Assays from South Boulder Mines’ (ASX: STB, SO3-Fra, SO3-BER) first complete hole at its fully owned Colluli potash deposit in Eritrea have exceeded the company’s expectations, confirming Colluli as a highly significant potash deposit.

The first true width assays from hole Col-004 confirm extensive shallow potash at Colluli including: - 7.72m of Sylvinite @ 25% KCl (16% K2O) from 28.68m depth; including 3.44m of Sylvinite @ 44% KCl (28% K2O) from 32.96m and; - 14.79m of Carnallitite + Kainitite @ 16% KCl (10% K2O) from 48.55m depth; including 3.20m of Kainitite @ 22% KCl (14% K2O) from 55.60m; including 4.20m of Kainitite @ 24% KCl (16% K2O) from 58.60m.

Lorry Hughes, managing director, said “this is an outstanding result to be able to drill high grades at such shallow depths.” “Hole Col-004 is the first complete hole we have received from the laboratory and we expect to have the remainder of the holes within two weeks.

It appears that Colluli is one of the shallowest potash deposits in the world and I expect the engineering study results to confirm a cheap capex and opex operation.”

Exploration work is continuing, including the commencement of a ground gravity survey at the end of October to help delineate structures that control mineralisation.

The gravity results together with the remaining chemical results will allow South Boulder to better target further resource delineation drill sites. The drill rig is still onsite and drilling is set to resume in early November.

To date potash has been intersected over a 4.5km2 area and it is planned to expand on this with the current drill program.

Data will be used to generate a geological resource estimate at year end and concurrent scoping study estimates and planning is well advanced. Information on the scoping study program and further exploration results will be released as it comes to hand.

South Boulder Mines has a market capitalisation of $68.1 million, 87.8 million shares on issue and $3.4 million cash at bank. Eritrea is a country in the Horn of Africa, bordered by Sudan in the west, and Ethiopia in the south.

Source: Proactiveinvestors