NI 43-101 Preliminary Economic Assessment - Verde Potash

Verde Potash Plc 12-7
Cerrado Verde Project
NI 43-101 Preliminary Economic Assessment
There are no mineral reserves at the Cerrado Verde property at this time. All mineral resources
are classified as inferred. The mineral resource estimates may be influenced by a range of
factors including environmental, permitting, legal, title, taxation, socio-economic, marketing,
political and other issues. However, such influences cannot be determined at this time.
The resource estimate has been classified as inferred mainly due to the low confidence in the
Bulk Density determinations, data density of distribution and the limited QA/QC program
provided by Verde. The actual model shows relative homogeneity and is a simple geological
model.
Figures 12-11 and 12-12 show the grade and tonnage curve for the high and low domains.
Validation
Validation of the grade estimate was completed with a comparative Nearest Neighbor estimation.
Validation consists of a comparative statistical analysis over inferred results for Weathered and
Unweathered mineralized intervals. In addition, an interactive visual validation utilizing the drill
holes and the block model was completed in plan and cross section (Figures 12-13 and 12-14).
The visual validation of the OK model shows a good correlation, considering the inferred level
of resource classification, between the blocks estimated and the original samples.
The use of OK and the simple block model method for determining resource is the accepted
practice and appears to have been applied correctly in the Coffey resource estimation. The
caveat is that the underlying database is weak in that the influence of the individual drill holes
varies across the deposit and in the northern section do not have any east-west component to use
in the model. This has the result that there is insufficient data, other than geologic inference, to
construct the blocks in those areas. Given that the deposit appears to be geologically highly
predictable gives the results some credence, but more drilling should be done and the assay
values should be inserted into the model before assigning more than low credibility to the
tonnage and grade inferred by this exercise.
12.2 Targets 4, 6, 7, 10 and 11
The resource estimation of the Verdete mineralization from the areas Target-4, Target-6, Target-
7, Target-10 and Target-11 were performed using the K 2 O values obtained from samples
collected in drill holes. Information about the initial data is presented in the Table 12.2.1.
SRK Consulting (U.S.), Inc. September 16, 2011
Cerrado Verde_NI 43-101 PEA_343500.020_007_KG