(South Boulder Mines)AMC appointed to calculate Colluli resource and maiden reserve as part of revised feasibility study

From: Semere Asmelash <semereasmelash_at_ymail.com_at_dehai.org>
Date: Mon, 24 Mar 2014 11:46:55 -0700 (PDT)

http://www.southbouldermines.com.au/files/140324-Appointment-of-AMC.pdf ASX Release 24 March 2014 AMC appointed to calculate Colluli  resource and maiden reserve as part of  revised feasibility study  South Boulder Mines (ASX: STB) (“STB” or “the Company”) is pleased to  advise that it has taken another step in its strategy to develop the Colluli  potash project in Eritrea by appointing AMC Consultants (“AMC”) to calculate  the revised mineral resource estimate in preparation for the maiden Ore  Reserve.  The reserve estimate will form part of the revised definitive feasibility study  (DFS) on Colluli. The revised DFS will reflect South Boulder’s new strategy to  process the three different types of potassium-bearing salts at Colluli, all of  which can be used to make potash products.  South Boulder Chief Executive Paul Donaldson said AMC was already  overseeing the mine planning for Colluli, a role which would overlap with the  resource and reserve studies.  Mr Donaldson said the decision to appoint AMC was also consistent with  South Boulder’s policy of ensuring that wherever possible, the work on Colluli  was done close to the Company’s head office in Perth.  The current Colluli resource estimate of 1.08 billion tonnes was calculated by  ERCOSPLAN of Germany. Mr Donaldson said that with the data now  available to calculate a revised resource estimate, this was the logical time to  relocate these studies to Perth.  As part of its Mineral Resource study, AMC will also estimate the grade and  tonnage of the upper rock salt unit at Colluli, which lies above the potash units  and report them in accordance with the JORC code.  “AMC has worked closely with us on the mine planning elements of the Colluli  resource and its staff are familiar with the project,” Mr Donaldson said. “AMC  will also act as the competent person to satisfy JORC Code requirements”.  In parallel with the resource and reserve studies, South Boulder will appoint  consultants to undertake metallurgical and engineering testwork to determine  the most appropriate processing route incorporating the three types of  potassium-bearing salts.  The strategy to process these three ore types, as opposed to just one as  considered in the original DFS, has the potential to lift the economic feasibility  of Colluli significantly. This is because material previously considered to be  waste would instead be classified as ore, slashing the strip ratio and therefore  the mining costs.  It would also have the benefit of extending the mine life by a substantial  period.    - ENDS - 
Received on Mon Mar 24 2014 - 14:46:57 EDT