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
Notes:
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.
Qualified Person
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: cv@verdepotash.com
http://www.verdepotash.com
Iwona Zakrzewski, Investor
Relations
Tel: +1(647)295-8120 / +1(416)866-2966; Fax: +1(416)866-8829;
Email: Iz@verdepotash.com