http://potashinvestingnews.com/11507-south-boulder-colluli-mineral-resource-estimate-eritrea.html
South Boulder Reports Mineral Resource Estimate of 1.289 Billion
Tonnes for Colluli
Wednesday February 25, 2015, 3:30pm PST
By Charlotte McLeod+ - Exclusive to Potash Investing News
Western Australia-based South Boulder Mines (ASX:STB) hit a milestone
on Wednesday with the release of a JORC 2012 mineral resource estimate
for the Eritrea-based Colluli potash project. It holds a 50-percent
interest in the project via a joint venture with Eritrean National
Mining Company.
The total mineral resource estimate comes to 1.289 billion tonnes at
an average grade of 10.76 percent K2O, and according to Managing
Director Paul Donaldson, that makes Colluli “one of the largest
potassium sulphate resources globally.” He added, “[t]here is no
question about the size and potential of the Colluli resource. It will
form the backbone of what will become a significant project in the
future.”
Colluli’s overall mineral resource estimate breaks down into a
measured mineral resource of 303 million tonnes at 10.98 percent K20,
an indicated mineral resource of 951 million tonnes at 10.89 percent
K20 and an inferred mineral resource of 35 million tonnes at 10.28
percent K20.
The company notes that the mineral resource estimate was derived from
data gathered during an initial drilling campaign at Colluli that took
place from 2010 to 2012. Further QAQC drilling took place there last
year, but it was only used for data validation purposes.
Notably, 97 percent of the mineral resource estimate now sits in the
measured and indicated categories, while contained K2SO4, or potassium
sulfate, comes to a total of 260 million tonnes. It’s also worth
noting that Colluli is the world’s shallowest potash deposit, with
mineralization starting at just 16 meters — South Boulder believes
that makes it amenable to open-pit mining, which should allow for
higher resource recovery and increased safety.
In terms of what’s next for South Boulder, Wednesday’s release states
that a prefeasibility study for potassium sulfate production is on
track for release this month. A shareholder update released on
February 23 provides a picture of the company’s longer-term goals,
noting that a definitive/bankable feasibility study is due out in Q3
of this year. A work program for the two studies was started in April
2014, and South Boulder Chairman Seamus Cornelius notes in the update
that it has substantially increased not only the company’s knowledge
of the deposit, but also its understanding of “how it should be
developed to generate maximum benefit for stakeholders.”
Looking even further into the future, Colluli is expected to produce
potassium-bearing salts in solid form; they’ll be used for the
production of potassium sulfate, as well as potash of magnesia, which
the company says have “limited primary production globally due to
resource scarcity.”
In the meantime, investors will no doubt be keeping an eye out for
South Boulder’s prefeasibility study. If it’s coming out in February
as the company has said, then it should be released by the end of this
week.
At close of day Wednesday, South Boulder’s share price was sitting
flat at AU$0.26.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment
interest in any company mentioned in this article.
Received on Wed Feb 25 2015 - 20:55:55 EST