TORONTO, ONTARIO, Jun 11 (MARKET WIRE) —
MBAC Fertilizer Corp. (TSX: MBC) (“MBAC” or the
“Company”) is pleased to report on recent drilling at its
wholly-owned Arraias-Campos Belos Phosphate Project (“Itafos”
or “Project”). This recent drilling is subsequent to the drill
results in the mineral resource estimate issued on May 17, 2010.
The goal of this recent program was to upgrade inferred resources to
measured and indicated resources in order to complete an updated resource
estimate for the definitive feasibility study on the Project
(“Definitive Feasibility Study”) which is expected to be
finalized by the end of July 2010.
Since the last resource estimate, an additional 13,228 meters have been
drilled with 382 new holes at a nominal 100 x 100 meters spacing. The
drilling confirms that phosphate ore is continuous and extends both north
and south of the existing Near Mine mineralization.
Antenor Silva, President and CEO, stated “we are very pleased with
the recent drill results as they have exceeded our expectations on grade,
strip ratio and continuity. In addition, they are expected to materially
increase measured and indicated resources from the 28.3 million tonnes
reported in the previous 43-101. This will support a new mine plan,
reserve estimate and economic analysis for the Definitive Feasibility
Study. We believe that these recent drilling results support the upside
potential for a significant increase in the value of the project.”
Itafos is located in the municipality of Arraias, in the southeast of
Tocantins state, just a few kilometres away from Campos Belos, a town in
the Goias state in central Brazil.
MBAC is currently focused on the development of the Itafos which is
expected to commence production by the second quarter of 2012. At full
capacity, the proposed beneficiation plant is expected to generate 330
ktpa of phosphate rock concentrate at 28% P2O5. This phosphate
concentrate will be used to produce 500 ktpa of Single Super Phosphate
New exploration results
Since the last resource estimate, an additional 13,228 meters have been
drilled with 382 new holes at a nominal 100 x 100 meters spacing with the
objective of converting those Inferred Resources to Measured and
Indicated Resources reported by Wardrop on May 17, 2010.
Core Reverse Circulation Total
Calendar Years Holes m Holes m Holes M
—————- —————- ——————– —————-
Calendar 2008 198 7,014 – – 198 7,014
Calendar 2009 373 14,505 3 63 376 14,568
2010, to May 31 157 4,702 1,189 41,651 1,346 46,353
—————- ——————– —————-
Totals 728 26,221 1,192 41,714 1,920 67,935
—————- ——————– —————-
The 100 x 100 meters in-fill drilling campaign first targeted inner
parts of the Near Mine Block that had previously been drilled at 200 x
200 meters spacing (the Inferred Resource of which had been calculated on
the basis of block modeling techniques) and then targeted those Near Mine
areas referred to as Canabrava and Domingos that had previously been
drilled at 400 x 400 meters spacing (with a resource base calculated on
the basis of a polygonal inferred resource estimate).
Samples from the additional drilling have been submitted to the certified
international laboratory. Chemex Ltd (ALS), with the following key-note
intercepts being recorded thus far for Canabrava and Domingos:
CABR-RC-0106: 11.00m @ 10.89% P2O5, starting at 26m, including 29-36m
@ 14.90% P2O5.
CABR-RC-0116: 23.00m @ 6.94% P2O5, starting at 27m, including 27-36m
@ 11.76% P2O5.
CABR-RC-0083: 23.00m @ 4.71% P2O5 starting at 16m, including 18-24m @ 5.91%
P2O5 and 33-35 @ 8.29% P2O5.
CABR-DD-0071: 16.00m @ 7.02% P2O5, starting at 11.3m, including 11.3-23.8m
@ 9.20 % P2O5
CABR-RC-0097: 20.00m @ 17.11% P2O5, starting at 17m, including 25-37m
@ 20.24% P2O5.
CABR-RC-0099: 19.00m @ 10.27% P2O5, starting at 18m, including 21-28m
@ 14.21% P2O5.
CABR-RC-0113: 21.00m @ 10.03% P2O5, starting at 12m, including 24-32m
@ 14.09% P2O5.
CABR-DD-0008: 18.40m @ 9.01% P2O5 starting at 6m until EOH at 30.40m.
CABR-DD-0002: 18.60m @ 8.75% P2O5, starting at 10m, including 17.12-
28.6m @ 10.26% P2O5.
CABR-RC-0040: 31.00m @ 5.23% P2O5, starting at 16m, including 16-30m
@ 5.46% P2O5, 32-40m @ 6.21% P2O5 and 45-50m @ 4.84% P2O5.
DOMI-RC-0033: 24.00m @ 14.85% P2O5, starting at 10m, including 10-25m
@ 19.44% P2O5 and 25-34m @ 7.20% P2O5.
DOMI-RC-0063: 27.00m @ 9.06% P2O5, starting at 15m, including 15-26m
@ 13.32% P2O5 and 26-42m @ 6.13% P2O5.
DOMI-RC-0105: 11.00m @ 11.07% P2O5, starting at 22m, including 22-26m
@ 7.74% P2O5 and 26-33m @ 12.97% P2O5.
DOMI-RC-0112: 15.00m @ 5.11% P2O5, starting at 23m, including 23-31m @ 5.44%
P2O5 and 31-38m @ 4.74% P2O5.
DOMI-RC-0110: 19.00m @ 7.41% P2O5, starting at 27m, including 27-42m @ 8.07%
P2O5 and 43-46m @ 6.03% P2O5.
DOMI-RC-0136: 10.00m @ 17.20% P2O5, starting at 15m.
DOMI-RC-0108: 16.00m @ 11.55% P2O5, starting at 30m, including 30-34m
@ 13.74% P2O5 and 37-41m @ 19.86% P2O5.
DOMI-RC-0109: 23.00m @ 11.55% P2O5, starting at 27m, including 27-37m
@ 16.47% P2O5 and 45-50m @ 8.25% P2O5- Hole stopped at 50m @ 11% P2O5.
DOMI-RC-0119: 16.00m @ 12.43% P2O5, starting at 3m, including 3-11m @ 17.30%
P2O5 and 12-19m @ 6.17% P2O5.
DOMI-RC-0131: 18.00m @ 7.05% P2O5, starting at 15m, including 15-22m
@ 10.17% P2O5 and 28-33m @ 6.05% P2O5.
Those and all other new drilling information and analytical results
are presently being compiled and will soon be submitted to Wardrop
Engineering Inc. for incorporation in the database and re-run of the
Mineral Resources estimate by means of appropriate block modeling
techniques and interpolation parameters for the stratiform mineralization
style found at Itafos.
Dr. Luiz A. Bizzi, PhD, MBA & P.Geo., Vice-President, Exploration of MBAC
Fertilizers, is a Qualified Person as defined by National Instrument
43-101 and has reviewed and approved the contents of this news release as
About MBAC Fertilizer Corp.
MBAC Fertilizer Corp. is focused on becoming a significant integrated
producer of phosphate and potash fertilizer in the Brazilian market. In
October 2008, MBAC indirectly acquired all of Itafos Mineracao Ltda,
which holds a 100% interest in the Itafos phosphate mine and related
infrastructure (the “Arraias-Campos Belos Project” also
referred herein as “Itafos” or Project”). MBAC is
continuing to search for additional fertilizer opportunities in the
Brazilian and other Latin-American markets. Strong agricultural
fundamentals in Latin-America combined with unique opportunities in
Brazil are expected to provide attractive growth opportunities for MBAC.
To learn more about MBAC, please visit our website www.mbacfert.com.
Cautionary Note Regarding Forward-Looking Information
This press release contains “forward-looking information”
within the meaning of applicable Canadian securities legislation. The
forward-looking information contained in this press release includes, but
is not limited to, statements with respect to the conclusions drawn in
the AMEC study, the long-term potential value of the coastal potash
project, MBAC’s intention to advance the Coastal Potash Project to the
next stage of development, MBAC’s vision to become a significant
integrated producer of phosphate and potash fertilizer in the Brazilian
market, and MBAC’s expectation that strong agricultural fundamentals in
Latin America will provide attractive growth opportunities.
The forward-looking information contained in this press release is based
on the opinions, assumptions and estimates of management and third party
sources, which are considered to be reasonable and accurate as at the
date the information is presented, and are inherently subject to a
variety of risks and uncertainties and other known and unknown factors
that could cause actual events or results to differ materially from those
projected in the forward-looking information. These factors include
various exploration and development risks, environmental risks and
hazards, uncertainty with respect to current global financial conditions,
uncertainty with respect to the estimation of mineral reserves and
mineral resources, the need for additional resources, uncertainty with
respect to inferred mineral resources, insurance and uninsured risks,
potential increases in production costs, competition within the mining
industry and, in particular, the fertilizer production business in Brazil
and elsewhere, the need to obtain additional capital, fluctuations in
currency values, the ability to effectively integrate any future
acquisitions into its business structure, uncertainty with respect to
governmental regulation of the mining industry, risks relating to foreign
operations, labour and employment risks, dependence upon key management
personnel and executives, possible conflicts of interest with respect to
directors and executive officers who serve as directors and/or officers
of other companies involved in natural resource exploration and
development, climate change, and volatility in the Company’s stock price.
Although the Company has attempted to identify important factors that
could cause actual actions, events or results to differ materially from
those described in forward-looking information, there may be other
factors that cause actions, events or results not to be anticipated,
estimated or intended. There can be no assurance that forward-looking
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Potential investors are cautioned not to place undue
reliance on forward-looking information. The forward-looking information
contained in this press release is included for the purpose of assisting
potential investors in understanding the Company’s expected financial and
operational performance and the Company’s plans and objectives and may
not be appropriate for other purposes. Potential investors should conduct
their own investigations as to the suitability of investing in securities
MBAC Fertilizer Corp.
Steve Burleton, CFA
Vice President, Corporate Development
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