From: Biniam Tekle (biniamt@dehai.org)
Date: Tue Jul 06 2010 - 08:51:30 EDT
http://www.proactiveinvestors.com.au/companies/news/8404/south-boulder-mines-encouraged-by-shallow-potash-at-colluli-project-8404.html
Tuesday, July 06, 2010
South Boulder Mines encouraged by shallow potash at Colluli Project
South Boulder Mines (ASX: STB, SO3-Fra, SO3-BER) has reported that diamond
drilling has confirmed the presence of potash at its 100% owned Colluli
Potash Project in Eritrea with the first hole of a 4-5 hole program
intercepting the upper portion of a potash layer starting at ~65.00m
vertical depth.
White carnallite potash mineralisation has been identified from visual and
physical field tests. The full chemical composition of the mineralised
intervals cannot be determined until laboratory chemical analyses can be
performed.
The company said significant core recovery issues were encountered at a
depth of approximately 70.80m and drilling was temporarily halted in the
potash zone, in order to identify and rectify the problems.
The recovery issues have now been assessed and an updated drilling mud plan
has been implemented in order to maximise core recovery. Drilling
recommenced on the 4th of July.
South Boulder said a 6.5m interval of potash rich mineralisation was
intercepted from 65.00m which included ~1.50m of core loss at the base of
the interval.
Lorry Hughes, managing director, said “we are having a few teething problems
with our drilling muds as this is the first hole of the program. It wasn’t
unexpected as potash drilling is technically involved. I am incredibly
pleased with the early success of this first hole though."
"We were expecting potash, however, it was a very nice surprise to get it in
our first hole and so shallow. We will continue to drill until we get
conclusive results and confirm the visual identification of the minerals by
chemical analyses.”
The company said results from the program as well as progressive updates
will be released as the information comes to hand.
South Boulder Mines has a market capitalisation of $43.0 million, 65.5
million shares on issue and $3.8 million cash at bank.
Eritrea is a country in the Horn of Africa, bordered by Sudan in the west,
and Ethiopia in the south.
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