http://www.miningweekly.com/article/colluli-resource-hits-1bn-ton-2012-04-16
Colluli resource hits 1bn ton
By: Esmarie Swanepoel
16th April 2012
Updated 1 hour 27 minutes ago
PERTH (miningweekly.com) - ASX-listed South Boulder Mines has reported an
85% increase in its resource estimate for its flagship Colluli potash
project, in Eritrea, taking the resource to more than one-billion tons.
South Boulder said on Monday that the expanded resource was expected to
substantially improve the already-robust economics of the openpit project
at Colluli.
A scoping study, completed in November last year, demonstrated that the
project had a pre-tax net present value of some $1.3-billion with a
start-up capital cost of $740-million.
The study was based on a Stage 1 production of one-million tons of potash,
from an openpit operation with a life-of-mine expectancy of 17 years.
South Boulder noted that studies were currently under way to incorporate
additional zones of potassium mineralization to further enhance the overall
commercial outcomes of the project.
“The upgrade further confirms Colluli as a tier one asset,” said MD *Lorry
Hughes* in a statement.
“The 17-year mine life indicated in the scoping study would now definitely
be extended. In addition, the scoping study didn’t consider substantial
production increases that are apparent from the huge resource.”
Hughes noted that over the course of the definitive feasibility study, the
upside would be included to demonstrate the significance of Colluli in
relation to the global potash market.
Meanwhile, Hughes reported that negotiations have started with the Eritrean
government to purchase an interest in the Colluli project, which would be
the precursor to form a joint venture share company and ultimately the
grant of a mining licence.
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Received on Mon Apr 16 2012 - 10:25:44 EDT
