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From: B-Haile (eritrea.lave@comhem.se)
Date: Wed Feb 16 2011 - 23:34:03 EST
South Boulder Mines Ltd
ASX Release
17 February 2011
DRILLING RECOMMENCES AT THE COLLULI POTASH PROJECT
South Boulder Mines Ltd is pleased to announce that diamond drilling has resumed at the Colluli Potash Project in Eritrea. The drilling is part of an expanded 5,000m exploration program designed to further define and
extend known resources. The results will be incorporated into the current engineering scoping and feasibility studies.
To date approximately 1,407m of diamond core drilling has been completed at Colluli in 17 holes.
The planned locations of the first five diamond drill holes are shown in Figure 1. The location of additional drill holes for the program will be determined based on the new results.
In addition, a trial surface gravimetric survey has been completed with results currently being interpreted. Once outstanding drill results are received and interpreted together with the gravity data, the effectiveness of the gravity survey as a targeting tool will be assessed.
A number of key activities are planned to be completed over the coming months including;
- Receipt of outstanding potash assays from holes 006 - 017 which are expected in March/April;
- At the end of March drilling is planned to commence with a second rig that has the capacity to drill deeper and larger diameter core holes for geotechnical and metallurgical test work;
- An update to the initial resource is planned to be completed in May/June and will incorporate additional drilling, downhole geophysical logging and geotechnical/metallurgical data. It is expected there will be an increase to the current JORC/43-101 Mineral Resource Estimate of;
- 547.62Mt @ 18.58% KCl (total contained potash of 101.73Mt);
- Includes 119.21Mt @ 23.14% KCl;
- A mining engineering study into the optimum processing and production capacity from open pit mining is planned to be completed mid-year. The study will investigate a range of production scenarios ranging from 2Mt - 10Mt KCl p.a.
Outstanding assay results and details on further exploration drilling will be released as they come to hand.
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