Verde Potash finishes drilling 264 holes at Cerrado
2012-10-15 09:59 ET - News Release
Mr. Cristiano Veloso reports
VERDE POTASH PROVIDES UPDATE ON 2012 CERRADO VERDE DRILLING CAMPAIGN
Verde Potash PLC is providing an update with respect to the company's 2012 infill drilling campaign at the Cerrado Verde potash project in Minas Gerais state, Brazil, aimed at increasing measured and indicated resources to support the company's coming bankable feasibility study.
A total of 15,080 metres in 252 reverse-circulation (RC) holes and 785 metres in 12 diamond core (DC) holes has been performed at a spacing ranging from 200 m by 200 m to 100 m by 100 m. The objective of this program is to increase the indicated and measured resources of the T-7, T-10, T-11 and T-12 targets. Management does not anticipate any further drilling prior to publication of the bankable feasibility study in the first half of 2013.
The Cerrado Verde potash project at present has a National Instrument 43-101 indicated resource of 71.08 million tonnes with an average grade of 9.22 per cent K2O (potassium oxide) and an inferred resource of 2.76 billion tonnes with an average grade of 8.91 per cent K2O (applying a 7.5-per-cent-K2O cut-off), as outlined in the preliminary economic assessment dated Feb. 28, 2012. This resource estimate was based on 25,145 m of RC drilling performed as 443 RC holes and 932 m of DC drilling performed as 13 DC holes. Drill hole spacing ranged from 400 m by 400 m to 200 m by 200 m.
Commenting, president and chief executive officer Cristiano Veloso said: "We had high expectations for our 2012 drill program and these results have met that objective. Data from this program will be used to support our bankable feasibility study for the Cerrado Verde project, which is on track for completion in H1 2013."
All the RC and DC samples have been screened by analyzing with a portable Innov-X Delta X-ray fluorescence (XRF) gun on site. Samples showing greater than 6 per cent K2O are then sent for analysis at the SGS Laboratory located in Belo Horizonte. Verde also adheres to a comprehensive internal quality control program, which includes analyzing field duplicates, blanks and certified standards at a rate of 5 per cent.
The company has received 5,126 analytical results from 5,483 RC samples sent for assays. A DC drilling rig is also being utilized to enable structural and bulk density data to be collected, along with twinning a number of RC holes with DC to validate the two drilling and sampling methods being utilized.
The qualified person within the meaning of National Instrument 43-101 with respect to the technical information in this news release is Bradley Ackroyd, MAIG (CP), who is a principle consulting geologist with AMS (Andes Mining Services).
About the Cerrado Verde potash project
Cerrado Verde is a unique project:
- Its high-grade potash rock outcrops and is amenable to strip mining, allowing fast construction of a scalable operation.
- It is located in the midst of the world's third-largest and fastest-growing fertilizer market.
- It connects to Brazil's largest fertilizer distribution districts through existing and high-quality infrastructure.
- It has the potential to supply potassium chloride to Brazil's local agriculture market from its large potash-rich deposit.