Major High Grade Limestone Discovery Confirmed by Drilling
22.06.2011 | Marketwire
TORONTO, ONTARIO -- (Marketwire - June 22, 2011) - Verde Potash (TSX VENTURE: NPK) ("Verde" or the "the Company") is pleased to report the discovery of a major high grade limestone unit located approximately 100km from the Cerrado Verde Potash project in Minas Gerais State, Brazil ("Calcario Project"). A total of 20 Reverse Circulation (RC) drill holes for 1,888 metres have been completed (approximately 200 to 570 metre spacing over 8km2). Drilling has targeted the calcitic limestone unit and has returned an average grade of 53.0% CaO and 1.8% SiO2 over an average thickness of 36.4 metres.The production of ThermoPotash requires significant quantities of limestone as one of its raw materials. The limestone must have CaO content higher than 50% with associated SiO2 lower than 2% ("High Quality"). Therefore, the development of the Calcario Project is a strategic component of Verde's fertilizer production strategy. The Company plans to delineate a NI 43-101 resource and complete a Preliminary Economic Assessment on developing the project during the third quarter of 2011.
Commenting, President and CEO Cristiano Veloso noted: "The high quality of our limestone makes this ancillary project a major achievement for Verde and its shareholders. After almost two years of experience producing ThermoPotash, we have learned how important limestone composition is to the quality of our fertilizer. Having control over such a vital piece of our supply chain will ensure that we consistently deliver a high quality product. This asset also de-risks ThermoPotash by decoupling it from Brazil's limestone market, where limestone's record high consumption is still rapidly increasing because of agricultural demand and cement production. In sum, the development of this asset will help us secure a key raw material and control operating costs."
The limestone mineralization is associated with low metamorphic grade siltstones of the Neoproterozoic Bambuí Group. The local geology is represented by a package of limestones of varying composition. The targeted rock for the resource is a thick and continuous bed of very fine grained black limestone. It is characterized by a very low SiO2 content (less than 2%) and high CaO values (52% to 56%). The black limestone is located between lower quality limestones. The lower quality limestone may have economic potential for agricultural soil correction.
The samples were sent to the SGS Laboratory located in Belo Horizonte, where they were analysed under a comprehensive quality control program which includes analysing field duplicates and blanks.
RC ANALYTICAL RESULTS
The drilling has returned an average grade of 53.0% CaO and 1.8% SiO2 over an average thickness of 36.4 metres. Drilling covers an area of approximately 8 km2. Significant intercepts are summarized in the table below. (Cut off of 40% CaO used with up to 2 metres of internal dilution allowed)
Hole Thickness (m) Interval (m) CaO (%) MgO (%) SiO2(%)
CV-RM-02 50 80 - 130 53.8 - 1.9
CV-RM-03 14 72 - 86 32.4 - 1.5
CV-RM-05 16 44 - 60 55.0 - 1.4
CV-RM-05 20 74 - 94 54.4 - 2.5
CV-RM-07 4 34 - 38 54.7 - 1.8
CV-RM-07 8 44 - 52 53.2 - 2.7
CV-RM-09 48 20 - 68 54.0 - 1.9
CV-RM-10 64 12 - 76 54.2 - 1.6
CV-RM-11 62 22 - 84 54.3 - 1.3
CV-RM-12 18 28 - 46 54.3 - 1.6
CV-RM-13 60 52 - 112 54.0 - 1.7
CV-RM-14 50 24 - 74 54.6 - 1.4
CV-RM-15 62 48 - 110 54.7 - 1.5
CV-RM-16 64 74 - 138 54.4 - 1.6
CV-RM-17 42 44 - 86 54.8 - 1.1
CV-RM-18 56 38 - 94 54.9 - 1.3
CV-RM-19 40 16 - 56 52.7 - 1.5
CV-RM-20 10 40 - 50 54.4 - 1.3
CV-RM-21 10 32 - 42 51.5 - 4.4
CV-RM-22 12 38 - 50 53.3 - 2.2
CV-RM-23 54 26 - 80 54.4 - 1.6
A dolomitic limestone was intersected in two RC holes, it returned an average grade of 40.0% CaO, 11.3% MgO and 4.4% SiO2. The average thickness is 12 metres.
Hole Thickness (m) Interval (m) CaO (%) MgO (%) SiO2(%)
CV-RM-18 16 16 - 32 38.9 12.8 4.4
CV-RM-19 8 14 - 22 41.1 9.8 4.5
Competent Person
The technical content of this news release has been prepared by Mr. Beau Nicholls, MAIG, Consulting Geologist, who is a Qualified Person as defined by Canadian National Instrument 43-101.
About Verde Potash
Verde Potash is a fertilizer exploration and development company; it was founded and is led by Brazilians. Verde is developing the Cerrado Verde project in Brazil, a source of potash-rich rock from which the company plans to produce a slow-release, non-chloride, multi-nutrient, fertilizer product named ThermoPotash. Founded as Amazon Mining in 2005, the Company changed its name to Verde Potash in April 2011 to better reflect its core business. Verde is also exploring for phosphate and limestone.
About Cerrado Verde Potash Project
Cerrado Verde is a unique project: 1) its high grade potash rock is found at surface, allowing fast construction of a scalable and low Capex 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 infra-structure.
On behalf of the Board of Directors of Verde Potash
Cristiano Veloso
President and CEO.
Cautionary Language and Forward Looking Statements
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, STATEMENTS REGARDING USE OF PROCEEDS, EXPLORATION PROSPECTS, IDENTIFICATION OF MINERAL RESERVES, COSTS OF AND CAPITAL FOR EXPLORATION PROJECTS, EXPLORATION EXPENDITURES, TIMING OF FUTURE EXPLORATION AND PERMITTING, REQUIREMENTS FOR ADDITIONAL CAPITAL, GOVERNMENT REGULATIONS OF MINING OPERATIONS, ENVIRONMENTAL RISKS, RECLAMATION EXPENSES, TITLE DISPUTES OR CLAIMS, AND LIMITATIONS OF INSURANCE COVERAGE. 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 (www.verdepotash.com) and filed on SEDAR (www.sedar.com) and any future amendments to such. Readers are also directed to the cautionary notices and disclaimers contained herein.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contact Information
Verde Potash
Cristiano Veloso
President & Chief Executive Officer
+44 (0) 20 8133 7607
+44(0)20 7405 7773 (FAX)
cv@verdepotash.com
Verde Potash
Jed Richardson
VP Corporate Development
+1(416)866-2966
+1(416)866-8829 (FAX)
jed@verdepotash.com
www.verdepotash.com