Brazil: Study on Phosphate Reserves in the NE region of Para State

Toronto-based Rio Verde Minerals Development Corp. has announced an estimation of the mineral resources of their 100% owned Fosfatar phosphate project, located in the northeastern region of Para State, which consists of two locations: the Sapucaia Phosphate Target and the Boa Vista Phosphate Target. Their estimation speaks of approximately 1.93 million tonnes, with an average grade of approximately 19% P2O5 (using a 3% P2O5 cut-off). The Resource Estimate was prepared by Coffey Consultoria e Servicos Ltda. (“Coffey”), a branch of Coffey International Ltd., in accordance with NI 43-101 standards.

The Fosfatar Project is aiming the phosphate markets of the Para, Mato Grosso and Maranhao States, which are 3 of the most productive agricultural regions in Brazil. Para State is the largest palm oil producer in the country, producing approximately 160,000 tonnes of palm oil per year, with 118,000 hectares of cultivated area, and is also one of the largest beef producers. Mato Grosso State is the largest soybean, beef and cotton producer in Brazil, and Maranhao State is one of the country’s largest producers of soybean and rice. They import most of the fertilizers they consume. On the whole, Brazil imports about 90% of its potash and 50% of its phosphate needs; it accounts for 8% of the global phosphate demand and 7% of the global NPK demand.

The Sapucaia Target is an aluminous phosphate body measuring 690m N-S by 390m E-W, with ore layer true thickness ranging from 0.60m to 10.15m, averaging 5.42m, and P2O5 grades ranging from 8.22% to 25.48%. These results indicate the potential for Sapucaia to become one of the highest-grade phosphate mines in Brazil. The Sapucaia Resource Estimate is based on 1,263m of diamond drilling, distributed over 102 holes (46 historical holes) with an average depth of 12m, spaced over a 50m by 50m grid. Historical drill holes were validated by twinning a number of these holes, followed by re-logging, re-sampling and re-assaying.

The Boa Vista Target, located 2.1km away from the Sapucaia Target and with a similar mineralization, represents an additional feedstock for Sapucaia, thus adding to its mine life. Boa Vista’s phosphate body measures about 200m N-S by 150m E-W, with a mineralized layer ranging from 1.0m to 10.5m, and with P2O5 grades ranging from 2.23% to 25.10%. The Boa Vista Resource Estimate is based on 424m of diamond drilling, distributed over 26 diamond holes, with an average depth of 16m, in a 50m by 100m spaced grid.

Their study concludes that the aluminum phosphate will be easy to extract, with less than 500,000m3 of non-mineralized overburden and a low strip-ratio of no more than 0.6.

They expect to begin production next year, with a potential of 100,000 tpa and a targeted 10 year mine life.

Brazil is the main global producer of coffee, meat, orange juice, and sugar.

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