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From: Berhane Habtemariam (Berhane.Habtemariam@gmx.de)
Date: Fri Aug 26 2011 - 12:48:58 EDT
South Boulder Mines makes key appointment for Colluli Potash Project
Feasibility Study
Thursday, August 25, 2011
South Boulder Mines makes key appointment for Colluli Potash Project
Feasibility Study
South Boulder Mines (
<http://www.proactiveinvestors.com.au/companies/sponsors_landing/1142/south-
boulder-mines-1142.html> ASX: STB) has appointed Dayle Kenny, a highly
experienced open cut mining engineer, to complement its existing feasibility
team for the Colluli Potash Project in Eritrea, East Africa.
Kenny has a track record of over 30 years mining and feasibility study
experience gained from a variety of senior management roles that are
relevant to the Colluli open pit potash project.
His expertise covers all aspects of the mining life cycle and has particular
experience in the completion of numerous mining feasibility studies to
exploit shallow mineral resources.
Kenny has previously consulted for companies including Rio Tinto (ASX; RIO),
Hamersley Iron Pty Ltd, Western Mining Corporation, Normandy Resources NL
and Toro Energy (
<http://www.proactiveinvestors.com.au/companies/sponsors_landing/252/toro-en
ergy-0252.html> ASX: TOE).
Lorry Hughes, South Boulder's CEO and managing director, said Kenny "will
work closely with the potash expertise of our feasibility manager, Chris
Gilchrist, Ercosplan and our Eritrean team to implement and expedite the
technical evaluation of the project.
"This is a key appointment and will allow us to progress through feasibility
studies without delay. In addition his financial analysis skills to assess
project options will be invaluable going forward to allow us to focus on the
best options and get into production in 2016 or sooner."
South Boulder is incorporating its latest high grade potash results,
reported at Colluli on July 20, in an upgraded resource estimate for the
Area A deposit, which will be used as the basis for the current engineering
Scoping Study due to be completed in the September quarter of 2011.
The company is also eyeing an increase to the 1.25 to 1.75 billion tonnes at
18 to 20% KCl exploration target, which has the potential to grow
substantially.
The current JORC Resource is 548 million tonnes at 18.6% KCl, for total
contained potash of 102 million tonnes.
South Boulder has an initial strategy to consider producing 2 to 10 million
tonnes of potash annually from an open pit operation in 2016/2017, which is
a substantial target considering the current global production is 55 million
tonnes.
The company also has the potential to be the lowest cap-ex and op-ex
operation in the world, with industry production costs around USD$100 to
USD$250 per tonne, compared to the potash price of around USD$500 a tonne.
South Boulder has forecast operating costs to be in lower 25% of the
industry.
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