Tuesday , 12 Jun 2012 South Boulder Mines Ltd.
South Boulder Mines Ltd (ASX:STB) is pleased to announce that resource extension drilling at its Colluli Project in Eritrea has intersected more high-grade shallow potash.
The new assays from holes Col-047 – 051 (Figure 1 & Table 1) continue to highlight the strong potential to extend the project's existing JORC/NI43-101 Mineral Resource Estimate (Table 2).
The best of the latest assays, recorded in Hole Col-049, was:
- 3.07m of Sylvinite @ 36.67% KCl from 96.43m depth.
In addition, drilling at the new Central zone of mineralisation which sits between the existing resource areas A and B (see Figure 1 & ASX announcement dated 23th April 2012) intersected high-grade sylvinite as an immediate extension to mineralisation intersected in holes Col-057, 058 and 060.
- Hole Col-062 2.84m of high-grade Sylvinite from 63.53m within a total 14.55m potash: interval (Table 1).
The combination of the shallow nature of this additional mineralisation, its high-grade and location means it has strong potential to boost Colluli's economics, particularly in the early phase of the project.
The resource extension drilling is being undertaken in parallel with the metallurgical drilling which is being done as part of the Colluli Feasibility Study. The Study is due for completion next year, enabling South Boulder to be in production no later than 2016.
The scoping study, which indicates the Colulli Project is expected to be technically and economically feasible and has the potential to be a long life project capable of delivering attractive investment returns, was based on annual production of one million tonnes of potash. However, this figure could be increased in line with further expansion in the project's JORC resource.
South Boulder Managing Director Lorry Hughes said the latest assays supported the Company's strong confidence in this new area and the areas within and adjacent to the existing resource.
"The results continue to confirm the robust nature of the resource and the potential for further expansion," Mr Hughes said.
"The new Central zone will certainly boost the overall economics of this expanding project.
"Drilling and Definitive Feasibility Study activity is in full swing and there will be strong news flow in the near term."
Resource definition and extension drilling as well as metallurgical, hydrogeological and geotechnical programs are ongoing at Colluli with results to be released as they come to hand.
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