STB Report This looks really promising for FED
After a trading halt, a 10% jump overnight is a reflection of the 85% increase in contained potash at their open pittable Colluli potash project in Eritrea, currently owned 100%.
The Joint Ore Reserves Committee/National Instrument 43-101 compliant measured resource now stands at 261.81 million tonnes (Mt) grading 11.33% potassium oxide (K2O), or 17.94% potassium chloride (KCl), for 46.96 Mt of KCl. The indicated resource is now 674.48 Mt @ 17.98% KCl, for 121.29 Mt of KCl. In addition, an inferred resource of 143.5 Mt @ 18% KCl, for 25.78 Mt of KCl is carried.
As compared to their previous October 2011 resource, headline tonnage has increased 91%, a 3% reduction in grade leads to the above headline resource increase of 85%.
As they say "
the expanded resource is expected to substantially improve the already robust economics of an open pit mine at Colluli. Importantly, the shallow deposit is open in many directions and is expected to grow further with the current resource extension drilling programs."
The resource is composed of three main potash minerals Sylvite, Carnallite and Kainite. The term potash is usually used to describe muriate of potash (MOP) with the chemical formula (KCl). Another common potassium fertilizer is sulphate of potash (SOP) with the chemical formula K2SO4. To be able to compare these products the grade of potassium products is usually expressed in K2O (potassium oxide, the conversion factor for KCl to K2O is 0.6317). Due to the presence of chloride potash bearing minerals, as well as sulphate of potash bearing minerals, the grade of the resources has been shown as both KCl and K2O.
The go on to add "
all of the potash minerals contained within the Colluli deposit can, in principle, be used for the production of MOP as well as SOP based fertilizers. In addition, the mineral Kieserite (MgSO4 x H2O) occurs in significant amounts predominantly with the Carnallite mineralisation which is favourable for SOP production. The production of SOP and other potassium-magnesium products from the extensive Carnallite and Kainite resources will be important for the long term expansion of the Colluli production base. The current definitive feasibility study will consider multiple product streams to a scoping study level including the abovementioned commodities and determine the most economic mining, processing and expansion scenarios for the