<strong>Verde</strong> <strong>Potash</strong> Plc 6-1 Cerrado <strong>Verde</strong> Project <strong>NI</strong> <strong>43</strong>-<strong>101</strong> <strong>Preliminary</strong> <strong>Economic</strong> <strong>Assessment</strong> 6 Deposit Type (Item 8) No geological model has yet been proposed for the potash-rich <strong>Verde</strong>te metasiltstone. It is a unique type of mineralization that is known only in the Serra da Saudade Formation in the western part of the State of Minas Gerais. Presently, the <strong>Verde</strong>te is not a commercial source of potash. SRK Consulting (U.S.), Inc. September 16, 2011 Cerrado <strong>Verde</strong>_<strong>NI</strong> <strong>43</strong>-<strong>101</strong> PEA_3<strong>43</strong>500.020_007_KG
<strong>Verde</strong> <strong>Potash</strong> Plc 7-1 Cerrado <strong>Verde</strong> Project <strong>NI</strong> <strong>43</strong>-<strong>101</strong> <strong>Preliminary</strong> <strong>Economic</strong> <strong>Assessment</strong> 7 Exploration (Item 9) The present exploration work applies to the <strong>Verde</strong>te units known as Target-4, Target-6, Target-7, Target-10 and Target-11 (Figures 7-1 and 7-2). The exploration included field and laboratory studies; geological mapping in scales 1:25,000 and 1:10,000; outcrop studies and their correlation; drilling on the <strong>Verde</strong>te body; systematic sampling; chemical and physical analysis of the rock samples and drill core samples; processing and characterization testing. Initially, it was performed a bibliographic compilation of all the material about the project and surrounding areas, along with studies of economic exploitation of the potash present in silicatic rocks such as the <strong>Verde</strong>te, including technological and market aspects. The maps used as a cartographic base were the topographic map SE-23-Y-D-II 1:100.000 (Dores do Indaiá Sheet) from IBGE (government institute), the geological maps SE-23-Y-D 1:250.000 (Bom Despacho Sheet) and SE-23-YD-II 1:100.000 (Dores do Indaiá Sheet) from the Projeto São Francisco, as well as maps from theses and dissertations. Afterwards, it was performed the integration of the geological, geophysical, and geochemical information in regional scale, developing analysis and interpretation of digital satellite images for the visualization of the regional structures and occurrences of <strong>Verde</strong>te. The outcrops of the <strong>Verde</strong>te unit can be distinguished on satellite images by their characteristic green color. In the preliminary survey, the targets were defined using Google Earth images and data from SRTM (Shuttle Radar Topography Mission). These data can be found freely available on the website of EMBRAPA (government company), in form of a land numerical model grid, with 90m resolution. In the first field research, held in 2008, a mapping of the main rock types present in the region was performed, on a 1:25,000 scale, as well as a survey of the access, drainage and farms of the area. For this survey were used GPS devices from Garmin ® , model GPSMAP 76 CSX. A preliminary evaluation of the potash levels on outcrop samples was made through a portable X-ray fluorescence device, followed by chemical analysis at laboratory. Later stages of field work consisted of the performance of regional geological cross sections, especially in the areas of <strong>Verde</strong>te exposure, and semi-detail mapping campaigns for recognition of the main lithofacies, stratigraphic relations and structural aspects. During the mapping, the samples collected were used to make thin sections and lithochemical and mineralogical analysis. It was collected structural data and some stratigraphic sections surveys were made. Besides surface mapping, a drilling program was made, performing 142 drill holes by a rotopercussive reverse circulation drill and 5 twin drill holes by a diamond drill. The main chemical analyses were made at ALS Minerals, Bureau Veritas, FRX Service, SGS Geosol laboratories in Vespasiano and Belo Horizonte cities, Minas Gerais State, and at the Laboratório de Caracterização Tecnológica da Escola Politécnica da USP in São Paulo State. The office works consist of the data compilation and integration, followed by the resource calculation using ARCGIS ® and MICROMINE ® software. SRK Consulting (U.S.), Inc. September 16, 2011 Cerrado <strong>Verde</strong>_<strong>NI</strong> <strong>43</strong>-<strong>101</strong> PEA_3<strong>43</strong>500.020_007_KG
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