Verde Potash has received an independent resource estimate for the Cerrado Verde Potash Project located in Minas Gerais State, Brazil (“Cerrado Verde”). The estimate comprises an indicated resource of 74 million tonnes of K2O with an average grade of 9.22% K2O and an inferred resource of 1.07 billion tonnes of K2O with an average grade of 9.37% K2O (applying a 7.5% K2O cut-off). Potash mineralization is found from surface to a maximum depth of 80 metres, rendering the resource amenable to open pit mining.
The new resource was estimated for 5 out of 13 of Cerrado Verde’s targets, in which 8,950m of drilling was performed in 143 holes with a collar spacing ranging from 400m by 400m to 200m by 200m. Nevertheless, an additional 8 targets have been tested, but are not included in this release, thus completing the 26,000m drill program. The new resource represents over 90 million tonnes of K2O.
Brazil’s annual K2O consumption is of some 4 million tonnes, but domestic output is less than 0.5 million tpa, so the balance is covered by imports.