NI 43-101 Preliminary Economic Assessment - Verde Potash

Verde Potash Plc 9-3
Cerrado Verde Project
NI 43-101 Preliminary Economic Assessment
9.2.1 Quality Controls and Quality Assurance
At the time of the drilling for Funchal Norte Target, Verde did not have appropriate internal
QA/QC systems. Future drilling should include at least one twinned hole from the existing set
that has good QA/QC in place that could be used to verify the values from the present reverse
circulation drilling program.
In May 2010, Verde introduced a QA/QC program. For the internal control reference, at every
20 routine samples, a certified standard, a powder blank and a duplicate was inserted and sent to
laboratory.
Initially, duplicates were prepared from the splitting of previous sample pulp. After analysis at
SGS laboratory, the pulp were returned and forwarded to analysis at the ALS Brasil Ltda
laboratory, located at Vespasiano, Minas Gerais State. From there, the pulps were sent to ALS
laboratory located in Lima, Peru for analysis. The pulps are analyzed by XRF and LOI. The
ALS quality management system complies with the requirements of the International Standards
ISO 9001:2008 and ISO/IEC 17025:2005. Quality control samples are inserted within each
analytical run. Form XRF methods, the minimum number of QA/QC samples are 2 standards, 1
duplicate and 1 blank, introduced every 39 samples. The blank is inserted at the beginning,
standards are inserted at random intervals, and duplicates are analyzed at end of the batch. Every
batch of samples are analyzed has a dual approval and review process. The individual analytical
runs are monitored and approved by the analyst. The results are compared with the initial values
of SGS in graphics for duplicate controls like Thompson and Howarth, QQ and Correlation plots.
This procedure was adopted until sample CV-RCS-2151.
From March 2011 on, starting at the sample CV-RCS-2171, the duplicate was obtained by
quartering the routine sample, verifying, in that way, the whole laboratory sample preparation
process.
For the accuracy control, the Australian GeoStats Phosphate certified reference material and
Brazilian Instituto de Pesquisas Tecnológicas reference material were used. There were
submitted to SGS for conventional XRF analysis. The standards certificates are attached at the
end of this report.
The blank material was prepared from pulverized quartz obtained from a Brazilian laboratory
Sulfal Química Ltda. At the time, the company did not have appropriate internal contamination
control. Gravel blank composed by quartz will be provided to verify the contamination of the
sample preparation.
For the external control reference, after analysis at the SGS laboratory, pulps were selected from
routine samples, spaced 20 by 20 and sent to analysis at ALS.
9.2.2 Adequacy of Procedures for Targets 4, 6, 7 10 and 11
The Geosol SGS laboratory, which were performed the preparation and the chemical analysis of
the bulk samples, was inspected in July 12. The inspection of the sample preparation room
confirmed that the procedure described above is satisfactory. The preparation rooms and
equipment are kept clean, and upon the completion of each shift, these rooms are cleaned up. All
laboratories and each equipment is provided with ventilation system and exhaust fans. All
instruments are in serviceable condition. The laboratory operates according to international
standards and the risk of error in chemical analysis can be assessed as low.
SRK Consulting (U.S.), Inc. September 16, 2011
Cerrado Verde_NI 43-101 PEA_343500.020_007_KG