Modern Mining January 2017

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January 2017 MODERN MINING17
MINING News
Orion Gold acquires
Agama Exploration
ASX-listed Orion Gold has exercised its option
to acquire Agama Exploration & Mining (Pty)
Ltd which, through its subsidiary companies,
ultimately holds an effective 73,33 % interest in
the company holding prospecting rights over
the historic Prieska Copper Mine (PC), located at
Copperton in Northern Cape Province, and the
Marydale gold-copper project, a volcanogenic
gold-copper discovery located 60 km from PC.
In July 2015, Orion announced the signing of
a binding term sheet giving it the right to acquire
Agama. During the option period, Orion under-
took a comprehensive due diligence including
conducting exploration programmes at both the
PC and Marydale projects.
In recent months, the company has
announced very encouraging exploration results
from the +105 Level Target (open pit) at the
Prieska zinc-copper project. Orion says that 3D
modelling of the mineralised zone intersected
in drilling is now underway with the objective
of producing mineral resources compliant with
the JORC Code (2012) in early 2017 and feeding
these resource estimates into a Pre-Feasibility
Study with a target completion date of mid-2017.
To aid these studies, a large diameter diamond
core hole is being drilled to provide material for
metallurgical testwork. 
Fluor Corporation has been awarded a front-end
engineering, design and optimisation (FEED)
contract by ASX-listed Danakali for the Colluli
potash project in Eritrea following a competi-
tive tendering process initiated and completed
in 2016.
“Fluor will provide a highly qualified design
and optimisation teamwith world-class process
infrastructure credentials for this important fer-
tiliser project,” said Rick Koumouris, President
of Fluor’s Mining & Metals business. “In addi-
tion to working with Danakali to maximise
project capital efficiency during the study and
execution phases of this project, Fluor will bring
top-notch project financing expertise and assis-
tance to help Danakali advance this project to
the next phase.”
“We are delighted to be working with Fluor
as we progress the Colluli project,” said Paul
Donaldson, MD of Danakali. “The combination
of Fluor’s values, people, reputation, optimisa-
tion approach, mining and metals expertise,
Fluor awarded FEED contract for Colluli
experience in Africa, and potash-spe-
cific experience will benefit the project
significantly as it progresses towards
construction.”
Colluli is one of the most advanced
greenfield sulphate of potash devel-
opments in the world and reportedly
demonstrates outstanding econom-
ics including industry leading capital
intensity, bottom quartile operating
costs, close proximity to the coast and
key markets, and unrivalled product
diversification potential. Sulphate of
potash is a high quality potash fertiliser
used for farming crop development and
yield maximisation around the globe.
The Colluli deposit is located in the
Danakil region of Eritrea. It is approxi-
mately 177 km south-east of the capital,
Asmara, and 180 km from the port of
Massawa (230 km by road), which is
Eritrea’s key import-export entry.
Danakali is the 50 % owner of Colluli
and is developing the project in part-
nership with the Eritrean National
Mining Company (ENAMCO). 