The Cerrado Verde Potash Project has gone through National Instrument (NI) 43-101 compliant indicated and inferred mineral resource estimation by SRK Consulting.
The initial inferred resource is based on 19 drill holes in the Funchal Norte target (March 2010). Resources were estimated using a block model with blocks of 100 x 100 x 10m and using ordinary Kriging methods. All current resources are indicated and inferred as defined by the Canadian Institute of Mining guidelines for resource reporting.
As a result of additional drilling done in 2011, the Company received an expanded resource estimate in January 2012. The new resource estimate is based on 24,148m of drilling performed as 424 RC holes and 932m as 13 DC holes with drillhole spacing ranging from 400m by 400m to 200m by 200m. The estimate comprises an indicated resource of 71 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).
The resources are reported below using a 7.5% cut-off grade:
| |
Tonnage (Mt) |
K2O (%) (average) |
| Indicated |
|
|
| 6 |
23.25 |
8.83% |
| 7 |
47.83 |
9.55% |
| Total Indicated |
71.08 |
9.22% |
| Inferred |
|
|
| 1 |
235.86
|
8.72%
|
2
|
11.63 |
8.54% |
| 3 |
126.52 |
8.72% |
| 4 |
146.67 |
9.03% |
5
|
27.27 |
8.31% |
| 6 |
47.85 |
8.84% |
| 7 |
955.20 |
9.50% |
| 10 |
28.50 |
10.10% |
| 11 |
46.79 |
8.27% |
| 12 |
235.68 |
8.80%
|
| 13 |
168.25 |
8.50% |
| 14 |
325.20 |
8.65% |
| 16 |
257.49 |
8.15% |
| 17 |
150.89 |
8.19% |
| Total Inferred |
2,763.80 |
8.91% |
The potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in discovery of a mineral resource.
The full detailed report is disclosed on SEDAR or can be downloaded here.