Harvest Minerals makes exciting new K 2 O Discovery at its 100% owned Arapua Project

Transcription

1 ASX release 03 September 2015 ASX: HMI Harvest Minerals makes exciting new K 2 O Discovery at its 100% owned Arapua Project The Company is very pleased to announce that its ongoing auger drilling programme at its 100% Arapua Project has identified large areas of highly mineralised potassium rich rocks at the Maximus Prospect. The drill programme at the Maximus Prospect was focused on targeting potassium rich rocks occurring at surface within clay weathered rocks. HIGHLIGHTS A total of eight auger drill holes (SMAD-001 to SMAD-008) have been completed to a depth of up to 20 metres. All drill holes intersected widespread Potassium Oxide (K 2 O) enriched clay weathered rocks. The following results were taken after on site preparation using a handheld XRF showing an average grade for each hole as follows: Hole SMAD metres at 7.24% K2O and 3.60% Phosphorus Pentoxide (P ) from surface to end of hole (EOH); Hole SMAD metres at 7.96% K 2 O and 3.89% P 2 O 5 from surface to EOH; Hole SMAD metres at 5.27% K 2 O and 2.62% P 2 O 5 from surface to EOH; Hole SMAD metres at 8.29% K 2 O and 3.58% P 2 O 5 from surface to EOH; Hole SMAD metres at 5.95% K 2 O and 2.54% P 2 O 5 from surface to EOH; Hole SMAD metres at 5.81% K 2 O and 1.68% P 2 O 5 from surface to EOH; Hole SMAD metres at 10.05% K 2 O and 2.08% P 2 O 5 from surface to EOH; and Hole SMAD metres at 9.41% K 2 O from surface to EOH. The sample preparation procedures included, drying, crushing and screening (at 5mm), pulverization and sieving (at 1mm), homogenization and splitting to generate a 200gr sample to analyse plus a 1kg sample for archive. The analysis was performed in the field office with the help of a handheld XRF model Delta from Olympus. Potassium (K) assays were obtained using the soil mining mode and originally reported as K(ppm). Phosphorous (P) assays were obtained using the two mining tube mode and originally reported as P(%). 01 / 06

2 Initially, the K assays were converted from ppm to % and subsequently, both elements (K and P) were converted to K 2 O and P 2 O 5, using the factors and respectively. Duplicates, blanks and standard samples were included at 20 normal samples intervals. The XRF equipment was calibrated at each batch of 23 samples. An initial Exploration Target has been estimated by Management based on the exploration results from the eight auger drill holes (SMA0D-001 to SMAD-008) at approximately 8mt to 10mt at a K 2 0 grade of 5% to 8%. The potential quantity and grade of the Exploration Target is conceptual in nature as there has been insufficient exploration to estimate a mineral resource, and it is uncertain if further exploration will result in the estimation of a mineral resource. The Company intends to undertake the necessary work to convert the Exploration Target into a JORC compliant resource over the coming months. The composition of the Maximus product tested to date is as follows: K 2 O - 10% to 6% Silica (SiO 2 ) - 39% to 43% P 2 O 5-1.5% Low and 3.6% High Magnesium Oxide (MgO) Calcium Oxide (CaO) Sodium Oxide (Na 2 O) % In addition the K 2 O mineralized rock at Maximus is low in silica and is high in K, Ca, Magnesium (Mg), iron (Fe). The testwork completed confirms the rock lacks contaminants. As the silica is low it is expected the Potassium will be more soluble than usual and available for plants without any additional treatment. It is considered that the Potassium from Maximus is absorbed in clay mineral surfaces and, therefore, excellent for plants. The additional inclusion of Ca, Mg and P is highly desirable and essential for plants. The rock also contains very low Na 2 O which is also favorable, as it is a contaminant for many plants. 02 / 06

3 Similar products being commercialized in Brazil called Phonolite are typically sold for US$70 to US$100/t. The typical composition of Phonolite fertilizer is: K 2 O - 8% SiO 2-54% P 2 O 5-0% CaO - 1.5% MgO - 0.2% Na 2 O - 7% The K 2 O from Phonolite comes from a mineral called feldspar which is a very insoluble mineral as indicated by the high level of silica (SiO 2 ). Phonolite has no P and is very low in Ca and Mg compared to the results from Maximus. The high Na 2 O of Phonolite is also undesirable as it is a contaminant for some plants. Because the Potassium from Phonolite is very insoluble the release of Potassium is very slow when applied to soil. Despite the high insolubility, absence of Ca, Mg and P and presence of Na 2 O Phonolite is being commercialized with relative success as a source of Potassium. Phonolite is a slow release K 2 O with a lower price than conventional K 2 O and KCl, environmentally friendly and well accepted in organic agriculture. Maximus K 2 O appears to have several significant advantages when compared to Phonolite, namely that it is high in K, low Na and SiO 2 and the inclusion of P, Ca and Mg. The Company believes it can potentially produce a very competitive DANF product rich in K, P, Ca and Mg. Given this, the Company is encouraged that the product identified at Maximus will be readily accepted in the market. Hole_ID From (m) To (m) Sample ID %K2O% %P2O5 Interval SMAS SMAS SMAS SMAS SMAS SMAD SMAS SMAS SMAS SMAS SMAS SMAS SMAS SMAS % K 2 O and 3.60% P 2 O 5 03 / 06

4 SMAD SMAS SMAS SMAS SMAS SMAS SMAS SMAS SMAS SMAS SMAS SMAS SMAS SMAS SMAS SMAS SMAS SMAS SMAS SMAS SMAS % K 2 O and 3.89% P 2 O 5 Hole_ID From (m) To (m) Sample ID %K2O% %P2O5 Interval SMAS SMAS SMAS SMAS SMAS SMAD SMAS SMAS SMAS SMAS SMAS SMAS SMAS SMAS % K 2 O and 2.62% P 2 O 5 04 / 06

5 Hole_ID From (m) To (m) Sample ID %K2O% %P2O5 Interval SMAS SMAS SMAS SMAS SMAS SMAD SMAS SMAS SMAS SMAS SMAS SMAS SMAS SMAS % K 2 O and 2.62% P 2 O 5 SMAD SMAS SMAS SMAS SMAS SMAS SMAS SMAS % K 2 O and 3.58% P 2 O 5 SMAD SMAS m at 5.95% K 2 O SMAS and 2.54% P 2 O 5 SMAD SMAS SMAS SMAS SMAS SMAS % K 2 O and 1.68% P 2 O 5 05 / 06

6 SMAD SMAS SMAS SMAS SMAS SMAS SMAS SMAS % K 2 O and 2.08% P 2 O 5 SMAD SMAS SMAS SMAS SMAS SMAS % K 2 O Executive Chairman Brian McMaster commented These results are very welcome given the Company s strategy of developing a commercially acceptable DANF product alongside the pre-development of its Sergi and Capela Potash projects. The ability to generate early cashflow is another characteristic helping to define Harvest s unique and exciting story. The Company is now in the process of planning additional auger drilling and test work prior to the commencement of a drill out programme that should lead to the calculation of a JORC Resource and feasibility and marketing study. Drilling programmes are expected to commence in the coming quarter. Brian McMaster Executive Chairman Harvest Minerals Limited Level 1, 330 Churchill Avenue Subiaco WA 6008 Tel: Fax: ASX Code: HMI Shares on Issue: (M) Options: 6.0 (M) Directors: Brian McMaster Matthew Wood Mark Reilly Luis Azevedo Jonathan Hart (Company Secretary) Contact: Brian McMaster - Executive Chairman info@harvestminerals.net 06 / 06

7 COMPETENT PERSON STATEMENT The technical information in this release which relates to the Exploration Target and exploration results 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 release 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. CAUTIONARY STATEMENT The potential quantity and grade of the Exploration Target is conceptual in nature, there has been insufficient exploration to estimate a mineral resource, and it is uncertain if further exploration will result in the estimation of a mineral resource.

8 The following Table and Sections are provided to ensure compliance with JORC Code (2012 Edition). TABLE - 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. Each auger drill holes was sampled using a 1 meter interval. Samples were prepared at company s office and included, drying, crushing, screening at 5mm, pulverizing, sieving at 1mm, homogenization, splitting and generate a 200gr-sample to analysis plus a 1kg sample for archive. The analysis were performed in the field office with the help of a handheld XRF analyzer (model Delta Standard) from Innov-X Systems manufacturer. Potassium (K) assays were obtained using the soil exploration mode and originally reported as K (ppm). Phosphorous (P) assays were obtained using the two beam mining mode and originally reported as P (%). Initially, the K assays were converted from ppm to % and subsequently, both elements (K and P) were converted to K 2 O (%) and P 2 O 5 (%), using the factors and , respectively. Duplicates, blanks and standard samples were included at 20 normal samples intervals All drill results from Maximus prospect are reported on this announcement. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Duplicates, blanks and standard samples were included at 20 normal samples intervals and results were considered acceptable. The handheld XRF analyzer (model Delta Standard) was calibrated at each 23 samples. The location of each auger drill hole was registered with the help of a hand-held GPS Garmin model 62sc and the coordinates were recorded on UTM_Sda69, 23 south zone. 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. All the samples were collected at 1m interval and were utilised for both geological logging and assaying. A 1-3kg of each sample was archived for future analysis, if necessary. 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). Auger drill type with 4.5 diameter. Eight vertical auger holes reported in this announcement. Drill Sample Recovery Method of recording and assessing core and chip sample recoveries and results assayed. All the auger drill intersections reported on this announcement occurred above the water table. Measures taken to maximise sample recovery and ensure representative nature of the samples. Auger samples were collected using a steel encased barrel that drills approximately 20cm core, which is then retrieved from the hole by disassembling the drill string 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. In general, the sample recoveries for auger holes were high within the mineralised zones. No significant bias is expected. 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. Not diamond core and, consequently, not logged in an appropriate detail to support Mineral Resources estimation. Whether logging is qualitative or quantitative in nature. Core ( or costean, channel, etc) photography. Auger drill holes intersected strongly weathered ultramafic rock. Despite the weathering conditions, all the intervals were logged in the best way that was possible but, at this stage, the logging is not qualitative or quantitative in nature. The core was not photographed. The total length and percentages of the relevant intersections logged. All the auger holes were logged in full.

9 The following Table and Sections are provided to ensure compliance with JORC Code (2012 Edition). TABLE - Section 1: Sampling Techniques and Data CRITERIA JORC CODE EXPLANATION COMMENTARY Sub- Sampling Techniques and Sampling Procedures If core, whether cut or sawn and whether quarter, half or all core taken. Not diamond core and, consequently, not cut. If non-core, whether riffled, tube sampled, rotary split etc and whether sample wet or dry. The entire auger samples were collected. Samples were dried, crushed, screened, pulverized, sieved at 1mm, homogenized and splitted to generate a 200gr-sample collected for analysis. For all sample types, the nature, quality and appropriateness of the sample preparation technique. The quality of the 200-gr samples used for analysis is considered appropriate at the actual stage of exploration. Assays are reported as part of this announcement Quality control procedures adopted for all sub sampling stages to maximise representivity of samples. Duplicate samples, blank samples and standard samples were included at 20m intervals. No significant bias was identified. 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. Auger drilling has been used at Arapua Project and has been found to be a quality sample that does reflect the nature of the in-situ material. Whether sample sizes are appropriate to the grain size of the material being sampled. Sample sizes (1kg to 8kg) are considered to be a sufficient size to accurately represent the key fertilizer elements, based on the near-surface mineralisation style, the width and continuity of the intersections at shallow depths and the sampling methodology. 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. All assays reported were conducted by Harvest Minerals, using a handheld XRZ instrument. At the actual stage of the project, this technique is considered partial For geophysical tools, spectrometers, hand held XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation etc. Assays were conducted using a hand held XRF analyzer (Delta Standard model) from Innov-X Systems manufacturer. Potassium (K) assays were obtained using the soil exploration mode and originally reported as K (ppm). Phosphorous (P) assays were obtained using the two beam mining mode and originally reported as P (%) P. Initially, the K assays were converted from ppm to % and subsequently, both elements (K and P) were converted to K 2 O (%) and P 2 O 5 (%), using the factors and , respectively. The XRF analyser was systematically calibrate at a 23 samples readings. The company used a GPS Garmin model 62sc to locate the collars of the auger holes. The coordinates were taken on UTM Datum SAD69 zone 23 south. 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. Duplicates, blanks and standard samples were included at 20 normal samples intervals External laboratory check will be conducted. Verification of Sampling and Assaying The verification of significant intersections by either independent or alternative company personnel. The high grade intersections of auger drilling program have been observed by several in-house geologists. The use of twinned holes No twinning of auger holes has been done yet. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. All data are entered into excel spreadsheets, that are formatted to be imported by other GIS softwares. Discuss and adjustment to assays Data below the detection limit is defined with a zero value, e.g. Not detected = 0.00

10 The following Table and Sections are provided to ensure compliance with JORC Code (2012 Edition). TABLE - Section 1: Sampling Techniques and Data 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 No downhole surveying was done on auger due to the shallow depth of the holes. A hand held GPS Garmin model 62sc was used to locate the position of the holes. Specification of grid system used Universal Transverse Mercator, SAD69 zone 23 south hemisphere. Quality and adequacy of topographic control. Digital Terrain Model (DTM) was used along the auger drilling program. Data Spacing and Distribution Data spacing for reporting of Exploration results. The actual auger program is exploratory in nature, and not for the purposes of Resources and Reserves. 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. The actual sampling program is exploratory in nature, and not for the purposes of Resources and Reserves. Whether sample compositing has been applied. No sample compositing has been applied in the field within the mineralised zones. 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. The auger drill holes were located aleatory within the potential geological unit, which is sub-horizontal. 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. There is no relationship with mineralized structure. The target is a K-rich sub-horizontal unit which is strongly weathered close to surface, sometimes reaching 20 metres depth. Sample security The measures taken to ensure sample security. The auger samples were stored on a safety place supervised by the company s staff. Audit or Reviews The results of any audits or reviews of sampling techniques and data. The properties mentioned on this announcement have not enough exploration data that supports an audits or reviews.

11 TABLE - Section 2: Reporting of Exploration Results CRITERIA JORC CODE EXPLANATION COMMENTARY Mineral Tenement and Land Tenure Status 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 Arapua Project comprises eight exploration licences covering a total area of 14,946 hectares The mineral properties at Arapua Project are registered under the following processes; /2007, /2009, /2009, 832,451/2009, /2010, /2010, /2010 and /2010. 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 All tenements are granted exploration licenses. Exploration done by Other Parties Acknowledgment and appraisal of exploration by other parties Very limited work was conducted by the original owners and resumed to mapping and few rock analysis, using a hand held XRF equipment. Geology Deposit type, geological setting and style of mineralisation Potash-phosphate enrichment associated with ultrapotassic rocks (Arapua Project). 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 To date, a total of eight auger drill holes have been drilled. Easting and northing of the drill hole collar Elevation or RL (Reduced Level elevation above sea level in metres) of the drill hole collar. Dip and azimuth of the hole Down hole length and interception depth Hole length Ager holes coordinates are in UTM SAD69, zone 23 south. Down hole interserctions are reported within this announcement. If the exclusion of this information is justified on the basis that the information is not Material and that 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 Further Work The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large- scale step-out drilling) Continue with the auger drilling program to better delineate the potential area. RC and diamond drilling to support Mineral Resources estimation. Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. Mineralized zones not defined yet.