Open Pittable 1.1 Billion Tonnes at 9.36% K2O Added to Cerrado Verde Potash Project, Brazil
03.08.2011 | Marketwire
TORONTO, ONTARIO -- (Marketwire - Aug. 3, 2011) - Verde Potash Plc (TSX VENTURE: NPK) ("Verde" or the "Company") is pleased to announce that the Company has received an independent resource estimate for the Cerrado Verde Potash Project located in Minas Gerais State, Brazil ("Cerrado Verde"). The estimate comprises an indicated resource of 74 million tonnes of K2O with an average grade of 9.22% K2O and an inferred resource of 1.07 billion tonnes of K2O with an average grade of 9.37% K2O (applying a 7.5% K2O cut-off). Potash mineralization is found from surface to a maximum depth of 80 metres, rendering the resource amenable to open pit mining.The new resource was estimated for five out of 13 of Cerrado Verde's targets, in which 8,950m of drilling was performed in 143 holes with a collar spacing ranging from 400m by 400m to 200m by 200m. However, an additional eight targets have been tested, but are not included in this release, thus completing the 26,000m drill program. The additional resource calculation will be reported during Q4/2011.
Commenting, President & CEO, Cristiano Veloso, said: "We are encouraged by these numbers, they reinforce our belief in the impressive scope of Cerrado Verde. It is evident that we have a long life asset that could supply Brazil's potash needs well into the future providing our development program succeeds."
Brazil's annual K2O consumption is approximately 4 million tonnes. The new resource represents over 90 million tonnes of K2O.
The resource estimate is reported below in Table 1 using a 7.5% K2O cut-off grade:
Table 1 – Grade Tonnage Report Cerrado Verde Potash Project
Inverse Distance Weighting with power two (IDW2) estimate (Block Model - 50mE X 50mN X 10mRL)
7.5% K2O cut off utilised
Target Tonnage (Mt) Average Grade (% K2O)
Indicated
6 23.25 8.83
7 50.79 9.39
TOTAL indicated 74.04 9.22
Inferred
4 74.43 9.20
6 47.85 8.84
7 873.59 9.45
10 28.50 10.10
11 46.79 8.27
TOTAL inferred 1071.16 9.37
Note:
- Appropriate rounding has been applied
- Table is EXCLUSIVE of Target 8, Funchal Norte, inferred resource estimate completed by Coffey Mining in March 2010 (105 million tonnes at 10.3% K2O (using a 7.5% K2O cut-off)). See Release dated March 8, 2010.
The resource estimate is reported below in Table 2 using a 9% K2O cut-off grade:
Table 2 – Grade Tonnage Report Cerrado Verde Potash Project
Inverse Distance Weighting with power two (IDW2) estimate (Block Model - 50mE X 50mN X 10mRL)
9% K2O cut off utilised
Target Tonnage (Mt) Average Grade (% K2O)
Indicated
6 10.32 9.60
7 30.55 10.09
TOTAL indicated 40.87 9.97
Inferred
4 45.16 9.69
6 20.77 9.63
7 582.20 10.05
10 25.22 10.33
11 5.13 10.15
TOTAL inferred 678.48 10.02
Note:
- Appropriate rounding has been applied
- Table is EXCLUSIVE of Target 8, Funchal Norte, inferred resource estimate completed by Coffey Mining in March 2010 (105 million tonnes at 10.3% K2O (using a 7.5% K2O cut-off)). See Release dated March 8, 2010.
Verde has also initiated field and development work to support a Definitive Feasibility Study to be completed first half of 2012.
Cerrado Verde is a 100% owned project of the Company and is defined by flat lying potash rich metasiltstones belonging to the Serra da Saudade Formation of Neoproterozoic age. The metasiltstone beds are between 30m and 80 metres thick. The Company has mapped the distinctive green unit over a strike length of 100km within their granted permits.
Qualified Person
Beau Nicholls, MAIG consulting geologist to Verde is the Qualified Person with respect to NI 43-101 at Cerrado Verde. Reverse Circulation (RC) and Diamond Core (DC) samples were taken at between one and two metre intervals by Verde technical staff, utilizing internationally accepted drilling and sampling techniques. All reverse circulation drill samples are weighed on site to ensure adequate recovery. DC drill holes consist predominantly of HQ core. DC is logged and sawn on site with half core samples sent to the laboratory. All samples are analyzed for K2O using standard Whole Rock XRF by SGS Geosol Laboratory, in Belo Horizonte. QA/QC programs show industry acceptable precision and accuracy limits on both Certified Standards and duplicate samples. An additional 120 Umpire samples were sent to ALS laboratory and returned excellent precision when compared to SGS Geosol results. Bulk Density samples are routinely measured in all DC drilling, and the company has also undertaken independent validation checks of the density results with excellent precision returned. BNA Consultoria e Sistemas, under the direction of Volodymyr Myadzel, MAIG who is a Qualified Person with respect to NI 43-101, validated the database and QA/QC programs, undertook wire-framing of the grade shells, and performed the variography, block modeling and resource estimation and has approved this news release.
Other Matters
Verde has issued 20,000 additional share purchase options to the CEO, 50,000 options to Officers of the company and 130,000 options to consultants and staff. These sets of share purchase options are exercisable at $7.14, expiring August 3, 2016 and pending TSX regulatory approval.
About Verde Potash
Verde Potash, founded and led by Brazilians, is a fertilizer exploration and development company. It is developing Cerrado Verde project in Brazil, a source of potash-rich rock from which Verde 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 main business. The Company is also exploring for phosphate and limestone.
On behalf of the Board of Directors of Verde Potash
Cristiano Veloso
President and CEO
To view Figure 1: Map showing all target, please visit the following link: http://media3.marketwire.com/docs/NPK83.jpg.
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