http://www.proactiveinvestors.com.au/companies/news/60418/south-boulder-mines-to-deliver-pre-feasibility-for-colluli-in-february-60418.html
South Boulder Mines to deliver Pre-feasibility for Colluli in February
Monday, February 02, 2015 by Proactive Investors
South Boulder Mines (ASX:STB) has completed metallurgical testwork for the Colluli Potash Project in Eritrea, eliminating the need for fine grinding from the process plant circuit.
The Pre-Feasibility Study for production of potassium sulphate (SOP) is on track for completion in February.
SOP is a premium potash fertiliser which achieves a higher price in the market relative to the more common potassium chloride.
Work has also started on the Definitive Feasibility Study pilot work and process optimisation testwork.
South Boulder had $7.5 million in cash as at the end of December 2014 and has raised $2.05 million earlier this month through the placement of 10 million shares at a 6% premium to market.
Metallurgical Testwork
Metallurgical test work and the associated refinement of the mass balance modelling underpinning the process plant design for PFS was completed.
Upon completion of the PFS testwork, optimisation work commenced immediately to further enhance DFS process design and internal plant configuration.
The pre-feasibility metallurgical test program identified a number of internal plant configurations.
Exploration of a variety of options resulted in the elimination of major grinding infrastructure from the process design.
Further capital and operational cost benefits have materialised over the course of this quarter driven by the process consultants and the Lycopodium engineering team.
Potassium recoveries of over 85% have been modelled from optimised PFS flotation tests, and incorporation of solar recovery ponds.
Mini piloting has commenced, with key areas of focus including reducing plant water and infrastructure requirements, minimising reagent consumption, and maximising potassium recovery.
Plant commissioning and ramp-up profiles have been established, and preliminary results of the advanced metallurgical testing indicate potential improvements in plant configuration, equipment requirements and product mix for the DFS.
A technical review team is currently being assembled to conduct a final review of the process plant and solar pond design, underlying assumptions and testwork results before finalising the DFS process flow diagrams.
Pre-Feasibility Study
The PFS for the first production module of the Colluli potash project has advanced exceptionally well and is on track for completion in February.
Process flow diagrams and mass balances have been completed.
The company has also completed twinning of resources holes, geotechnical drilling and material characterisation for mine planning on time and under budget.
Mine method and fleet configuration have also been finalised.
The DFS has already commenced in key areas to minimise delivery timelines and maximise the time available for process optimisation testwork and plant configuration.
Resource Handover to AMC Consultants
Following completion of additional resource drilling as part of the transition of the resource model to AMC Consultants, sample analyses were conducted at K-Utec and Clausthal University of Technology in Germany, and the Saskatchewan Research Council, Canada.
This final round of tests will allow AMC Consultants to complete the final resource report.
Mine Planning and Geotechnical Engineering
Geotechnical drilling results obtained from the drilling program in the previous quarter were inputted to the mine planning work to finalise pit wall angles, mine method and mining fleet configuration for the PFS.
Based on material characterisation results, cost optimisation, risk mitigation and process simplification, surface miners have been selected to mine salt materials.
Assessment of the clastic overburden material identifies conventional shovel and truck arrangements as the most suitable.
The material properties sit within the free dig range, eliminating the need for blasting from any of the mining operations, which significantly de-risks the project and simplifies infrastructure.
The design shells established from pit optimisation and scheduling modelling indicate optimum start up by simultaneously mining 2 pits within close proximity to the identified processing plant infrastructure.
Analysis of variable mining rates is underway to allow appropriate evaluation of the initial capital investment versus economic return with different starting module sizes.
Infrastructure and Port Design
Key site infrastructure includes the export facility at Anfile Bay, seawater pipeline for supplying process water, haul road, processing plant, solar ponds and ancillary buildings.
Geotechnical bore holes and test pits have been completed for key infrastructure foundation investigations, and a Senior Geotechnical Engineer from Knight Piesold has conducted onsite audits of test pits, infrastructure drilling, pond locations, and plant site.
Selection of suitable processing plant and solar pond locations was completed, allowing the development of preliminary site layouts.
Hydrogeological activities are well advanced. 10 drawdown wells have been installed and pump testing for DFS will begin in February 2015. This will improve understanding of the groundwater table and provide data for both the construction schedule and plant water requirements.
Social and Environmental Impact Assessment
Following the first submission of 8 baseline studies in August 2014, further surveys and studies are approaching completion. The second tranche of submissions is expected to occur in February 2015.
A physical and chemical oceanography study which includes complex ocean modelling and a 4 week site investigation program is expected to be completed by mid-March, and will be submitted with the third and final tranche of baseline reports.
Colluli Potash Project
Colluli is a very large, long life, at surface deposit, that is highly amenable to open cut mining methods and is in close proximity to the coast.
It contains over 1 billion tonnes of potassium bearing salts suitable for the production of potash fertiliser in the Danakil depression, an emerging potash province where over 4 billion tonnes of measured and indicated potassium bearing salts have been identified.
The company continues to work with the equal partner Eritrean National Mining Company (ENAMCO) to develop the Colluli Potash Project.
Analysis
Metallurgical testwork has eliminated the need for fine grinding, which could result in costs savings for the Colluli Potash Project.
Investors will be on the lookout for release of the PFS, which remains on track for completion in February.
The company is well-funded with $7.5M in cash.
South Boulder Mines (ASX:STB) has completed metallurgical testwork for the Colluli Potash Project in Eritrea, eliminating the need for fine grinding from the process plant circuit.
The Pre-Feasibility Study for production of potassium sulphate (SOP) is on track for completion in February.
SOP is a premium potash fertiliser which achieves a higher price in the market relative to the more common potassium chloride.
Work has also started on the Definitive Feasibility Study pilot work and process optimisation testwork.
South Boulder had $7.5 million in cash as at the end of December 2014 and has raised $2.05 million earlier this month through the placement of 10 million shares at a 6% premium to market.
Metallurgical Testwork
Metallurgical test work and the associated refinement of the mass balance modelling underpinning the process plant design for PFS was completed.
Upon completion of the PFS testwork, optimisation work commenced immediately to further enhance DFS process design and internal plant configuration.
The pre-feasibility metallurgical test program identified a number of internal plant configurations.
Exploration of a variety of options resulted in the elimination of major grinding infrastructure from the process design.
Further capital and operational cost benefits have materialised over the course of this quarter driven by the process consultants and the Lycopodium engineering team.
Potassium recoveries of over 85% have been modelled from optimised PFS flotation tests, and incorporation of solar recovery ponds.
Mini piloting has commenced, with key areas of focus including reducing plant water and infrastructure requirements, minimising reagent consumption, and maximising potassium recovery.
Plant commissioning and ramp-up profiles have been established, and preliminary results of the advanced metallurgical testing indicate potential improvements in plant configuration, equipment requirements and product mix for the DFS.
A technical review team is currently being assembled to conduct a final review of the process plant and solar pond design, underlying assumptions and testwork results before finalising the DFS process flow diagrams.
Pre-Feasibility Study
The PFS for the first production module of the Colluli potash project has advanced exceptionally well and is on track for completion in February.
Process flow diagrams and mass balances have been completed.
The company has also completed twinning of resources holes, geotechnical drilling and material characterisation for mine planning on time and under budget.
Mine method and fleet configuration have also been finalised.
The DFS has already commenced in key areas to minimise delivery timelines and maximise the time available for process optimisation testwork and plant configuration.
Resource Handover to AMC Consultants
Following completion of additional resource drilling as part of the transition of the resource model to AMC Consultants, sample analyses were conducted at K-Utec and Clausthal University of Technology in Germany, and the Saskatchewan Research Council, Canada.
This final round of tests will allow AMC Consultants to complete the final resource report.
Mine Planning and Geotechnical Engineering
Geotechnical drilling results obtained from the drilling program in the previous quarter were inputted to the mine planning work to finalise pit wall angles, mine method and mining fleet configuration for the PFS.
Based on material characterisation results, cost optimisation, risk mitigation and process simplification, surface miners have been selected to mine salt materials.
Assessment of the clastic overburden material identifies conventional shovel and truck arrangements as the most suitable.
The material properties sit within the free dig range, eliminating the need for blasting from any of the mining operations, which significantly de-risks the project and simplifies infrastructure.
The design shells established from pit optimisation and scheduling modelling indicate optimum start up by simultaneously mining 2 pits within close proximity to the identified processing plant infrastructure.
Analysis of variable mining rates is underway to allow appropriate evaluation of the initial capital investment versus economic return with different starting module sizes.
Infrastructure and Port Design
Key site infrastructure includes the export facility at Anfile Bay, seawater pipeline for supplying process water, haul road, processing plant, solar ponds and ancillary buildings.
Geotechnical bore holes and test pits have been completed for key infrastructure foundation investigations, and a Senior Geotechnical Engineer from Knight Piesold has conducted onsite audits of test pits, infrastructure drilling, pond locations, and plant site.
Selection of suitable processing plant and solar pond locations was completed, allowing the development of preliminary site layouts.
Hydrogeological activities are well advanced. 10 drawdown wells have been installed and pump testing for DFS will begin in February 2015. This will improve understanding of the groundwater table and provide data for both the construction schedule and plant water requirements.
Social and Environmental Impact Assessment
Following the first submission of 8 baseline studies in August 2014, further surveys and studies are approaching completion. The second tranche of submissions is expected to occur in February 2015.
A physical and chemical oceanography study which includes complex ocean modelling and a 4 week site investigation program is expected to be completed by mid-March, and will be submitted with the third and final tranche of baseline reports.
Colluli Potash Project
Colluli is a very large, long life, at surface deposit, that is highly amenable to open cut mining methods and is in close proximity to the coast.
It contains over 1 billion tonnes of potassium bearing salts suitable for the production of potash fertiliser in the Danakil depression, an emerging potash province where over 4 billion tonnes of measured and indicated potassium bearing salts have been identified.
The company continues to work with the equal partner Eritrean National Mining Company (ENAMCO) to develop the Colluli Potash Project.
Analysis
Metallurgical testwork has eliminated the need for fine grinding, which could result in costs savings for the Colluli Potash Project.
Investors will be on the lookout for release of the PFS, which remains on track for completion in February.
The company is well-funded with $7.5M in cash.
Received on Mon Feb 02 2015 - 04:46:16 EST