South Boulder Mines Ltd (ASX:STB) announced some of the highest assay results to date at the Colluli Potash Project in Eritrea, increasing the potential for the company to expand its resources.
As quoted in the press release:
The best of the latest assays, recorded in Hole Col-054, was:
- 4.26m of Sylvinite @ 34.46% KCl from 70.24m including
- 1.98m of Sylvinite @ 44.92% KCl from 70.24m.
Lorry Hughes, South Boulder’s Managing Director, commented:
There is real potential to improve project economics and reduce the payback period with hits like these. Very early on hole Col-004 intersected 3.5m @ 44% KCl from 33m depth at Area A. These new results are pretty similar and located up to 7.5km away. This shows very clearly that the Colluli resource is world-class. I think the start-up pit will still be at Area A, however with continued drilling we may just find a sweeter spot to get started. We are now eagerly awaiting the results of the revised engineering Scoping Study, due later this quarter, which will be based on mining and processing the Sylvinite and Carnallite mineralisation together.
Having the high-grade Sylvinite mineralisation overlying the thicker Carnallite is certainly strategically important for the project in terms of payback. Further optimisation of the mining schedule to determine which parts are best to mine first will now be important.
We have the right team in place to find, define and mine Colluli in the most cost efficient manner.