An upgrade in the exploration target to 500 – 750 million tonnes of potash ores from the initial 300 – 500 million for South Boulder Mines (ASX: STB) has come about after continued drilling success at the Colluli Potash Project in Eritrea.
The exploration target is from the surface to 100 meters depth.
Diamond drilling at Colluli has defined a 9 kilometre square area, with extensive mineralisation intersected, with the company adding it considers open in all directions.
A JORC resource is anticipated to be announced by the company in January 2011, with scoping study results around mid-year.
The drilling program aims to help define a resource and mining engineering study into an open pit mining and processing operation, with an initial starting capacity of 1.5 million tonnes of potash annually.
The study will also examine the viability of additional production of up to 3 million tonnes of potash per year.
The market has cheered this latest announcement, with the shares rallying 8% to $3.10 in morning trade.
The company is well funded with over $15 million in cash and NTA.