Potash is an essential nutrient to grow food with no substitute and is therefore vital to feed the rising global population. At 8.8MTpa of consumption, Brazil is the world’s second largest and fastest growing market for potash but imports 95% of its needs from mines located 13,000 to 20,000 kilometers away.Brazil Potash Corporation holds exclusive title to a world-class scale potash basin located in Brazil only 8 kilometers from a major river system that will be used to transport initial planned production of 2.4MTpa on river barges to farmers in Brazil. Based on today’s depressed global oil prices and shipping rates, Brazil Potash is able to mine, process and deliver its potash for the same cost as importers logistics costs alone! This substantial and sustainable logistics cost advantage will increase with anticipated global raising oil prices and results in a Green House Gas (GHG) emission savings of roughly 508kTpa.
Brazil Potash has completed a NI 43-101 compliant Bankable Feasibility Study (BFS), Environmental Impact Assessment (EIA), obtained the Preliminary Social and Environmental License (LP) and acquired majority of the land required for the plant and port. The company has NI 43-101 compliant proven and probable reserves supporting 34 years of mine life based on drilling only ~10% of the land package held.
Brazil Potash holds key mineral rights in the 400 km long x 150 km wide Amazon potash basin that has similar scale and geological setting as the Williston basin in Saskatchewan Canada. The claims have a cumulative area of approximately 26,277.7 km2 (2,627,769.79 ha). Brazil Potash has diamond drilled ~59,000m in 65 holes resulting in four potash discoveries with its principle target being the Autazes deposit located ~120 km southeast from the city of Manaus which has a population of ~2 million people.
To date, 41 exploration drill holes have been completed in the Autazes Project area. The results from these drill holes form the basis of the Nl 43-101 compliant BFS. The Mineral Resource Estimates were completed by Ercosplan Ingenieurgesellschaft Geotechnik Und Bergbau Mbh (Ercosplan) and mineral reserves were estimated based on the feasibility study mine plan prepared by WorleyParsons.
Based on the plan to mine 8.5 Mtpy of ROM ore using conventional room and pillar methods, the hot leach processing plant will produce 2.44 Mtpy of granular Muriate of Potash (MOP) starting in 2022 for 34 years, including the ramp up and ramp-down periods. The ore body is open in multiple directions as the 34 years of reserves is based on drilling only ~10% of the land package held. Brazil is currently the second largest global consumer of MOP, at approximately 8.8 M tonnes in 2015, and has a cumulative annual growth rate (CAGR) of ~3.5%. Brazil imports ~95% of its MOP needs from mines located 14,000 to 20,000 kilometers away in Canada, Russia, Germany and Israel, increasing to 100% by ~2020 when the only domestic potash mined is exhausted. The Company’s plan is to sell all of its potash domestically using the Madeira River, located only 8 km from the site, as the main means to transport product to customers.
The Central Amazon Basin is a large Paleozoic basin in northern Brazil. Within this basin, a sequence of marine to fluvial-lacustrine sediments of the Tapajos Group has developed, which are of Upper Carboniferous to Permian age. These rocks un-uniformly overlay rocks of the Upper Devonian to Lower Carboniferous Curua Group and are un-uniformly overlaid by the rocks of the Javari Group of Cretaceous to Palaeogene age.
Within the Autazes Area, a sylvinite deposit has developed, which is Lower Permian in age.
The top of the sylvinite deposit was determined to be at a depth between 685 m to 863 m. The total thickness of the sylvinite-bearing horizons ranges between 1.0 m and 4.0 m, with an average KCI grade of 31.5%.
Mineral Resources and Reserves
The Autazes Potash Project has measured resources of 151 million tonnes at an average grade of 31.2% KCl, indicated resources of 284 million tonnes at an average grade of 30.9% KCl and inferred resources of 196 million tonnes at an average grade of 29.3% KCl. Total proven reserves are 87.4 million tonnes at an average grade of 28.7% KCl including dilution. Probable reserves are 160.7 million tonnes at an average grade of 27.9% KCl. The cut-off grade (COG) was set at a grade of 10% of KCl. The minimum mining height is 1.5 m for the production panel rooms and 3.5 m for the mains development and panel development.