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South Boulder Mines progresses potash Feasibility Study at Colluli with metallurgical drilling

Mon, 14 May 2012 09:00:00 +1000

South Boulder Mines (ASX: STB) is rapidly advancing towards the completion of a Definitive Feasibility Study at its Colluli Potash Project in Eritrea with the start of a new program of metallurgical drilling.

Importantly, this comprehensive drilling program allows the company to further de-risk the project.

A high degree of confidence can be established in Colluli as a result of its shallow nature, which presents favourable economics.

Lorry Hughes, managing director, said:

“Due to the extremely shallow nature of the Colluli deposit, we are able to establish an exceptionally high degree of confidence in the resource through relatively cost effective drilling.

“All other potash developments are significantly deeper than Colluli and therefore cost prohibitive to complete this type of work.”

This next round of drilling involves up to 34 shallow, large-diameter PQ-diamond holes from areas adjacent to and within the existing Resource.

This will provide sufficient potash samples to complete the processing testwork component of the Definitive Feasibility Study.

Further upside to the new drilling program is it will allow South Boulder to upgrade all of the resource, which will underpin the first 10 years of mining, to the higher confidence Measured and Indicated categories.

Metallurgical drilling will also give the company a better understanding of the geometry of the high grade sylvinite zones to allow optimisation of the Stage 1 mine plan, as well as confirm the potential for additional resources.

The Feasibility Study is due for completion next year, placing South Boulder on track for production at Colluli no later than 2016.

Colluli – Tier 1 asset

South Boulder recently expanded the resource at Colluli by 85% to 1.08 billion tonnes at 18% KCl for 194 million tonnes of potash.

Highlighting the shallow nature of the project, mineralisation starts from just 16 metres below the surface.

The upgrade further confirms Colluli as a Tier 1 asset, and will allow the extension of the 17 year mine life indicated in the Scoping Study.

An engineering Scoping Study completed in November 2011 demonstrated a pre-tax net present value of US$1.33 billion with start-up capital costs of US$0.74 billion.

This study was based on Stage 1 production of 1 million tonnes of KCl annually from the potash mineral cylvite, a zone which represents only a small part of the overall deposit. The study investigated a 17-year open pit operation and forecast an internal rate of return of 40.6%.

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South Boulder Mines receives A$6.99 to $16.25 share price valuation from New York’s Arrowhead

Thu, 26 Apr 2012 15:10:00 +1000

South Boulder Mines (ASX: STB) has attracted a share valuation of A$6.99 to $16.25 from New York firm Arrowhead based on the strength of its Eritrean Potash and Duketon Nickel projects.

The following is an extract from the report.

Summary

South Boulder Mines Ltd is an Australian-listed exploration and development company focused on Potash in Eritrea (North East Africa) and Nickel sulphide and gold prospects in Western Australia.

South Boulder’s main area of focus is world class Colluli Potash Project, where the company shares ownership with Eritrean Government.

South Boulders in April 2012 updated JORC estimates of Colluli Potash Project to 1,079MMT @ 17.97% KCl for 194.09MMT of potash.

The shallow nature of resources and high grade is expected to improve the economics of an open pit mine at Colluli. Company in November 2011 completed detailed engineering study at Colluli which envisaged a pre- production capital of US$740MM and pre-tax NPV of US$1,330MM for a discount rate of 12%.

The mine life estimated 17 years with stage 1 production of 1Mtpa is expected to increase as the study included only ~16% of the potash contained within the previous October 2011 resource estimate.

Currently, studies are underway to incorporate additional zones of potassium minerals and a definitive feasibility study is expected to be complete in 2013 to start production by 2016. Arrowhead believes that this is a significant landmark which reduces the resource risk and improves the upside potential for the company.

The Eritrean Government through ENAMCO has commenced negotiations with the company for

ENAMCO to acquire up to a 30% paid participating interest in the Colluli Potash Project in addition to its 10% interest which signifies the Eritrean Government’s commitment to the Colluli Potash project.

South Boulder Mines is also concentrating on its Duketon Greenstone Belt projects which contain the Rosie Ni-Cu-PGE discovery.

The company owns 100% of all gold prospects and participates in a farm-out Joint Venture with Independence Group NL (earning 70%) for Nickel sulphide on a small number of tenements within the area.

Independence Group in January 2012 announced the maiden JORC resource estimate of 1.744MMT @1.7% Ni, 0.4% Cu, 0.8g/T Pt and 1.1g/T Pd from Rosie Deposits. The Rosie deposit does not include the C2 Prospect where significant mineralised zones have been discovered and are the subject of a resource drilling program at present.

This further phase of exploration is expected to result in a substantially increased resource estimate for the project.

In December 2011, the company issued 19.35MM ordinary fully paid shares at AU$0.55 per share to expedite the completion of the Definitive Feasibility Study on the Colluli Potash Project in Eritrea, and provide general working capital. The company in H1 2012 reported a net loss of AU$4.19MM and EPS of AU$c(4.6).

Given due diligence and valuation estimations based on discounted cash flow method, Arrowhead believes that South Boulder Mines Limited fair share value lies in the AU$6.99 to AU$16.25 bracket.

This valuation is based solely on the Eritrean Potash and Duketon Nickel projects and does not consider potential value of the company’s other prospects. We have also presented a comparable valuation based on EV/resource and EV /proposed capacity.

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South Boulder Mines: new high grade potash zone discovered at Colluli in Eritrea

Mon, 23 Apr 2012 09:20:00 +1000

South Boulder Mines (ASX: STB) continues to deliver a positive newsflow from the Colluli Potash Project in Eritrea, with the latest instalment a new high grade potash zone.

This discovery comes just a week after the resource almost doubled to 1.08 billion tonnes at 18% KCl for 194 million tonnes of potash, and bodes well for future resource upgrades.

The combination of the shallow nature of this additional mineralisation, and the high-grade and strategic location, means it has strong potential to boost Colluli’s economics, particularly in the early phase of the project.

The latest discoveries come from resource extension diamond drilling in between two existing resource zones at the project, with South Boulder saying that there is clear potential for potash to be largely continuous between the existing resources - which will be further tested.

New discovery highlights include:

- 5.09 metres of high-grade sylvinite from 100.34 metres (within a total 15.86 metres potash interval);

- 6.12 metres of sylvinite from 68.34 metres, including 2.93 metres of high-grade sylvinite from 70.17 metres (within a total 16.12 metres potash interval);

- 2.93 metres of high-grade sylvinite from 88.49 metres in between Area A and B (within a total 13.34 metres potash interval); and

- 2.02 metres of high-grade sylvinite from 53.89 metres in between Area A and B (within a total 16.17 metres potash interval).

Lorry Hughes, managing director, said the new sylvinite drilling results show excellent correlation with previous drilling and has the potential to further improve the economics of the project.

“The new discovery is likely to make a material improvement to the already-robust Stage 1 production schedule and mining costs of the world’s first open pit potash mine.

“The shallow depth of the resource is the key difference between Colluli and other potash resources currently being mined. Most existing mine production is from depths of greater than 500m and to depths of up to 1,500m below surface.

“We expect to convert a large portion of our resources to mineable reserves because we can utilise open pit mining as opposed to low-conversion underground or solution-mining methods."

Highly attractive pre-tax NPV

An engineering Scoping Study completed in November 2011 demonstrated a pre-tax NPV of US$1.33 billion with start-up capital costs of US$0.74 billion.

This study was based on Stage 1 production of 1 million tonne of KCl annually from the potash mineral cylvite, a zone which represents only a small part of the overall deposit. The study investigated a 17-year open pit operation and forecast an internal rate of return of 40.6%.

As an indication of the growth potential of Stage 1, the study only included around 16% of the potash contained within the previous October 2011 resource estimate.

Studies are currently underway to incorporate additional zones of potassium minerals to further enhance the overall commercial outcomes.

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South Boulder Mines: Colluli in Eritrea is now a Tier 1 asset hosting 194Mt of contained potash

Mon, 16 Apr 2012 10:19:00 +1000

Successful exploration by South Boulder at Colluli in Eritrea has delivered an 85% jump in contained potash to 1.08bt at 18% KCl for 194mt of potash. The project is evolving into being the world’s first open cut potash mine - and has mine life extension potential.

South Boulder Mines in pre open pending resource upgrade

Fri, 13 Apr 2012 09:50:00 +1000

South Boulder Mines (ASX: STB) has some very interesting news on the horizon, and today was granted a trading halt by the ASX pending the release of a resource upgrade.

The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Tuesday 17 April.

South Boulder Mines closes in on Definitive Feasibility Study at Colluli

Tue, 03 Apr 2012 08:40:00 +1000

South Boulder Mines (ASX: STB) is nearing the start of a Definitive Feasibility Study at the Colluli Potash Project in Eritrea with the appointment of key consultants to drive the study.

The DFS, which is scheduled for completion in 2013, will include detailed studies of geology, engineering, metallurgy and infrastructure.

A stage one Engineering Scoping Study has determined a robust internal rate of return of 40.6% for a 1 million tonne per annum operation over a 17-year life. The stage one study considered muriate of potash production from Sylvite mineralisation only.

The DFS will also consider stage two production, including sulphate of potash and potassium-magnesium production from the mineralisation directly below the Sylvite.

Stage one accounts for just 16% of the current total resource.

First production from Colluli is scheduled for no later than 2016.

Leading consultants

South Boulder Mines has appointed five key consultants to drive the DFS:

- Ercosplan – principal consultant;
- SENET Engineering – infrastructure;
- Ashmead Maritime – port area investigation;
- Dayle Kenny & AMC Mining Consultants – mining; and
- Knight Piesold – environmental & sustainable development.

Eritrean Government Approach

Meanwhile, an approach from the Eritrean Government to purchase a 30% interest in the Colluli Potash Project provides certainty and facilitates the company’s efforts to secure additional investors as it works towards the completion of the DFS.

The government has requested that South Boulder submit a proposal to begin discussions regarding the Eritrean National Mining Corporation’s (ENAMCO) intention to acquire up to a 30% paid participating interest in Colluli.

This is in addition to ENAMCO’s existing 10% interest, which is to be carried 3.3% by ENAMCO and 6.7% by South Boulder.

South Boulder Mines: Azure Capital to assess possible Colluli JV with Eritrean Government

Wed, 28 Mar 2012 13:10:00 +1100

South Boulder Mines (ASX: STB) has appointed Azure Capital as corporate advisor to assist with the evaluation of a potential joint venture with the Eritrean Government on the Colluli Potash Project.

The government has requested that South Boulder Mines submit a proposal to begin discussions regarding the Eritrean National Mining Corporation’s (ENAMCO) intention to acquire up to a 30% paid participating interest in Colluli.

This is in addition to ENAMCO’s existing 10% interest, which is to be carried 3.3% by ENAMCO and 6.7% by South Boulder.

Earlier in 2012 South Boulder was looking to assess potential financial, offtake and development partners for the Colluli Project.

Consideration for the interest has not yet been given, however the government has the right to purchase a 30% stake in the project at fair value following completion of the Bankable Feasibility Study.

South Boulder is now progressing a Definitive Feasibility Study at Colluli, based on initial production of 1 million tonnes per annum. The Definitive Feasibility Study is on track for completion in 2013, followed by production in 2016.

South Boulder Mines: Eritrean Government looks to increase Colluli Potash Project stake

Mon, 26 Mar 2012 11:21:00 +1100

An approach from the Eritrean Government to purchase a 30% interest in the Colluli Potash Project provides certainty and facilitates the company’s efforts to secure additional investors as it works towards the completion of a Definitive Feasibility Study.

South Boulder Mines: partner Independence Group targets nickel resource expansion at Duketon

Mon, 27 Feb 2012 10:40:00 +1100

South Boulder Mines (ASX: STB) is allowing Independence Group NL (ASX: IGO) to earn up to a 70% interest in the nickel rights Duketon Nickel Joint Venture through sole funding through to a Bankable Feasibility Study within five years.

Importantly for this non-core asset of South Boulder, Independence Group is looking to build on the maiden JORC Resource of 1.7 million tonnes at 1.7% nickel, 0.4% copper and 1.9 grams per tonne (g/t) platinum and palladium for the Rosie deposit

The new drilling program will comprise both diamond and reverse circulation targeted at resource definition and extensions to the resource, and will cover around 60 holes for 16,000 metres.

Lorry Hughes, managing director of South Boulder, commented: “It is very pleasing to see exploration step up a notch at the DNJV with the most intensive drilling plans to date.

"The mineralisation discovered to date at the DNJV is similar to other magmatic nickel systems that host long life nickel mines. The Rosie JORC Compliant Resource Estimate completed in January provides a robust starting point for resource growth and I’m expecting many new discoveries.”

Targets at Rosie already identified

The new drilling will explore strike extents of the Rosie system for additional resources, including structural target zones to test for thicker high grade zones within the contact domain.

There will also be a focus to test beneath the TBRC034 target where a reconnaissance reverse circulation program in 2008 returned an oxide intercept of 4 metres at 0.44% nickel, 0.19% copper and 1.7g/t platinum plus palladium.

Finally, drilling will test the eastern contact of the Bulge Ultramafic (South of C2) on 100 metre spaced sections to explore for possible repeats of Rosie-style mineralisation between Rosie and the C2 nickel sulphide deposit.

South Boulder Mines and Strata Minerals team up at Cardabia Phosphate Project in WA

Fri, 17 Feb 2012 09:00:00 +1100

South Boulder Mines (ASX: STB) and the TSX listed Strata Minerals Inc. (TSX-V: SMP) have entered into a joint venture at the non-core Cardabia Phosphate Project in Western Australia.

The agreement allows for Strata to own an 80% interest in the project and to sole fund all exploration through to the completion of a Bankable Feasibility Study.

Lorry Hughes, managing director of South Boulder commented on the deal:

“We have been looking for some time to unlock value for our shareholders in some of our non-potash fertilizer assets, which tend to be overshadowed by the magnitude and potential of the flagship Colluli Potash Project.

"The agreement allows for the Cardabia project to be explored by an experienced phosphate company at no risk or cost to South Boulder.”

Cardabia comprises five exploration tenement applications for a total area of around 1600 square kilometres, located 80 kilometres south of Exmouth and 1000 kilometres from Perth

Historical work conducted at the project in the late 1980’s defined widespread shallow nodular phosphate in air-core drilling.

Details of the deal

- South Boulder has received $200,000 in cash and Strata has been granted TSX Venture approval on the 13th February 2012 for the Cardabia transaction. 2.5 million fully paid Strata shares will be allotted and in return Strata has acquired an 80% interest in the project;

- South Boulder retains a 20% free carried interest through to the completion of a Bankable Feasibility Study; and

- Project divestment allows South Boulder to further focus efforts on the expedited development of the Colluli Potash Project and continue transitioning the company into a potash producer.

South Boulder Mines’ JV partner Independence Group delivers maiden nickel Resource for Rosie

Fri, 27 Jan 2012 10:50:00 +1100

South Boulder Mines’ (ASX: STB) joint venture partner Independence Group (ASX: IGO) has completed an initial JORC Resource of 1.7 million tonnes at 1.7% nickel, 0.4% copper and 1.9 grams per tonne (g/t) platinum and palladium for the Rosie deposit within the Duketon Joint Venture.

The Duketon Joint Venture is centred 120 kilometres north of Laverton in Western Australia.

The potential to grow the Resource at Rosie is increased by the fact that the initial Resource does not include the C2 mineralised zones located about 1.7 kilometres to the northwest.

The Resource occurs over a vertical depth of about 600 metres and a strike length of 1100 metres.

Mineralisation remains open along strike and at depth.

The Rosie mineralisation is of medium tenor (8-10% nickel), has a nickel/copper ratio of about 10:1 and has significant platinum and palladium credits.

The platinum tenor averages about 3g/t and is moderately variable, typically in the range of 2-6g/t. The palladium tenor averages about 3-4g/t and is more variable, typically in the range of 1-10g/t.

Analysis of platinum group elements indicates that the mineralisation may also have significant ruthenium and rhodium concentrations.

The mineralogy of the system appears to be similar to typical Kambalda-style magmatic nickel systems, with pyrrhotite, pentlandite and chalcopyrite as the dominant sulphides in the primary portion of the mineralised zone.

Three mineralised domains were modelled – a higher grade Contact domain with lower grade Footwall and Hanging Wall domains. Only the Contact domain is included in the maiden Resource.

A further phase of exploration at Duketon is scheduled to begin in February testing a number of targets.

Exploration will test the strike and depth extensions of the Rosie deposit targeting thicker, higher grade zones in the Contact mineralised domain, possible repeats of Rosie-style mineralisation between Rosie and the C2 disseminated nickel sulphide discovery 1.7 kilometres to the northwest and higher grade zones within C2.

Under the Duketon joint venture with South Boulder, Independence Group can earn a 70% interest in the nickel rights by completing a Bankable Feasibility Study within five years of the grant of the relevant tenement.

South Boulder Mines steps on the gas towards its transition to potash producer in Eritrea

Wed, 11 Jan 2012 13:16:00 +1100

Highly favourable economics for the Colluli Potash Deposit in Eritrea have allowed South Boulder Mines to expedite the transition to potash production in 2016 or even sooner. The company is also strengthening its cash position with a A$10.7 million capital raising that will increase its bank balance to $21 million in early February.

South Boulder Mines welcomes new chief financial officer

Wed, 04 Jan 2012 16:11:00 +1100

South Boulder Mines (ASX: STB) has appointed Flavio Garofalo as chief financial officer, effective from February 2012.

Garofalo is an experienced finance and corporate executive who has more than 20 years experience in the mining industry and was previously chief financial officer and finance director for Kagara (ASX: KZL).

South Boulder managing director Lorry Hughes said the appointment of Garofalo reflects the growth of South Boulder as it continues the transition into a significant potash producer from the Colluli Potash Project.

“Mr Garofalo has successfully undertaken the transition of a number of listed companies from developer to producer and has strong financial links and experience from within the Asia region,” he said.

“In addition Mr Garofalo will make significant strategic contributions to South Boulder’s development of the Duketon nickel and gold projects and the planned in specie distribution of the assets to shareholders.”

South Boulder Mines plans to accelerate the completion of the Definitive Feasibility Study on the Colluli Open Cut Potash Project in Eritrea with a planned capital raising of A$10.6 million.

A recent Scoping Study on the Colluli Open Cut Potash Project returned highly favourable economics for South Boulder.

Based on around 16% of the JORC Resource of 564.4 million tonnes at 18.6% KCI, for total contained potash of 104.9 million tonnes – a net present value of US$1.33 billion (12% discount rate) was returned, with an internal rate of return of 40.6%.

Capital expenditure including contingency came in at US$0.74 billion, delivering project revenue of over US$6 billion. The production rate is based on 1 million tonnes annually from an open pit, for a study mine life of 17 years.

South Boulder Mines to expedite DFS at Colluli in Eritrea with A$10.1m capital raising

Wed, 07 Dec 2011 10:00:00 +1100

South Boulder Mines (ASX: STB) will accelerate the completion of the Definitive Feasibility Study on the Colluli Open Cut Potash Project in Eritrea with a planned capital raising of A$10.1 million.

The company will exit a trading halt this morning after announcing the non-renounceable entitlement offer of up to 9.2 million shares at $1.10 per share on the basis of one new share for every 10 held.

The company is also offering one attaching unlisted option for every two new shares subscribed for, exercisable at $1.60 each and expiring 12 months after the date of issue.

The record date for the offer is 22 December 2011. The offer opens on 23 December 2011 and closes on 17 January 2012.

A recent Scoping Study on the Colluli Open Cut Potash Project returned highly favourable economics for South Boulder.

Based on around 16% of the JORC Resource of 564.4 million tonnes at 18.6% KCI, for total contained potash of 104.9 million tonnes – a net present value of US$1.33 billion (12% discount rate) was returned, with an internal rate of return of 40.6%.

Capital expenditure including contingency came in at US$0.74 billion, delivering project revenue of over US$6 billion. The production rate is based on 1 million tonnes annually from an open pit, for a study mine life of 17 years.

With only a portion of the resource used in the model, South Boulder said that it considers the mine life upside of the project to be immense and likely to be in excess of 50 years once details of Sulphate of Potash (SOP) and K-Mg sulphate production is included.

Importantly for the resource at Colluli, some of the resource sits in the higher confidence categories, with Measured 133.7 million tonnes at 17.55% KCl, Indicated 343.3 million tonnes at 17.38% KCl, and Inferred 87.3 million tonnes at 24.96% KCl.

Potash Demand

Importantly for South Boulder, demand for potash is expected to rise due to increased population and standard of living and worldwide decreased arable land. The biggest growth markets are India, China and Brazil.

The potash market is currently around 50 million tonnes per annum and growing.

The Colluli project is strategically located close to major infrastructure and 70 kilometres from the coast, and is the closest supplier to India and nearby to Asia.

South Boulder is targeting first production in 2016 or sooner.

Cash Advantage

Funds from the capital raising will add significantly to South Boulder’s cash reserves of around $14 million.

South Boulder Mines in pre open pending capital raising announcement

Mon, 05 Dec 2011 10:37:00 +1100

South Boulder Mines (ASX: STB) has been granted a trading halt by the ASX today pending the release of an announcement relating to a major capital raising.

While the company did not say where the money raised will be allocated, South Boulder Mines recently completed a Scoping Study for its Colluli Potash Deposit in Eritrea which returned favourable economics, including a net present value of US$1.33 billion (12% discount rate), with an internal rate of return of 40.6%.

With only a portion of the resource used in the model, South Boulder said that it considers the mine life upside of the project to be immense and likely to be in excess of 50 years once details of Sulphate of Potash (SOP) and K-Mg sulphate production is included.

The trading halt will be in effect until an announcement is made to the market or no later than the start of trading on Wednesday, December 7.

South Boulder Mines scoping study for Colluli Potash Project returns NPV of US$1.3b

Wed, 23 Nov 2011 08:52:00 +1100

A Scoping Study on the Colluli Potash Deposit has returned highly favourable economics for South Boulder at Colluli - including an NPV of US$1.33 billion and an IRR of 40.6%. It confirmed the technical and financial viability of mining and processing of the Colluli project to becoming a significant potash producer.

South Boulder Mines: Scoping Study delivers potential multi decade potash mine life at Colluli

Wed, 26 Oct 2011 11:13:00 +1100

An Engineering Scoping Study at Colluli has not only confirmed the viability of the project, but has indicated open pit mining methods for 11 years - with scope to significantly increase production rates and mine life to over 50 years.

South Boulder Mines appoints Chris Gilchrist to board to support Colluli Potash Project

Fri, 14 Oct 2011 14:11:00 +1100

South Boulder Mines (ASX: STB) has appointed internationally renowned mining executive Dr Chris Gilchrist to the Board as a non-executive director, as the company works to expand its Colluli Potash Project.

Dr Gilchrist has 30 years’ experience at senior management and director level within a variety of operating mining companies, with significant experience in potash.

He has been managing the Colluli Definitive Feasibility Study since December 2010. The DFS is due for completion in 2013, with production scheduled for 2016 or sooner.

The Colluli Potash Project has a current total resource of 564.4 million tonnes at 18.6% potassium chloride for 104.96 million tonnes of potash.

South Boulder Mines boosts potash JORC Resource confidence categories at Colluli

Tue, 04 Oct 2011 09:16:00 +1100

The significance of the 130% increase in the Measured and Indicated potash resources at Colluli is that the new resource will underpin the Definitive Feasibility Study, along with potential new ore reserve calculations.

South Boulder Mines eyes potash JORC update after latest high grade hits at Colluli

Wed, 07 Sep 2011 12:25:00 +1000

The impact from the latest high grade hits at Area B is that they provide a significant addition to the Colluli Potash Project, and continue to support the current Exploration Target of 1.25 to 1.75 billion tonnes at 18-20% KCl.

South Boulder Mines makes key appointment for Colluli Potash Project Feasibility Study

Thu, 25 Aug 2011 10:37:00 +1000

South Boulder Mines (ASX: STB) has appointed Dayle Kenny, a highly experienced open cut mining engineer, to complement its existing feasibility team for the Colluli Potash Project in Eritrea, East Africa.

Kenny has a track record of over 30 years mining and feasibility study experience gained from a variety of senior management roles that are relevant to the Colluli open pit potash project.

His expertise covers all aspects of the mining life cycle and has particular experience in the completion of numerous mining feasibility studies to exploit shallow mineral resources.

Kenny has previously consulted for companies including Rio Tinto (ASX; RIO), Hamersley Iron Pty Ltd, Western Mining Corporation, Normandy Resources NL and Toro Energy (ASX: TOE).

Lorry Hughes, South Boulder’s CEO and managing director, said Kenny "will work closely with the potash expertise of our feasibility manager, Chris Gilchrist, Ercosplan and our Eritrean team to implement and expedite the technical evaluation of the project.

"This is a key appointment and will allow us to progress through feasibility studies without delay. In addition his financial analysis skills to assess project options will be invaluable going forward to allow us to focus on the best options and get into production in 2016 or sooner.”

South Boulder is incorporating its latest high grade potash results, reported at Colluli on July 20, in an upgraded resource estimate for the Area A deposit, which will be used as the basis for the current engineering Scoping Study due to be completed in the September quarter of 2011.

The company is also eyeing an increase to the 1.25 to 1.75 billion tonnes at 18 to 20% KCl exploration target, which has the potential to grow substantially.

The current JORC Resource is 548 million tonnes at 18.6% KCl, for total contained potash of 102 million tonnes.

South Boulder has an initial strategy to consider producing 2 to 10 million tonnes of potash annually from an open pit operation in 2016/2017, which is a substantial target considering the current global production is 55 million tonnes.

The company also has the potential to be the lowest cap-ex and op-ex operation in the world, with industry production costs around USD$100 to USD$250 per tonne, compared to the potash price of around USD$500 a tonne.

South Boulder has forecast operating costs to be in lower 25% of the industry.

South Boulder Mines broadens investor base by launching ADR program

Thu, 28 Jul 2011 13:06:00 +1000

South Boulder Mines (ASX: STB, OTC: SBMSY) will now provide North American investors to invest in the company after launching an American Depository Receipt (ADR) program.

The program will allow South Boulder to extend the company's shareholder base into key markets that have a strong understanding of the potash industry.

The over-the-counter ticker will be SBMSY.

South Boulder has a very interesting story to tell North American investors, after a continued string of high grade near surface potash discoveries at the Colluli Potash Project in Eritrea.

At the project the current JORC Resource is 548 million tonnes at 18.6% KCl, for total contained potash of 102 million tonnes, with an exploration target of 1.25 to 1.75 billion tonnes at 18-20% KCl.

South Boulder has an initial strategy to consider producing 2 to 10 million tonnes of potash annually from an open pit operation in 2016/2017, which is a substantial target considering the current global production is 55 million tonnes.

The company also has the potential to be the lowest cap-ex and op-ex operation in the world, with industry production costs around USD$100 to USD$250 per tonne, compared to the potash price of around USD$500 a tonne.

South Boulder has forecast operating costs to be in lower 25% of the industry.

South Boulder Mines near surface potash hits continue unabated at Colluli

Tue, 26 Jul 2011 10:06:00 +1000

South Boulder Mines (ASX: STB) string of high grade near surface potash discoveries continues at the Colluli Potash Project in Eritrea.

The significance of the latest hits at Area B is the confirmation by the company of the current exploration target of 1.25 to 1.75 billion tonnes at 18-20% KCl.

South Boulder said exploration at the Area B discovery continues to intersect potash from depths as shallow as 16 metres, with assays currently pending from the new discovery area - however, sylvinite has been visually identified in core from 13 of 21 holes drilled to date.

New results that have been received include:

- 8.07 metres of kainitite from 16.51 metres;
- 7.56 metres of kainitite from 48.44 metres;
- 6.54 metres of kainitite from 74.15 metres; and
- 5.58 metres of sylvinite from 65.59 metres.

At the project the current JORC Resource is 548 million tonnes at 18.6% KCl, for total contained potash of 102 million tonnes.

South Boulder has forecast operating costs to be in lower 25% of the industry.

Eritrea - an east African country

Eritrea is a stable jurisdiction that is fully supportive of South Boulder activities, with the project awarded to the company by an open tender process.

The deal structure is as follows:

- Exploration Phase, South Boulder 100% ownership;

- After Mining Lease and BFS, the Government receives 10% of the project for free and can purchase up to another 30% of the project at fair value;

- The 40% is a full equity participation interest, Government to pay 40% of operating and capital costs;

- 3.5% royalty on potash and corporate tax rate of 38%; and

- The deal structure paves the way for a secure and reliable partnership.

South Boulder Mines high grade potash hits boost resource upgrade potential at Colluli

Wed, 20 Jul 2011 10:43:00 +1000

The impact of the new high grade potash intersections will be another positive for the pending upgraded estimate at the Area A deposit, which will then be used as the basis of an engineering Scoping Study due for completion in the September quarter.

South Boulder Mines feasibility studies continue to define a world class potash project in Eritrea

Mon, 20 Jun 2011 12:18:00 +1000

South Boulder Mines (ASX: STB) is maintaining momentum in building the Colluli Potash Project in Eritrea, where independent feasibility study activities continue to define a world class project.

South Boulder are currently targeting 1.5 billion tonnes of potash at 20% KCL, which has an in ground value of about USD $150 billion, dwarfing other basic project valuations of companies and commodities comparing market capitalisation to in ground value.

To put the company into perspective, South Boulder has a market capitalisation of only A$240 million.

South Boulder is also expecting very low mining costs for the project due to the open pit aspect, with Eritrea offering a stable geographic operating environment.

Exploration at the newly defined Area B Prospect continues to intersect potash from depths as shallow as 20 metres.

South Boulder said assays have yet to be returned from this new discovery area but sylvinite, which is a typically high grade ore, has been visually identified in core from 10 holes.

At Area A, drilling has identified potash outside of the current JORC Resource.

A Scoping Study is forecast for completion in August 2011, with feasibility studies expected by mid-2013, with the first potash production scheduled for mid-2016.

Colluli has a current JORC Resource of; 33.39 million tonnes at 18.56% KCl of Measured Resources, 173.37 million tonnes at 18.57% KCl of Indicated Resources and 340.86 million tonnes at 18.58% KCl of Inferred Resources.

The total is 547.62 million tonnes at 18.58% KCl, for total contained potash of 101.73 million tonnes.

An engineering Scoping Study is underway into open pit mining and processing to produce up to 10 million tonnes annually of potash.

South Boulder will also soon list on the OTC/QX Exchange.

South Boulder Mines new potash hits support increased exploration target at Colluli

Wed, 11 May 2011 09:45:00 +1000

South Boulder Mines (ASX: STB) new potash discoveries have warranted the exploration target increase to 1.25 – 1.75 billion tonnes at 18 - 20% KCl at the Colluli Potash Project in Eritrea.

The upgrade target is substantiated by the discovery of extensive potash at Area B, with South Boulder saying further drilling in the area of mineralisation is expected to grow significantly.

Latest highlights include:

- 1.69 metres of sylvinite from 50.28 metre;
- 3.09 metres of carnallitite from 57.06 metres;
- 8.56 metres of kainitite from 48.69 metres; and
- 7.49 metres of kainitite from 60.15 metres.

South Boulder is continuing to explore the area at speed, with additional diamond holes already planned as part of an expanded exploration and development drilling program.

The current 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.

Eritrea is a country in the Horn of Africa, bordered by Sudan to the west and Ethiopia to the south.

South Boulder Mines encouraged by more near surface potash hits at Colluli

Thu, 28 Apr 2011 10:11:00 +1000

South Boulder Mines (ASX: STB) has returned more significant preliminary potash assays from drilling inside and outside the JORC/43-101 Mineral Resource Estimate area at the Colluli potash project in Eritrea, Africa.

The encouraging results continue to support the view that an economic open pit mine can be developed and confirm visual field estimates of grade and mineralisation. The results are in addition to the extensive shallow mineralisation previously defined.

The latest results include:

- 2.52 metres of sylvinite at 38.79% KCl from 22.22m with carnallitite and kainitite intervals yet to be received.

Outside the resource boundary drilling intersected a total thickness of 12.38m of potash with a combined 17.96% KCl including:

- 0.65m of sylvinite at 42.00% KCl from 23.98m and;
- 2.90m of carnallitite at 15.60% KCl from 24.82m and;
- 8.83m of kainitite @ 16.97% KCl from 27.72m.

The company plans further definition and extensional drilling at Colluli and the new discovery area 10 kilometres northwest after the Easter break and results will be incorporated into the current engineering Scoping Study scheduled for mid 2011.

A second drill rig is currently in Eritrea and will be utilised for both further exploration and for the geotechnical/metallurgical test work required for Scoping/Feasibility studies, pending approvals.

The company previously said it expects the new discovery announced April 27 will significantly enhance the Colluli project economics.

The current 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.

The exploration recently target increased to; 750 million tonnes to 1.25 billion tonnes at 18-20% KCl in early 2011.

Eritrea is a country in the Horn of Africa, bordered by Sudan to the west and Ethiopia to the south.

South Boulder Mines latest potash discovery delivers at Colluli

Wed, 27 Apr 2011 12:50:00 +1000

South Boulder Mines (ASX: STB) continues to deliver stellar results from the Colluli potash project in Eritrea, with the latest discovery 10 kilometres along strike providing some top results.

South Boulder said preliminary geological logging of all the holes has indicated that the sylvinite (KCl) mineralisation appears to be very similar to high grade intervals identified at the Colluli Resource, where grades up to 44% KCl have been intersected.

The latest results include:

- 9.43 metres of kainitite from 31.51 metres;
- 9.17 metres of kainitite from 41.93 metres;
- 7.04 metres of kainitite from 90.94 metres;
- 5.51 metres of sylvinite from 35.70 metres and;
- 5.04 metres of carnallitite from 85.90 metres.

Further definition and extensional drilling at the new area is planned to resume soon after Easter, with the proposed hole locations to initially explore a priority area of 20 square kilometres.

The company said it expects the new discovery will significantly enhance the Colluli project economics, which are currently under a Scoping Study, and will then become part of the full Feasibility Study.

The current 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.

The exploration recently target increased to; 750 million tonnes to 1.25 billion tonnes at 18-20% KCl in early 2011.

South Boulder Mines managing director tops-up shareholding

Mon, 11 Apr 2011 15:00:00 +1000

South Boulder Mines (ASX: STB) Managing Director David "Lorry" Hughes acquired 7,354 ordinary shares in on market purchases on April 8, 2011 at $3.99 per share.

The shares were purchased for a consideration of $29,342.46. Hughes now holds 675,000 ordinary shares.

Hughes also holds 2 million options, exerciseable at $0.20, expiring 30 June 2014, and 1 million options, exercisable at $0.35, expiring 31 July 2013.

On April 8 South Boulder and Independence Group (ASX: IGO) hit more massive sulphide zones at the Duketon Nickel joint venture in Western Australia.

The potential remains for more decent hits in the short term, with more assays pending.

The current diamond drilling exploration program is part of a major resource definition program designed to test the continuity of mineralisation on a nominal 80 metre by 80 metre, and a 80 metre by 40 metre pattern.

Two rigs are currently operation, with the program forecast to take around three months.

A Scoping Study into an open pit / underground mining scenario is underway.

The project is located 120 kilometres from Laverton, located in the Duketon Greenstone Belt.

South Boulder Mines is currently trading at $4.00 per share.

South Boulder Mines hits more massive sulphide zones at Duketon

Fri, 08 Apr 2011 09:43:00 +1000

South Boulder Mines (ASX: STB) and Independence Group (ASX: IGO) have hit more massive sulphide zones at the Duketon Nickel joint venture in Western Australia.

Hits at the Rosie prospect included some very high grade palladium.

Highlights include from a diamond hole:

- 6.53 metres at 2.87% nickel, 0.57% copper, 0.08% cobalt and 6.00 grams per tonne (g/t) 6PGE’s from 588 metres; including
- 3.77 metres at 4.17% nickel, 0.67% copper, 0.12% cobalt and 9.51g/t 6PGE’s from 589 metres.

These results also included a massive sulphide intercept of; 0.81 metres at 9.76% nickel, 1.15% copper, 0.17% cobalt and 7.77g/t 6PGE’s from 589 metres.

The potential remains for more decent hits in the short term, with more assays pending.

The current diamond drilling exploration program is part of a major resource definition program designed to test the continuity of mineralisation on a nominal 80 metre by 80 metre, and a 80 metre by 40 metre pattern.

Two rigs are currently operation, with the program forecast to take around three months.

A Scoping Study into an open pit / underground mining scenario is underway.

The project is located 120 kilometres from Laverton, located in the Duketon Greenstone Belt.