Mr. Ralph Rushton reports

FOCUS' BAYOVAR 12 PHOSPHATE PROJECT YIELDS POSITIVE METALLURGICAL TESTWORK RESULTS

Focus Ventures Ltd. is providing an update on recent progress from the Bayovar 12 phosphate (P2O5) project in northern Peru, including preliminary results of bench-scale metallurgical testwork.

• All phosphate beds can be simply processed via washing and flotation; no milling or grinding is required.
• Each bed produced a high-quality phosphate concentrate averaging 29 to 30 per cent P2O5 with low impurity levels, which means that they can be readily acidulated and converted to high-analysis fertilizers such as DAP (direct application phosphate) and MAP (monoammonium phosphate).
• All beds respond in a similar manner, resulting in a single, versatile flowsheet that will simplify both mining and beneficiation.
• Low levels of minor compounds magnesium oxide and iron oxide, along with low MER and calcium oxide/P2O5 ratios, will render the Bayovar 12 suitable for use in producing phosphoric acid and high analysis fertilizers such as DAP and MAP.

David Cass, president of Focus, commented: "We believe these initial testwork results represent something of a breakthrough in process design for the Bayovar district. To the best of our knowledge, this is the first time that a single plant can potentially process material from all individual beds while achieving the desired concentrate grades and, perhaps, an improvement in recovery levels. Prior designs in the district appear to require beds to be separately treated by two different process routes. The Bayovar 12 design incorporates a simple, single flowsheet offering positive implications in mine planning and operations."

Since announcing its maiden National Instrument 43-101 resource in October, 2014 (see press release dated Oct. 27, 2014), Focus's preliminary economic assessment study has been progressing well and is on schedule, with results expected by June, 2015.

In parallel with the PEA, Focus is investigating the potential for production of direct application phosphate rock (DAPR) from Bayovar 12, targeting local Latin American agricultural markets and organic farmers. Bayovar phosphate is known in the fertilizer industry for its very high reactivity and excellent P2O5 solubility and phosphate availability.

Metallurgical testwork

Bench-scale metallurgical testwork, by Jacobs Engineering Laboratories in Florida, is near completion. The objective of the work is a preliminary process design to produce P2O5 concentrate of about 29 to 30 per cent from Bayovar 12 rock. These test results indicate that the objective will be met with a single, simple process line.

Approximately 180 kilograms of drill core taken from three special PQ-diameter drill holes representing 13 phosphate beds plus samples of interburden was received by Jacobs in October, 2014. Samples from each bed underwent a staged-process testwork program comprising drum and attrition scrubbing, desliming, bulk density and specific gravity measurements, size fraction and liberation analysis, formal flotation, and P2O5 concentrate characterization.

The desired phosphate mineral, called apatite, exists as small pellets. The first stage of the testing establishes a particle size, or cut point, below which the material contains an optimally low fraction of the pellets and can therefore be discarded. This particle size diameter was determined to be 270 mesh or 53 microns and is termed slimes. Most of the undesired ore contaminants is contained in slimes and is removed by the desliming process.

The next stage of testing showed these slimes can be removed by a sequence of two types of washing with water and intervening stages of slimes removal with hydrocyclones. The amount of slimes removed in the desliming process depends on the individual bed, with typically around two-thirds of the feed material eliminated as waste.

Once washed and deslimed, the material undergoes separation into three size fractions according to cut points established by the testing. They are:

• Plus-28 mesh (600 microns and greater);
• Minus-28 mesh to plus-100 mesh (between 600 and 150 microns);
• Minus-100 mesh to plus-270 mesh (between 150 and 53 microns).

The plus-28-mesh coarse fraction requires a final stage of scrubbing and desliming to produce a concentrate containing from 22 per cent to nearly 32 per cent P2O5 (greater than 28P in the table).

The minus-28-mesh to plus-100-mesh fraction grades from 27 per cent to over 30 per cent P2O5 and requires no further upgrading (28/100P in table).

    METALLURGICAL LABORATORY BATCH TEST RESULTS FOR BEDS PH01 TO PH13
                             (All values are %) 

P2O5 analysis          PH01    PH02    PH03    PH04    PH05    PH06    PH07

Ore                   15.42   11.35   19.38   20.47   10.37   13.53    9.20
Size fractions                                                             
greater than 28P      21.92   27.95   31.12   30.58   28.63   29.45   27.83
28/100P               27.04   29.24   32.18   28.72   29.72   29.43   29.32
100/270               18.29   16.50   24.07   26.69   22.87   26.79   24.24
Float P               26.97   28.80   28.37   29.37   29.07   29.69   28.95
Av. P2O5(i)           26.90   28.97   30.82   29.08   29.29   29.59   29.01
Fe2O3                  1.35    0.61    0.44    0.45    0.52    0.51    0.67
MgO                    0.56    0.61    0.53    0.54    0.55    0.52    0.58
Al2O3                  1.19    0.79    0.61    0.64    0.67    0.63    0.94
CaO                   41.41   44.24   45.34   44.46   45.56   45.67   44.78
MER                   0.115   0.069   0.051   0.056   0.059   0.056   0.075
CaO/P2O5               1.54    1.53    1.47    1.53    1.56    1.54    1.54

P2O5 analysis          PH08    PH09    PH10    PH11    PH12    PH13  Average

Ore                    6.30   11.54    8.65   13.69   13.00   12.46    12.72
Size fractions                                                              
greater than 28P      30.25   31.37   31.89   30.93   31.78   30.92    29.59
28/100P               29.78   29.81   30.23   29.58   29.59   29.73    29.57
100/270               24.74   24.89   24.75   24.24   23.35   24.84    23.56
Float P               28.98   28.54   28.66   28.97   28.65   28.00    28.69
Av. P2O5(i)           29.25   28.92   29.14   29.28   29.22   28.65    29.09
Fe2O3                  0.57    0.58    0.61    0.59    0.57    0.75     0.63
MgO                    0.49    0.52    0.53    0.53    0.50    0.62     0.54
Al2O3                  0.77    0.80    0.73    0.79    0.78    0.90     0.79
CaO                   45.45   45.13   44.98   45.25   45.69   44.98    44.84
MER                   0.063   0.066   0.064   0.065   0.063   0.079    0.068
CaO/P2O5               1.55    1.56    1.54    1.55    1.56    1.57     1.54

P equals product MER equals (Fe2O3 plus Al2O3 (aluminum oxide) plus MgO) 
divided by P2O5.
(i) Weighted averages of the greater than 28P, 28/100, 100/270 concentrate 
fractions.                             

The minus-100-mesh to plus-270-mesh fraction contains most of the silica (SiO2) which is removed by a single inverse flotation stage. Inverse flotation separates the undesired minerals by collecting them in a special froth which floats while the desired phosphate pellets sink and are removed from the bottom of the flotation cell. This process produces a concentrate, again depending on the bed, containing from about 27 per cent to nearly 30 per cent P2O5 (float P in table).

P2O5 recoveries were excellent, averaging 81 per cent for all beds, ranging from 64 per cent in PH08 to 93 per cent in PH03. Low levels of minor compounds MgO and FeO, along with low MER and CaO/P2O5 ratios, will render Bayovar 12 suitable for use in producing phosphoric acid and high-analysis fertilizers such as DAP and MAP.

The remaining testwork to be completed consists of dilution studies and final concentrate characterization. A final report is expected in March, 2015.

The test results are preliminary in nature. Future work will include variability testing and pilot plant studies. Furthermore, preliminary tests indicate that recent advances in reagent chemistry could result in improved grade and recovery. Further testing in that area may be warranted.

Second phase resource drilling

Drill permits for a second phase drill program have been received from the Peruvian authorities. The objective of the program is to increase the confidence category of a portion of the existing inferred and indicated resources to measured category, and expand the resource in the area of least cover in the eastern end of the drill grid. A total of 40 or so holes is planned across the expanded grid which should commence during second quarter 2015.

Production of direct application phosphate rock (DAPR)

Extensive research carried out on Bayovar rock phosphate (known in the industry as sechura phosphate rock or SPR) by the New Zealand government, the International Fertilizer Development Centre and other organizations, has highlighted that SPR is one of the most reactive phosphate rocks in the world. It is known in the fertilizer industry for its very high reactivity and P2O5 solubility, and resultant phosphate yields.

The very high solubility in slightly acidic soils means SPR is suitable for use as a direct application fertilizer. Small-scale mining is also taking place close to Focus's concession, producing a 22- to 24-per-cent P2O5 concentrate with only minimal processing and upgrading, and without the use of chemicals, making it suitable for use as a certified organic fertilizer. Certified organic fertilizer generally commands a premium price in Latin American and North American markets, and Focus has commissioned Integer Research to carry out a market study on the use of DAPR in North and South America as part of this work.

Management attended several international fertilizer industry conferences for meetings with phosphate consumers, traders and shipping companies interested in Bayovar 12 as a future supply of rock phosphate.

PDAC

Focus's senior management will be attending this year's PDAC conference, March 1 to March 4 at the Metro Convention Centre in Toronto. The company will be exhibiting core from Bayovar 12 in the core shack (Booth 9N) on Sunday, March 1, and Monday, March 2, and will be at Booth 3014 for all four days of the convention.

Qualified person

The scientific and technical information in this release was prepared under the supervision of David Cass, Focus's president, who is a member of the Association of Professional Engineers and Geoscientists of British Columbia and a qualified person in accordance with National Instrument 43-101. The results of the metallurgical testwork given in this release are an accurate summary of the information received from Jacobs.

The metallurgical testwork program is being supervised by Glenn Gruber, an adviser to Focus and a renowned expert in phosphate beneficiation.

We seek Safe Harbor.