News: South Boulder Mines extends Colluli exploration licence

South Boulder Mines (ASX:STB) has completed its annual exploration licence extension for the Colluli Potash Project in Eritrea.

As part of the extension, the licence was transferred to the Colluli Mining Share Company – an equal joint venture company between South Boulder and the Eritrean National Mining Company (ENAMCO).

“This process is an annual formality for the project. The Eritrean Ministry of Energy and Mines and ENAMCO are kept well informed of the project status, the work that has been undertaken throughout the year and the projected work in the upcoming period,” managing director Paul Donaldson said.

“These are all key components of the annual renewal application and the feedback on the project development over the past 12 months has been very positive.”

Colluli Potash Project

The company is progressing a modular and scalable approach towards developing the project, which has a large Resource of 1 billion tonnes of potassium bearing salts that are suitable for producing higher value sulphate of potash (SOP).

It is also the closest SOP resource to the coast globally, being just 75 kilometres to the designated loading point at Anfile Bay and 180 kilometres from the Port of Massawa, and the company has a strong relationship with the government.

Drilling is underway to provide key data for both the Pre-Feasibility Study and concurrent Definitive Feasibility Study. The PFS is due for delivery in February 2015 while the DFS is expected in mid-2015.

South Boulder has $10 million in cash on hand.

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