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South Boulder Mines transitions to potash producer in Eritrea
South Boulder Mines (ASX: STB) is making strong progress towards the completion of a Definitive Feasibility Study (DFS) for the development of its Colluli Potash Deposit, with all key technical activities to complete the study in 2013 underway or set to begin in the near term pending approvals.
The company recently received some highly favourable economics from
discounted cash flow financial modelling for the base case Stage 1 open
pit mining and processing of the Colluli Potash Deposit including a net
present value of US$1.33 billion and an internal rate of return of
South Boulder Mines is planning a series of investor visits starting this month to assess potential financial, offtake and development partners for the Colluli Project.
The recently completed Engineering Scoping Study produced a pre-tax net present value of US$1.33 billion with start-up capital costs of US$0.74 billion based on production of an initial 1 million tonnes of KCl per annum.
The study only considered 20% utilisation of the current resource and therefore enormous upside is expected.
- South Boulder is well funded to complete the DFS and is in the process of completing a fully underwritten 1 for 5 Entitlement Issue to raise about $10.7 million. This will result in a strong cash position of $21 million in early February.
Other Danakali Limited news
- Danakali的Paul Donaldson谈Colluli Potash项目的生产路线
- Danakali委任Robert Connochie加入董事会