http://www.proactiveinvestors.com/companies/news/58972/south-boulder-mines-finalises-open-cut-mining-method-for-colluli-58972.html
South Boulder Mines finalises open cut mining method for Colluli
Mon 9:04 am by Proactive Investors
South Boulder Mines (ASX:STB) has finalised the open cut mining method
to be used for the Colluli Potash Project in Eritrea.
The project hosts a highly-favourably suite of potassium bearing salts
for low cost production of potassium sulphate (SOP or sulphate of
potash).
The open cut mining method decision follows the completion of a mine
method analysis conducted by AMC Consultants for the Pre-Feasibility
Study for the production of potassium sulphate.
Tests verify suitability of surface miners for extraction of Colluli
salts, while also confirming surface miner capability to perform
primary crushing.
The Colluli haul fleet configuration is finalised.
The average pit depths over the first 30 years of mine life are 30
metres to 50 metres, with all inclusive mining costs forecast at $3.29
per tonne of material mined.
The pit sequence optimisation process has commenced, with the
Pre-feasibility Study on track to be completed in February 2015.
Paul Donaldson, managing director, commented: “We are pleased to have
been able to lock this method into the Pre-Feasibility Study.
"It offers capital and operating cost advantages relative to
conventional drill and blast operations, and also provides safety
advantages by eliminating
explosives from the operational requirements.
"We anticipate the ongoing focus of the project team to reduce capital
and operating costs, in particular, energy costs, which will put the
operation in good stead when we bring together all of the costings
from the pre-feasibility work.”
South Boulder and the Eritrean National Mining Company (ENAMCO) are
equal shareholders of the Colluli Mining Share Company (CMSC) which
will develop the Colluli Potash project.
What is Potassium sulphate (SOP)
SOP is a high value potash fertiliser, which provides both potassium
and sulphur in soluble forms.
It has a lower alt index than MOP (no chloride), and is suitable for
chloride sensitive crops such as fruit, berries, vines, nuts, coffee
and tobacco.
SOP is ideal for arid areas where chlorides cannot be washed away, and
is used when soil or irrigation water salt levels are high and MOP is
undesirable.
Commercial grade SOP has already been produced from Colluli salts at
the Saskatchewan Resource Council.
Adopting the principles of modularity
South Boulder has also adopted a modular development philosophy
offering expandability rather than a single large scale development.
This has the impact of reducing capital risks; optimising processes;
better capital management; and ease of expandability.
Its infrastructure solution is also based on modularity, simplifying
logistics and reducing earthworks.
Analysis
South Boulder has now finalised the open cut mining method to be used
for the Colluli Potash Project in Eritrea.
Colluli is strategically located closer to port than potassium
sulphate peers with trucking a low cost option to access port, with
deepwater access at Anfile Bay suitable for loading vessels up to
Panamax size.
Commercial grade SOP has already been produced from Colluli salts at
the Saskatchewan Resource Council.
South Boulder is well funded with cash at hand of $10.2 million as at
30 September 2014.
The Pre-Feasibility Study is expected to be complete in February 2015.
Received on Tue Dec 23 2014 - 10:18:59 EST