In 2011,South Boulder Mines announced an increases in its resources estimate by 130% to 1.08 billion tonnes of 18-20% KCl. After having several drilling tests and discoveries in the past two years, the company wants to calculate the total resources and reserve estimate as part of the revised feasibility study.
By South Boulder,
South Boulder Mines (ASX: STB) (“STB” or “the Company”) is pleased to advise that it has taken another step in its strategy to develop the Colluli potash project in Eritrea by appointing AMC Consultants (“AMC”) to calculate the revised mineral resource estimate in preparation for the maiden Ore Reserve.
The reserve estimate will form part of the revised definitive feasibility study (DFS) on Colluli. The revised DFS will reflect South Boulder’s new strategy to process the three different types of potassium-bearing salts at Colluli, all of which can be used to make potash products.
South Boulder Chief Executive Paul Donaldson said AMC was already overseeing the mine planning for Colluli, a role which would overlap with the resource and reserve studies.
Mr Donaldson said the decision to appoint AMC was also consistent with South Boulder’s policy of ensuring that wherever possible, the work on Colluli was done close to the Company’s head office in Perth.
The current Colluli resource estimate of 1.08 billion tonnes was calculated by ERCOSPLAN of Germany. Mr Donaldson said that with the data now available to calculate a revised resource estimate, this was the logical time to relocate these studies to Perth.
As part of its Mineral Resource study, AMC will also estimate the grade and tonnage of the upper rock salt unit at Colluli, which lies above the potash units and report them in accordance with the JORC code.
“AMC has worked closely with us on the mine planning elements of the Colluli resource and its staff are familiar with the project,” Mr Donaldson said. “AMC will also act as the competent person to satisfy JORC Code requirements”.
In parallel with the resource and reserve studies, South Boulder will appoint consultants to undertake metallurgical and engineering testwork to determine the most appropriate processing route incorporating the three types of potassium-bearing salts.
The strategy to process these three ore types, as opposed to just one as considered in the original DFS, has the potential to lift the economic feasibility of Colluli significantly. This is because material previously considered to be waste would instead be classified as ore, slashing the strip ratio and therefore the mining costs.
It would also have the benefit of extending the mine life by a substantial period.
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