Building on Danakali’s successful track record with the Colluli Project, the Company is eager to return to Eritrea, leveraging its experience to further explore and develop the country’s largely untapped mineral potential. The Eritrean government keenly supports the development of this sector and encourages foreign exploration of its abundant mineral resources.

In November 2023, Danakali submitted an application for an exploration license for the highly promising Ela Gedel Gold and Base Metal Project in Eritrea’s Gash Barka region. The Ministry of Energy and Mining (“MoEM”) welcomed Danakali’s application, confirming that it was complete and met all necessary criteria for approval.

In September 2024, Danakali Executive Chairman Seamus Cornelius and Chief Financial Officer Greg MacPherson conducted a site visit to the Ela Gedel exploration application area in Eritrea. The visit was formally approved by the MoEM, which also facilitated the presence of a senior geologist to accompany and guide our delegation during their visit. This collaboration highlights the Ministry’s ongoing support for foreign exploration of Eritrea’s rich mineral resources. Danakali’s track record of positive contribution and success through Colluli Potash Project in Eritrea puts the Company in good standing with the local community.

Located southwest of Asmara, the capital of Eritrea, the Ela Gedel exploration license area spans approximately 1,500 square kilometres. The region is considered highly prospective for both gold and copper, with evidence of historical workings with more recent areas of artisanal gold mining activity. Despite the minimal modern exploration carried out thus far, the MoEM has identified several promising gold and copper prospects scattered throughout the area, many of which are in relatively close proximity to Molki, the administrative hub of the sub-zone.
Accessibility to the site is facilitated by a network of moderately good roads that run from Asmara through towns such as Mendefera, Areza, and Mai-Dima. These transport routes enhance the project’s feasibility and logistical considerations for ongoing exploration activities.

Significantly, Danakali has now received confirmation from the MoEM that the review of its application for the Ela Gedel exploration license is progressing to its final stage.