / (used in) - -
financing activities (item
3.10 above)
Effect of movement in exchange
4.5 rates on cash held 94 94
---------------- -------------
Cash and cash equivalents
4.6 at end of period 7,606 7,606
----------------- ----------------------------------- ---------------- -------------
5. Reconciliation of cash and Current quarter Previous quarter
cash equivalents $A'000 $A'000
at the end of the quarter
(as shown in the consolidated
statement of cash flows) to
the related items in the accounts
5.1 Bank balances 7,606 9,739
5.2 Call deposits - -
5.3 Bank overdrafts - -
5.4 Other (term deposit) - -
---------------- -----------------
Cash and cash equivalents
at end of quarter (should
5.5 equal item 4.6 above) 7,606 9,739
----------------- ----------------------------------- ---------------- -----------------
6. Payments to related parties of the entity Current quarter
and their associates $A'000
Aggregate amount of payments to related
parties and their associates included in
6.1 item 1 117
----------------
6.2 Aggregate amount of payments to related -
parties and their associates included in
item 2
----------------
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly
activity report must include a description of, and an explanation
for, such payments.
Payments included in item 6.1 relates to payment of director
fees ($117k)
7. Financing facilities Total facility Amount drawn
Note: the term "facility' amount at quarter at quarter end
includes all forms of financing end $A'000
arrangements available to $A'000
the entity. Add notes as necessary
for an understanding of the
sources of finance available
to the entity.
7.1 Loan facilities - -
------------------- ----------------
7.2 Credit standby arrangements - -
------------------- ----------------
7.3 Other (please specify) - -
------------------- ----------------
7.4 Total financing facilities - -
------------------- ----------------
7.5 Unused financing facilities available at -
quarter end
----------------
7.6 Include in the box below a description of each facility
above, including the lender, interest rate, maturity date
and whether it is secured or unsecured. If any additional
financing facilities have been entered into or are proposed
to be entered into after quarter end, include a note providing
details of those facilities as well.
----------------- ---------------------------------------------------------------------------
8. Estimated cash available for future operating $A'000
activities
Net cash from / (used in) operating activities
8.1 (item 1.9) (1,320)
8.2 Payments for exploration & evaluation classified -
as investing activities (item 2.1(d))
8.2a Other (funding of joint venture) (item 2.5) (907)*
8.3 Total relevant outgoings (item 8.1 + item (2,227)
8.2 + item 8.2a)
8.4 Cash and cash equivalents at quarter end 7,606
(item 4.6)
8.5 Unused finance facilities available at quarter -
end (item 7.5)
---------
8.6 Total available funding (item 8.4 + item 7,606
8.5)
---------
Estimated quarters of funding available
8.7 (item 8.6 divided by item 8.3) 3.4
---------
Note: if the entity has reported positive relevant outgoings
(ie a net cash inflow) in item 8.3, answer item 8.7 as
"N/A". Otherwise, a figure for the estimated quarters
of funding available must be included in item 8.7.
* The Company considers it appropriate to include cash
outflows related to the funding of joint venture (investing
activities) in this table given its ongoing obligation
to fund these activities.
8.8 If item 8.7 is less than 2 quarters, please provide answers
to the following questions:
8.8.1 Does the entity expect that it will continue to
have the current level of net operating cash flows for
the time being and, if not, why not?
-------------------------------------------------------------------
Answer:
-------------------------------------------------------------------
8.8.2 Has the entity taken any steps, or does it propose
to take any steps, to raise further cash to fund its operations
and, if so, what are those steps and how likely does it
believe that they will be successful?
-------------------------------------------------------------------
Answer:
-------------------------------------------------------------------
8.8.3 Does the entity expect to be able to continue its
operations and to meet its business objectives and, if
so, on what basis?
-------------------------------------------------------------------
Answer:
-------------------------------------------------------------------
Note: where item 8.7 is less than 2 quarters, all of questions
8.8.1, 8.8.2 and 8.8.3 above must be answered.
----------------- -------------------------------------------------------------------
Compliance statement
1 This statement has been prepared in accordance with accounting
standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
Date: 30 April 2021...............................................................
Authorised by: By the Audit and Risk
Committee...............................
(Name of body or officer authorising release - see note 4)
Notes
1. This quarterly cash flow report and the accompanying activity
report provide a basis for informing the market about the entity's
activities for the past quarter, how they have been financed and
the effect this has had on its cash position. An entity that wishes
to disclose additional information over and above the minimum
required under the Listing Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in
accordance with Australian Accounting Standards, the definitions
in, and provisions of, AASB 6: Exploration for and Evaluation of
Mineral Resources and AASB 107: Statement of Cash Flows apply to
this report. If this quarterly cash flow report has been prepared
in accordance with other accounting standards agreed by ASX
pursuant to Listing Rule 19.11A, the corresponding equivalent
standards apply to this report.
3. Dividends received may be classified either as cash flows
from operating activities or cash flows from investing activities,
depending on the accounting policy of the entity.
4. If this report has been authorised for release to the market
by your board of directors, you can insert here: "By the board". If
it has been authorised for release to the market by a committee of
your board of directors, you can insert here: "By the [name of
board committee - eg Audit and Risk Committee]". If it has been
authorised for release to the market by a disclosure committee, you
can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the market
by your board of directors and you wish to hold yourself out as
complying with recommendation 4.2 of the ASX Corporate Governance
Council's Corporate Governance Principles and Recommendations, the
board should have received a declaration from its CEO and CFO that,
in their opinion, the financial records of the entity have been
properly maintained, that this report complies with the appropriate
accounting standards and gives a true and fair view of the cash
flows of the entity, and that their opinion has been formed on the
basis of a sound system of risk management and internal control
which is operating effectively.
About Danakali
Danakali Limited (ASX: DNK, LSE: DNK) (Danakali, or the Company)
is an ASX- and LSE-listed potash company focused on the development
of the Colluli Sulphate of Potash Project (Colluli or the Project).
The Project is 100% owned by the Colluli Mining Share Company
(CMSC), a 50:50 joint venture between Danakali and the Eritrean
National Mining Corporation (ENAMCO).
The Project is located in the Danakil Depression region of
Eritrea, East Africa, and is 75km from the Red Sea coast, making it
one of the most accessible potash deposits globally. Mineralisation
within the Colluli resource commences at just 16m, making it the
world's shallowest known potash deposit. The resource is amenable
to open cut mining, which allows higher overall resource recovery
to be achieved, is generally safer than underground mining, and is
highly advantageous for modular growth.
The Company has completed a Front End Engineering Design (FEED)
for the production of potassium sulphate, otherwise known as
Sulphate of Potash or SOP. SOP is a chloride free, specialty
fertiliser which carries a substantial price premium relative to
the more common potash type; potassium chloride (or MOP). Economic
resources for production of SOP are geologically scarce. The unique
composition of the Colluli resource favours low energy input, high
potassium yield conversion to SOP using commercially proven
technology. One of the key advantages of the resource is that the
salts are present in solid form (in contrast with production of SOP
from brines) which reduces infrastructure costs and substantially
reduces the time required to achieve full production capacity.
The resource is favourably positioned to supply the world's
fastest growing markets. A binding take-or-pay offtake agreement
has been confirmed with EuroChem Trading GmbH (EuroChem) for up to
100% (minimum 87%) of Colluli Module I SOP production.
Development Finance Institutions, Africa Finance Corporation
(AFC) and African Export Import Bank (Afreximbank), have obtained
formal credit approval to provide CMSC with US$200M in senior debt
finance. The credit documentation was executed in December 2019,
allowing drawdown of CMSC senior debt on satisfaction of customary
conditions precedent. This represents the majority of funding
required for the development and construction of the Colluli.
The Company's vision is to bring Colluli into production using
the principles of risk management, resource utilisation and
modularity, using the starting module (Module I) as a platform to
develop the resource to its full potential.
Competent Persons Statement (Sulphate of Potash and Kieserite
Mineral Resource)
Colluli has a JORC-2012 compliant Measured, Indicated and
Inferred Mineral Resource estimate of 1,289Mt @11% K2O Equiv. and
7% Kieserite. The Mineral Resource contains 303Mt @ 11% K2O Equiv.
and 6% Kieserite of Measured Resource, 951Mt @ 11% K2O Equiv. and
7% Kieserite of Indicated Resource and 35Mt @ 10% K2O Equiv. and 9%
Kieserite of Inferred Resource.
The information relating to the Colluli Mineral Resource
estimate is extracted from the report entitled "Colluli Review
Delivers Mineral Resource Estimate of 1.289Bt" disclosed on 25
February 2015 and the report entitled "In excess of 85 million
tonnes of Kieserite defined within Colluli Project Resource adds to
multi agri-commodity potential" disclosed on 15 August 2016, which
are available to view at www.danakali.com.au. The Company confirms
that it is not aware of any new information or data that materially
affects the information included in the original market
announcement and, in the case of estimates of Mineral Resources or
Ore Reserves, that all material assumptions and technical
parameters underpinning the estimates in the relevant market
announcement continue to apply and have not materially changed. The
Company confirms that the form and context in which the Competent
Person's findings are presented have not been materially modified
from the original market announcement.
Competent Persons Statement (Sulphate of Potash Ore Reserve)
Colluli Proved and Probable Ore Reserve is reported according to
the JORC Code and estimated at 1,100Mt @ 10.5% K2O Equiv. The Ore
Reserve is classified as 285Mt @ 11.3% K2O Equiv. Proved and 815Mt
@ 10.3% K2O Equiv. Probable. The Colluli SOP Mineral Resource
includes those Mineral Resources modified to produce the Colluli
SOP Ore Reserves.
The information relating to the January 2018 Colluli Ore Reserve
is extracted from the report entitled "Colluli Ore Reserve update"
disclosed on 19 February 2018 and is available to view at
www.danakali.com.au. The Company confirms that it is not aware of
any new information or data that materially affects the information
included in the original market announcement and, in the case of
estimates of Mineral Resources or Ore Reserves, that all material
assumptions and technical parameters underpinning the estimates in
the relevant market announcement continue to apply and have not
materially changed. The Company confirms that the form and context
in which the Competent Person's findings are presented have not
been materially modified from the original market announcement.
Competent Persons Statement (Rock Salt Mineral Resource)
Colluli has a JORC-2012 compliant Measured, Indicated and
Inferred Mineral Resource estimate of 347Mt @ 96.9% NaCl. The
Mineral Resource estimate contains 28Mt @ 97.2% NaCl of Measured
Resource, 180Mt @ 96.6% NaCl of Indicated Resource and 139Mt @
97.2% NaCl of Inferred Resource.
The information relating to the Colluli Rock Salt Mineral
Resource estimate is extracted from the report entitled "+300M
Tonne Rock Salt Mineral Resource Estimate Completed for Colluli"
disclosed on 23 September 2015 and is available to view at
www.danakali.com.au. The Company confirms that it is not aware of
any new information or data that materially affects the information
included in the original market announcement and, in the case of
estimates of Mineral Resources or Ore Reserves, that all material
assumptions and technical parameters underpinning the estimates in
the relevant market announcement continue to apply and have not
materially changed. The Company confirms that the form and context
in which the Competent Person's findings are presented have not
been materially modified from the original market announcement.
AMC Consultants Pty Ltd (AMC) independence
In reporting the Mineral Resources and Ore Reserves referred to
in this public release, AMC acted as an independent party, has no
interest in the outcomes of Colluli and has no business
relationship with Danakali other than undertaking those individual
technical consulting assignments as engaged, and being paid
according to standard per diem rates with reimbursement for
out-of-pocket expenses. Therefore, AMC and the Competent Persons
believe that there is no conflict of interest in undertaking the
assignments which are the subject of the statements.
Quality control and quality assurance
Danakali exploration programs follow standard operating and
quality assurance procedures to ensure that all sampling techniques
and sample results meet international reporting standards. Drill
holes are located using GPS coordinates using WGS84 Datum, all
mineralisation intervals are downhole and are true width
intervals.
The samples are derived from HQ diamond drill core, which in the
case of carnallite ores, are sealed in heat-sealed plastic tubing
immediately as it is drilled to preserve the sample. Significant
sample intervals are dry quarter cut using a diamond saw and then
resealed and double bagged for transport to the laboratory.
Halite blanks and duplicate samples are submitted with each
hole. Chemical analyses were conducted by Kali-Umwelttechnik GmBH,
Sondershausen, Germany, utilising flame emission spectrometry,
atomic absorption spectroscopy and ion chromatography.
Kali-Umwelttechnik (KUTEC) has extensive experience in analysis of
salt rock and brine samples and is certified according by DIN EN
ISO/IEC 17025 by the Deutsche Akkreditierungsstelle GmbH (DAR). The
laboratory follows standard procedures for the analysis of potash
salt rocks chemical analysis (K+, Na+, Mg2+, Ca2+, Cl , SO42-, H2O)
and X-ray diffraction (XRD) analysis of the same samples as for
chemical analysis to determine a qualitative mineral composition,
which combined with the chemical analysis gives a quantitative
mineral composition.
Forward looking statements and disclaimer
The information in this document is published to inform you
about Danakali and its activities. Danakali has endeavoured to
ensure that the information enclosed is accurate at the time of
release, and that it accurately reflects the Company's intentions.
All statements in this document, other than statements of
historical facts, that address future production, project
development, reserve or resource potential, exploration drilling,
exploitation activities, corporate transactions and events or
developments that the Company expects to occur, are forward looking
statements. Although the Company believes the expectations
expressed in such statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results or developments may differ materially from those in
forward-looking statements.
Factors that could cause actual results to differ materially
from those in forward-looking statements include market prices of
potash and, exploitation and exploration successes, capital and
operating costs, changes in project parameters as plans continue to
be evaluated, continued availability of capital and financing and
general economic, market or business conditions, as well as those
factors disclosed in the Company's filed documents.
There can be no assurance that the development of Colluli will
proceed as planned. Accordingly, readers should not place undue
reliance on forward looking information. Mineral Resources and Ore
Reserves have been reported according to the JORC Code, 2012
Edition. To the extent permitted by law, the Company accepts no
responsibility or liability for any losses or damages of any kind
arising out of the use of any information contained in this
document. Recipients should make their own enquiries in relation to
any investment decisions.
Mineral Resource, Ore Reserve, production target, forecast
financial information and financial assumptions made in this
announcement are consistent with assumptions detailed in the
Company's ASX announcements dated 25 February 2015, 23 September
2015, 15 August 2016, 1 February 2017, 29 January 2018, and 19
February 2018 which continue to apply and have not materially
changed. The Company is not aware of any new information or data
that materially affects assumptions made.
No representation or warranty, express or implied, is or will be
made by or on behalf of the Company, and no responsibility or
liability is or will be accepted by the Company or its affiliates,
as to the accuracy, completeness or verification of the information
set out in this announcement, and nothing contained in this
announcement is, or shall be relied upon as, a promise or
representation in this respect, whether as to the past or the
future. The Company and each of its affiliates accordingly
disclaims, to the fullest extent permitted by law, all and any
liability whether arising in tort, contract or otherwise which it
might otherwise have in respect of this announcement or any such
statement.
The distribution of this announcement outside the United Kingdom
may be restricted by law and therefore any persons outside the
United Kingdom into whose possession this announcement comes should
inform themselves about and observe any such restrictions in
connection with the distribution of this announcement. Any failure
to comply with such restrictions may constitute a violation of the
securities laws of any jurisdiction outside the United Kingdom.
This information is provided by RNS, the news service of the
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END
MSCEADLNASSFEAA
(END) Dow Jones Newswires
April 30, 2021 02:00 ET (06:00 GMT)
Danakali (LSE:DNK)
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