Amazon Initiates Drill Campaign to Explore Phosphate and Expand Potash Resource
TORONTO, ONTARIO--(Marketwire - Feb. 16, 2011) - Amazon Mining Holding Plc (TSX VENTURE:AMZ) ("Amazon" or the "Company") is pleased to announce that the Company has initiated an extensive drilling campaign to explore phosphate targets at the Apatita project and to expand the potash resource at Cerrado Verde.
The planned drilling at the Apatita Project includes 4,000m of follow up drilling at the Nau de Guerra and Alto da Serra targets with a view to produce NI 43-101 compliant resource . In addition, the Company is planning 3,000m of drilling on five other targets along a trend over 30km long bordering the Cerrado Verde Project. The initial drilling program at the Apatita Phosphate project showed encouraging preliminary results (see release dated November 22, 2010), this work will build on that initial success and test new areas. P2O5 concentrations combined with estimative reserves and flotation tests will be the key drivers to moving the Apatita project forward.
The Company has also initiated a wide-spaced drilling program at the Cerrado Verde potash project aimed at producing a NI 43-101 compliant resource estimate for the whole deposit, which has a strike length exceeding 100km. Currently the Company has a NI 43-101 inferred compliant resource on 105.1 million tonnes grading 10.3% K2O using a cut-off of 7.5% (see release dated March 8, 2010). Additional drilling is also being conducted to upgrade the current resource to measured and indicated to obtain the necessary mining permit.
Amazon has commissioned two drilling companies, GeoSedna Perfuracoes Especiais S/A and Isoagua Perfuracoes Especiais S/A, to carry out a 16,000m drilling program with an option to drill another 10,000m. The initial drilling campaign consists of four pieces of drilling equipment; three Reverse Circulation drill (15,000m) and one Diamond drill (1,000m).
Amazon has hired SSMA Advisory and Consultancy, an environmental licencing company, to prepare all the necessary reports and analyze the environmental issues. Their team has already started the work in the Cerrado Verde Project area, where the biotic and physical surveys have just begun.
In October 2010, Amazon claimed an area near Cerrado Verde containing limestone. The Company plans to drill 2,500m of this area. This potential limestone deposit could make the Company self-sufficient for ThermoPotash production in terms of raw materials, and potentially reduce operating costs.
Commenting, Cristiano Veloso, President and CEO said, "This drilling program aims to create new value with our phosphate and limestone targets. It will be the first attempt by Amazon to quantify the tremendous potash resource at Cerrado Verde. The program will also help Amazon solidify its claim over the entire mineralized area as we work to convert our exploration license into a formal mining license later in 2011."
Amazon has issued 2,800 shares at a price of $8.00 to Fasken Martineau DuMoulin LLP as arrangement for settlement of debt.
Amazon Mining is a mineral exploration and development company founded by Brazilians in 2005. The company is focused on the development of the Cerrado Verde project. Cerrado Verde is a source of a potash rich rock from which Amazon plans to produce a slow-release, non-chloride, multi-nutrient, fertilizer product. Amazon Mining is a UK public company with shares listed on the Toronto Stock Exchange since November 2007.
On behalf of the Board of Directors of Amazon Mining Holding Plc
Jed Richardson, Vice President of Corporate Development
Cautionary Language and Forward Looking Statements
THIS PRESS RELEASE CONTAINS CERTAIN "FORWARD LOOKING STATEMENTS", WHICH INCLUDE BUT IS NOT LIMITED TO, STATEMENTS WITH RESPECT TO THE FUTURE FINANCIAL OR OPERATING PERFORMANCE OF THE COMPANY, ITS SUBSIDIARIES AND ITS PROJECTS, STATEMENTS REGARDING USE OF PROCEEDS, EXPLORATION PROSPECTS, IDENTIFICATION OF MINERAL RESERVES, COSTS OF AND CAPITAL FOR EXPLORATION PROJECTS, EXPLORATION EXPENDITURES, TIMING OF FUTURE EXPLORATION AND PERMITTING, REQUIREMENTS FOR ADDITIONAL CAPITAL, GOVERNMENT REGULATIONS OF MINING OPERATIONS, ENVIRONMENTAL RISKS, RECLAMATION EXPENSES, TITLE DISPUTES OR CLAIMS, AND LIMITATIONS OF INSURANCE COVERAGE. FORWARD LOOKING STATEMENTS CAN GENERALLY BE IDENTIFIED BY THE USE OF WORDS SUCH AS "PLANS", "EXPECTS", OR "DOES NOT EXPECT" OR "IS EXPECTED", "ANTICIPATES" OR "DOES NOT ANTICIPATE", OR "BELIEVES", "INTENDS", "FORECASTS", "BUDGET", "SCHEDULED", "ESTIMATES" OR VARIATIONS OF SUCH WORDS OR PHRASES OR STATE THAT CERTAIN ACTIONS, EVENT, OR RESULTS "MAY", "COULD", "WOULD", "MIGHT", OR "WILL BE TAKEN", "OCCUR" OR "BE ACHIEVED". FORWARD LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SAID STATEMENTS. THERE CAN BE NO ASSURANCES THAT FORWARD-LOOKING STATEMENTS WILL PROVE TO BE ACCURATE, AS ACTUAL RESULTS AND FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED IN SAID STATEMENTS. ACCORDINGLY, READERS SHOULD NOT PLACE UNDUE RELIANCE ON FORWARD-LOOKING STATEMENTS.
Readers are cautioned not to rely solely on the summary of such information contained in this release and are directed to the complete set of drill results posted on Amazon's website (www.amazonplc.com) and filed on SEDAR (www.sedar.com) and any future amendments to such. Readers are also directed to the cautionary notices and disclaimers contained herein.