Verde Potash Provides Update on 2012 Cerrado Verde Drilling Campaign
TORONTO, Oct. 15, 2012 /CNW/ - Verde Potash (TSX: "NPK") ("Verde" or the "Company") is pleased to provide 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 upcoming bankable feasibility study (see Table 1).
A total of 15,080m in 252 reverse circulation ("RC") holes and 785m in 12 diamond core ("DC") holes have been performed at a spacing ranging from 200m by 200m to 100m by 100m. 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 H1 2013.
The Cerrado Verde Potash Project at present has an NI 43-101 indicated resource of 71.08 million tonnes with an average grade of 9.22% K2O and an inferred resource of 2.76 billion tonnes with an average grade of 8.91% K2O (applying a 7.5% K2O cut-off), as outlined in the Preliminary Economic Assessment dated February 28, 2012. This resource estimate was based on 25,145m of RC drilling performed as 443 RC holes and 932m of DC drilling performed as 13 DC holes. Drill hole spacing ranged from 400m by 400m to 200m by 200m.
Commenting, President & CEO, 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 analysing with a portable Innov-X Delta X-ray fluorescence (XRF) gun on site. Samples showing greater than 6% K2O are then sent for analysis at the SGS Laboratory located in Belo Horizonte ("SGS"). Verde also adheres to a comprehensive internal quality control program which includes analysing field duplicates, blanks and certified standards at a rate of 5%.
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 press release is Bradley Ackroyd, (MAIG (CP)), who is a principle consulting geologist with AMS (Andes Mining Services).
About Verde Potash
Verde Potash, a Brazilian fertilizer exploration and 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 potassium chloride (KCl). In addition, the Company is developing its Calcario limestone project, limestone being a key raw material in the production of 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.
THE GRADES DETAILED IN THIS RELEASE ARE CONCEPTUAL IN NATURE. THERE HAS BEEN INSUFFICIENT EXPLORATION TO DEFINE A MINERAL RESOURCE. SHOULD THE COMPANY ENGAGE IN FURTHER EXPLORATION, IT IS UNCERTAIN THAT IT WILL RESULT IN THE TARGETS BEING DELINEATED AS A MINERAL RESOURCE.
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.
Image with caption: "Map of Drilling Program (CNW Group/Verde Potash Plc)". Image available at: http://photos.newswire.ca/images/download/20121015_C6860_PHOTO_EN_19295.jpg
Image with caption: "Table 1: Cerrado Verde 2012 Infill Drilling Campaign Data (CNW Group/Verde Potash Plc)". Image available at: http://photos.newswire.ca/images/download/20121015_C6860_PHOTO_EN_19294.jpg
SOURCE: Verde Potash Plc
For further information:
Cristiano Veloso, President & Chief Executive Officer
Tel: (416) 866-2966; Fax: (416) 866-8829; Email: firstname.lastname@example.org
Jaret Anderson, CFA, VP Corporate Development
Tel: (416) 866-2966; ext. 223; Fax: (416) 866-8829; Email: email@example.com