South Boulder keeps heading north KATE EMERY, The West Australian January 7, 2011, 6:39 am
Shares in South Boulder Mines jumped another 9 per cent yesterday, taking its gains for the week to 30 per cent on speculation a maiden resource over its Eritrean potash project is imminent.
Investors pushed the WA explorer 31? higher to an all-time high of $3.70, capitalising the group at $280 million.
The stock - one of 2010's best performers - was trading at $1 a share just three months ago and 25? a share this time last year.
South Boulder this week increased the size of its exploration target to between 500 million tonnes and 750mt of potash.
A maiden resource is due this month, with scoping study results to follow in mid-2011.
Investor excitement over the Colluli potash project has been growing in the wake of BHP Billiton's unsuccessful $US40 billion bid for PotashCorp and a bullish outlook for fertiliser prices.
About 95 per cent of all potash production goes into the agricultural sector for use in fertiliser.
South Boulder, which acquired an exploration licence over Colluli in 2009, claims it is the world's shallowest buried evaporite potash deposit.
According to analysts, the presence of potash mineralisation as shallow as 60 metres means Colluli could be mined as an open pit. South Boulder hopes to establish a start-up operation at 1.5mtpa. South Boulder, headed by Western Areas co-founder Terry Grammer, also owns the Duketon nickel joint venture in WA with Independence Group.
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STB Price at posting:
$3.92 Sentiment: Buy Disclosure: Held
