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Market: ASX
Sector: General Mining
EPIC: STB
Latest Price: 0.79  (-4.24% Descending)
52-week High: 3.49
52-week Low: 0.78
Market Cap: 91.82M
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South Boulder Mines
www.southbouldermines.com.au

South Boulder’s (ASX: STB) flagship project is the world class Colluli Potash Fertilizer Project in Eritrea where mine production of 1Mt p.a. is scheduled for 2016 or sooner from the world's first open cut potash mine.

 

South Boulder also operates the Duketon Project in Western Australia where there is demonstrated potential for gold, nickel sulphide and base metal mineralisation.

 

Full South Boulder Mines profile here
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South Boulder Mines hits new potash discovery along strike at Colluli

28th Mar 2011, 12:21 am by John Phillips

South Boulder Mines (ASX: STB) continues to deliver bumper results from the Colluli potash project in Eritrea.

The latest discovery has the potential now to boost both the exploration target, and also the JORC Resource announced earlier in the year.

The latest highlights from a diamond hole included:

- 2.20 metres of sylvinitite from 33.38 metres;
- 3.65 metres of carnallitite from 37.40 metres; and
- 6.80 metres of kainitite from 41.05 metres.

Follow-up drilling to this latest discovery has already kicked-off.

Lorry Hughes, managing director, said "This new prospect certainly will add significantly to an already world class project.

"This new discovery has the potential to be more important than the Colluli deposit in terms of startup operations as it is closer to the ports."

Importantly with this latest discovery, the geological setting and potash mineralisation initially appears very similar to what has already been defined at Colluli.

 

The maiden JORC Resource breakdown at Colluli is:

- 548 million tonnes at 18.58% KCl, for a total contained potash of 102 million tonnes; and
- This includes, 119 million tonnes at 23.14% KCl.

Adding some extra spice to the result, the exploration target increased to; 750 million tonnes to 1.25 billion tonnes at 18-20% KCl in early 2011.

Drilling is continuing as part of a 5,000 metre exploration program designed to define and extend known resources.

This maiden resource represents the first stage of a mining engineering study into the optimum production capacity from open pit mining.

The study will investigate a range of production scenarios from 1 million tonnes to 10 million tonnes annually.

What adds to the project is the ease of excavation, with the potash resource located between 22 and 65 metres from the surface, with mineralisation open in all directions.

A scoping study is expected to be delivered by the company in mid-2011.

Colluli has a close proximity to the coast and has an abandoned railway line running through the deposit.

Eritrea is a country in the Horn of Africa, bordered by Sudan in the west, and Ethiopia in the south.

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