South Boulder Mines (ASX: STB) is looking to boost the JORC Resource of 102 million tonnes of potash at the Colluli potash deposit in Eritre, with the commencement of an expanded drilling campaign.
Results from the 5000 metre drilling program will then be incorporated into the current engineering scoping and feasibility studies.
The market has supported the South Boulder story well in the past year, as the company continues to hit milestones and deliver a strong stream of exceptional drilling results.
South Boulder shares last traded at $4.40, an incredible 17 times higher than the $0.26 of just 12 months ago.
The most interesting aspect of the new drilling is that a second rig will be onsite by the end of March, with the ability to drill deeper and larger diameter core holes, providing the ability to substantiate the resource at depth.
To continue to move the Colluli project forward, a study into the optimum processing and production capacity from open pit mining is planned to be completed by mid-2011.
The study will investigate a range of production scenarios ranging from 2Mt – 10Mt KCl annually.
South Boulder said an updated JORC Resource is anticipated around May or June of this year.
More assays are still pending from a previous drilling campaign, which are expected in before the end of April.