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.
Qualified Person
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.
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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
<p> <b>Cristiano Veloso</b>, President & Chief Executive Officer<br/> Tel: (416) 866-2966; Fax: (416) 866-8829; Email: <a href="mailto:cv@verdepotash.com"><u>cv@verdepotash.com</u></a> </p> <p> <a href="http://www.verdepotash.com">www.verdepotash.com</a> </p> <p> <b>Jaret Anderson, CFA</b>, VP Corporate Development<br/> Tel: (416) 866-2966; ext. 223; Fax: (416) 866-8829; Email: <a href="mailto:jaret@verdepotash.com"><u>jaret@verdepotash.com</u></a> </p>