NI 43-101 Preliminary Economic Assessment - Verde Potash

Verde Potash Plc 13-4
Cerrado Verde Project
NI 43-101 Preliminary Economic Assessment
Table 13.1.3.1: Whittle Results
Production Rate Units 1.1 Mtpa 2.2 Mtpa
Potentially Mineable Resources t 152,411,794 152,411,794
Waste t 46,206,355 46,206,355
SR w:o 0.30 0.30
Product Tonnes t 126,501,784 126,501,784
Initial Capital US$ 197,000,000 269,000,000
Sales Price US$ 152 133
NPV US$ 881,992,227 1,647,723,559
Life yr 137 57
Payback yr 1.82 1.41
IRR % 54 71
*This PEA includes the inferred mineral resources that are considered too speculative geologically to have the economic considerations applied
to them that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary assessment will ever be realized.
Mineral resources that are not mineral reserves do not have demonstrated economic viability
It must be stressed that the results reported in Table 13.1.3.1 are for comparative purposes to
check effect of production rate. If compared to the economic model, the NPV number will vary
considerably given lack of taxes, duties, depreciation and other miscellaneous expenses. The
mine life achieved for both cases re-enforce that resource inventory for feed stock is not a
limiting factor for the potential operation.
13.1.4 Pit Design
Pit designs for the Cerrado Verde deposit were constructed using Vulcan 8 general-purpose
mine planning package. The final pit design used was based on pit optimization results as a
guide for toe and crest location. No Ramps were added given the preliminary nature of the block
model and because the majority of the resource daylights within current valley systems on site.
Pit Dimensions
SRK used default pit parameters illustrated in Table 13.1.4.1.
Table 13.1.4.1: Pit Design Parameters
Dump Parameter
Value
Batter/Bench Face Angle 64º
Berm Width 2.5m
Bench Height
5m
Overall Slope 45º
SRK constructed three pit designs representing three phases used in construction of a preliminary
production schedule. Figure 13-1 illustrates the final pit design layout and tonnage basis for the
production schedule.
SRK did not construct any form of dump design. Given the low stripping ratio and abundance of
land that waste can be placed, SRK does not consider creating a waste dump design material for
the project at this stage.
SRK Consulting (U.S.), Inc. September 16, 2011
Cerrado Verde_NI 43-101 PEA_343500.020_007_KG