Executive Summary

SOUTH BOULDER MINES:

• ASX Listed October 2003 (ASX: STB), (SO3-Ber), (SO3-Fra); and
• Three outstanding projects: potash, gold and nickel.

PROJECTS:

Colluli Potash Project

• Potentially “world class” buried evaporite potash project in Eritrea; and
• Acquisition of an Exploration license granted in July 2009.

Duketon Greenstone Belt Projects, Western Australia.

• Gold discovery at surface “Terminator Prospect”; and
• Other excellent targets proximal to Moolart Well (ASX: RRL)
• Nickel JV with Independence Group (ASX: IGO):
  • IGO earning 70% of nickel upon completion of BFS; and
  • Targeting massive and matrix nickel sulphide deposit, currently drilling, sulphides intersected, announ. 8th Feb.

STRATEGY:

• Conduct resource confirmation and definition drilling ahead of JORC resources and feasibility studies at Colluli. Drilling scheduled for March, first since 1968; and
• Follow up RC drilling planned for Terminator at end February and work towards defining an initial JORC gold resource at Terminator POW approved; and
• JV partner conducting nickel drilling to define JORC resource.

Eritrea

FORMATION

• The country gained its independence in 1991;
• UN supervised referendum made it official in 1993;
• Population ~ 4 million people; 80% dependent on subsistence agriculture;

CURRENTLY

• Stable Government:
  • Previous minister for mines was in place for 12 years.
• Supportive government for foreign investment in mining and exploration.

MINING REGIME

• Mining code based on Northern Territory, Australia, with royalties of:
  • 5% on precious metals; and
  • 3.5% on base metals and salts.
• Corporate tax rate ~ 38%;

GOVERNMENT INTEREST

• Government 10% free carry; and
• After BFS Government has option to purchase an additional 30% equity participation interest at an independently determined price.

Click here for PRESENTATION

Related posts:

1. South Boulder Mines Fair Share Price Between $6.25 to $29.95, Says Investment Consulting Firm
2. Due Diligence and Valuation Report South Boulder Mines
3. South Boulder Mines AGM Presentation 2009- Colluli Project Eritrea
4. South Boulder Mines Managing Director to Speak at London Exhibition
5. South Boulder Mines Amongst Top Ten ASX Listed Resource Companies
6. South Boulder Mines: Drilling Recommences at the Colluli Potash Project in Eritrea
7. Diggers and Drillers Article on Potash, South Boulder Mines, Eritrea and the Red Sea
8. South Boulder Mines: More Potash Assay Results Returned and Scoping Study Update
9. South Boulder Annual Report – Chairman’s Visit to Eritrea