Resources

A NI 43-101 compliant mineral resource estimate (MRE) was prepared by independent consultants K-UTEC AG Salt Technologies, a German consulting firm with expertise in potash mining, in July 2015. The total MRE includes the Sylvinite (SYL), Upper Carnallitite (UCAR), Lower Carnallitite (LCAR) and the Kainitite (KAI) potash bearing beds. The MRE, which drill tested about 40% of the licence area to a depth of 500 metres, comprises a Measured and Indicated Mineral Resource totaling 2.8 Bt at an average grade of 18.6% KCl, for a total of 525.8 Mt of contained KCl and an Inferred Mineral Resource of 2.1 Bt at an average grade of 17.5% KCl, for a total of 366.5 Mt contained KCl.

Seismic data confirms the continuity of the potash layers throughout the rest of the licence area with maximum depths of about 600 to 800 meters in the central part of the basin and becoming shallow again to the east. The geologic estimate of the endowment of the remaining 60% of the Danakil Potash Project licence area is an additional 7 to 9 billion tonnes. This suggests a potential overall resource size of 12 to 14 billion tonnes of potash bearing salt beds within the licence boundary, making it potentially one of the world’s largest undeveloped potash mineral deposits.

A summary of the July 2015 Mineral Resource Estimate for the Danakil Project is presented in the tables below.

Measured and Indicated Mineral Resource: 

Potash Member

Tonnage (Mt)

KCl (%)

Contained KCl (Mt)

Sylvinite

754.8

25.3

190.8

Upper Carnallitite

174.1

18.0

31.4

Lower Carnallitite

677.3

12.5

84.4

Kainitite

1,227.5

17.9

219.3

TOTAL

2,833.7

18.6

525.8

Inferred Mineral Resource: 

Potash Member

Tonnage (Mt)

KCl (%)

Contained KCl (Mt)

Sylvinite

433.6

23.5

102.1

Upper Carnallitite

104.9

18.5

19.4

Lower Carnallitite

596.4

10.7

64.1

Kainitite

963.5

18.8

181.0

TOTAL

2,098.5

17.5

366.5

Total Mineral Resources: 

Potash Member

Tonnage (Mt)

KCl (%)

Contained KCl (Mt)

Sylvinite

1,188.5

24.6

292.9

Upper Carnallitite

279.0

18.2

50.8

Lower Carnallitite

1,273.7

11.7

148.4

Kainitite

2,191.0

18.3

400.2

TOTAL

4,932.2

18.1

892.3

The July 2015 Mineral Resource Estimate is based on drilling conducted between 2010 and 2014 that comprised 74 core drill holes totaling 20,284 meters, of which 3,461 meters were drilled in 2014. The MRE also took into consideration the 2D seismic survey conducted in December 2014 over 74.78 kilometers. The MRE was calculated using polygon areas of each drill hole location with a defined radius of 500 meters for the Measured category, 1,000 meters for the Indicated category and 2,000 meters for the Inferred category.