South Boulder Mines

South Boulder Mines Ltd has key projects in Eritrea (Africa)  and Western Australia.

The Company is focused on potash as well as multiple gold and nickel prospects.

South Boulder’s Colluli Potash Project, Eritrea has added recent value to the Company’s portfolio due to exploration success and  increased global demand. The Project is located in the Danakil Depression region of Eritrea approximately 65km from the coast and comprises 906km²; the project hosts a world class evaporative potash deposit.  South Boulder Mines Ltd is working steadily towards developing the world's first, modern, open pit potash mine with initial production scheduled for 2016 or sooner.

South Boulder also has quality assets in the  Duketon Greenstone Belt, Western Australia. The projects are considered highly under explored for gold and base metals. The Company owns 100% of all gold rights as well as 100% of all nickel rights with the exception of the Rosie/C2 Projects, where by Independence Group NL (ASX: IGO) can earn 70% on the completion of a Bankable Feasibility Study within five years of the grant of Mining License M38/1252.

For up-to-date information on our projects please view our latest Corporate Presentation

We welcome you to browse our website and familiarise yourself with our activities.

Colluli Potash Project

South Boulder Mines Limited (ASX: STB) has been actively exploring for potash at the Colluli Potash Project in Eritrea since 2009. Engineering Scoping Study results were favourable, proving that an economic 1Mt p.a. potash mine can be built at half the cost of a typical potash development.

Definitive feasibility studies will be complete in early 2013 with production scheduled for 2016 or sooner. The Colluli Project will be one of a few “Greenfields” potash mines to come into production in the next 10 years. The location of the project provides much sought after infrastructure as it is approximately 70km from the Red Sea Coast and major shipping routes to Asia.

Following shallow diamond drilling resource definition programs and ground gravimetric surveys, an initial JORC/43-101 Mineral Resource Estimate of 564Mt @ 19% KCl has been defined (see figure 1).  The current exploration target is 1.25 – 1.75 billion tonnes @ 18-20% KCl

                        Figure 1: Current JORC/43-101 Compliant Measured, Indicated and Inferred Mineral Resource Estimate

The resource comprises sylvite (KCl), carnallite (KMgCl3.6H20) and kainite (MgSO4KCl.3(H20) bearing horizons and has been identified from 16 – 70m depth. Kieserite (MgSO4.H20) is currently not included in the resource, however, is a mineral that is also important to the fertilizer industry for the production of sulphate of potash (SOP).

The Colluli potash deposit is the world’s shallowest, allowing extraction via open pit mining. There are currently no other open pit potash mines in operation and 91% of world production comes from deep underground mines. Activities including metallurgical testing, engineering design, environmental impact studies, social impact assessment and hydro-geological studies are being undertaken by global experts in conjunction with Eritrean employees of South Boulder Mines Ltd.

For the most current news and information on the Colluli Potash Project check our latest Corporate Presentation

Duketon Nickel Projects

South Boulder's Duketon Greenstone Belt is considered highly prospective for nickel, copper and platinum group elements.

In 2004 South Boulder signed a farm-out Joint Venture agreement with Independence Group NL (IGO). The agreement allows IGO to earn 70% of the nickel rights on South Boulder tenements within the Duketon Greenstone Belt by completing a Bankable Feasibility Study within five years.

Two key prospects have been defined to date: Rosie and C2. Other than these prospects much of the highly prospective ultramafic units have yet to be effectively tested for nickel-copper-PGE sulphide mineralisation at depth.

The C2 Deposit was discovered by aircore drilling conducted by Independence Group NL in 2008. Another round of aircore drilling  in early 2010  led to the discovery of The Rosie Deposit. The prospects are approximately 2km apart and the mineralisation at both is considered open in most directions.

The mineralisation at Rosie is currently defined over an approximate strike length of 950m and a dip extent of 600m, results have confirmed a laterally extensive zone of predominantly disseminated and breccia style mineralisation with discrete zones of massive sulphide mineralisation. This style of mineralisation is suggestive of remobilised sulphides possibly flanking a massive sulphide mineralised “channel” or footwall embayment position. Intercepts include up to 3.3m (true width) @ 9.7% Ni, 1.1% Cu, 0.2% Co and 7.1g/t PGEs (2.2g/t Pt, 1.7g/t Pd, 0.8g/t Rh, 1.8g/t Ru).

The massive sulphide mineralisation at the Rosie Deposit has an ultramafic hanging wall and sediment-free basaltic footwall, and is interpreted to represent a classic Komatiitic lava channel. However, the high copper, cobalt and platinoid assays are atypical of known lava channel nickel sulphides in Western Australia. The MLTEM coverage indicates a strong continuous conductor through this area.

Mineralisation at the C2 Deposit is semi-continuous over at least 700m of strike, and is known to extend to at least 300m below surface, up to 25m wide (true width).  The mineralisation appears to be east dipping, in two to three contact-parallel layers, an upper, central and lower zone.  These zones can, in places, be traced from one section to another, based on their spatial distribution and elemental signatures.

The mineralisation comprises of disseminated and minor matrix and stringer sulphides and is considered to have potential to host massive sulphide mineralisation. The best intercept at the C2 Deposit is comprised of disseminated, stringer and breccia sulphides, with intercepts of up to 52m @ 0.9% Ni, including 37m @ 1.05% Ni, with zones of higher mineralisation grading up to 3.34% Ni. There is potential at C2 for further discrete, higher grade, massive sulphide zones similar to those found at Rosie.

A 102 hole aircore program for 6,500m was completed along the ultramafic contact northwest along strike from  the Rosie Deposit and along the Bulge western contact. A number of anomalous results were returned.

Initial resource diamond and RC drilling has now been completed at the Duketon Nickel JV. Strong mineralisation continued to be intersected confirming the potential for a mine development. A JORC-Code Compliant Inferred Mineral Resource estimate is underway.

Duketon Gold Projects 

South Boulder Mine’s 100% fully owned gold prospects are located within the under-explored Achaean Duketon Greenstone Belt.

The Duketon Belt is located 80 kilometres north of Laverton in Western Australia and is considered highly prospective for gold, nickel sulphide and base metal mineralisation. 

Wide spread reconnaissance exploration work has been sporadically carried out in the Duketon Project area from the early 1990s, but the majority of the project area remains under-explored.

South Boulder’s key Duketon Gold Prospects are the Terminator Gold Prospect and Thomson’s Bore Gold Prospect with numerous prospective targets to follow up on in the future.  South Boulder holds ground in along strike and adjacent positions to the Garden Well Mine development and the producing Moolart Well Gold Mine, with combined resources of approximately 4.5Moz

The Terminator Gold Prospect was discovered during a geochemical aircore drilling program in September 2009. The Prospect is located approximately 1.4km south of the Bulge C2 Nickel Prospect.

South Boulder Mines conducted an aircore drilling program at the Terminator Prospect in October 2009, comprising 50 holes for 4,216m, to follow up on previous successful drilling at the prospect. The program targeted a sheared contact between an ultramafic and mafic sequence, which is believed to be the control on gold mineralisation.

The drilling program extended the strike of intercepted mineralisation from 220m to ~400m.This program intercepted significant gold mineralisation within laterite and oxide horizons and confirmed the potential for a significant gold system at depth, as several of the holes ended in mineralisation. Intercepts included 37m @ 2.18g/t Au from 1m, 64m @ 1.24g/t Au and 2m @ 22.1g/t Au.

Mineralisation is well defined over ~400m of strike, is open in all directions and occurs within a broader, 3km wide, anomalous zone. Laterite mineralisation occurs immediately below a thin 1-4m blanket of transported cover. Extensive oxide mineralised zones are also evident.

 The Thomsons Bore Gold Prospect is located 5km due south of The Bulge Nickel Prospect. Significant results from previous aircore drilling included 11m @ 8.7g/t Au and 1m @ 75.3g/t Au. The mineralisation is considered to be open in all directions, associated with quartz veining and ferruginous structures in the oxidised zone, although significantly depleted to a depth of ~80m. At least three steeply dipping, parallel NNW striking mineralised zones are considered to exist within the project area. Host rocks are volcanic and often intercalated with chert bands.

David “Lorry” Hughes – CEO and Managing Director
Mr Lorry Hughes BSc. MAusIMM, is a Geologist with 20 years industry experience and has been South Boulder Mines’ CEO and Managing Director since 2008. Mr Hughes has held senior management positions on exploration and operational mining projects for Energy Metals Ltd, CSA Australia Ltd and Energy Resources Australia Ltd.

Mr Hughes has broad mining and development experience from numerous mines in the north east goldfields of Western Australia and overseas, including; mining in Malaysia and exploration/development in Indonesia and Eritrea.

Mr Hughes's past management, mining, exploration & development operations include, peer review, geological resource interpretation/estimation, project generation, mine planning/optimisation, near mine resource development and environmental management. In addition Mr Hughes has been involved in highly innovative projects including ore beneficiation and ore sorting techniques.

Terry Grammer – Executive Chairman
Mr Terry Grammer is a geologist with exploration success spanning over a 35 year career. He is credited with the discovery of the Cosmos Nickel Mine in Western Australia for which he received the joint prospector of the year award in 2000.

Mr Grammer was a founding member of Western Areas NL which is focused on developing the Forrestania Nickel Project in Western Australia. Currently Mr Grammer is a Non-Executive Director of Sirius Resources NL, Fortis Mining Ltd and was a founding Director of Montezuma Mining Company Ltd.

Liam Cornelius - Executive Director
Mr Cornelius graduated from Curtin University of Technology with a B.App.Sc in Geology. Liam has been involved in the exploration industry within Australia and Africa for 18 years. Whilst specializing in gold he has experience with a wide range of commodities including nickel, copper, platinum and uranium.
As a founding member of South Boulder Mines Ltd, Mr Cornelius has played a key role in outlining areas of interest for the Company. In addition to project generation and providing guidance to the board on future directions, his responsibilities have included public relations and fund raising.

Dr Chris Gilchrist – Non Executive Director/ Feasibility Study Manager

Dr. Chris Gilchrist is presently a consultant to the Mining Industry and has a background in managing major projects, managing mining and mineral processing research, new product development and the operation of large mines. He has served on the Boards of several mining companies and his areas of speciality include potash, diamonds, mineral sands and gold.

Dr Gilchrist has delivered numerous technical papers to the mining industry in areas including project management, operations management and hydraulic transportation . Dr Gilchrist holds a Bachelor's Degree in Mineral Engineering from the University of Birmingham and a Doctorate from the School of Mechanical Engineering, University of the Witwatersrand, Johannesburg. Dr Gilchrist is a UK Chartered Engineer and a Fellow of the IMMM.

Dennis Wilkins - Company Secretary
Mr Wilkins is the principal of DW Corporate, a specialist provider of corporate services to the resources sector. Mr Wilkins is a qualified accountant (B.Bus) who has been a director, company secretary and a corporate consultant to listed resource companies for over 20 years. Mr Wilkins experience includes; five years as Finance Director and Company Secretary for Lynas Corporation Limited, five years working for a leading merchant bank in the United Kingdom and management postings within the Resource

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