NI 43-101 Preliminary Economic Assessment - Verde Potash

Verde Potash Plc 12-11
Cerrado Verde Project
NI 43-101 Preliminary Economic Assessment
12.2.4 Data Selection
The drillhole data selection is a standard procedure of certification. It is essential that, in the
classic statistical analysis, geostatistics and in the grades interpolation process, are used the
correct samples. To the selection of the drillhole samples were used solids of the element to be
analyzed.
Analyzing the collected samples to each target is noted that for the Target 6 the majority samples
have a length of 1 m, and to the other targets the majority has 2 m length. To use the same
methodology to all the targets was assumed a 1 m length samples for the composites. The
creation process of the composed intervals began on the drillhole collar continuing on the
perforation way (down).
The samples with high and low K 2 O grades were divided into composed samples of 1 m. Then,
files of the composed samples were encoded by the mineralization body solid. To each
composed interval was assigned a value in the field ORE, being ORE=1 if the composed interval
is inside the mineralized body solid, and ORE=0 if not.
12.2.5 Modeling
The blocks models were created in order to intersect the tridimensional solids and represent then,
in defined dimensioned blocks. The blocks parameters are listed below, Table 12.2.5.1.
The block model process of the solid includes the sub-blocks process. Initially, the model was
filled with blocks of 50(X), 50(Y) and 10(Z) meters, that were divided into smaller subunits,
with a factor for the subdivision of 10, at the contact with the three-dimension solid that limit
them.
As result, at the limit with the solid, the size of the blocks became 5(X), 5(Y) and 1(Z) meters.
The initial size of the blocks was chosen based on the morphology of the mineralized bodies and
the dimension of the exploration grid (1/4 of the grid). The Model of the Target 4 has 16.786
blocks, Target 6 has 28.037 blocks, Target 7 has 193.382 blocks, Target 10 has 10.114 blocks
and Target 11 has 23.889 blocks.
The solid was used to create a block model inside the geologic mineralized body. This solid was
used to encode this blocks. The digital model of the topographic surface was used to limit the
block models by the vertical axis.
SRK Consulting (U.S.), Inc. September 16, 2011
Cerrado Verde_NI 43-101 PEA_343500.020_007_KG