the next fcn

Todays announcement below. STB has a Mkt Cap of $8mill.

Duketon Nickel Project Update
Granting of Three Nickel Sulphide ELs Clears Way for Drilling to Begin at Duketon


 3 Nickel Sulphide Exploration Licences granted
 ELs lie between Collurabbie and Windarra Nickel Projects
 Rig sourced and drilling to begin September 06
 STB in Duketon JV with IGO
 Previous sampling: 0.9%Ni, 2.3%Cu, 0.7g/t Pt, 0.7g/t Pd and 0.4g/t Au

South Boulder Mines Ltd (ASX: STB) is pleased to announce that drilling will soon commence on three recently granted Exploration Licences prospective for high grade nickel sulphide at its Duketon Project, located between two of Australia’s biggest nickel deposits.

The granting of these licences clears the way for STB’s joint venture partner, Independence Group (IGO), to begin drilling a series of targets generated by the Duketon Nickel JV since early 2004, including the ‘Camp Oven’ nickel sulphide target, which has returned values of 0.9%Ni, 2.3%Cu, 0.7g/t Pt, 0.7g/t Pd and 0.4g/t Au from rock chip testing. The coincident occurrence of this suite of elements is indicative of potential genesis from a Nickel Sulphide source.

The three exploration licences (E38/1511, E38/1537 and E38/1594) cover a total area of 309km² in the northwest section of the Duketon Greenstone Belt, near Laverton in WA. The area is situated between Falcon Minerals’ and BHP Billiton’s recent Collurabbie Nickel Discovery and Niagara’s Windarra nickel mine.

Drilling is expected to commence in September 2006 at The Bulge and Camp Oven nickel sulphide targets. A suitable drill rig has been sourced, and a Ground Disturbing Activity has been lodged with WA’s Department of Industry and Resources (DoIR).

A series of Ground Total Electromagnetic (TEM) conductors have been outlined by the Duketon Nickel JV, the most promising of these being located within The Bulge prospect, a north-west striking, S-shaped, ultramafic body of rock.

Modelling of six TEM conductors at The Bulge has generated two priority conductors, C2 and C6. Both conductors appear to be confined conductors and to have a signature consistent with sulphide mineralisation. Both C2 and C6 are to be drilled tested.

STB Managing Director, Liam Cornelius said: “The potential for high grade nickel sulphide deposits to be found in The Bulge is highlighted by the area’s proximity to the Collurabbie discovery only 70km to the north and the Windarra nickel mine 100km to the south.

“Despite the close proximity to Collurabbie and Windarra, the Duketon belt has received no modern systematic nickel sulphide exploration, as the area is predominately overlain by transported loose rock, which would have hampered previous exploration attempts.

“The strong coincident of platinum, palladium and gold, together with nickel and copper returned from STB’s ground holding, suggest that Duketon may be an extension of the Collurabbie Belt,” he said.

The Duketon Nickel Joint Venture covers approximately 100km of prospective ultramafic sequences. To date, only 15% of the prospective ultramafic sequences have been subjected to modern exploration in the search to outline drillable targets.

+ Diagrams in original announcement

About the Duketon Project

South Boulder Mines’ 100%-owned Duketon Project is located north of Laverton in Western Australia. The Duketon Project covers 2,250km² and is highly prospective for gold, nickel sulphide and base metal deposits.

From the early 90’s the majority of the Duketon Project was held by Normandy Mining Limited and Newmont Mining Corporation. Although wide spaced reconnaissance exploration was sporadically conducted, the vast majority of the project remains under shallow cover and vastly under-explored.

South Boulder has a two-pronged attack on the Project, seeking both large-scale, stand-alone gold operations, as well as looking closely at smaller, higher-grade opportunities. As part of its push to find further resources, South Boulder is targeting prospects that would not have met the size criteria of previous larger explorers.


About South Boulder Mines Ltd

Listed in 2003, South Boulder Mines Ltd (STB) is focused on exploration within the Duketon Gold-Nickel Project. In early 2004, STB signed a farm-out joint venture agreement with Independence Group (IGO), who can earn a 70% interest of the nickel rights on tenements held by STB within the Duketon Project by the completion of a Bankable Feasibility Study within 5 years. New in-house technology developed by IGO and currently in use on the Duketon Nickel JV lends a significant advantage over previous explorers.

STB retains a 10% interest free-carried to the completion of a feasibility study in the La Fortaleza Gold Project, a significant high-grade gold system located 110km north of La Paz, Bolivia, South America.