Premier African Minerals' partner has completed its phase one exploration program at Danakil in the Afar Regional State, with a resource estimate for the potash project expected by March.
Premier African Minerals holds a 42 percent interest in AgriMinco Corp, which has a 30 percent stake in the Danakil potash project through a joint venture with Danakil Potash Corp.
Premier said 1,569 samples have been submitted for assay work. The results will be compiled into a NI 43-101 compliant mineral resource, which is scheduled for completion in first quarter of 2014 and will be followed by a full scoping study of the project.
The joint venture has spent USD 12.85 million on exploration of the license. AgriMinco has a free-carry on expenditure up to USD 10 million. Above that, it has to contribute on a pro-rata basis with payment on the extra spent so far due on March 31.
George Roach, AgriMinco and Premier African's chief executive, said he was very pleased with the quality and progress made by Danakil Corp during phase 1 exploration.
"The licensed area has real potential to develop into a mine and I am confident that the planned mineral resource estimate scheduled for completion in early 2014, will support the project potential," he added.
German firm K-UTec Salt Technologies have been appointed as the resource experts for the completion of the NI 43-101 compliant report.
The studies would make recommendations on actions required for the next phase of exploration, while the hydrogeological study would also include the detailed planning of the water exploration project envisioned for the early part of 2014.
"The geophysical surveys are progressing well, with a 90 percent success rate achieved on survey attempts so far. A partial data set comprising the geophysics available to date has been sent for integration into the geological model, so that the impact can be seen and optimization of the data can be fed back to the geophysics team prior to them finalizing their readings," AgriMinco stated.