Wednesday, 27 July 2011

South Boulder Mines broadens investor base by launching ADR program

South Boulder Mines (ASX: STB, OTC: SBMSY) will now provide North American investors to invest in the company after launching an American Depository Receipt (ADR) program.

The program will allow South Boulder to extend the company's shareholder base into key markets that have a strong understanding of the potash industry.

The over-the-counter ticker will be SBMSY.

South Boulder has a very interesting story to tell North American investors, after a continued string of high grade near surface potash discoveries at the Colluli Potash Project in Eritrea.

At the project the current JORC Resource is 548 million tonnes at 18.6% KCl, for total contained potash of 102 million tonnes, with an exploration target of 1.25 to 1.75 billion tonnes at 18-20% KCl.

South Boulder has an initial strategy to consider producing 2 to 10 million tonnes of potash annually from an open pit operation in 2016/2017, which is a substantial target considering the current global production is 55 million tonnes.

The company also has the potential to be the lowest cap-ex and op-ex operation in the world, with industry production costs around USD$100 to USD$250 per tonne, compared to the potash price of around USD$500 a tonne.

South Boulder has forecast operating costs to be in lower 25% of the industry.

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