Company Overview

South Boulder Mines Ltd is a 50% shareholder of the Colluli Mining Share Company (CMSC), a joint venture between South Boulder Mines Ltd and the Eritrean National Mining Company (ENAMCO).

CMSC owns exploration tenements spanning over 400km2 within the Danakil Depression in South East Eritrea.

Since 2010, 97 holes have been drilled identifying a resource containing more than one billion tonnes of potassium bearing salts suitable for the production of potash fertilisers.

South Boulder Mines Ltd is currently working on the Feasibility Study to support the development of the project.

 

South Boulder Mines Produces Commercial Grade Potassium Sulphate (SOP) from Colluli Salts

South Boulder Mines is pleased to advise that it has successfully produced commercial high grade potassium sulphate, also commonly known as sulphate of potash (SOP) from the salts at the Colluli resource. The SOP was produced by combining KCl and decomposed kainite. This combination of salts results in ambient temperature, high potassium yield conversion of salts to potassium sulphate which is a premium potash fertiliser that achieves a substantial price premium over potassium chloride (more commonly known as Muriate of potash or MOP). The recently completed work is part of the metallurgical test program supporting the preliminary feasibility study which is scheduled to be delivered in February 2015. Metallurgical test results to date have been highly favourable and have demonstrated potassium yields in excess of 80% from flotation tests. Recoveries are expected to improve further due to the potassium recovery ponds in the process plant design which use solar evaporation to capture and process the waste brines from the processing plant. The potassium salts recovered in the ponds are harvested and fed back to the processing plant.

 

Mine planning work completed in early 2014 demonstrated significant cost savings in mining could be achieved by processing all potassium bearing salts in the Colluli resource. The original development considered processing only 16% of the salts. The revised development strategy considers all salts and produces a higher value premium product. A substantial improvement in project economics is expected as a result of the revised development approach.

 

Pre-feasibility studies are well advanced. Colluli is located in Eritrea, East Africa, approximately 350km from the country capital of Asmara and 180km from the port of Massawa – the major import-export facility within the country. Eritrea is an emerging mining jurisdiction with one mine in production and a second due to commission in early 2015. Another project has completed DFS and is currently sourcing development funding.

 

South Boulder expect to complete PFS in February and DFS in mid 2015 for the Colluli project.

 

The Colluli resource is a large, potassium bearing resource close to surface. Since exploration began in 2010 over 1 billion tonnes of potassium bearing salts have been identified. The resource is only75km from the coast and is accessible from the coastal highway between Massawa and Assab. The shallow mineralisation makes the resource amenable to open cut mining which results in higher resource recovery relative to alternate mining methods (solution and underground) for potash.

 

Colluli Project Information Brochure

South Boulder Mines (ASX: STB) (“South Boulder” or “the Company”) is pleased to present a summary overview of the Colluli Resource and the development strategy to produce potassium sulphate. For the information brochure, please go to:

Colluli Information Booklet

Africa Downunder Presentation September 2014

Africa Downunder Presentation