From: Biniam Tekle (firstname.lastname@example.org)
Date: Mon Mar 28 2011 - 10:02:08 EST
South Boulder Mines hits new potash discovery along strike at Colluli
12:21 am by John Phillips South Boulder Mines (ASX: STB) continues to
deliver bumper results from the Colluli potash project in Eritrea.
The latest discovery has the potential now to boost both the exploration
target, and also the JORC Resource announced earlier in the year.
The latest highlights from a diamond hole included:
- 2.20 metres of sylvinitite from 33.38 metres;
- 3.65 metres of carnallitite from 37.40 metres; and
- 6.80 metres of kainitite from 41.05 metres.
Follow-up drilling to this latest discovery has already kicked-off.
Lorry Hughes, managing director, said "This new prospect certainly will add
significantly to an already world class project.
"This new discovery has the potential to be more important than the Colluli
deposit in terms of startup operations as it is closer to the ports."
Importantly with this latest discovery, the geological setting and potash
mineralisation initially appears very similar to what has already been
defined at Colluli.
The maiden JORC Resource breakdown at Colluli is:
- 548 million tonnes at 18.58% KCl, for a total contained potash of 102
million tonnes; and
- This includes, 119 million tonnes at 23.14% KCl.
Adding some extra spice to the result, the exploration target increased to;
750 million tonnes to 1.25 billion tonnes at 18-20% KCl in early 2011.
Drilling is continuing as part of a 5,000 metre exploration program designed
to define and extend known resources.
This maiden resource represents the first stage of a mining engineering
study into the optimum production capacity from open pit mining.
The study will investigate a range of production scenarios from 1 million
tonnes to 10 million tonnes annually.
What adds to the project is the ease of excavation, with the potash resource
located between 22 and 65 metres from the surface, with mineralisation open
in all directions.
A scoping study is expected to be delivered by the company in mid-2011.
Colluli has a close proximity to the coast and has an abandoned railway line
running through the deposit.
Eritrea is a country in the Horn of Africa, bordered by Sudan in the west,
and Ethiopia in the south.
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