The highly anticipated maiden JORC for the Colluli Potash deposit in Eritrea has arrived, and did not disappoint South Boulder Mines (ASX: STB) shareholders.
The maiden resource breakdown 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 recently increased exploration target has been increased again, and now stands at; 750 million tonnes to 1.25 billion tonnes at 18-20% KCl.
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.
South Boulder said a resource upgrade is already expected after some recent very positive results.
Future production will be relatively straight forward, as all potash is contained within potash minerals, which can be processed using standard techniques.
Drilling will start again later this month, with a second rig to be onsite in February to increase exploration.
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.
In morning trade South Boulder is up 19% at $4.19.