Argonaut Securities has placed a Speculative Buy recommendation on South Boulder Mines as a part of a review of the STB:
South Boulder Mines (STB)
EVENT: Attention grabber
"South Boulder Mines (ASX: STB) was one of the few fresh stories to snare Argonaut's attention at the 2010 Diggers and Dealers with the promising early stage Duketon nickel sulphide JV:
- Mineralisation defined over 750m strike (open) and 400m dip (open)
- Drill results up to 3.3m (true width) @ 9.1% Ni / 1.1% Cu / 0.2% Co and 7.1g/t PGEs
- Extensive down hole EM conductors
- 80km north of the Windarra Ni deposit
It is the actions of well funded sophisticated explorer and JV partner IGO (earning 70%) that say the
IGO is building a large exploration camp indicative of an intense drilling effort. Once permitting is sorted a 3-4 rig Scoping Study drill out is anticipated to define an initial resource.
IGO also applied for Mining Lease in May 2010. IGO has mining credentials at Long mine in Kambalda.
STB's other projects include:
- Duketon gold (100%) - Same belt as RRL's >1.5Moz Moolart Well, includes the shallow Terminator prospect with best hole 60m @ 1.3g/t from 2m
- Colluli potash, Eritrea (100%) - Targeting a 1.5Mtpa solution mine but ASX investors do not understand potash or Eritrea, could spin out onto TSX. Given the global scarcity of high grade massive nickel sulphides the upcoming drill campaign at
Duketon deserves close investor attention.
STB has a ~$42m market cap, $4m cash, and $2m of listed investments. The MD is Geologist Lorry Hughes and Terry Grammar is Non Exec Chairman."