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.
