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From: B-Haile (eritrea.lave@comhem.se)
Date: Sat Nov 13 2010 - 20:43:32 EST
South Boulder Mines has world's shallowest potash deposit at Colluli, Eritrea
Tuesday, November 09, 2010 by John Phillips
Assay results confirm extensive shallow potash over a 4.5km2 area, with mineralisation open in all directions, at the South Boulder Mines Colluli project in Eritrea.
Colluli is currently the world's shallowest potash deposit.
An initial exploration target is to define 300mt-500mt of potash ores with average grades from 21 - 25% KCl, with South Boulder looking to move the project forward quickly, with a scoping study to evaluate a low cap-ex and op-ex potash from a world first open pit mine.
A major intersection highlight included a total thickness of 28.33 metres of potash; including 8.63m of sylvinitite plus carnallitite at 21% KCl from 59.17 metres, which includes higher grade intervals of:
- 1.96m of sylvinitite @ 26% KCl from 59.17m;
- 4.43m of sylvinitite + carnallitite @ 27% KCl from 63.37m;
- 1.35m of sylvinitite @ 39% KCl from 63.85m; and
- 19.70m of carnallitite + kainitite @ 16% KCl from 83.78m, including; 9.31m of kainitite @ 20% KCl from 94.17m.
Another major intersection included a total thickness 24.66 metres of carnallitite plus kainitite @ 16% KCl, which included:
- 4.89m of carnallitite + kainitite @ 20% KCl from 62.71m; and
- 3.77m of kainitite @ 22% KCl from 76.60m.
Lorry Hughes, managing director, said ""The understanding of the potash industry is fairly limited in Australia; all the experience is generally located in the northern hemisphere.
"There is virtually no understanding as to the potential value of an asset like Colluli even though the current prices of KCl are ~$400/t and thought generally to have bottomed out".
The Colluli project is unique because it contains such shallow good quality mineralisation, which is at an order of magnitude shallower than most known deposits of this type.
Hughes added, "This factor is expected to significantly assist South Boulder to demonstrate through feasibility studies that a low capital cost and low operating cost operation can be built."
The immediate work program for the Colluli project is to continue to drill and define resources that will be used as the basis for the scoping study.
A JORC compliant resource is expected to be completed in early December 2010, with an update expected in the March quarter of 2011.
Article highlight:
With the potential for a world first open cut potash mine, a close proximity to the coast and even an abandoned railway line running through the deposit, the Colluli project in Eritrea holds significant potential for South Boulder.
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