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South Boulder’s (ASX: STB) flagship project is the world class Colluli Potash Fertilizer Project in Eritrea where mine production of 1Mt p.a. is scheduled for 2016 or sooner from the world's first open cut potash mine.
South Boulder also operates the Duketon Project in Western Australia where there is demonstrated potential for gold,...
Stocktube video - Lorry Hughes of South Boulder Mines says his focus is firmly on producing potash in EritreaLorry Hughes, CEO of South Boulder Mines, tells Proactive Investors that his main focus is to getting to potash production in Eritrea. South Boulder Mines is aiming to leapfrog the pack to become a major potash producer. The company has the world’s shallowest potash deposit.
25/11/2010South Boulder Mines One2One Presentation - 25th November 2010
11/02/2010South Boulder Mines Presentation
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South Boulder’s core project is the world class Colluli Potash Project in Eritrea. Our aim is to maximise shareholder wealth through the acquisition, exploration, development and ultimately mining of our quality resource projects.South Boulder Mines Ltd has its key project in Eritrea (Africa). The Company’s main focus is on potash.
Colluli Potash Project
South Boulder Mines Limited (ASX: STB) has been actively exploring for potash at the Colluli Potash Project in Eritrea since 2009. Engineering Scoping Study results were favourable, proving that an economic 1Mt p.a. potash mine can be built at half the cost of a typical potash development.
Definitive feasibility studies will be complete in 1H 2013 with production scheduled for 2016 or sooner. The Colluli Project will be one of a few “Greenfields” potash mines to come into production in the next 10 years. The location of the project provides much sought after infrastructure as it is approximately 65km from the Red Sea Coast and major shipping routes to Asia.
The JORC/NI43-101 Compliant Mineral Resource Estimate for the flagship Colluli Potash Project now stands at 1.08 billion tonnes @ 18% KCl* for 194Mt of contained potash.
Current JORC/43-101 Compliant Measured, Indicated and Inferred Mineral Resource Estimate
*KCl is commonly expressed as K2O according to the formula (KCl * 0.6317 = K2O). The recent KCl contract price is estimated at around US$ 470/t.
The resource comprises sylvite (KCl), carnallite (KMgCl3.6H20) and kainite (MgSO4KCl.3(H20) bearing horizons and has been identified from 16 – 70m depth. Kieserite (MgSO4.H20) is currently not included in the resource, however, is a mineral that is also important to the fertilizer industry for the production of sulphate of potash (SOP).
The Colluli potash deposit is the world’s shallowest, allowing extraction via open pit mining. There are currently no other open pit potash mines in operation and 91% of world production comes from deep underground mines. Activities including metallurgical testing, engineering design, environmental impact studies, social impact assessment and hydro-geological studies are being undertaken by global experts in conjunction with Eritrean employees of South Boulder Mines Ltd.
For the most current news and information on the Colluli Potash Project check our latest corporate presentation
Project Economics- Detailed Scoping Study Results
Discounted Cash Flow (DCF) financial modeling for the initial Stage 1 open pit mining and processing of the Colluli Potash Deposit has returned highly favourable economics.
The pre-production capital expense of USD 0.74 billion for 1Mt p.a. MOP production presents a highly attractive investment case, and compares very favourably with other proposed or planned potash developments in the industry. The average pre-production capital expense for Greenfield MOP projects is greater than USD 1 billion per 1 million tonnes of production capacity.
A breakdown of the key pre-production capital expenses including a 15% contingency are shown in the following table;
History of Exploration in the Danikil Depression
The Danakil Depression has ancient history of artisanal salt production with modern exploration and exploitation dating back to the early 1900’s. The most intensive period of exploration and trial underground mining occurred between 1958 – 1970 at the Musley and Crescent deposits, located approximately 15km south west of Colluli at Dallol, Ethiopia. Since 1968 until recently there has been no exploration at the Colluli Potash Project.
Potash Deal Terms
South Boulder originally applied for the license in May 2008 as part of an open tender process and won the right to negotiate terms for an exploration license agreement in June 2009. The minimum expenditure requirements of the license included USD $500,000 in the first year.
The Eritrean Government is a highly supportive partner.
Mr Seamus Cornelius – Executive Chairman
Appointed on 15 July 2013
Mr Cornelius brings 21 years of corporate experience in both legal and commercial negotiations. Mr Cornelius has been based in Shanghai and Beijing since 1993 where he has been living and working as a corporate lawyer.
From 2000 to 2011 Mr Cornelius was an international partner with one of Australia’s leading law firms and specialised in dealing with cross border investments, particularly in the energy and resource sectors. Mr Cornelius has for many years advised large international companies on their investments in China and in recent years advised Chinese state owned entities on their investments in natural resource projects outside China, including Australia.
Mr Cornelius was Vice Chairman of Austcham Shanghai from 2008 to 2010 and has been the Chairman of Buxton Resources Ltd (BUX) since 2010 as well as the Chairman of Montezuma Mining Company Ltd (MZM) since 2011.
Mr Tony Kiernan – Non Executive Director
Mr Anthony “Tony” Kiernan was previously a commercial lawyer and is currently Chairman of the Australian iron ore producer BC Iron Ltd (ASX:BCI) and a non-executive director of several listed mining companies including Chalice Gold Mines Ltd (ASX: CHN), which has been operating in Eritrea since 2009. Mr Kiernan brings particular skills in the areas of Government relations and approvals, corporate strategy and corporate governance, all of which are key areas for South Boulder Mines as it progresses the development of its key asset, the Colluli Potash Project in Eritrea.
Dr Chris Gilchrist – Non Executive Director/ Feasibility Study Manager
Dr Ian “Chris” Gilchrist is presently a consultant to the Mining Industry and has a background in managing major projects, managing mining and mineral processing research, new product development and the operation of large mines. He has served on the Boards of several mining companies and his areas of speciality include potash, diamonds, mineral sands and gold.
Dr Gilchrist has delivered numerous technical papers to the mining industry in areas including project management, operations management and hydraulic transportation . Dr Gilchrist holds a Bachelor’s Degree in Mineral Engineering from the University of Birmingham and a Doctorate from the School of Mechanical Engineering, University of the Witwatersrand, Johannesburg. Dr Gilchrist is a UK Chartered Engineer and a Fellow of the IMMM.
Mr Liam Cornelius – Non-Executive Director
Mr Liam Cornelius graduated from Curtin University of Technology with a B.App.Sc in Geology. Liam has been involved in the exploration industry within Australia and Africa for 18 years. Whilst specializing in gold he has experience with a wide range of commodities including nickel, copper, platinum and uranium.
As a founding member of South Boulder Mines Ltd, Mr Cornelius has played a key role in outlining areas of interest for the Company. In addition to project generation and providing guidance to the board on future directions, his responsibilities have included public relations and fund raising.
Mr Flavio Garofalo – Joint Company Secretary
Mr Garofalo is a CPA with more than 20 years experience in the mineral exploration and mining industry. He joined South Boulder Mines in 2011 after working with Kagara Ltd as Chief Financial Officer since 2004 and prior to that was the General Manager of Finance and Company Secretary for Titan Resources NL, a position held for 10 years. He commenced his career in auditing at Coopers and Lybrand, specialising in the resource and finance sector. Mr Garofalo has vast experience in project finance, capital raisings, corporate management and investor relations for listed resource companies.
Mr Dennis Wilkins – Joint Company Secretary
Mr Dennis Wilkins is the principal of DW Corporate, a specialist provider of corporate services to the resources sector. Mr Wilkins is a qualified accountant (B.Bus) who has been a director, company secretary and a corporate consultant to listed resource companies for over 20 years. Mr Wilkins experience includes; five years as Finance Director and Company Secretary for Lynas Corporation Limited, five years working for a leading merchant bank in the United Kingdom and management postings within the Resource Sector in Indonesia, South Africa and New Zealand. Mr Wilkins has extensive experience in exploration and operational financial reporting, together with treasury management.
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South Boulder Mines Ltd
PO Box 970
Western Australia 6872
31 Ventnor Avenue
Western Australia 6005
Telephone: +61 8 6315 1444
Facsimile: +61 8 9486 7093
Principal Place of Business
31 Ventnor Avenue
WEST PERTH WA 6005
Tel: +61 8 6315 1444
Fax: +61 8 9486 7093
Kings Park Corporate Lawyers
Suite 8, 8 Clive St
WEST PERTH WA 6005
National Australia Bank Limited
1232 Hay Street
WEST PERTH WA 6005
Security Transfer Registrars Pty Ltd
770 Canning Highway
APPLECROSS WA 6153
Telephone: +61 8 9315 2333
Facsimile: +61 8 9315 2233
Rothsay Chartered Accountants
4 Ventnor Avenue
WEST PERTH WA 6005
South Boulder Mines Ltd
ABN: 56 097 904 302
ACN: 097 904 302
Stock Exchange Listing
ASX : STB
South Boulder Mines Limited shares (Code: STB) are listed on the Australian Stock Exchange.