NI 43-101 Preliminary Economic Assessment - Verde Potash

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Verde Potash Plc 22-1 Cerrado Verde Project NI 43-101 Preliminary Economic Assessment 22 Recommendations (Items 26) 22.1 Recommended Work Programs 22.1.1 Resources The current resource estimate confidence can be improved by: Undertaking additional Bulk Density measurements on diamond core downhole and across the deposit focusing mainly on the weathered ore since fresh ore has already a good number of measurements; Improve the current surface topography using total station, or leaser; Improve current internal quality control procedures to enhance the methodology for utilization of sample blanks and standards; Additional drilling (core drilling) should be completed to improve confidence in grade continuity within the weathered and un-weathered zones and to enhance the control of these zone boundaries. The spacing of the drilling should conform to the size of the block model used for resource estimation, giving both down dip information as well as vertical constraints on the “ore” horizons; and Structural interpretations from the core holes will help in detailed mine planning as well as defining grade boundaries and controls within the deposit. 22.1.2 Metallurgical It has to be confirmed at what level, if any, will contamination of the Thermo-K product by residual fuel components, particularly petroleum hydrocarbons, make the product unusable or limited in application across the agricultural industry. If this is the case, then a gas- or indirect dead roaster-fired solution is possible, the latter having the advantage of giving flexibility for low cost alternative fuel utilization. Due to the high temperatures (above 1100 o C) it is unlikely that any residual fuel will be present. The rate of water solubilization of nutrients from the calcined product needs to be established through rinse tests simulating the quench step post calcining and long term exposure to meteoric rinsing. 22.1.3 Mining To accurately predict grade and quality of plant feedstock provided by the mine, a more complete understanding of the resource is required. In particular, the effect of K 2 O grade and mass yield calculations will effect what part of the mine is mined when and in what quantities. With a detailed infill drill program, continuation of metallurgical testing and further engineering studies SRK recommends additional work be dedicated to the effect of mine dilution, possible effect of deleterious elements, construction of mining costs from first principles, RoM production targets, waste dump design and haul profiles for contractor estimation. This can be included as part prefeasibility study and will be required for any reserve generation in the future. Given the course nature of the resource model, the ability to sensitize or understand potential challenges to future mining operations is difficult to quantify. With a more refined and detailed SRK Consulting (U.S.), Inc. September 16, 2011 Cerrado Verde_NI 43-101 PEA_343500.020_007_KG
Verde Potash Plc 22-2 Cerrado Verde Project NI 43-101 Preliminary Economic Assessment block model containing lithology, grade and product distribution, the confirmation that the mine will produce the appropriate process plant feedstock can be verified and accurately estimate. 22.1.4 Costs SRK recommends that the Project be advanced in one phase of work to the prefeasibility level of evaluation and design. The cost estimate for the recommended work program is shown in Table 22.1.4.1. Table 22.1.4.1: Recommended Prefeasibility Work Program Cost Estimate (US$000’s) Description Cost Infill Drilling 300 Metallurgical Testwork 800 Engineering Studies 500 Environmental Baseline 150 Other 250 Total 2,000 SRK Consulting (U.S.), Inc. September 16, 2011 Cerrado Verde_NI 43-101 PEA_343500.020_007_KG
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NI 43-101 Preliminary Economic Asse
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NI 43-101 Preliminary Economic Assessment - Verde Potash

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