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South Boulder Mines welcomes new chief financial officer

South Boulder Mines (ASX: STB) has appointed Flavio Garofalo as chief financial officer, effective from February 2012.

Garofalo is an experienced finance and corporate executive who has more than 20 years experience in the mining industry and was previously chief financial officer and finance director for Kagara (ASX: KZL).

South Boulder managing director Lorry Hughes said the appointment of Garofalo reflects the growth of South Boulder as it continues the transition into a significant potash producer from the Colluli Potash Project.

“Mr Garofalo has successfully undertaken the transition of a number of listed companies from developer to producer and has strong financial links and experience from within the Asia region,” he said.

“In addition Mr Garofalo will make significant strategic contributions to South Boulder’s development of the Duketon nickel and gold projects and the planned in specie distribution of the assets to shareholders.”

South Boulder Mines plans to accelerate the completion of the Definitive Feasibility Study on the Colluli Open Cut Potash Project in Eritrea with a planned capital raising of A$10.6 million.

A recent Scoping Study on the Colluli Open Cut Potash Project returned highly favourable economics for South Boulder.

Based on around 16% of the JORC Resource of 564.4 million tonnes at 18.6% KCI, for total contained potash of 104.9 million tonnes – a net present value of US$1.33 billion (12% discount rate) was returned, with an internal rate of return of 40.6%.

Capital expenditure including contingency came in at US$0.74 billion, delivering project revenue of over US$6 billion. The production rate is based on 1 million tonnes annually from an open pit, for a study mine life of 17 years.