NI 43-101 Preliminary Economic Assessment - Verde Potash

Verde Potash Plc 12-1
Cerrado Verde Project
NI 43-101 Preliminary Economic Assessment
12
Mineral Resource Estimate (Item 14)
Volodymyr Myadzel, of BNA verified the Funchal Norte resource estimate provided by Coffey
Mining as described in Section 12.1. SRK also verified this resource estimate on March 1, 2010.
In addition, Dr. Myadzel constructed the geologic and resource model for Targets 4, 6, 7, 10 and
11 as discussed in Section 12.2. Dr. Myadzel is responsible for the resource estimation
methodology and the resource statement. Dr. Myadzel is independent of the issuer applying all
of the tests in Section 1.5 of the NI 43-101.
The resource estimate has been undertaken in compliance with accepted Canadian Institute of
Mining, Metallurgy and Petroleum (CIM) definitions for indicated and inferred resources in
accordance with NI 43-101 Standards of Disclosure for Mineral Projects.
12.1 Funchal Norte Target
Coffey Mining was commissioned by Verde Potash plc to complete a resource estimate for the
Project. Coffey Mining has estimated the Mineral Resource for the Project as at February 27,
2010. All grade estimation was completed using Ordinary Kriging (“OK”) for Potash.
This estimation approach was considered appropriate based on review of a number of factors,
including the quantity and spacing of available data, the interpreted controls on mineralization,
and the style of mineralization. The estimation was constrained with mineralization
interpretations.
12.1.1 Geological Modeling
Based on grade information and geological observations from Coffey Mining and site based
Verde geologists, one Unweathered domain and one Weathered domain (transition zone) have
been interpreted using E-W oriented vertical sections.
Interpretation and digitizing of all constraining boundaries has been undertaken on cross sections
orientated at 90° (drill line orientation). The interpretation was completed using 8 vertical
sections. Figure 12-1 shows the vertical sections location. The resultant digitized boundaries
have been used to construct wireframe defining the three-dimensional geometry of each
interpreted feature. The interpretation and wireframe models have been developed using the
Gemcom Surpac mine planning software package.
As the drill holes collars were surveyed using a portable GPS the RL values of each one were
defined by Coffey draping those collars to the 3D topography surface.
For the purpose of the resource estimation, 2 mineralized domains were interpreted and modeled
to the Verdete which is characterized by the green glauconitic mineralization. Cross section
examples are shown in Figures 12-2 through 12-3.
Figures 12-4 and 12-5 show the two domain wireframes interpreted in 3 dimensions.
12.1.2 Block Model Development
A three-dimensional block model was constructed for the Cerrado Verde deposit, covering all the
interpreted mineralization zones and including suitable additional waste material to allow later
pit optimization studies. The block model has been developed using Gemcom Surpac Mine
planning software.
SRK Consulting (U.S.), Inc. September 16, 2011
Cerrado Verde_NI 43-101 PEA_343500.020_007_KG