Name and Location
Colluli potash project, Eritrea.

Client
South Boulder Mines.

Project Description
A November 2011 Stage 1 engineering scoping study on the Colluli project found that the project would be economically robust based on an openpit operation and processing facility, producing one-million tons of muriate of potash (MoP) a year over a 17-year life.

The overall production strategy is to initially produce standard MoP from sylvite mineralisation and to progressively transition the project to include the production of granular MoP, standard and granular sulphate of potash (SoP) and potassium-magnesium (K-Mg) sulphates from carnallite, kainite and kieserite mineralisation.

Colluli has a current Joint Ore Reserves Committee-compliant measured, indicated and inferred mineral resource estimate comprising 133.70-million tons of potassium chloride.

Value
The scoping study preproduction capital expenditure is estimated at $736-million.

Duration
Production is scheduled for no later than 2016.

Latest Developments
South Boulder has announced the appointment of key consultants to complete the definitive feasibility study (DFS) at the Colluli potash project. The DFS is scheduled for completion in 2013, with the final stages to include detailed studies of geology, engineering, metallurgy and infrastructure.

These studies will add to last November’s Stage 1 engineering scoping study,

The Stage 1 scoping study considered MoP production from sylvite mineralisation only. The DFS will also consider Stage 2 production, including SoP and K-Mg production from the extensive mineralisation directly below the sylvite.

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.