South Boulder Mines
South Boulder Mines Ltd. (ASX: STB) announced today that it has been granted officially the Colluli Potash Project exploration licence by the Eritrean Ministry of Energy and Mines.
The Colluli Potash Mine is located in the Danakil Depression region of Eritrea approximately 200 km south east of the capital of Asmara and covers an area of 906 km2.
According to South Boulder the project is said to be located in an area, which used to be used by the former Ethiopian Potash Company (EPC) for diamond drilling in 1968.
“The Project consists of buried evaporite deposits in which two shallow potash bearing horizons were identified from historic diamond drilling conducted in 1968 by the former Ethiopian Potash Company (EPC). The first horizon intersected an average thickness of 1.7m sylvinite with average grades of 12.5% K2O at depths to the top of the horizon ranging from 23m – 180m. The second horizon intersected an average thickness of 17m carnallite with average grades of 50 – 70wt% *(~17% K2O) at depths to the top of the horizon at 390m.”
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. Since 1968 there has been no exploration at the Colluli Potash Project.
The project is located less than 100kms south of the shallow water port of Mersa Fatma and less than 200kms south east of the deep water port of Massawa.
South Boulder stated that the potential of using solar evaporation and solution mining techniques make the project in Eritrea very attractive. These factors coupled with the relatively shallow nature of the mineralisation could lead to relatively cheap capital and operating costs if a deposit is defined.
South Boulder intends to complete detailed data compilation and to undertake diamond drilling, to confirm the reported potash intercepts and to collect samples for preliminary metallurgical test work.
The drilling is planned to commence in the field season early October. South Boulder believes the project has the potential to host a world class potash deposit and is committed to assessing this potential. South Boulder is in the process of setting up a local branch office in Asmara including the recruitment of local administration and geological staff in order to support exploration.
Related posts:
- South Boulder Mines Fair Share Price Between $6.25 to $29.95, Says Investment Consulting Firm
- South Boulder Drill Tests Eritrea Scheduled for February/March
- South Boulder Mines Managing Director to Speak at London Exhibition
- South Boulder Mines Appoints Potash Expert as Board Member
- Diggers and Drillers Article on Potash, South Boulder Mines, Eritrea and the Red Sea
- SOUTH BOULDER MINES INVESTOR PRESENTATION
- South Boulder Mines: More Potash Assay Results Returned and Scoping Study Update
- South Boulder Mines Shares Rise on Good Reports from Eritrea
- South Boulder Mines CEO Lorry Huges to Present at International Mining Convention in Cape Town
