DECEMBER 2012 QUARTER ACTIVITIES REPORT
South Boulder Progresses Colluli Definitive Feasibility Study
Definitive Feasibility Study on 1Mtpa from Sylvinite mineralisation
completion in 2013; first production planned for 2016
COLLULI POTASH PROJECT (Eritrea)
Definitive Feasibility Study based on a 1Mtpa operation continued
during the Quarter.
An updated Engineering Scoping Study (ESS-2) on the viability of
mining and processing
Carnallite and Kainite mineralisation was completed in November
2012. This study highlighted
the potential to expand the initial 1 Mtpa operation in 2021 to 2
Mtpa by augmenting the
Sylvinite processing operation with Carnallitic ore.
Large-diameter, close spaced resource definition and extension
diamond drilling programs
completed in the September Quarter were logged and sampled. These
subsequently dispatched to laboratories with assay results expected
in the first Quarter of
2013. Initial results have highlighted the potential to grow the
resource further and improve
project economics. Assay results from 35 holes containing shallow
Sylvinite mineralisation are
due to be returned.
Negotiations with the Eritrean National Mining Company (“ENAMCO”)
are continuing regarding
the Company’s participation interest in the Colluli Potash Project.
South Boulder has
submitted a proposal for ENAMCO to participate in the Colluli
Potash Project by way of a 50/50
profit share, where South Boulder would pay 100% of the development
DUKETON GREENSTONE BELT PROJECTS (Western Australia)
November 2012 updated Mineral Resource Estimate totals 1.94Mt @
1.7% Ni (32,700t contained
nickel), 0.4% Cu and 1.9g/t Pt + Pd.
High-conductance plate identified down-dip from the intersection
in TBDD140 by down-hole
electromagnetic (DHEM) surveys remains to be drill-tested.
Experienced mining and corporate executive Paul Donaldson
appointed as Chief Operating
Cash on hand of $18.5M plus listed investments of $2.4M at
Shareholder approval granted at AGM for a demerger of the
Company’s non-potash assets. The
demerger will be via an in-specie distribution of 100% of the
shares in Duketon Mining Limited to
shareholders of South Boulder on a one-for-four basis.
South Boulder received a draft Class Ruling from the Australian
Tax Office indicating demerger
relief will likely be available to South Boulder shareholders for
the proposed distribution.