http://www.miningweekly.com/article/study-highlights-expansion-potential-at-eritrea-potash-project-2012-11-27
Study highlights expansion potential at Eritrea potash project
By: Esmarie Swanepoel
27th November 2012
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PERTH (miningweekly.com) – A second scoping study at ASX-listed South
Boulder Mines’ Colluli potash project, in Eritrea, has highlighted the
potential to produce muriate of potash (MoP).
South Boulder said on Tuesday that the company would continue with its
current definitive feasibility study (DFS) on the Colluli potash
project, based on a one-million-ton-a-year potash production outlook,
which was based on a previous scoping study released in November last
year.
The DFS was scheduled for completion in 2013.
However, the second scoping study had highlighted the economic
viability of openpit mining and processing of the carnallite
mineralisation, which is located below the sylvinite mineralisation,
to produce MoP.
The MoP production would be considered as a future expansion scenario
above the initial targeted production capacity of one-million tons a
year. Further work on these options was planned after the completion
of the DFS.
MD Lorry Hughes said the results of the second scoping study
demonstrated the potential of the Colluli project, and expanded above
the initial targeted production level outlined in the DFS.
“The study shows that there are suitable technologies to extract
potash from carnallite mineralisation and the project could expand
under the right economic conditions. However, given the significant
additional capital requirements of introducing carnallite processing
and current market conditions, the company has decided to pursue a
staged approach to development, where carnallite expansion options are
only reviewed in more detail following completion of the current DFS.”
Hughes noted that key findings from the second scoping study would be
used and applied to the DFS to design stockpiling of waste and
tailings from sylvinite mining and processing operations, so as to
retain maximum optionality to pursue future expansion opportunities.
“I am confident that South Boulder is taking a prudent approach by
focusing on the one-million-ton-a-year project configurations in the
DFS. This allows a more achievable development size and more
aggressive project timelines.”
Edited by: Mariaan Webb
Received on Wed Nov 28 2012 - 13:02:06 EST
