NI 43-101 Preliminary Economic Assessment - Verde Potash

Verde Potash Plc
Cerrado Verde Project
iii
NI 43-101 Preliminary Economic Assessment
13 MINING METHODS (ITEM 16) .................................................................................. 13-1
13.1 Mining Operations ............................................................................................. 13-1
13.1.1 Pit Optimization .................................................................................. 13-1
13.1.2 Whittle Parameters .......................................................................... 13-1
13.1.3 Pit Optimization Analysis ................................................................... 13-3
13.1.4 Pit Design ............................................................................................ 13-4
13.1.5 Production Schedule ........................................................................... 13-5
13.1.6 Recovery ............................................................................................. 13-7
14 PROJECT INFRASTRUCTURE (ITEM 18) ................................................................ 14-1
14.1 Access Road and Transportation ....................................................................... 14-1
14.2 Power Supply ..................................................................................................... 14-1
14.3 Water Supply ..................................................................................................... 14-2
14.3.1 Rainwater Drainage ............................................................................ 14-2
14.3.2 Hydraulic Sizing ................................................................................. 14-2
14.4 Buildings and Ancillary Facilities ..................................................................... 14-3
14.5 Potential Processing Plant Sites ......................................................................... 14-3
14.6 Potential Tailings Storage Area ......................................................................... 14-3
14.7 Potential Waste Disposal Area ........................................................................... 14-3
14.8 Manpower .......................................................................................................... 14-4
14.9 Other Surface Rights .......................................................................................... 14-4
15 MARKET STUDIES AND CONTRACTS (ITEM 19) ................................................ 15-1
15.1 Market Studies ................................................................................................... 15-1
15.1.1 Introduction ......................................................................................... 15-1
15.1.2 Methodology ....................................................................................... 15-1
15.1.3 Determining the Crop Portfolio and Formulas ................................... 15-2
15.1.4 Formula Optimization Process ............................................................ 15-3
15.1.5 ThermoPotash Pricing Process ........................................................... 15-4
15.1.6 Process to Determine the Potential Market for ThermoPotash ........... 15-5
15.2 Contracts ............................................................................................................ 15-5
16 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY
IMPACT (ITEM 20) .................................................................................................................. 16-1
17 CAPITAL AND OPERATING COSTS (ITEM 21) ..................................................... 17-1
17.1 Capital Costs ...................................................................................................... 17-1
17.1.1 Payback ............................................................................................... 17-2
17.2 Operating Costs .................................................................................................. 17-2
18 ECONOMIC ANALYSIS (ITEM 22) ........................................................................... 18-1
18.1 Taxes and Royalties ........................................................................................... 18-2
18.2 Sensitivity .......................................................................................................... 18-3
18.3 Mine Life ........................................................................................................... 18-3
19 ADJACENT PROPERTIES (ITEM 23) ........................................................................ 19-1
20 OTHER RELEVANT DATA AND INFORMATION (ITEM 24) ............................... 20-1
21 INTERPRETATION AND CONCLUSIONS (ITEM 25) ............................................ 21-1
22 RECOMMENDATIONS (ITEMS 26) .......................................................................... 22-1
22.1 Recommended Work Programs ......................................................................... 22-1
22.1.1 Resources ............................................................................................ 22-1
SRK Consulting (U.S.), Inc. September 16, 2011
Cerrado Verde_NI 43-101 PEA_343500.020_007_KG