webmaster
© Copyright DEHAI-Eritrea OnLine, 1993-2010
All rights reserved
From: B-Haile (eritrea.lave@comhem.se)
Date: Tue Nov 09 2010 - 10:31:06 EST
Perth junior announces big potash project in Eritrea
Junior explorer South Boulder Mines came out of a requested trading halt today to announce it has a substantial and shallow phosphate project in the African nation of Eritrea.
Author: Ross Louthean
Posted: Tuesday , 09 Nov 2010
PERTH -
South Boulder Mines Ltd (ASX: STB) said mineralisation at the Colluli project has now been defined over 4.5 square kilometres and was considered open in all directions and was providing a target ranging between 300-500 million tonnes and grading between 21-25% KCI.
South Boulder, which is also listed on the Frankfurt and Berlin exchanges, made the puzzling qualification that it was uncertain if further exploration "will result in the determination of a mineral resource."
Managing director Lorry Hughes said the potential quantity and grade is conceptual in nature and there has been insufficient exploration to define a resource.
Exploration and resource extension drilling is set to resume in one week.
He said it was considered that one drill hole may contain further potash mineralisation that was missed during the collaring process of the drill hole.
"No samples were taken above 57m due to excessively deep installation of the hole collar as it was unclear at what depth mineralisation was expected," he said.
"Certainly we are encouraged by the confirmation of the earlier visual results; this really is looking like an incredibly large project, Hughes said.
The project was considered close to the coast and an abandoned railway line to the coast goes right through part of the deposit.
"Overwhelmingly though, it is the shallow nature of the mineralisation that sets Colluli apart from other projects. It is virtually impossible to compare the Colluli project to other producing assets." said Hughes.
Hughes said the impact of this project was not well comprehended by Australian investors who don't understand the processing, the capital costs and the markets for potash.
"The key factors are not lost within larger global corporations as we see companies like BHP Billiton, Vale and Potash Corporation of Saskatchewan all participating in the sector."
Colluli was considered unique because it contains "shallow good quality mineralisation that is at an order of magnitude shallower than most known deposits of this type."
Hughes said a JORC/43-101 compliant resource was expected to be completed in early December with an update expected in the March quarter.
South Boulder listed on the Australian Securities Exchange in 2003 and is better known on the domestic market for its joint venture with Independence Group NL (ASX: IGO) on the Duketon nickel project in Western Australia's north eastern goldfields.
IGO was earning a 70% stake in this project where the Rosie and C2 sulphide nickel prospects have produced not only high grade nickel hits but also intercepts of significant copper and platinum group metals.
http://www.mineweb.com/mineweb/view/mineweb/en/page103118?oid=114534&sn=Detail&pid=102055
No virus found in this outgoing message.
Checked by AVG - www.avg.com
Version: 9.0.869 / Virus Database: 271.1.1/3246 - Release Date: 11/09/10 08:34:00
----[This List to be used for Eritrea Related News Only]----