TORONTO,
April 30, 2014 /CNW/ -
Verde Potash (TSX: "NPK")
("Verde" or the "Company") is pleased to announce the results of a
two-year-long independent trial on sugarcane, demonstrating
ThermoPotash ("TK")'s superiority over potassium chloride
("KCl").
The Federal University of Uberlândia ("UFU")
conducted the field trials over a growing cycle of two years
(2011/2012 and 2012/2013 harvests) at Cia Energética Vale do São
Simão, a large sugar mill and ethanol producer located in Minas
Gerais State. In the first growing cycle, 50kg of K2O
was applied using TK. The TK fertilized plot yielded three tonnes
per hectare ("t/ha") more sugarcane than an equal plot fertilized
using 100kg of K2O from KCl. When two growing cycles
were taken into account and an equal dosage of K2O,
100kg, was applied, the TK applied area produced 12.3 t/ha more
sugarcane as compared to the KCl applied area. The total cultivated
area for these tests was 1.5 ha (15,000m2).
These tests confirm that farmers can reduce the
dosage of fertilizer applied when using TK and still increase crop
yields. The main reason for this is because TK is not leached in
water as other potassium salt fertilizers such as potassium
chloride, potassium sodium nitrate, potassium nitrate, potassium
sulfate and potassium magnesium sulfate. A potassium-leaching test
conducted by UFU in 2010 established that TK suffers minimal
nutrient loss as a result of leaching, 0.3%, whereas KCl loses 26%
under the same conditions (see press release dated December 16, 2010).
Due to Brazil's
heavy rainfall, leaching is one of the main causes of potassium
deficiency in the sugarcane plant when repeatedly fertilized with
chlorine sources, such as KCl, compromising the quality of
sugarcane, a crop highly sensitive to an excess of chlorine. Unlike
KCl, which has 47% chloride in its composition, TK has no chloride
thus contributing to productive plant growth and to the maintenance
and sustainability levels of soil fertility.
Figure 1 below illustrates the results, which
emphasize not only TK's efficiency as a fertilizer source, but also
the crop's dependence on potassium for growth and productivity of
sugarcane culture.
The residual potassium levels in soils fertilized
with TK for sugarcane cultivation was up to five times higher after
the harvest when compared to soils fertilized with KCl.
Sugarcane Market in Brazil
The sugarcane industry represents an important
segment of Brazil's economy. In
2012, the industry accounted for US$36
billion- equivalent to almost 1.6% of Brazil's GDP. In Brazil, sugarcane covers more than 12.5
million hectares; the crop's highest total planted area in the
world. Brazil is the world's
largest producer and exporter of sugarcane, accounting for one
third of the world's production and the second largest ethanol
producer - sugarcane is used as a feedstock for producing the fuel.
In Brazil, 92% of all new cars and
light vehicle fleet are flex fuel powered (i.e. run both on
gasoline and ethanol, or any mixture of the two), driving domestic
demand and spurring growth of the sugarcane market.
The Company's Cerrado Verde Project is located
next to the main center of national sugarcane production. The
Center-South region, shown in Figure 2 below, accounts for
approximately 90% of the 658.8 million tonnes of sugarcane produced
in the 2013/14 harvest, a net increase of 11.9% from 2012/2013.
Production in the State of Minas Gerais, where Verde's deposit is
located, accounts for approximately 9% of all Brazilian production,
while the neighboring State of São Paulo accounts for more than
55%. In Brazil, after soybeans,
sugarcane is the second most valuable crop produced, accounting for
19.8% of the total value of Brazil's 2012 agronomic production.
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 (TK) and potassium chloride
(KCl). TK 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
TK 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 TK and 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 RESULTS OF THE PFS FOR THE PRODUCTION OF
THERMOPOTASH, ANTICIPATED PRODUCTION LEVELS AND TIMING OF
COMMENCEMENT OF PRODUCTION, ESTIMATED TK PRICES, PRODUCTION LIFE,
COSTS AND COMPLETION OF A FEASIBILITY STUDY FOR TK, 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.SUCH FACTORS INCLUDE A
MATERIAL CHANGE IN BRAZIL'S POTASH CONSUMPTION, GOVERNMENT
REGULATIONS OF MINING OPERATIONS, ENVIRONMENTAL RISKS, RECLAMATION
EXPENSES, TITLE DISPUTES OR CLAIMS, LIMITATIONS OF INSURANCE
COVERAGE, FLUCTUATION LAB AND CONSULTANT AVAILABILITY, MATERIAL
CHANGE IN COMPANY FINANCES AND OTHER FACTORS DISCLOSED UNDER THE
HEADING "RISK FACTORS" IN THE COMPANY'S CURRENT ANNUAL INFORMATION
FORM AVAILABLE ON SEDAR AT WWW.SEDAR.COM.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. |
SOURCE Verde Potash Plc
Image with caption: "Figure 1: Production of sugarcane (t/ha) in
the areas receiving a dose of 100 kg/ha K2O from ThermoPotash (TK)
and potassium chloride (KCl) and a control group (without K) (CNW
Group/Verde Potash)". Image
available at:
http://photos.newswire.ca/images/download/20140430_C5804_PHOTO_EN_39794.jpg
Image with caption: "Figure 2: Production of Sugarcane in
Brazil (CNW Group/Verde Potash) (CNW Group/Verde Potash Plc)".
Image available at:
http://photos.newswire.ca/images/download/20140430_C5804_PHOTO_EN_39795.jpg