http://www.southbouldermines.com.au/files/HIGH-GRADE-GOLD-RESULTS-HIGHLIGHT-STRONG-POTENTIAL-OF-DUKETON-PROJECT.pdf
ASX Release
30th May 2012
HIGH-GRADE GOLD RESULTS HIGHLIGHT STRONG POTENTIAL OF DUKETON PROJECT
South Boulder Mines Ltd (ASX: STB) is pleased to announce that diamond drilling has intersected high-grade visible gold at its Duketon Gold Project joint venture with Independence Group in Western Australia.
Figure 1 – Visible gold in NQ-diamond drill core hole TBDD126.
The gold is contained within a quartz-carbonate vein at a dolerite/ultramafic contact with a sample interval of;
2.36m _at_ 59.78g/t Au from 218.00m down hole; including
0.85m _at_ 164.00g/t Au from 219.51m down hole (Figure 1 & 2).
The interpretation of this result, which was part of the current extensive RC and diamond drilling program at Duketon, (see ASX announcement – 27th February 2012), is underway.
The intercept occurs adjacent to a regional disseminated nickel sulphide occurrence. Widespread gold occurrences were previously intersected in the area, including the Terminator deposit, where high grades were intersected in RC drilling in 2009 (Figure 3).
Independence Group NL (ASX: IGO) is earning 70% of the of the nickel rights on the permit, M38/1252, by sole funding exploration and development through to the completion of a Bankable Feasibility Study. South Boulder owns 100% of the gold rights where gold is not required to be produced as part of any proposed nickel development.
The Duketon Project is currently a non-core asset and The Board is reviewing strategies to ensure it is properly explored without distracting from the company’s core focus of developing the world class Colluli Potash Project.
Corporate Details Share Price: $ 0.95 Market Cap $110M Cash/NTA: $18.6M Shares on issue: 116.2M STB Options 10.4M ($6.7) Top 40 Shareholders 65% Listing Details ASX STB Germany SO3-Fra SO3-Ber OTC/ADR SBMSY Contact Details Ground Floor 31 Ventnor Avenue West Perth WA 6000 PO Box 970 West Perth WA 6872 Telephone +61 8 6315 1444 Facsimile + 61 8 9486 7093 Email info_at_southbouldermines.com.au www.southbouldermines.com.au ABN: 56 097 904 302 Media Enquiries Nicholas Read or Paul Armstrong – Read Corporate Telephone: +61 8 9388 1474 Equity Holdings ASX : MZM 5.382M ASX :AVZ 0.400M ASX :LTX 1.016M ASX :BUX 1.610M ASX :BUXO 0.750M CDNX :CNI.V 0.121M CDNX :SMP.V 2.500M Auvex (Pte) 0.500M
ASX Release
30th May 2012
ASX Report 30th May 2012 2
Figure 2 – TBDD126 core showing the carbonate vein hosting the visible gold shown in red.
Figure 3 – C2 and Rosie Ni-Cu-PGE deposit drilling plan showing the location of the Terminator Gold Prospect and the TBDD126 hole collar.
ASX Report 30th May 2012 3
Hole TBDD126 was drilled to target beneath hole TBRC034, where a reconnaissance RC program in 2008 returned an oxide intercept of 4m _at_ 0.44% Ni, 0.19% Cu and 1.70g/t Pt+Pd. A full set of Ni-Cu-PGE assay results for TBDD126 and the other 11 RC and 5 diamond holes completed to date as part of the current Nickel program are yet to be received. Significant preliminary results from TBDD126 are included below (Table 1& 2).
The presence of high grades is encouraging particularly as the Terminator discovery is located approximately 600m north along strike of TBDD126 (Figure 3).
South Boulder Managing Director Lorry Hughes said the result highlighted the potential of the Duketon Project.
“The results from TBDD126 as well as the Terminator deposit barely scratch the surface in terms of demonstrating some of the potential held within the Duketon Gold Project,” Mr Hughes said.” These results will be as assessed within a regional framework which will undoubtedly generate further gold targets.”
“The Duketon Project is a quality asset where I am confident that further discoveries will be made in the near term. The ground is adjacent and along strike from producing mines as well as new discoveries so the potential for more discoveries is high.”
Hole ID From (m) To (m) Interval (m) Au (g/t) Ni (%) Cu (%)
TBDD126
213.00
214.00
1.00
0.66
0.17
0.00 218.00 220.36 2.36 59.78 0.16 0.01 Including 219.51 220.36 0.85 164.00 0.09 0.01
221.65
221.80
0.15
0.82
0.04
0.01
223.56
224.48
0.92
1.34
0.76
0.14
225.08
225.29
0.21
1.98
1.64
0.48
Table 1 – TBDD126 preliminary downhole results showing assays above a 0.5g/t Au cut-off.
Hole ID East (m) North (m) Depth (m) Dip (degrees) Azimuth (degrees)
TBDD126
401913
6944065
300.2
-60.8
44.6
Table 2 – TBDD126 hole collar details.
The downhole intervals are interpreted to be steeply dipping, narrow and structurally complex and considered to be open in all directions. True widths are likely to be 10cm or less.
The regional context of the new discovery and the widespread gold occurrences held by South Boulder is under evaluation and interpretation to form the basis of future drilling targets.
South Boulder believes that with the recent development of the Moolart and Garden Well deposits owned by Regis Resources Limited (ASX: RRL) (Figure 4), the potential to discover a commercial mining operation within South Boulder’s tenure has increased significantly.
Further results will be released as they come to hand along with details of the corporate strategy to unlock the potential of the Duketon Gold and Nickel Project for South Boulder Shareholders in the shortest possible timeframe.
Note: Samples were collected as 1m split samples for RC drill hole and half core samples for diamond drill holes are as indicated in the results tables. Samples for Nickel and copper values have been assayed using ICP-AES mixed acid digest. Significant assay results are tabulated if Au >= 0.50g/t. Intersections are quoted as down-hole widths.
ASX Report 30th May 2012 4
Figure 4: Duketon Gold and Duketon Nickel JV tenements and applications
South Boulder Mines,
Independence (ASX;IGO) Earning
C2 Ni-Cu-PGE Deposit
South Boulder Mines, Independence (ASX;IGO) Earning
Rosie Ni-Cu-PGE Deposit
South Boulder Mines (ASX;STB)
Terminator Gold Prospect
Regis Resources (ASX;RRL)
Garden Well Gold Mine
Regis Resources (ASX;RRL)
Moolart Well Gold Mine
ASX Report 30th May 2012 5
Investor Coverage
Recent investor relations, corporate videos and broker/media coverage on The Company’s projects can be viewed on the website in the “Media Centre” and “Investor Centre” sections by following the links www.southbouldermines.com.au and www.abid.co.
About South Boulder Mines Ltd
Listed in 2003, South Boulder Mines (ASX: STB) is a diversified explorer focused on potash, nickel and gold. South Boulder has a 90% interest in the Colluli Potash Project in Eritrea and a 100% interest in the Duketon Gold Project in Western Australia.
The Colluli Potash Project has a current JORC Compliant Measured, Indicated and Inferred Mineral Resource Estimate comprised of 261.81Mt _at_ 17.94% KCl or 11.33% K2O of Measured Resources, 674.48Mt @ 17.98% KCl or 11.36% K2O of Indicated Resources and 143.50Mt @ 18.00% KCl or 11.37% K2O of Inferred Resources for a total of 1,079.00Mt @ 17.97% KCl or 11.35% K2O (total contained potash of 194.09Mt KCl or 122.61Mt K2O); This includes higher grade Sylvinite of 114.60Mt @ 28.56% KCl or 18.04% K2O. The current resource is included in an exploration target of 1.25 – 1.75 billion tonnes @ 18-20% KCl ## (see disclaimer below and ASX Announcement dated 16th of April 2012).
An engineering scoping study for the production of 1Mt p.a. of potash demonstrated an estimated capital cost of US$0.74bn generating a Pre-tax NPV12 of US$1.33bn. A Definitive Feasibility Study into open pit mining and processing of the resource is underway with initial production scheduled for 2016 or sooner. South Boulder has strong support from the Eritrean Government to build a long term, economically and environmentally sustainable resource project.
About the Duketon Gold Project and the Duketon Nickel Joint Venture
Within the Duketon Gold Project area, South Boulder entered a farm-out Joint Venture (JV) Agreement with Independence Group NL, whereby Independence can earn a 70% interest in the nickel rights on select tenements held by South Boulder in the Duketon Project by the completion of a Bankable Feasibility Study within 5 years of the grant of the relevant tenement.
The Duketon Nickel Joint Venture (DNJV) has had recent success at The Rosie and C2 Nickel sulphide prospects where drilling has defined intercepts of 5.20m _at_ 9.2% Ni, 1.09% Cu, 0.21% Co and 7.09g/t PGE’s at Rosie and 50m @ 0.92% Ni including 37m @ 1.05% Ni at C2. The deposits are located 40 - 120km NNW of Laverton, W.A in the Duketon Greenstone Belt. The deposits are approximately 2km apart and the mineralisation at both prospects is considered open in most directions. A Mining Lease was granted over the Rosie and C2 deposits on the 19th of November. A Maiden JORC Compliant Mineral Resource Estimate has been compiled for the Rosie deposit; please refer to the Company’s 25th January 2012 ASX Announcement for details.
For Media Enquiries contact Nicholas Read or Paul Armstrong at Read Corporate - Telephone +61 8 9388 1474
More information
Email: info_at_southbouldermines.com.au | South Boulder Mines Limited – Telephone +61 8 6315 1444
Lorry Hughes Kerry Rudd Liam Cornelius Flavio Garofalo Dr. Chris Gilchrist
CEO/Managing Director Executive Assistant Executive Director Chief Financial Officer Non-Exec Director
## Competent Persons and Responsibility Statement - Potash
The Colluli Potash Project has a current JORC/43-101 Compliant Measured, Indicated and Inferred Mineral Resource Estimate of 564.40Mt _at_ 18.60% KCl (total contained potash of 104.96Mt); Includes 130.39Mt @ 27.02% KCl. The resource contains 133.70Mt @ 17.55% KCl in the Measured Category, 343.33Mt @ 17.38% KCl in the Indicated Category and 87.37Mt @ 24.96% KCl in the Inferred Category. The current Mineral Resource Estimate is included in the current exploration target of 1.25 – 1.75 billion tonnes @ 18-20% KCl. The potential quantity and grade of the total current exploration target which includes the current Mineral Resource Estimate is conceptual in nature and there has been insufficient exploration to define a Mineral Resource other than the current Mineral Resource Estimate and it is uncertain if further exploration will result in the determination of a Mineral Resource Estimate other than the current Mineral Resource Estimate.
This ASX release has been compiled by Lorry Hughes using information on exploration results and Mineral Resource estimates supplied by South Boulder Mines Ltd under supervision by Ercosplan. Dr Henry Rauche and Dr Sebastiaan van der Klauw are co-authors of the JORC and 43-101 compliant resource report. Lorry Hughes is a member in good standing of the Australian Institute of Mining and Metallurgy and Dr.s’ Rauche and van der Klauw are members in good standing of the European Federation of Geologists (EurGeol) which is a “Recognised Overseas Professional Organisation” (ROPO). A ROPO is an accredited organization to which Competent Persons must belong for the purpose of preparing reports on Exploration Results, Mineral Resources and Ore Reserves for submission to the ASX.
Mr Hughes, Mr Rauche and Mr Van Der Klauw are geologists and they have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they have undertaken to qualify as a Competent Person as defined in the 2004 Edition of the “Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Hughes, Mr Rauche and Mr van der Klauw consent to the inclusion in the report of the matters based on his information in the form and context in which it appears.
## Competent Persons and Responsibility Statement – Nickel/Gold
Please refer to the Company’s ASX Announcement dated 25th of January 2012 for full details.
This ASX release has been compiled by Lorry Hughes using information on exploration results supplied by Independence Group who are the operator of the Duketon Nickel JV. Lorry Hughes is a member of the Australian Institute of Mining and Metallurgy. Mr Hughes is a geologist and he has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Lorry Hughes consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
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Received on Wed May 30 2012 - 14:01:53 EDT
