NI 43-101 Preliminary Economic Assessment - Verde Potash

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Verde Potash Plc Cerrado Verde Project I NI 43-101 Preliminary Economic Assessment Summary (Item 3) SRK Consulting (U.S.), Inc. (“SRK”) was mandated by Verde Potash Plc (“Verde”), formerly Amazon Mining Holding Plc, to prepare a National Instrument 43-101 (“NI 43-101”) Preliminary Economic Assessment (“PEA”) on the Cerrado Verde Project (the “Project”) located in Minas Gerais, Brazil. This document provides a report on the results of mining, processing and a preliminary economic assessment of the potential project development. An update was made to the overall project resources, which now include Targets 4, 6, 7, 10 and 11. Targets 4, 6, 7, 10 and 11 resources are reported in addition to the existing Funchal Norte Target resources. The preliminary economic assessment is based only on the mineral resource estimate for the Funchal Norte Target as of March 1, 2011. Property Description and Location The Project is located in the Alto Paranaiba region of Minas Gerais State, Brazil. The boundaries of the concessions have not been surveyed as this is not a requirement of Brazil's mining code. The tenement boundaries are defined by UTM coordinates with the datum of SAD69 (Centered around coordinates 394,525 East and 7,856,531 North). Ownership Cerrado Verde mineral rights were originally requested by Verde, by means of applications for exploration licenses filed with DNPM between 2008 and 2010. Several Cerrado Verde mineral rights have been granted exploration licenses as presented in this report. Verde applied for the mineral rights directly to the DNPM. There was no prior ownership of mineral rights. Geology and Mineralization The region is mainly underlain by Neoproterozoic and Cretaceous rock units, which are partly covered by Cenozoic sandstones, lateritic sediments and soils. The oldest rocks, occurring in the southwestern portion of the region, are represented by a nucleus of calcoschists and diamictites of the Ibiá Formation (Araxá Group) surrounded by an undivided domain of the Canastra Group (quartzites, phyllites and micaschists). A model age of 1,000m.y. ( 207 Pb/ 206 Pb) has been determined for the Canastra Group, which was metamorphosed together with the Araxá Group during the Brasiliano Orogeny (600m.y.). The sequence is followed by the Bambuí Group (600- 550m.y.), which comprises the marine deposits of the Paraopeba Formation, the Serra de Santa Helena Formation and the Serra da Saudade Formation, including the Verdete unit, all these units being dominated by variegated metasiltstones, and the overlying arkoses of the Três Marias Formation. After deposition of the Bambuí Group, and the Brasiliano Orogeny, the region was exposed to erosion during the Paleozoic, Triassic and Jurassic periods, giving rise to the development of a remarkable peneplane. In addition, the flat lying surface, the terrigenous sediments of the Areado Group was deposited during the Lower Cretaceous. The next stratigraphic phase is recorded by the extensive and dominantly pyroclastic kamafugitic volcanism of the Mata da Corda Group of Upper Cretaceous age. With some exceptions the Verdete unit, a potash rich rock are dominantly lying on top of the Serra da Saudade Formation and underlying the Areado sandstone. Its apparent thickness varies SRK Consulting (U.S.), Inc. September 16, 2011 Cerrado Verde_NI 43-101 PEA_343500.020_007_KG
Verde Potash Plc Cerrado Verde Project II NI 43-101 Preliminary Economic Assessment from approximately 20m in the southernmost domain to over 50m in the northern half of the Serra da Saudade and up to 80m on the northern end where it started to be covered by younger sediments. The lower contact with the slates and metapelites of the Serra de Santa Helena Formation is transitional. Exploration Verde has completed remote sensing targeting exercise followed by regional mapping and grab samples. In addition, Verde completed a preliminary survey using an Innov-X portable XRF unit. The portable XRF unit was then correlated to pulp standards and showed good precision although returned a positive bias in the order of
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NI 43-101 Preliminary Economic Assessment - Verde Potash

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