TORONTO, March 20, 2014 /PRNewswire/ --
Verde Potash (TSX: "NPK") ("Verde" or the "Company") is pleased to announce the results and completion of drilling at the Cerrado Verde project. Cerrado Verde now has a National Instrument 43-101 ("NI 43-101") Measured and Indicated Mineral Resource Estimate of 1.47 billion tonnes at a grade of 9.2% K2O (see Table 1). In addition, the revised Inferred Mineral Resource Estimate is 1.85 billion tonnes at a K2O grade of 8.6%. Over 1.4 billion tonnes of resource has been upgraded from the inferred to the measured and indicated categories.
Brazil's annual potash consumption expressed in K2O terms is approximately 4.9 million tonnes. The new resource represents over 295 million tonnes of in-situ K2O.
President and CEO, Cristiano Veloso commented: "The Company is on track to complete and publish the pre-feasibility study ("PFS") in Q1 2014 for its Phase 1, 1,000 tonnes per day ThermoPotash facility (the 'Flex Plant'). The Flex Plant will also be operated to process KCl in order to secure the necessary performance guarantees. The upcoming PFS will address ThermoPotash, not KCl, so that the Company can gradually and ultimately maximize production from its large potash resource in the heart of Brazil in order to become a significant domestic producer."
This large potash resource is located at surface with very little to no overburden, making the deposit amenable to open pit mining. The nature of the resource allows for a low capex, scalable project to be pursued, thereby allowing for an accelerated route to cashflow while preserving the upside of a large scale KCl operation. In contrast, a conventional KCl deposit in Saskatchewan, Canada is typically located 1,000 to 2,000 meters below surface, necessitating a conventional shaft or solution mining operation with a minimum capex measured in billions of dollars.
The new mineral resource estimate comprises a Measured Mineral Resource of 83 million tonnes with an average grade of 10.1% K2O, an Indicated Mineral Resource of 1.39 billion tonnes with an average grade of 9.2% K2O and an Inferred Mineral Resource of 1.85 billion tonnes with an average grade of 8.6% K2O (all applying a 7.5% K2O cut-off).
The new mineral resource was estimated from data collected from a total of 41,021m of reverse circulation ("RC") drilling from 710 drill holes with a collar spacing ranging from 100m x 100m (measured resource) to 400m x 400m (inferred resource) and an additional 1,717m of diamond core drilling ("DC") from 25 drill holes. The final drilling program consisted of 15,080m of drilling from 252 RC drill holes and an additional 785m from 12 DC drill holes.
Table 1: Measured, Indicated and Inferred Mineral Resource Estimate Grade Tonnage Report
Verde Potash - Cerrado Verde Potash Project Measured, Indicated and Inferred Mineral Resource Estimate Grade Tonnage Report (AMS & SRK Consulting) Ordinary Kriging (OK) & Inverse Distance Weighting With Power Two (IDW2) (Block Model - 50mE X 50mN X 5mRL) Cut-Off Grade Target (%K2O) Tonnage (Mt) Average grade (%K2O) Total Measured 7.5 83 10.1 Total Indicated 7.5 1,388 9.2 Total Measured & Indicated 1,471 9.2 Total Inferred 7.5 1,849 8.6
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability
Environmental License Update
Given Verde's focus on expediting cash flow with the lowest capex possible, the Company will focus its regulatory efforts on securing an environmental license for ThermoPotash. If the Company were to move forward with KCl at this time, it would need to continue investing capital on studies required by Brazilian authorities. It is also not feasible to convert the current application process for KCl into an application process for ThermoPotash. Consequently, the Company will not be spending additional resources on securing an environmental license for KCl production until ThermoPotash production commences Verde will thus terminate the licencing process for KCl.
For the environmental license, ThermoPotash's mine pit occupies 30ha vs. 2,000ha in the case of KCl. Given ThermoPotash's smaller footprint and minimal environmental impact, the project is classified by Brazilian environmental authorities as Class III, which allows for an expedited licensing process as the LP (preliminary permit) and the LI (construction permit) are issued simultaneously. The KCl project is classified as Class V, which does not allow for the same treatment.
Verde's work on securing an environmental license for ThermoPotash is ongoing. During the past few weeks, the Company had meetings with Brazilian authorities to update them on its progress.
The "qualified person", within the meaning of National Instrument 43-101, with respect to the technical information in this press release is Bradley Ackroyd (MAIG (CP)), who is a principle consulting geologist with Andes Mining Services Ltd. (AMS).
About Verde Potash
Verde Potash, a Brazilian fertilizer development company, is focused on advancing the Cerrado Verde project located in the heart of Brazil's largest agriculture market. Cerrado Verde is the source of a potash-rich deposit from which the Company intends to produce both ThermoPotash and potassium chloride (KCl). ThermoPotash is a controlled-release, non-chloride, multi-nutrient fertilizer that is ideally suited for Brazilian soils. In addition, the Company is developing its Calcario limestone project, limestone being a key raw material in the Company's process to produce both ThermoPotash and KCl.
About the Cerrado Verde Potash Project
Cerrado Verde is a unique project: 1) its high grade potash rock outcrops and is amenable to strip mining, allowing fast construction of a scalable operation; 2) it is located in the midst of the world's third largest and fastest growing fertilizer market; 3) it connects to Brazil's largest fertilizer distribution districts via existing and high quality infrastructure; 4) it has the potential to supply KCl to Brazil's local agriculture market from its large potash-rich deposit.
Cautionary Language and Forward Looking Statements
NEITHER THE TSX EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
THIS PRESS RELEASE CONTAINS CERTAIN "FORWARD LOOKING STATEMENTS", WHICH INCLUDE BUT IS NOT LIMITED TO, STATEMENTS WITH RESPECT TO THE FUTURE FINANCIAL OR OPERATING PERFORMANCE OF THE COMPANY, ITS SUBSIDIARIES AND ITS PROJECTS, AND STATEMENTS REGARDING USE OF PROCEEDS. FORWARD LOOKING STATEMENTS CAN GENERALLY BE IDENTIFIED BY THE USE OF WORDS SUCH AS "PLANS", "EXPECTS", OR "DOES NOT EXPECT" OR "IS EXPECTED", "ANTICIPATES" OR "DOES NOT ANTICIPATE", OR "BELIEVES", "INTENDS", "FORECASTS", "BUDGET", "SCHEDULED", "ESTIMATES" OR VARIATIONS OF SUCH WORDS OR PHRASES OR STATE THAT CERTAIN ACTIONS, EVENT, OR RESULTS "MAY", "COULD", "WOULD", "MIGHT", OR "WILL BE TAKEN", "OCCUR" OR "BE ACHIEVED". FORWARD LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SAID STATEMENTS. THERE CAN BE NO ASSURANCES THAT FORWARD-LOOKING STATEMENTS WILL PROVE TO BE ACCURATE, AS ACTUAL RESULTS AND FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED IN SAID STATEMENTS. ACCORDINGLY, READERS SHOULD NOT PLACE UNDUE RELIANCE ON FORWARD-LOOKING STATEMENTS.
Readers are cautioned not to rely solely on the summary of such information contained in this release and are directed to the complete set of drill results posted on Verde's website (http://www.verdepotash.com) and filed on SEDAR (http://www.sedar.com) and any future amendments to such. Readers are also directed to the cautionary notices and disclaimers contained herein.
SOURCE: Verde Potash Plc
For further information:
Cristiano Veloso, President & Chief Executive Officer
Tel: +55(31)3245-0205; Fax: +55(31)3245-0205; Email: firstname.lastname@example.org
Iwona Zakrzewski, Investor Relations
Tel: +1(647)295-8120 / +1(416)866-2966; Fax: +1(416)866-8829; Email: Iz@verdepotash.com