Name and Location
Colluli potash project, Eritrea.

Client
South Boulder Mines.

Project Description
The Colluli project has a current Joint Ore Reserves Committee and National Instrument 43-101-compliant measured, indicated and inferred mineral resource estimate of 1.079-million tonnes at 17.97% potassium chloride (KCl). The resource contains 261.81-million tonnes at 17.94% KCl, 674.48-million tonns at 17.98% KCl and 143.5-million tonnes at 18.00% KCl.

The Colluli resource consists of three potassium-bearing salts – sylvinite, carnallitite and kainitite. The original development plan contemplated for the project considered a one-million-tonne-a-year potassium chloride production process utilising sylvinite only.

An extensive review conducted in 2013 demonstrated that a significant improvement in economics could be realised by processing all of the potassium-bearing salts in the resource, owing to a substantial reduction in mine strip ratio and overall mining costs.

A prefeasibility study (PFS) was initiated in 2014 for the production of potassium sulphate from the resource using all potassium bearing salts.

Value
Not stated.

Duration
Production is scheduled for no later than 2016.

Latest Developments
South Boulder has announced that PFS-level drilling at its Colluli potash project has been completed ahead of schedule.

This early completion of the PFS section of the drilling programme enables the finalisation of the mining study and the resource report and will ensure the timely delivery of the PFS early next year, the company says.

South Boulder says drilling will continue at Colluli on the definitive feasibility study (DFS) section of the programme, investigating the foundation locations of critical infrastructure and the dewatering bores.

Key Contracts and Suppliers
Consultants appointed to drive the DFS include Ercosplan (principle consultant), Senet Engineering (infrastructure), Ashmead Maritime (port area investigation), Dayle Kenny & Associates Mining (mining) and Knight Piesold (environment and sustainable development).

On Budget and on Time?
Not stated.

Contact Details for Project Information
South Boulder Mines, tel +61 8 6315 1444, fax +61 8 9478 7093 or
email info@southbouldermines.com.au.
Ercosplan, tel +49 361 3810 500, fax +49 361 3810 505 or email info@ercosplan.com.
Senet Engineering, tel +27 11 409 1300 or fax +27 11 608 2142.
Knight Piesold (Johannesburg office), tel +27 11 806 7111 or fax +27 11 806 7100.