10th May 2016
Harvest Minerals Limited
Arapua Fertilizer Project Update
Results for the Air Core Drilling Programme at Maximus Prospect
Harvest Minerals Limited ("Harvest" or "the Company") is pleased to announce the completion of an initial air core drilling programme at the Maximus Prospect, part of its Arapua Fertilizer Project ("Arapua"), located in the Brazilian state of Minas Gerais, ahead of the potential commencement of a mining programme.
The results from the drilling programme, which focused on a small area of the existing license acreage, are in line with the Company's estimates for tonnage and grade, having identified a mineralized area with the appropriate balance of minerals to support a Direct Application Natural Fertiliser ("DANF") product.
The Company has identified a significant demand for DANF product, particularly within short trucking distances from Arapua with over 1.8 million hectares of cultivated land (primarily soybean, maize, coffee and sugar cane) within 200km of the project.
Drilling Result Highlights:
· A total 25 air core drill holes (MXAC001 to MXAC025) have been completed to a depth of between 4 to 24 meters thereby providing a total of approximately 400m of drilling data.
· All drill holes intersected consistent phosphate (P2O5) and potassium oxide (K2O) enriched clay weathered kamafugite rocks - drilling ceased when intersecting unweathered kamafugite.
· Results from samples submitted to SGS Geosol, which is based in Belo Horizonte, indicate mineralized interceptions, ranging from 4.0m to 24.0m in thickness and grading from 1.67% to 4.27% P2O5 and from 2.16% to 5.30% K2O.
· The results also highlight calcium oxide (CaO) and magnesium oxide (MgO) grades of over 5%, potentially increasing the value of the material as a multi-nutrient direct application fertilizer.
· The area drilled represents only 0.107km² of the 1.691km2 (6%) of known kamafugite mineralization which the Company's geologists mapped in February 2016.
· Environmental Impact Study for trial mining permit has commenced. Trial Mining License application is expected to be made in Q2 2016.
· The Company is currently carrying out a topographic survey and sample density measurements for use in estimating a potential resource.
· Bulk samples have been submitted for metallurgical test work.
Executive Chairman, Brian McMaster, commented:
"Since receiving the proceeds of our recent funding in January, we have been steadily going through the steps to develop Arapua into a low cost commercial project producing DANF for the local market.
The drill results confirm our initial assumptions on K2O and P2O5 grade, yet with a significant presence of CaO and MgO, which complement a highly sought after DANF product. Harvest has only drilled a small area of the project, but which should provide enough material to support the proposed initial period of trial mining. We also only targeted the weathered mineralization, which will be easier and more cost efficient to extract.
The next steps are to scope the commercial viability of the project to produce a multi-nutrient direct application natural fertilizer, and scope a resource in line with a trial mining license to provide sufficient product to potential clients. The resource consultants are on site this week and samples are currently being prepared for the metallurgical test work, with the results of both expected in late June. In anticipation of this, we have also commenced work for the lodgment of our Trial Mining License, which we also expect to lodge in late June."
Enquiries:
Harvest Minerals Limited |
Brian McMaster, Chairman |
Tel: +61 8 9200 1847 |
Strand Hanson Limited (Nominated & Financial Adviser) |
Rory Murphy James Spinney Ritchie Balmer |
Tel: +44 20 7409 3494 |
Mirabaud Securities LLP (Broker) Buchanan (Financial PR) |
Rory Scott Bobby Morse Anna Michniewicz |
Tel: + 44 20 7878 3360 Tel: +44 20 7466 5000 |
Background:
The Arapua Fertilizer Project is strategically located in the Brazilian Cerrado, 360km NW from Belo Horizonte, the capital of Minas Gerais State. The project consists of seven granted exploration licenses covering total area of 12,997.6 hectares, divided across both the Arapua and Maximus prospects.
At the Maximus prospect, the previous handheld XRF results from auger holes indicated the occurrence of kamafugite rock with K2O rich zones varying from 2m @ 5.95% to 20m @ 7.96% K2O and 3.89% P2O. Previous geological mapping at Maximus identified a continuous kamafugite rock layer, mineralized phosphate and potassium rich rock, over an area of approximately 1.691 km2.
Air Core Drilling
The air core drill programme at the Maximus Prospect focused on targeting phosphate and potassium rich rocks occurring from surface within clay-weathered kamafugite rocks. The programme finished with a total of 401 meters distributed in 25 vertical drill holes. The drill holes were located approximately 50m apart from one another.
The 25 drilled holes covered an area of approximately 64,000m2 in the western portion of Serra do Maxixe plateau (Figure 01). The holes were drilled between the elevation of 1,000m and 1,044m and reached depths varying from 4.0m to 24.0m. All holes intercepted weathered kamafugitic rocks from the top to the bottom and finished into hard kamafugitic rock.
Figure 01 - Maximus Prospect - Location of Air core drill holes and (inset) area of known mineralisation.
http://www.rns-pdf.londonstockexchange.com/rns/7059X_-2016-5-9.pdf
Sample Procedures
Samples from the air core drilling programme had been recovered directly from the cyclone at each 1m of drilling advance in numbered plastic bags. Once the samples were received at the field facilities, they were identified and logged. A total of 401 samples, representative of the 401 drilled meters, were collected.
After the samples were logged, they were prepared for analysis by drying, crushing and screening (at 4 mm), homogenization and splitting. A small portion with approximately 250g, representative of each 1m interval sample, was collected for archive.
Prior to being sent to the laboratory, the samples were split into intervals varying from a minimum of 1m close to surface to a maximum of 4m, corresponding to the geological description. A total of 155 samples were prepared and dispatched to the SGS Geosol Lab in Belo Horizonte for chemical analysis of SiO2, Al2O3, Fe2O3, CaO, MgO, TiO2, P2O5, Na2O, K2O and MnO.
Quality Assurance / Quality Control ("QA/QC") samples, including reference materials, blank, and duplicates, were systematically introduced in the batches sent to the laboratory at a nominal rate of 1:20. This practice was useful in determining the quality of sample collection, sample preparation and lab analytical accuracy.
Drilling Results
All drill holes intersected widespread phosphate (P2O5) and potassium oxide (K2O) weathered kamafugite rocks. Results from air core samples submitted to SGS Geosol lab pointed to grades ranging from 0.42% to 6.79% P2O5 and 0.83% to 7.68% K2O.
The weathered mineralized interceptions range from 4.0m to 24.0m in thickness and grade from 1.67% to 4.27% P2O5 and from 2.16% to 5.30% K2O (Table 01). The mineralization is associated with kamafugite saprolite rocks, with the higher grades appear related to the breccia facies within the kamafugite rocks.
Table 01 - Maximus Prospect - Air core drill holes mineralized interceptions.
Hole ID |
Eastings |
Northings |
RL |
From (m) |
To (m) |
Length (m) |
P2O5 Intersection grade (%) |
K2O Intersection grade (%) |
Comments |
MXAC001 |
357,305.35 |
7,909,397.56 |
1,025.36 |
0.0 |
13.0 |
13.0 |
2.54 |
3.43 |
Including 6m @ 3.40% P2O5 and 4.99% K2O (from 0.0 to 6.0m) |
MXAC002 |
357,344.77 |
7,909,349.28 |
1,040.99 |
0.0 |
23.0 |
23.0 |
2.84 |
3.84 |
Including 13m @ 3.12% P2O5 and 4.07% K2O (from 0.0 to 13.0m) |
MXAC003 |
357,350.73 |
7,909,400.32 |
1,036.18 |
0.0 |
20.0 |
20.0 |
2.49 |
4.02 |
Including 10m @ 3.39% P2O5 and 4.64% K2O (from 0.0 to 10.0m) |
MXAC004 |
357,354.71 |
7,909,447.74 |
1,035.70 |
0.0 |
22.0 |
22.0 |
3.25 |
5.30 |
|
MXAC005 |
357,403.40 |
7,909,398.10 |
1,038.10 |
1.0 |
21.0 |
20.0 |
3.17 |
3.85 |
|
MXAC006 |
357,424.34 |
7,909,434.90 |
1,035.22 |
0.0 |
14.0 |
14.0 |
3.03 |
4.46 |
Including 9m @ 3.52% P2O5 and 4.96% K2O (from 0.0 to 9.0m) |
MXAC007 |
357,428.33 |
7,909,485.10 |
1,032.57 |
0.0 |
14.0 |
14.0 |
3.63 |
4.10 |
Including 6m @ 4.40% P2O5 and 4.69% K2O (from 3.0 to 9.0m) |
MXAC008 |
357,476.21 |
7,909,435.12 |
1,040.02 |
0.0 |
24.0 |
24.0 |
3.36 |
3.74 |
|
MXAC009 |
357,513.26 |
7,909,627.78 |
1,001.33 |
0.0 |
9.0 |
9.0 |
2.79 |
2.83 |
Including 3m @ 3.66% P2O5 and 3.65% K2O (from 0.0 to 3.0m) |
MXAC010 |
357,562.48 |
7,909,576.75 |
1,011.67 |
0.0 |
9.0 |
9.0 |
2.10 |
2.70 |
Including 6m @ 2.35% P2O5 and 3.11% K2O (from 0.0 to 6.0m) |
MXAC011 |
357,560.75 |
7,909,631.49 |
1,009.50 |
0.0 |
9.0 |
9.0 |
1.89 |
2.88 |
|
MXAC012 |
357,557.86 |
7,909,682.55 |
1,012.15 |
0.0 |
10.0 |
10.0 |
1.67 |
2.16 |
|
MXAC013 |
357,560.42 |
7,909,529.47 |
1,031.37 |
0.0 |
18.0 |
18.0 |
3.37 |
3.86 |
Including 9m @ 3.94% P2O5 and 4.39% K2O (from 3.0 to 12.0m) |
MXAC014 |
357,363.31 |
7,909,478.12 |
1,044.11 |
1.0 |
16.0 |
15.0 |
3.16 |
3.77 |
|
MXAC015 |
357,524.11 |
7,909,479.38 |
1,041.47 |
1.0 |
23.0 |
22.0 |
3.35 |
3.25 |
Including 3m @ 5.92% P2O5 and 3.40% K2O (from 4.0 to 7.0m) |
MXAC016 |
357,477.13 |
7,909,483.16 |
1,038.10 |
1.0 |
18.0 |
17.0 |
3.45 |
3.59 |
Including 6m @ 4.59% P2O5 and 4.21% K2O (from 4.0 to 10.0m) |
MXAC017 |
357,489.89 |
7,909,534.07 |
1,025.36 |
0.0 |
16.0 |
16.0 |
2.48 |
2.84 |
|
MXAC018 |
357,270.45 |
7,909,401.85 |
1,022.00 |
0.0 |
12.0 |
12.0 |
3.43 |
3.99 |
Including 3m @ 3.43% P2O5 and 5.16% K2O (from 6.0 to 9.0m) |
MXAC019 |
357,258.41 |
7,909,442.72 |
1,017.43 |
0.0 |
12.0 |
12.0 |
3.40 |
4.69 |
Including 3m @ 3.55% P2O5 and 6.33% K2O (from 5.0 to 8.0m) |
MXAC020 |
357,308.11 |
7,909,438.33 |
1,023.92 |
0.0 |
9.0 |
9.0 |
3.82 |
3.81 |
|
MXAC021 |
357,564.78 |
7,909,477.79 |
1,036.90 |
0.0 |
21.0 |
21.0 |
4.27 |
3.28 |
Including 3m @ 6.79% P2O5 and 2.76% K2O (from 12.0 to 15.0m) |
MXAC022 |
357,520.02 |
7,909,531.81 |
1,030.89 |
0.0 |
16.0 |
16.0 |
2.29 |
3.65 |
Including 3m @ 3.04% P2O5 and 4.51% K2O (from 6.0 to 9.0m) |
MXAC023 |
357,417.17 |
7,909,529.76 |
1,015.99 |
0.0 |
4.0 |
4.0 |
3.08 |
4.05 |
|
MXAC024 |
357,299.12 |
7,909,489.36 |
1,015.51 |
0.0 |
10.0 |
10.0 |
2.32 |
3.24 |
|
MXAC025 |
357,275.03 |
7,909,341.93 |
1,035.70 |
0.0 |
13.0 |
13.0 |
2.09 |
2.27 |
|
In addition to the phosphate and potassium oxide mineralization, grades of CaO (ranging from 0.80% to 15.60%), MgO (ranging from 3.21% to 17.90%), MnO (ranging from 0.18% to 0.55%) and silicon dioxide (SiO2) (ranging from 27.70% to 41.00%) were detected in the kamafugite weathered rocks. These results corroborate the potential of the kamafugite as a multi-nutrient silicate agro-mineral which could produce a direct application natural fertilizer (DANF).
Results for the QA/AC samples, including blanks, duplicates and standards, were within acceptable limits.
Next Steps and Timeline
The Company has already contracted a third party to carry out a topographic survey over the area covered by the drill holes and the consultants who will carry out an initial resource estimate are currently on site.
Additionally, several bulk samples have been collected and sent to the SGS Geosol Lab, for further analysis and metallurgical test work.
Additionally, the Company has commenced the Environmental Assessment report required for its application for a Trial Mining License.
Once the results of the above work are completed, the Company intends to prepare a Scoping Study which will act as the trial mining planning document.
The Company estimates these tasks will be competed over the coming three months.
COMPETENT PERSON STATEMENT
The technical information in this release which relates to the Exploration Target and exploration results is based on compiled and reviewed data by Mr. Paulo Brito. Mr. Brito is a consulting geologist for Harvest Minerals Limited and is a Member of AusIMM-The Minerals Institute, as well as, a Member of Australian Institute of Geoscientists. Mr. Brito has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which is being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Brito also meets the requirements of a qualified person under the AIM Note for Mining, Oil and Gas Companies and consents to the inclusion in the release of the matters based on their information in the form and context in which it appears. Mr. Brito accepts responsibility for the accuracy of the statements disclosed in this release.