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.
The Company received an updated resource estimate in August 2011. The new resource was estimated for five 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. An additional eight targets have been tested, on which a resource calculation will be reported during Q4/2011.
The resources are reported below using a 7.5% cut-off grade:
|
Tonnage (Mt) |
K2O (%) (average) |
| Indicated |
|
|
| 6 |
23.25 |
8.83% |
| 7 |
50.79 |
9.39% |
| Total Indicated |
74.04 |
9.22% |
| Inferred |
|
|
| 4 |
74.43 |
9.20% |
| 6 |
47.85 |
8.84% |
| 7 |
873.59 |
9.45% |
| 10 |
28.50 |
10.10% |
| 11 |
46.79 |
8.27% |
| Funchal Norte |
105.11 |
10.32% |
| Total Inferred |
1,176.27 |
9.46% |
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.