http://www.southbouldermines.com.au/files/140324-Appointment-of-AMC.pdf
ASX Release 24 March 2014
AMC appointed to calculate Colluli
resource and maiden reserve as part of
revised feasibility study
South Boulder Mines (ASX: STB) (“STB” or “the Company”) is pleased to
advise that it has taken another step in its strategy to develop the Colluli
potash project in Eritrea by appointing AMC Consultants (“AMC”) to calculate
the revised mineral resource estimate in preparation for the maiden Ore
Reserve.
The reserve estimate will form part of the revised definitive feasibility study
(DFS) on Colluli. The revised DFS will reflect South Boulder’s new strategy to
process the three different types of potassium-bearing salts at Colluli, all of
which can be used to make potash products.
South Boulder Chief Executive Paul Donaldson said AMC was already
overseeing the mine planning for Colluli, a role which would overlap with the
resource and reserve studies.
Mr Donaldson said the decision to appoint AMC was also consistent with
South Boulder’s policy of ensuring that wherever possible, the work on Colluli
was done close to the Company’s head office in Perth.
The current Colluli resource estimate of 1.08 billion tonnes was calculated by
ERCOSPLAN of Germany. Mr Donaldson said that with the data now
available to calculate a revised resource estimate, this was the logical time to
relocate these studies to Perth.
As part of its Mineral Resource study, AMC will also estimate the grade and
tonnage of the upper rock salt unit at Colluli, which lies above the potash units
and report them in accordance with the JORC code.
“AMC has worked closely with us on the mine planning elements of the Colluli
resource and its staff are familiar with the project,” Mr Donaldson said. “AMC
will also act as the competent person to satisfy JORC Code requirements”.
In parallel with the resource and reserve studies, South Boulder will appoint
consultants to undertake metallurgical and engineering testwork to determine
the most appropriate processing route incorporating the three types of
potassium-bearing salts.
The strategy to process these three ore types, as opposed to just one as
considered in the original DFS, has the potential to lift the economic feasibility
of Colluli significantly. This is because material previously considered to be
waste would instead be classified as ore, slashing the strip ratio and therefore
the mining costs.
It would also have the benefit of extending the mine life by a substantial
period.
- ENDS -
Received on Mon Mar 24 2014 - 14:46:57 EDT