South Boulder Mines likes prospects for more nickel discoveries at Duketon Nickel JV with Independence Group

South Boulder Mines (ASX: STB) has provided an update on the Duketon Nickel JV with managing partner, Independence Group (ASX: IGO).

Independence can earn a 70% interest in the nickel rights on tenements held by South Boulder in the Duketon Project, by the completion of a Bankable Feasibility Study within 5 years of 2004.

A follow up drilling program has been designed by Independence to the encouraging nickel sulphide mineralisation defined over the last 12 months at the Bulge C2 Prospect.

One hole intersected 50m @ 0.92% Ni from 275.00m including 37m @ 1.05% Ni from 275.00m, in diamond hole TBDD074 which was drilled to test down dip extensions to mineralisation in hole TBDD071.

The next programs for exploration at the Bulge Prospect will involve a low level detailed aeromagnetic survey, up to 7 diamond drill holes and up to 40 air-core holes.

South Boulder Chairman Terry Grammer said; “Due to the success of the last drill program both South Boulder and Independence remain extremely encouraged by the results. When there is this much nickel sulphide intersected, it usually means that there is a lot more."

Grammar said, the shear volume of contained nickel indicated by drilling to date suggests to me that the mechanisms to generate potential economic deposits are in place.

"Independence are great explorers and I couldn’t be happier with the success they are having. It is possible that the Joint Venture is sitting on a whole new nickel Province. Already I can draw some similarities between the mineralisation identified thus far at the Bulge and the discovery history of other nickel deposits in W.A."

It is expected that the aeromagnetic survey will commence in July and the follow up diamond drilling soon after. Air-core drilling to test extensions to The Bulge eastern contact will commence in August.

The discovery of the blind Cosmos nickel deposit in 1997 centered about 300m north of this hole. Subsequent exploration by Jubilee Mines NL led to the discovery of the Cosmos, Cosmos Deeps, Alec Mairs Complex, Prospero and Tapinos nickel deposits which have supported 10 years of mining, the company said in a statement.

Interestingly, South Boulder holds equity stakes in the following ASX companies: (ASX: MZM) - 4.150m shares (ASX: MZMO) - 1.037m options; (ASX: IXR) - 1.325m shares; (ASX: AVZ) - 0.400m shares; (ASX: BUX) - 0.250m shares; (ASX: AGO) - 12,490 shares and (CDNX: CNI.V) - 130,000 shares

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