DuSolo Secures Additional Order of DANF and Provides Operational Update
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 7, 2015) - DuSolo Fertilizers Inc., (TSX VENTURE:DSF)(OTC PINK:ELGSF)(FRANKFURT:E6R) ("DuSolo" or "the Company") is pleased to provide an operational update regarding its exploration, production, sales and marketing activities during the first quarter of 2015.
During the quarter, the Company was able to successfully conclude the first stage of its exploration drilling campaign for 2015. DuSolo also secured the equipment required to upgrade the capacity of its beneficiation facility. The Company added to its sales force, and received a new order for 10,000 tonnes of Direct Application Natural Fertilizer ("DANF") from one of the leading sugarcane plantations in Brazil. Finally, the first delivery of DANF product for the upcoming 2015 planting season was completed at the end of the quarter.
"Despite it being the rainy season in Brazil our team has still made significant progress in all aspects of the business from exploration to production and sales" commented Eran Friedlander President and CEO of DuSolo Fertilizers Inc. "As planned, we are right on track and very much looking forward to take advantage of what we anticipate to be a busy 2015 planting season."
EXPLORATION
The first stage of the 2015 drilling campaign started on November 24th, 2014 and concluded March 27th, 2015. During this time, a total of 90 reverse circulation ("RC") holes were drilled at the Santiago and Tataco targets.
At Santiago, 58 RC drill holes totaling 1,301.5 meters were completed. Drilling focused on further defining the inferred resource while testing the "exploration potential" of the STW Domain that was previously reported in the Bomfim NI 43-101 Initial Resource Estimate published January 5th, 2014.
At Tataco, a total of 32 RC drill holes totaling 600.5 meters were completed. Drilling focused on proving the existence of mineralized zones that were previously identified by mapping, surface sampling, and pit testing.
The Company expects to receive all lab results from this drilling campaign by the end of April 2015, and plans to incorporate them into an updated NI 43-101 resource estimate later on this year.
PRODUCTION
The Company acquired the additional three hammer mills required to increase the current production capacity of its beneficiation facility from 80,000 to 160,000 tonnes per year. Installation is planned to commence as soon as all the necessary engineering work has been completed.
During the next quarter, DuSolo will commence the processing of nearly 40,000 tonnes of phosphate rock currently stockpiled at its facility. Soon after this work is completed, additional material will be excavated and transported to the production facility. In order to facilitate greater production levels, the Company plans to complete upgrades to the road that connects the mining site with the beneficiation plant.
SALES AND MARKETING
During the first quarter of 2015, the Company significantly strengthened its sales force by recruiting additional personnel with relevant skills set and establishing networks with local distributors specializing in each of the five sub-markets DuSolo is focusing on - sugarcane, soybean, reforestation, cattle grass and industries of organic fertilizer products.
As a result of these efforts, the Company has successfully secured an additional order for 10,000 tonnes of DANF with one of the leading sugarcane plantations in Brazil. To date, DuSolo has obtained firm commitments to acquire a total of 50,000 tonnes of DANF during the 2015 planting season. The first delivery of DANF for the 2015 planting season was completed late last week.
With the end of the rainy period and the start of the planting season, DuSolo expects sales and deliveries to increase over the coming months.
Mauricio Prado, Bomfim's Project Manager, is a Qualified Person under National Instrument 43-101 ("NI 43-101") and has reviewed and approved the technical disclosures of this press release on behalf of the Company.
ABOUT THE COMPANY
DuSolo Fertilizers Inc. (TSX VENTURE:DSF)(OTC PINK:ELGSF)(FRANKFURT:E6R) is a Canadian based, phosphate producer operating in the world's fastest growing agricultural district - the Brazilian "Cerrado" where demand for fertilizers far exceeds domestic supply.
On behalf of the Board of Directors
DuSolo Fertilizers Inc.
Eran Friedlander, President
Forward-looking statements
Certain information contained in this press release constitutes "forward-looking information", within the meaning of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur", "be achieved" or "has the potential to". Forward looking statements contained in this press release may include statements regarding the future operating or financial performance of DuSolo which involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Among those factors which could cause actual results to differ materially are the following: market conditions and other risk factors listed from time to time in our reports filed with Canadian securities regulators on SEDAR at www.sedar.com. The forward-looking statements included in this press release are made as of the date of this press release and DuSolo disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.
Disclosure
The Company is not basing its decision to begin production of DANF on a feasibility study of mineral reserves demonstrating economic and technical viability. Without a technical report demonstrating economic and technical viability, there is increased uncertainty as to whether DuSolo will be able to economically produce DANF products and as to whether DuSolo will be confronted with any unforeseen technical impediments. Similarly, the Company has not completed a preliminary economic assessment before making production and project expansion decisions.
The potential quantities (10 - 20 million tonnes) and grades (5.5 - 10% P2O5) disclosed in the discussion of "exploration potential" in the aforementioned drilling targets are conceptual in nature and there has been insufficient exploration to define a mineral resource for the additional "exploration potential" targets disclosed therein. It is uncertain if further exploration will result in this additional "exploration potential" yielding a mineral resource. The basis for estimating the target ranges of the additional "exploration potential" is based on block modeling, drilling, detailed mapping, and surface sampling.
Neither the TSX Venture Exchange Inc. nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this press release.
Contact
Patrick Brandreth
Senior Manager, Corporate Development
Phone: 1-604-282-7157
Email: patrick@DuSolo.com