NI 43-101 Preliminary Economic Assessment - Verde Potash

Verde Potash Plc 1-1
Cerrado Verde Project
NI 43-101 Preliminary Economic Assessment
1
Introduction (Item 2)
SRK Consulting (U.S.), Inc. (“SRK”) were 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.
1.1 Terms of Reference and Purpose of the Report
This PEA is intended for the use of Verde to fulfill applicable securities obligations. This
document provides a PEA of the Project, prepared according to NI 43-101 guidelines. Form NI
43-101F1 was used as the format for this report.
This report is prepared using the industry accepted Canadian Institute of Mining, Metallurgy and
Petroleum (CIM) “Best Practices and Reporting Guidelines” for disclosing mineral exploration
information, the Canadian Securities Administrators revised regulations in NI 43-101 (Standards
of Disclosure For Mineral Projects) and Companion Policy 43-101CP, and CIM Definition
Standards for Mineral Resources and Mineral Reserves (November 27, 2010).
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.
The PEA is based on inferred and indicated mineral resources only that are considered too
speculative geologically to have the economic considerations applied to them that would enable
them to be categorized as mineral reserves, and there is no certainty that the preliminary
assessment will be realized. Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
1.2 Reliance on Other Experts (Item 4)
Section 15 of this report relies on AgroConsult Consultoria & Marketing (AgroConsult) for price
and market analysis. AgroConsult prepared in depth analyses on the various agribusiness
segments with a view to formulating short, medium and long term market trend reports on the
main agricultural commodities as well as to developing customized studies and projects. In
order to reach an average price per mixing center, the ThermoPotash benchmark price for each of
the crops was weighted in accordance with the relevant demand potential. However, the average
weighted price obtained reflects individual prices per crop. Consequently, the price would
exceed the maximum price for some crops and the product would be too expensive. Therefore,
the price was realigned to cater to 95% of the potential market. In this case, the resulting price is
the potential price for ThermoPotash at the mixing center. Its complete results could be verified
in the report prepared for Verde “Price and competitiveness survey for introducing
ThermoPotash on the Brazilian fertilizer market” published in November of 2010.
Verde provided geological data and information to BNA for Sections 5 through 9. The
information provided was verified by BNA and accepted for the use in this report.
SRK Consulting (U.S.), Inc. September 16, 2011
Cerrado Verde_NI 43-101 PEA_343500.020_007_KG