STB 0.00% 40.0¢ south boulder mines ltd

News: South Boulder Mines commences drilling at Colluli

  1. South Boulder Mines (ASX:STB) has now commenced a program of mine and infrastructure geotechnical drilling, hydrological testing and dewatering drilling has commenced at the Colluli site in Eritrea, East Africa.

    South Boulder and the Eritrean National Mining Company (ENAMCO) are equal shareholders of the Colluli Mining Share Company (CMSC) which will develop the Colluli Potash project.

    The Colluli resource is a unique combination of potassium bearing salts suitable for the production of potassium fertilisers, and hosts 1 billion tonnes of potassium salts.

    The drilling program will 'twin' a number of the previously drilled resource holes as part of the transfer of the resource model from the Ercosplan to AMC Consultants.

    Mobilisation and camp establishment was completed on time and the drilling program is being supervised by AMC Consultant representatives and South Boulder personnel.

    Paul Donaldson, managing director, commented: “We are pleased that we have been able to meet our target drill date given the relatively short period of time to source personnel, mobilise equipment, and obtain the required consumables for the program.

    "In addition to drilling activities, evaporation tests will be done on site to reconcile with weather data collected from site over the last two years and laboratory trials completed in Perth during the last quarter.”


    Use of information

    The information collected will be used for both pre-feasibility and feasibility work.

    Drill results will be used to determine earthworks requirements for key pieces of infrastructure, dewatering infrastructure requirements, pit wall angles, trafficability of the upper layer materials for mine planning purposes, and material characteristics for solar pond construction.


    Colluli's world-class resource


    The Colluli resource is a unique combination of potassium bearing salts suitable for the production of potassium fertilisers.

    It hosts 1 billion tonnes of potassium salts and has a current JORC Compliant Measured, Indicated and Inferred Resource.

    This is comprised of 261.81Mt at 17.94% KCl or 11.33% K2O of Measured Resources, 674.48Mt at 17.98% KCl or 11.36% K2O of Indicated Resources and 143.50Mt at 18.00% KCl or 11.37% K2O of Inferred Resources.

    The total is 1,080 Mt at 18.0% KCl or 11.35% K2O (total contained potash of 194.09Mt KCl or 122.61Mt K2O).


    Analysis


    South Boulder is well-funded with $9 million in cash at the end of June 2014, and also recently attracted a $1.8 million investment from the Hong Kong based Kam Lung Investment Development Company (KLID) at a premium.

    KLID will look to secure an offtake deal for potassium sulphate on commercial terms acceptable to the CMSC board.

    This allows the project team to focus on the delivery of the Pre-Feasibility and Feasibility Studies.

    South Boulder directors have also been actively purchasing shares on-market in a major vote of confidence in the company's operations.

     

 
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