Through its wholly owned Ethiopian subsidiary, Circum Minerals Potash Ltd, the Company holds a 100% interest in a mining licence covering 365 square kilometres in the Danakil Basin known as the Danakil Potash Project.
In 2013, Circum acquired a 70% interest in the Danakil Potash Project from AgriMinco Inc., which retained a 30% interest. AgriMinco’s interest was subsequently sold to Premier African Minerals Limited (PREM) and Circum acquired the remaining 30% interest in the project from PREM in May 2014.
After the acquisition of its initial interest in the Danakil Potash Project, Circum executed an exploration and development programme of this potentially significant potash deposit. In July 2015, following extensive exploration drilling, a 2D seismic survey and a water exploration programme, Circum completed a definitive feasibility study (DFS) to the standard of the NI 43-101 Canadian securities code.
In April 2017, Circum’s application for a mining licence was approved by the Council of Ministers of Ethiopia and is valid for an initial 20-year period, renewable thereafter in 10-year terms. Circum has also obtained government approval of its Environmental and Social Impact Assessment and Environmental Management Plan.
Circum has since undertaken further studies to optimise the project. The development of the processing plants has been modularised, enabling Circum to build the project in phases, which will require lower initial capital. In June 2018, Circum completed a DFS on the first phase of the modularised process. Subsequently, given the Covid-19 pandemic and its impact on capital markets as well as advances in various technologies, it was decided that a new NI 43-101 compliant DFS be produced, and work on this was completed in 2021. The DFS has optimised various extraction, evaporation, energy usage and plant elements of the mining and treatment processes, focussing on an initial smaller footprint of production which can be expanded as market conditions allow.