TORONTO, Nov. 30, 2011 /CNW/ - Verde Potash Plc (TSX-V: "NPK") ("Verde" or the "Company") has successfully operated a
continuous rotary kiln pilot plant to produce Potassium Chloride
("KCl"), the conventional potash fertilizer. Verde has engaged SRK
Consulting (U.S.), Inc. ("SRK") to complete a review of capital and
operating costs and should be in a position to reveal results in Q1
2012. This achievement marks a significant possible opportunity for
Brazil, one of the world's largest importers and consumers of KCl, to
supply more of its potash requirements from its domestic resources.
Verde controls a very large potash resource amenable to strip mining and
strategically located in Minas Gerais State, Brazil (see press release August 3, 2011). The Company's current potash resource could support a six million
tonnes per annum KCl production scenario for over twenty years, though
Verde is considering a scalable production strategy.
The current selling price for KCl in Brazil's Cerrado is US$660/tonne.
Brazil imported 6.4 million tonnes of KCl from January to October this
year (source: Associacao Nacional para Difusao de Adubos "ANDA").
Verde has made significant progress in deriving an economic scalable
production flow sheet for KCl. SRK, Hatch Consulting, GEA Messo,
FLSmidth and Hazen Research (the "Engineering Consortium", see below
for further details) have assisted the Company in overcoming
foreseeable technological and operational challenges by using long
established rotary kilns and evaporation/crystallization equipment for
this new application.
During this month, the Company successfully operated its pilot plant's
rotary kiln validating the production flow sheet. In two tests, KCl was
produced continuously for thirty and twenty hours. The kiln feed rate
was 130kg per hour. As a result of this progress, the Company has filed
two additional patents relating to KCl production.
Given these successes, the Company has commissioned SRK to complete a
Preliminary Economic Assessment ("PEA"). SRK is working closely with
the rest of the Engineering Consortium to estimate operating and
capital costs for KCl production based on the flow sheet developed by
Verde and the Engineering Consortium.
Verde initiated KCl production studies for its potash rock in 2008. Over
the last three years the Company undertook hundreds of tests pursuing a
simple production flow sheet that relied on long proven production
technology as well as abundantly and readily available reagents. In
2010, the Company announced a first patent filing as a result of a
research agreement with the University of Cambridge and Professor Dr.
Derek Fray. In 2011, the Company assembled the Engineering Consortium
to advance the project. Below is a summary of the work completed
throughout 2011 leading Verde to this point:
Verde, Brazil: Scale up and optimization tests completed at the
Company's laboratory in Brazil;
University of Cambridge, U.K.: Further bench tests concluded.
Hazen Research, Colorado, U.S.: Work began by Hazen's commercial
laboratory on research and development to continue scale up work,
completing more than 300 tests and more than 6,000 check points assayed
Verde, Brazil: Advances on reagent optimization.
Hazen Research, Colorado, U.S.: Satisfactory results obtained from scale
Discussions with equipment manufacturers regarding equipment
specifications and use for KCl production;
FLSmidth, Pennsylvania, U.S.: engaged to test heat consumption;
GEA Messo, Germany: engaged to test and optimize
Hatch Consulting, Ontario, Canada: engaged and contributed on the review
of the results.
Engineering Consortium: Flow sheet finalized;
SRK: Preliminary Economic Assessment with an updated National Instrument
43-101 technical report to be completed by Q1 2012.
Cristiano Veloso, President and CEO said: "We congratulate Pedro
Ladeira, VP Engineering, and the Engineering Consortium for their
outstanding achievement. Verde's work to convert our at-surface potash
resources into potash fertilizer has the potential to decrease Brazil's
import dependency on a commodity essential for feeding the world's
growing population of seven billion."
Verde's engineering team has also continued to develop its ThermoPotash
product. Using the Company's same pilot plant kiln, the team completed
work to transfer the pellet making process from pre-calcining (in the
kiln) to a post-calcine step. This modification to the flow sheet
reduces heating requirements and water consumption, and produces better
performing pellets. In the improved process flow sheet the kiln is fed
with powder as opposed to wet pellets.
The Company has also tested the process of air cooling the product from
the kiln using the same type of dryer employed by the cement industry.
This process adjustment reduces heat consumption by pre-heating air
entering the kiln with hot gases resulting from cooling the material
with air. In the original flow sheet, the kiln emptied its contents
into tanks of water to cool the product. FLSmidth has also undertaken
independent tests to verify achievements and propose equipment.
Verde's Brazilian pilot plant facility has been successfully
re-configured for the noted changes and has produced over 60 tonnes of
ThermoPotash. The changes have reduced heat input and the process' use
of water. Verde has also operated a leased semi industrial plant where
it produced 70 tonnes of ThermoPotash.
Cristiano Veloso, President and CEO said: "We are pleased with the
successful conclusion of our pilot plant tests for ThermoPotash
production. Pedro Ladeira's extensive cement production experience was
fundamental in improving the original production flow sheet".
About the Engineering Consortium
FLSmidth of Denmark is the leading supplier of equipment and services to
the global cement and minerals industries. FLSmidth is a global company
with a local presence in 50 countries world-wide, employing more than
12,000 people. FLSmidth supplies everything from single machinery to
complete cement plants and minerals processing facilities, including
services before, during and after the construction. FLSmidth is listed
on NASDAQ OMX Copenhagen and has more than 42,000 registered
GEA Messo of Germany has focused worldwide in the field of
crystallization for more than 50 years with all engineering services
for the chemical, food, steel technology and environmental industries.
Messo references comprise around 700 installations. Messo offers the
entire plant periphery necessary to complete any crystallizer
installation for a crystallization plant. Messo operates a 300m² mini
plant test laboratory for the development of the wide range of the
process designs needed in the field of crystallization plants.
Hatch Consulting of Canada supplies engineering, project and
construction management services, process and business consulting and
operational services to the mining, metallurgical, energy and
Hazen Research, Inc.
Hazen Research of the United States was organized in 1961 to provide
process research and development services to the extractive metallurgy
and chemical industries. Over the years, it has assembled an
experienced and competent staff supported by laboratory and pilot plant
facilities. Services include laboratory-scale research on new processes
or adaptation of known technology to new situations, followed by pilot
plant demonstration, preliminary engineering, and cost analysis.
Projects range from beaker-scale experiments and analyses to
multimillion-dollar continuous pilot or demonstration plants.
SRK Consulting (U.S.), Inc.
SRK Consulting of the United States is an independent, international
consulting practice that provides focused advice and solutions to
clients, mainly from earth and water resource industries. For mining
projects, SRK offers services from exploration through feasibility,
mine planning, and production to mine closure. Formed in 1974, SRK now
employs more than 1,200 professionals internationally in 38 permanent
staffed offices on 6 continents.
About Verde Potash Plc
Verde is a fertilizer exploration and development company; it was
founded and is led by Brazilians. Verde is developing the Cerrado Verde
project in Brazil, a source of potash-rich rock from which the Company
plans to produce a potash fertilizer product. Founded as Amazon Mining
Holding Plc in 2005, the Company changed its name to Verde Potash Plc
in April 2011 to better reflect its core business.
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 infra-structure.
All scientific and technical disclosures in this press release have been
prepared under the supervision of Neal Rigby and Robert Bowell of SRK
Consulting who are Qualified Persons within the meaning of National
On behalf of the Board of Directors of Verde Potash, Cristiano Veloso, President and CEO.
Cautionary Language and Forward Looking Statements
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. 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, KCL PRODUCTION SCENARIOS, BRAZILIAN IMPORTATION LEVELS OF
KCL DURING 2011, TIMING AND COMPLETION OF A PRELIMINARY ECONOMIC
ASSESSMENT FOR KCL PRODUCTION AND THE TIMING AND COMPLETION OF A
FEASIBILITY STUDY FOR THE PRODUCTION OF THERMOPOTASH. 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 TO
BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS EXPRESSED OR IMPLIED BY
SAID STATEMENTS. SUCH FACTORS INCLUDE 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.
SOURCE Verde Potash Plc
For further information:
Cristiano Veloso, President & Chief Executive Officer
Tel: +44 (0) 20 8133 7607; Fax: +44(0)20 7405 7773; Email: email@example.com
Jed Richardson, VP Corporate Development
Tel: +1(416)866-2966; Fax: +1(416)866-8829; Email: firstname.lastname@example.org