Company Announcement: Strong In-fill Drilling Results Boos Colluli Potash
Project
18th July 2012
South Boulder Mines Ltd is pleased to advise that recent metallurgical
in-fill drilling at its Colluli Potash Project in Eritrea has returned
positive results, highlighting the potential to boost the project's
economics. The recent 16-hole large-diameter PQ-diamond drilling program
has intersected significant widths of visually high-grade Sylvinite
mineralisation within parts of the Area A resource including holes Col-069 &
076 where it had not been modelled.
High-grade Sylvinite mineralisation, which averages ~4.7m thickness and
28.56% KCl comprises the upper layer of the current JORC/NI 43-101 Mineral
Resource at Colluli and underpins the current Definitive Feasibility Study
(DFS). In addition the program consistently intersected the entire
Carnallite and Kainite potash sequence as anticipated. The large-diameter
drilling program was designed to provide sufficient potash samples in order
to complete the processing testwork component of the DFS. The information
will also be used to update resource categories from Inferred to Indicated
and Indicated to Measured and to provide orebody geometry and geotechnical
data which will be used to optimise open pit mining plans.
South Boulder's Managing Director Lorry Hughes said the results have the
potential to boost the economics of the Colluli Project, particularly in its
early phases of operation. "The start-up mining zone for Area A has now
been drilled on ~600m centres with the results showing very good continuity
of shallow high-grade mineralisation and suitably conservative resource
estimation. "The results continue to confirm the robust nature of the
entire resource and the potential for further expansion," Mr Hughes added.
Resource definition and extension drilling, as well as metallurgical,
hydro-geological and geotechnical programs, are ongoing with assay results
to be released as they come to hand."
