Circum Minerals Ltd. is a private company focused on the development of the Danakil Potash Project, one of the world’s largest undeveloped potash resources, which will support a world-class project in the Afar Region of northeastern Ethiopia. Through its wholly-owned Ethiopian subsidiary, Circum Minerals Potash Ltd., the Company holds a 100% interest in a mining license covering 365 square kilometers.
The founders of the Company have an established track record of identifying, funding and developing resource projects in Africa. The Danakil Potash Project was identified as being of a potentially world class scale, in a stable jurisdiction and due to its location, climate and geology, to possess cost advantages over other global potash deposits, specifically those targeting the growing markets of India, China, and the rest of Asia and Africa.
In 2013, Circum acquired a 70% interest in the Danakil Potash Project from AgriMinco Inc. (TSX-V:ANO), which retained a 30% interest. AgriMinco’s interest was subsequently sold to Premier African Minerals Limited (AIM:PREM) and Circum acquired the remaining 30% interest in the Project from PREM in May 2014.
The Danakil Potash Project is situated on a significant stand-alone deposit with a total NI 43- 101 compliant Measured and Indicated Mineral Resource of 2.8 billion tonnes @ 18.6% KCl and Inferred Mineral Resources of 2.1 billion tonnes @ 17.5% KCl. Internal reports based on a comprehensive seismic survey of the license area indicate a further, but currently non-compliant, estimated potential of the undrilled portions of the Danakil Project of 7 to 9 billion tonnes, which suggests an overall resource size of between 12 to 14 billion tonnes of potash bearing salt beds within the Danakil Property.
According to the Definitive Feasibility Study prepared by Senet (Pty) Ltd. of South Africa, the operation will be designed to deliver 2.0 million tonnes per annum of Muriate of Potash (“MOP”) and 0.75 million tonnes per annum of Sulfate of Potash (“SOP”), with production anticipated to start in 2022 using low-cost, low-risk solution mining and solar evaporation. The Project’s substantial resources will allow for multiple decades of expanding production.
The Company has assembled a management team with experience building mines and creating value for shareholders. Plinian Capital Ltd, a private equity company that specializes in mining investment and operation, is managing project development along with Gilchrist Mining Ltd.