Shares Outstanding: 110,926,614
Fully Diluted: 120,069,030
TORONTO, March 7, 2012 /CNW/ - MBAC Fertilizer Corp. ("MBAC" or the "Company") (TSX:MBC and OTCQX:MBCFF) is very pleased to announce the first results of the ongoing diamond drilling campaign at Araxá. The results of 14 holes from a total of 60 planned holes confirm the grade and spatial distribution of the REO-P2O5-Nb ore as reported in the current National Instrument 43-101 technical report filed for the Araxá project entitled "Mineral Resource Estimate - Araxá Rare Earth Oxide-Phosphate-Niobium Project, Minas Gerais State, Brazil, As Amended" dated effective January 13, 2012, as amended February 2, 2012 (the "Araxá Technical Report").
Antenor Silva, Vice Chairman and CEO, stated "These drill results continue to demonstrate the high grade nature of this near surface deposit for the rare earth oxides and niobium. We are also very pleased with the grades of the phosphate, which are comparable to Vale's phosphate mine currently operating in Araxá. The drilling campaign of approximately 3,300 metres is expected to be completed this month and we expect to have a preliminary economic assessment completed by April 2012."
Following the completion of the Araxá Technical Report, based on both historical and Company data, MBAC started a diamond drilling campaign at 40m and 20m spacing aimed at defining measured and indicated mineral resources. The current drilling campaign is focused on an area of 480m by 240m, which is host to the REO mineralization defined based on the previous work. To date, 2,957m of drilling has been completed (see Araxá Drill Program Picture).
Holes AAX-DD-01 to AAX-DD014 are located in the eastern portion of the deposit. The results of these holes, represented by 678 samples (excluding quality control samples), were received and verified, and are summarized in the table below. These results confirm the historical drilling results that showed high grade intersections close to surface, and the continuation of the deposit at depth. Readers are referred to the Araxá Technical Report for further information on data verification process and QA/QC measures.
Samples from holes AAX-DD-001 to 003 were sent to SGS Geosol, and the remaining samples were sent to the ALS laboratory, both located in Belo Horizonte, Brazil. All samples are being analyzed by ICP-MS and XRF. Umpire samples are being sent to Actlabs laboratory in Canada.
Table 1 shows the average TREO, P2O5 and Nb2O5 grades for each hole and the best intersections. No cut-off was applied. The LREE and HREE percentages are an average for each hole.
|Table 1 - TREO results, no cut-off applied|
|AAX-DD-001||[email protected]% (Including [email protected]% starting at 1.60m)||96.72||3.28||6.72||0.83|
|AAX-DD-002||[email protected]% (Including [email protected]% starting at 2.00m)||95.15||4.85||7.60||0.66|
|AAX-DD-003||[email protected]% (Including 16,[email protected]% starting at 29.80m)||95.13||4.87||6.90||0.77|
|AAX-DD-004||[email protected]% (Including [email protected]% starting at 25.05m)||94.34||5.66||6.98||0.65|
|AAX-DD-005||[email protected]% (Including [email protected]% starting at 0.00m)||94.37||5.63||7.63||0.75|
|AAX-DD-006||[email protected]% (Including [email protected]% starting at 7.00m)||94.47||5.53||8.06||0.68|
|AAX-DD-007||[email protected]% (Including [email protected]% starting at 0.00m)||95.73||4.27||12.67||1.48|
|AAX-DD-008||[email protected]% (Including [email protected]% starting at 1.00m)||96.00||4.00||8.75||1.45|
|AAX-DD-009||[email protected]% (Including [email protected]% starting at 1.00m)||96.03||3.97||9.07||1.66|
|AAX-DD-010||[email protected]% (Including [email protected]% starting at 0.00m)||95.65||4.35||9.08||0.90|
|AAX-DD-011||[email protected]% (Including [email protected]% starting at 0.00m)||95.37||4.63||5.33||0.70|
|AAX-DD-012||[email protected]% (Including [email protected]% starting at 1.00m)||96.13||3.87||6.06||0.83|
|AAX-DD-013||[email protected]% (Including [email protected]% starting at 3.00m)||96.11||3.89||8.04||1.70|
|AAX-DD-014A||[email protected]% starting from 0.00m||95.34||4.66||13.80||2.22|
TREO includes La2O3, Ce2O3, Pr2O3, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3 and Y2O3
LREO includes La2O3, Ce2O3, Pr2O3 and Nd2O3.
SEG+HREO includes Sm2O3, Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3 and Y2O3.
Note: P2O5 is assayed by XRF. All the other elements reported are ICPMS results except when the method upper limit is reached then the XRF result is considered.
Beau Nicholls (MAIG), principal consulting geologist of Amazon Geoservices Ltda, is the qualified person who has reviewed and approved the technical information in this press release.
MBAC is focused on becoming a significant integrated producer of phosphate and potash fertilizers in the Brazilian and Latin American markets. MBAC has an experienced team with over 150 years of combined experience in the business of fertilizer operations, management, marketing and finance within Brazil. In October 2008, MBAC acquired Itafós Mineração Ltda, which consisted of a phosphate mine, a mill and plant and related infrastructure, all located in central Brazil. MBAC's exploration portfolio includes a number of additional exciting phosphate and potash projects, which are also located in Brazil. The Santana Phosphate project is a high grade phosphate deposit located in close proximity to the largest fertilizer market of Mato Grosso State and animal feed market of Pará State. The Company continues to search for additional fertilizer opportunities in the Brazilian and other Latin-American markets, where strong agricultural fundamentals and unique opportunities are expected to provide attractive growth opportunities in the near future. Further information on MBAC can be found on the Company's website at www.mbacfert.com and on SEDAR at www.sedar.com.
Vice Chairman & Chief Executive Officer
FORWARD LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements related to activities, events or developments that the Company expects or anticipates will or may occur in the future, including, without limitation, statements related to the Company's business strategy, objectives and goals; exploration of the Araxá Project; the completion of the current drilling campaign and the completion of a preliminary economic assessment. Forward-looking statements are often identified by the use of words such as "plans", "planning", "planned", "expects" or "looking forward", "does not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipates", "does not anticipate", or "belief", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements are based on a number of factors and assumptions made by management and considered reasonable at the time such statements are made, and forward-looking statements involve known and unknown risks, uncertainties and other factors may cause the actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Such factors include, among others, successfully completing a positive preliminary economic assessment within the timeframe contemplated; obtaining all necessary licenses to explore and develop the project; successful negotiation with third parties to develop the Nb-REE area of the project; successful definition of an updated mineral resource estimate at the project; as well as those factors disclosed in the Company's current Annual Information Form and Management's Discussion and Analysis, as well as other public disclosure documents, available on SEDAR at www.sedar.com. Although MBAC has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate. The forward-looking statements contained herein are presented for the purposes of assisting investors in understanding the Company's plan, objectives and goals and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking statements. MBAC does not undertake to update any forward-looking statements, except as required by applicable securities laws.
Image with caption: "Araxá Drill Program (CNW Group/MBAC Fertilizer Corp.)". Image available at: http://photos.newswire.ca/images/download/20120307_C2380_PHOTO_EN_10888.jpg
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