Ann: Further Assay Results Confirming Extensive P, page-14

re: Ann: Further Assay Results Confirming Ext... SALLYSFOLLY

I am not sure if I am wrong but I had an impression about you from your posts that you behaved like a downramper so far. I generally don't answer the posts of those kind of people but I will answer as I am hoping I was wrong.

Yes, 270-280 is maybe the best shallow depth for potash mining. If it was more shallow than this the deposit might not be minable.

Underground mining wouldn't be an option for more shallow depths as the mine roof most probably wouldn't be able to support the room and pillar mining method in this wet area. There is very good sedimentary deposit in Thailand (this is one of the best in the World) but it can't be mined because of this reason.

Also open cut mine would't be an option either as KCL is highly soluable with water. Heavy rains would damaged the whole mine. (I am not sure how STB brings this option in Eritrea, maybe there is no rain up there!)

ELM's deposits are sedimentary basin type. They should be compared with Sansatchewan/Canadian deposits which are the same. The resource depth in Canada starts from 1000m at least. Making two shaft (one for production and one for service) costs around $400m. And you have to make those shafts to reach the deposits by underground mining which has the lower Opex mining cost than solution mining.

In our case, ELM will only make single or twin decline tunnel(s) to reach the deposits as the deposits are at shallow depth. Making a tunnel is simple and not very costly.

If we look at the resource chareteristics of PotashOne (recently taken over by K+S AG German company for $450m), the resource was starting from 1500m depth. It was only good for solution mining as the KCL grade was low as well.

PotashOne Resource details are here; (sold for $450m)
Measured Resources ... 27.3 mt @ 28.55 KCl grade
Indicated Resources... 80.1 mt @ 27.05 KCl grade

I am making a resource estimation for ELM's Kola Project atm, and I have found much bigger numbers than PotashOne's;
Measured Resources ... 37.8 mt
Indicated Resources... Not available yet, but defintly over around 80mt.
The total deposit size is close to 300 mt.

I will post that soon.

Cheers.


A decline tunnel is being opened


Decline tunnel in service ;