DuSolo Awarded New GUIA Permit for Santiago Project - Doubles Permitted Extraction to 200,000 tpa
(Thomson Reuters ONE) -
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jul 25, 2017) - DuSolo Fertilizers
Inc. (TSX VENTURE:DSF) ("DuSolo" or "the Company") is very pleased to announce
that it has received final approval of its new Guia de Utilização ("GUIA")
issued by the National Department for Mineral Production ("DNPM"), and has re-
started extraction of phosphate rock from its Direct Application Natural
Fertilizer ("DANF") Santiago Project in Tocantins State, Brazil ("Santiago
Project"). The Company has also received approval of its Final Exploration
Report for the Santiago Project, allowing it to complete its application for
various permanent production licences.
The new GUIA has the following terms:
* Permission to extract up to 200,000 tonnes of phosphate mineralization by
30 May, 2018 (previously 100,000 tonnes per annum ("tpa")).
* Final Exploration Report approved - paving the way for the Company to
complete the application for its permanent mining and environmental
licences.
* GUIA application can be renewed annually until the permanent licences are
received.
The new GUIA allows the Company to continue extraction of phosphate
mineralization from the Santiago Project throughout 2017 and into 2018. The
Company expects to mine between 50,000 to 60,000 tonnes from Santiago by October
2017, which will also provide stockpiles for deliveries in the first half of
2018. Please note the disclosure included under "Forward Looking Statements"
below regarding the Company's decision to operate the Santiago Project.
Sales Update
The seasonality of the crop cycles in Brazil is such that the Company expects to
deliver 70-80% of its annual sales during the period July to December each year
and this new GUIA means that mining / production activities and customer
deliveries can now be more closely matched, reducing working capital
requirements.
As at the end of June, 2017, the Company has delivered approximately 13,500
tonnes of DANF against a budget of 12,300 tonnes. The Company has commitments to
deliver an additional 24,000 tonnes of DANF by December 2017 and is currently
negotiating contracts to deliver another 18,000 tonnes during the second half of
2017. The Company is well on the way to meeting its 60,000t DANF production and
sales target for 2017. Further information regarding sales will be provided in
the next Management Discussion & Analysis.
The new GUIA allows the Company to continue its business plan to produce and
sell DANF to existing customers as detailed in the Preliminary Economic
Assessment ("DANF PEA") released March 23, 2017 (see highlights below); to
expand its market share and to produce more than 100,000 tonnes of DANF in
2018. In parallel, the development of new products is being assessed to add
value through increased pricing and the opening up of new markets in crop
segments such as soya bean.
Giles Baynham, CEO of DuSolo, noted "We are very pleased to receive the GUIA, as
it allows the Company to continue adding value for our stakeholders. Combined
with the positive DANF PEA results earlier this year, we can now continue to
expand our market and lift production beyond our 2018 target of 100,000 tonnes
of DANF. At the same time we will now push forward with the permanent licence
applications. In 2017 we have continued producing and selling our DANF products;
completed the restructuring of the Company's operations with a strong focus on
cost reduction; whilst developing higher value products."
DANF PEA Highlights
On March 23, 2017, the Company released the results of its DANF PEA, and
subsequently the NI43-101 report was filed on SEDAR (www.sedar.com, May
8, 2017) and posted on DuSolo's website (www.dusolo.com). Highlights of the PEA
include:
* Indicated Resources of 1.16Mt at 8.23% P(2)O(5), including 0.29Mt at 14.78%
P(2)O(5)
* Inferred Resources of 2.70Mt at 8.58% P(2)O(5), including 0.82Mt at 14.72%
P(2)O(5)
* Life of Mine ("LOM") 12.5 years
* LOM Production of 543Kt of 12% DANF and 635Kt of 15% DANF
* Post-tax NPV (10%) of US$13.0m
* Zero Initial Capital (already operating)
* Operating Costs (Mine, Plant, G&A) of US$18.47/t
* Upside Case NPV(10%) of US$30.3m based on Agroconsult Consultoria e Projetos
("Agroconsult") DANF Prices
The Company's decision to produce DANF, its DANF production targets and cash
flow projections were not based on a feasibility study of mineral reserves
demonstrating economic and technical viability. Without a technical report
demonstrating economic and technical viability, there is uncertainty as to
whether the Company will be able to economically produce DANF in the long run
and as to whether the Company will be confronted with any unforeseen technical
impediments. The Company has now completed a PEA. Note that the DANF PEA is
preliminary in nature as it includes inferred mineral resources that are
considered too speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral reserves.
Mineral resources that are not mineral reserves do not have demonstrated
economic viability, and as such there is no certainty that the preliminary
assessment and economics will be realized.
NEW PRODUCT DEVELOPMENT
Brazil remains a substantial agricultural market and imports significant
quantities of fertilizer including phosphate-based products. Estimates for 2017
are a total phosphate product market of 13.5 million tonnes, with approximately
60% being imported((1)). Domestic phosphate production is a priority for the
Brazilian government, and phosphate is considered a 'Strategic Mineral' by DNPM
because of the Brazilian Government policies to increase domestic production of
fertilizers((2)). In addition, the Company is working with EMBRAPA, the state-
owned agricultural research organization, to enhance the DANF products and
complete agronomic tests to expand the range of crops utilizing DANF. Assessment
of new coarse grain and granulated DANF products continues with various
engineering consultants to develop the process design, operating and capital
costs for products utilizing various additives to improve the overall physical
and agronomic characteristics of DANF. The Company continues to work with
Agroconsult, the leading Brazilian consultancy for agriculture and fertilizers,
to determine market potential, pricing and Brazilian fertilizer market
intelligence for the various product options.
((1))Agroconsult, March 2016
((2))Brazilian Govt. Plano Nacional de Mineração 2030
PERMITTING
The Company is now permitted to extract up to 200,000tpa of phosphate
mineralization from the Santiago Project by a GUIA issued by the DNPM, and an
Environmental Licence issued by Naturatins, the Tocatins State Environmental
Agency, and valid until August 2018. GUIA's are issued under the terms of the
exploration concessions, and are replaced by the life of mine licence known as a
Portaria de Lavra, issued by the DNPM.
Approval of the Final Exploration Report allows the Company to finalize its
application to DNPM for its Portaria de Lavra, based on the DANF Preliminary
Economic Assessment published in March 2017. In a parallel process, the Company
will apply for its permanent Environmental Licence from Naturatins. The Company
and its consultants meet regularly with both DNPM and Naturatins and do not
anticipate any issues in obtaining the permanent licences for the Santiago DANF
operation.
As with any such permitting process it is subject to interaction with State and
Federal authorities and there can be no guarantee that the Company will be able
to acquire such licences.
QUALIFIED PERSONS
The technical content of this news release has been reviewed and approved by Mr.
Porfirio Cabaleiro Rodriguez and Mr. Bernardo Horta de Cerqueira Viana, both
Managing Partners of GE21 Consultoria Mineral, in compliance with the standards
of disclosure as set out in NI43-101. Mr. Rodriguez and Mr. Viana are
"independent qualified persons" for the purposes of NI43-101 Standards of
Disclosure for Mineral Projects of the Canadian Securities Administrators.
On behalf of DuSolo Fertilizers Inc.
Giles Baynham, Chief Executive Officer and Director
FORWARD LOOKING STATEMENTS
Certain information contained in this press release constitutes "forward-looking
information", within the meaning of Canadian legislation. Generally, these
forward-looking statements can be identified by the use of forward-looking
terminology such as "plans", "expects" or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words and phrases or
statements that certain actions, events or results "may", "could", "would",
"might" or "will be taken", "occur", "be achieved" or "has the potential to".
Forward looking statements contained in this press release may include
statements regarding the future operating or financial performance of DuSolo
which involve known and unknown risks and uncertainties which may not prove to
be accurate. Actual results and outcomes may differ materially from what is
expressed or forecasted in these forward-looking statements. Such statements are
qualified in their entirety by the inherent risks and uncertainties surrounding
future expectations. Among those factors which could cause actual results to
differ materially are the following: market conditions and other risk factors
listed from time to time in our reports filed with Canadian securities
regulators on SEDAR at www.sedar.com. The forward-looking statements included in
this press release are made as of the date of this press release and DuSolo
disclaims any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise,
except as expressly required by applicable securities legislation.
For more information please refer to the technical reports filed on SEDAR and
titled "Bomfim Agro-Mineral Phosphate Project, Technical Report and Initial
Resource Estimate Tocabtins and Goiás States, Brazil," filed on March 5, 2014,
effective December 31, 2013, and amended on February 6, 2015, and the "DANF
Santiago Project, Tocantins, Brazil, Independent Technical Report - Preliminary
Economic Assessment", effective date September 1, 2016, and filed on May
8, 2017. The resource estimate was signed off by Mr. Porfirio Cabaleiro
Rodriguez an Associate Consultant of Coffey Consultoria e Serviços Ltda., and
was prepared in compliance with the standards of disclosure as set out in NI43-
101. The PEA was prepared in compliance with the standards of disclosure as set
out in NI43-101 and was signed off by Mr. Porfirio Cabaleiro Rodriguez - BSc
(Min Eng), MAIG Mário Conrado Reinhardt - BSc (Geology), MAIG Bernardo Cerqueira
Viana - BSc (Geology), and MBA, MAIG Fábio Valério Xavier - BSc (Geology), MAIG
of GE21 Consultoria Mineral Ltda. Mr. Rodriguez, Mr. Reinhardt, Mr. Viana and
Mr. Xavier are each an "independent qualified person" for the purposes of NI43-
101 Standards of Disclosure for Mineral Projects of the Canadian Securities
Administrators.
Disclosure - The Company's decision to produce DANF, its DANF production targets
and cash flow projections were not based on a feasibility study of mineral
reserves demonstrating economic and technical viability. Without a technical
report demonstrating economic and technical viability, there is uncertainty as
to whether the Company will be able to economically produce DANF in the long run
and as to whether the Company will be confronted with any unforeseen technical
impediments. The Company has now completed a preliminary economic assessment.
Disclosure - Note that the DANF PEA is preliminary in nature as it includes
inferred mineral resources that are considered too speculative geologically to
have the economic considerations applied to them that would enable them to be
categorized as mineral reserves. Mineral resources that are not mineral reserves
do not have demonstrated economic viability, and as such there is no certainty
that the preliminary assessment and economics will be realized.
Neither the TSX Venture Exchange Inc. nor its Regulation Service Provider (as
that term is defined in the policies of the TSX Venture Exchange Inc.) accepts
responsibility for the adequacy or accuracy of this press release.
Contact Information
DuSolo Fertilizers Inc.
ir(at)dusolo.com
+1 (604) 764 6126
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: DuSolo Fertilizers via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 25.07.2017 - 15:30 Uhr
Sprache: Deutsch
News-ID 553795
Anzahl Zeichen: 14280
contact information:
Town:
Vancouver, BC
Kategorie:
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"DuSolo Awarded New GUIA Permit for Santiago Project - Doubles Permitted Extraction to 200,000 tpa"
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