HARVEST MINERALS ACQUIRES SERGI POTASH PROJECT

Transcription

1 HARVEST MINERALS Developing Fertiliser Projects ASX release 20 April 2015 ASX: HMI SERGIPE POTASH PROJECT UPATE HARVEST MINERALS ACQUIRES SERGI POTASH PROJECT Harvest Minerals Limited ASX:HMI ( Harvest or the Company ) is very pleased to announce the acquisition of the Sergi Potash Project. Strategically located near Vales producing underground potash mine. Exceptional Sylvinte intersections: 8.27m intercept averaging 20.94% KCl from m, including 5.08m at 24.84% KCl 8.46m intercept averaging 28.98% KCl from m, including 5.47m at 39.65% KCl Recently completed 3D seismic has highlighted many extensions to this high grade zone. Company expects to be able to release an Exploration Target in the current quarter. The Company has commenced a scoping study based upon processing at Vales operation. SERGI POTASH PROJECT The Sergi Potash Project is strategically located next to Brasil s only producing potash mine. Recent drill results have identified world class potential and the Company believes that a coordinated exploration and development programme will crysstallise this potential in the short term. SED Drill Results The Potash mineralisation of the Sergipe Basin is hosted in the Aptian (Middle Cretaceous) Ibura Member of the Muribeca Formation. Data from historical wells drilled in the 1980 s showing sylvinite and carnallite intersections lead to both Rio Verde and B&A Mineracao ( previous owners of the project) to conduct a 4 well drilling campaign ( SED , SED , SERG-DH-0001, SERG-DH-0002). World Class SED Drilled to a depth of 1354m in 2011 by Rio Verde, the well intersect two high grade sylvinite bearing zones with a weighted average grade of 25.01% KCL over 16.73m. The well also intersected two carnallite bearing zones. Sylvinite Upper zone, 8.27m intercept averaging 20.94% KCl from m, including5.08m at 24.84% KCl. Lower zone, 8.46m intercept averaging 28.98%KCl from m, including 5.47m at 39.65% KCl. Carnallite Upper zone, 12.81m intercept averaging 16.70% KCl from m. Lower zone, 5.56m intercept averaging 21.11% KCl KCl from m. Harvest Minerals (ASX:HMI) - Harvest Minerals Acquires Sergi Potash Project 01 / 08

2 ASX: HMI HARVEST MINERALS The subsequent 3 wells SED-002, SERG-01 and SERG-02 were drilled (1.6km 2.7km) from SED and failed to intercept the formation. 3D seismic remodelling and formation restructuring is currently being generated by the Company to highlight potential extensions to SED Many drill targets have already been identified by the Company. A tonnage and grade Exploration Targets will be released the current quarter. All core and well data are is now owned by the Company. SED Lithology SED Core Samples Sylvinite Sylvinite Carnallitite Carnallitite Harvest Minerals (ASX:HMI) - Harvest Minerals Acquires Sergi Potash Project 02 / 03

3 ASX: HMI HARVEST MINERALS Agreement The Company has entered into a binding agreement with KMINE to acquire the Project area. KMINE has 100% interest in the mineral rights comprised by DNPM tenements no /2008, /2008, /2008 and /2009 located in the State of Sergipe, Brazil, hereinafter referred to as Mineral Rights of Sergipe Project. The salient terms of the agreement are as as follows: On signing date of Heads of Agreement, payment of AUD50,000 to KMINE. On signing date of Definitive Agreement, subject to Due Diligence, payment of AUD50,000 to KMINE. On December 31st 2015 and 2016, payment of AUD100,000 and 60,000,000 shares to KMINE at the average price of the last 30 days VWAP. On December 31st , payment of AUD100,000 to KMINE. On achieving minimum horizon of 10 meters of carnallite or sylvite with a minimum grade of 10%, payment of 60,000,000 shares to KMINE at the average price of the last 30 days VWAP. On achieving a JORC inferred reserve with the minimum of 25 million tonnes with a minimum grade of more than 10% of KCl, payment of 60,000,000 shares to KMINE at the average price of the last 30 days VWAP. On achieving a successful scope study or feasibility study that confirms the economic feasibility under the JORC rules, payment of 60,000,000 shares to KMINE shares at the average price of the last 30 days VWAP. On commencing of commercial production, payment of AUD6,000,000 to KMINE. The addition of the advanced high grade Sergi Potash Project to the existing assets at Capela is a an extremely exciting development for Harvest Minerals. The Company is now in an enviable position of owning two high quality potash projects in the only producing potash basin of Brazil. Brazil is the world s largest potash importer and the world s third largest consumer. Both Capela and Sergi are strategically located in close vicinity to existing processing and infrastructure facilities. The Company expects to be able to provide further updates on its expanded Sergipe Potash Project in the current quarter. Brian McMaster Executive Chairman Competent Persons Statement The technical information in this release 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 consents to the inclusion in the report 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. Harvest Minerals Limited Level 1, 330 Churchill Avenue Subiaco WA 6008 Tel: Fax: ASX Code: HMI Shares on Issue: (M) Options: 20.0 (M) Directors: Brian McMaster Luis Azevedo Matthew Wood Mark Reilly Jonathan Hart (Company Secretary) Contact: Brian McMaster - Executive Chairman info@harvestminerals.net Harvest Minerals (ASX:HMI) - Harvest Minerals Acquires Sergi Potash Project 03 / 03

4 Section 1 Sampling Techniques and Data Criteria JORC Code Explanation Commentary Sampling Techniques Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole, gamma sondes, or handheld XRF instruments etc). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where industry standard work has been done this would relatively simple (e.g. reverse circulation drilling was used to obtain 1m samples from which 3kg was pulverised to produce a 30g charge for fire assay). In other cases more explanation may be required, such as where there is course gold that has inherent sampling problems. Unusual commodities or mineralisation types ( e.g. submarine nodules ) may warrant disclosure of detailed information. Criteria JORC Code Explanation Commentary Drilling Techniques Drill types (e.g. core, reverse circulation, open hole hammer, rotary air blast, auger, Bangka, sonic etc ) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is oriented and if so by what method etc). No drilling has been conducted yet. Drill Sample Recovery Method of recording and assessing core and chip sample recoveries and results assayed.. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine /course material. Logging Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core ( or costean, channel, etc) photography. The total length and percentages of the relevant intersections logged. Sub- Sampling Techniques and Sampling Procedures If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split etc and whether sample wet or dry. Criteria JORC Code Explanation Commentary For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub sampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled. Quality of Assay Data and Laboratory Tests The nature quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. Assays are not reported in this. For geophysical tools, spectrometers, hand held XRF Assays are not reported in this

5 Verification of Sampling and Assaying instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation etc. Nature of quality control procedures adopted ( e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established. The verification of significant intersections by either independent or alternative company personnel.. The use of twinned holes Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss and adjustment to assays Criteria JORC Code explanation Commentary Location of Data Points Accuracy and quality of surveys used to locate drill holes (collar and down hole surveys), trenches, mine workings and other locations used in Mine Resource estimation To date, no exploration works have been Specification of grid system used To date, no exploration works have been Quality and adequacy of topographic control. To date, no exploration works have been Data Spacing and Distribution Data spacing for reporting of Exploration results. To date, no exploration works have been Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classification applied. Whether sample compositing has been applied. Orientation of Data in relation to Geological Structure Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.. Sample security The measures taken to ensure sample security. Audit or Reviews The results of any audits or reviews of sampling The property has not enough exploration techniques and data. data that supports an audits or reviews. Section 2 Reporting of Exploration Results Criteria JORC Code explanation Commentary Mineral tenement and land tenure status Exploration done by other parties Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. The project/prospect area included on this covers an area of 5,130,18 hectares. The exploration licenses were granted on March 11 th., 2009 and renewed on June 12 th., The mineral property are registered under the following processes; /2008, /2008, /2008 and /2009. The company is not aware of any impediment to obtain a license to operate in the area. Acknowledgment and appraisal of exploration by other parties. In 2013, a Brazilian company conducted a 3D seismic survey over the property. The survey was carried out by GeoQuasar and the data was processed and interpreted by RPS Canada. Four historical diamond drill holes were drilled within the property on the last five years. There are historical oil wells closed by the mineral property and geological/geophysical information of some of those were acquired from Petroleum National Agency and used to better understand the geological controls. Geology Deposit type, geological setting and style of mineralisation. Potash-bearing Bedded Salton onshore Cretaceous basin. Drill hole Information A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar Not drilled yet.

6 Criteria JORC Code explanation Commentary o elevation or RL (Reduced Level elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length. If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. Does not apply. Data aggregation methods In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. The company is not reporting any grades on this report except some historical grades obtained by other companies. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The intercepts included on this report are historical in nature. Harvest still not conducted any drilling. The assumptions used for any reporting of metal equivalent values should be clearly stated. No assumptions are included in this report. Relationship between mineralisatio n widths and intercept lengths These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg down hole length, true width not known ). The geometry of the mineralization is not clearly defined at the current level of exploration. Drilling has not being done by Harvest. Drilling intercepts included in this Announcement are historical in nature. Drilling has not being done by Harvest. Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. Harvest has not conducted any exploration works on the property. The results presented on this are historical in nature and diagrams related to this historical data is included in the. Criteria JORC Code explanation Commentary Balanced reporting Other substantive exploration data Further work Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). Not drilled yet. Grades included in this are historical in nature and not generated by Harvest. To date, there is no material data to be reported. Re-interpretation of 3D seismic data Diamond drilling program. Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.