South Boulder hits new potash zone in Eritrea

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THE DRILL SERGEANT: Resource extension diamond drilling undertaken by Eritrea-focused potash exploration play South Boulder Mines has intersected further high-grade shallow potash situated between two existing resource zones at the company’s Colluli project.

South Boulder said the combination of the shallow nature of the additional mineralisation with its high-grade and location provides potential to boost Colluli’s economics.

 

The new zone of mineralisation sits between the existing Resource areas A and B. Source: Company announcement

South Boulder believes potential exists for potash to be largely continuous between the existing resources and will test that theory with ongoing drilling.

The current JORC / NI43-101-Compliant Mineral Resource Estimate at Colluli stands at 1.08 billion tonnes at 18 per cent potassium oxide for 194 million tonnes of contained potash.

This is contained within an Exploration Target of 1.25 to 1.75 billion tonnes at 18 to 20 per cent potassium oxide.

Highlights of the recent drilling include:

–    5.09 metres of high-grade sylvinite from 100.34 metres, within a total 15.86 metres potash interval;

–    6.12m of sylvinite from 68.34m, including 2.93m of high-grade sylvinite from 70.17m, within a total 16.12m potash interval;

–    2.93m of high-grade sylvinite from 88.49m in between Area A and B, within a total 13.34m potash interval; and

–    2.02m of high-grade sylvinite from 53.89m in between Area A and B, within a total 16.17m potash interval.

The company is of the opinion that the recent sylvinite drilling results demonstrate correlation with previous drilling and have potential to further improve the economics of the project.

“The new discovery is likely to make a material improvement to the already-robust Stage 1 production schedule and mining costs of the world’s first open pit potash mine,” South Boulder managing director Lorry Hughes said in the company’s announcement to the Australian Securities Exchange.

“The shallow depth of the resource is the key difference between Colluli and other potash resources currently being mined.

“Most existing mine production is from depths of greater than 500 metres and to depths of up to 1,500 metres below surface.

“We expect to convert a large portion of our resources to mineable reserves because we can utilise open pit mining as opposed to low-conversion underground or solution-mining methods.
 
“The operating and capital cost structures are completely different to all other potash projects in the world and this is a major advantage for Colluli.”