MBAC Reports NI 43-101 Resource Estimate for World Class Araxa Rare Earth Oxide/Niobium/Phosphate Deposit
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|TSX: MBC |
|OTCQX: MBCFF |
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|______________________________|
TORONTO, Dec. 6, 2011 /PRNewswire/ – MBAC Fertilizer Corp. (“MBAC” or the “Company”) (TSX:MBC and
OTCQX:MBCFF) is very pleased to report a National Instrument 43-101 (“NI 43-101″)
compliant independent inferred mineral resource estimate for the rare
earths oxides at the Company’s 100% owned Araxá Rare Earth Oxide
(“REO”)-Niobium-Phosphate Project (the “Araxá Project” or the
“Project”) located in the western part of Minas Gerais State, Brazil.
The inferred mineral resource estimate is based on 35 diamond drill
holes for 3,485 metres, 68 auger holes for 381 metres and 43 pits for
436 metres.
Highlights of Mineral Resource Estimate:
-- The inferred mineral resource estimate comprises 2.7M tonnes
with an average total REO ("TREO") content of 8.39% (using a 6%
TREO cut-off) and an average of 1.4% Nb2O5 and 9.9% P2O5
-- Heavy rare earth oxides ("HREO") represent 2.22% of the TREO
based on the recent MBAC assays.
-- These grades place the Araxá deposit as one of the highest
grade REO deposits in the world.
-- An additional exploration target has been defined by existing
wide spaced diamond drill holes consisting of between 28M
tonnes and 34M tonnes at between 4% TREO and 6% TREO.
Antenor Silva, President and CEO, stated “This resource estimate places Araxá as one of the highest grade REO
deposits in the world. The monazite mineral found at the property is
one of the typical sources of rare earths and should gives us
confidence that the material should be able to be processed into the
various REO concentrates. We are currently undertaking metallurgical
tests to confirm the ability to produce the REO concentrates. The
deposit is situated in the fertilizer cluster of Brazil in Minas Gerais
State which has excellent infrastructure. We continue to see great
interest from companies looking for off-take agreements not only for
the rare earth elements but for the niobium as well. It is important
to remember that the rare earth niobium deposit is sitting above what
we believe to be a very significant phosphate deposit. Our next
milestone is to complete a preliminary economic assessment for the rare
earth oxides which is expected in the first quarter of 2012.”Â
The Araxá Project
The Project consists of four tenements covering 214 hectares. The
Barreiro carbonatite containing the Araxá REO is also the host rock to
the Brazilian Company Companhia Brasileira de Metalurgia e Mineração’s
(“CBMM”) massive niobium mine which currently supplies approximately
85% of the world’s niobium each year. Historical exploration from the
Araxá Project has led to the discovery of significant REO, phosphate
and niobium mineralization. Phosphate occurrences in the carbonatite
were first discovered in the early 1950′s and the tenement areas
optioned to MBAC have been explored over the past 50 years by
DNPM/Geosol, IPR, CBMM, Rhone-Poulenc and Extramil (including a joint
venture partner – CIF).
Summary of the Mineral Resource Estimate
The Araxá inferred mineral resource estimate is based on 35 diamond
holes (3,485m), 68 auger holes (381m) and 43 pits (436m) drilled at a
spacing of approximately 40m by 40m. Only data received as at December
1, 2011 has been used in this estimate. MBAC has an ongoing 3,000m
infill and extensional diamond drill hole program underway but no
results are available from this phase of drilling.
The mineral resource estimate is focussed on an area of 480m by 240m
which hosts the majority of the 40m spaced drilling. Other wide spaced
drilling has not been included as the 200m spacing is too wide to allow
sufficient geological confidence. The majority of sample data was
completed in mineralization at between 10m to 50m in depth although
there are limited diamond holes deeper than 40m vertical depth and as
such the footwall limit to the mineralization is poorly defined. All
mineralization is contained within saprolitic material and has been
interpolated as a single mineralized horizontal domain. The REO
mineralization remains open in all directions.
The historical exploration data was assessed for its precision and
accuracy where possible. Only the Extramil series of diamond core
holes was available to resample but these holes had no immediate
influence on the current inferred resource area. The majority of the
historical samples have hard copy assay certificates available and have
been analyzed in respected international laboratories. In addition,
MBAC completed 36 auger holes which were analyzed at SGS Geosol
laboratory. The results to these auger holes were compared to
historical holes drilled within 15 metres and moderate precision was
found. The MBAC auger holes were submitted with two (2) Geostats Pty
Ltd certified REO standards and were returned acceptable accuracy.
The mineral resource has been classified by qualified person Beau
Nicholls (BSc (Geo) MAIG) principal consulting geologist for Amazon
Geoservices Ltda (“Amazon Geoservices”) in accordance with NI 43-101
effective as of December 2, 2011. The inferred mineral resource
estimate comprises of 2.7M tonnes with an average TREO content of 8.39% (using a 6% TREO cut-off) and an average of 1.41% Nb(2)O(5) and 9.91% P(2)O(5 )
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| Table 1 |
| Araxá REO-Niobium- Phosphate Project |
| Inferred Mineral Resource Grade Tonnage Report 2 December 2011 |
| Inverse distance weighted to Power Two (IDW2) |
| Block Model - 12.5mE X 12.5mN X 3mRL |
|_________________________________________________________________|
| Cutoff | |TREO |LREO |HREO|P2O5 |Nb2O5|CeO2|La2O3|Y2O3|
|(% TREO)|Tonnes (Mt)| % |% ** |% **| % | % | % | % | % |
|________|___________|_____|_____|____|_____|_____|____|_____|____|
| 0 | 8 |5.90 |5.77 |0.13|9.75 |1.00 |2.86|1.70 |0.08|
|________|___________|_____|_____|____|_____|_____|____|_____|____|
| 2 | 8 |5.90 |5.77 |0.13|9.75 |1.00 |2.86|1.70 |0.08|
|________|___________|_____|_____|____|_____|_____|____|_____|____|
| 4 | 6.9 |6.25 |6.11 |0.14|9.70 |1.05 |3.02|1.81 |0.08|
|________|___________|_____|_____|____|_____|_____|____|_____|____|
| 6 | 2.7 |8.39 |8.21 |0.19|9.91 |1.41 |4.06|2.45 |0.10|
|________|___________|_____|_____|____|_____|_____|____|_____|____|
| 8 | 1 |10.90|10.66|0.24|11.78|1.95 |5.34|3.127|0.12|
|________|___________|_____|_____|____|_____|_____|____|_____|____|
| 10 | 0.5 |13.03|12.74|0.29|13.01|2.25 |6.44|3.68 |0.14|
|________|___________|_____|_____|____|_____|_____|____|_____|____|
Mineral resources are not mineral reserves and do not have demonstrated
economic viability
Appropriate rounding has been applied to the table 1
TREO includes La(2)O(3), Ce(2)O(3), PR(2)O(3), Nd(2)O(3), SM(2)O(3), Eu(2)O(3), Gd(2)O(3), Tb(2)O(3), Dy(2)O(3), Ho(2)O(3), Er(2)O(3), Tm(2)O(3), Yb(2)O(3), Lu(2)O3 and Y(2)O(3)
LREO (97.78% of TREO) includes La(2)O(3), Ce(2)O(3), Pr(2)O(3) ,Nd(2)O(3 )and( )SM(2)O(3),
HREO (2.22% of TREO) includes Tb(2)O(3), Dy(2)O(3), Ho(2)O(3), Er(2)O(3), Tm(2)O(3, )Eu(2)O(3) and Gd(2)O(3) and Lu(2)O(3).Â
**Only 4.5 % of the database was analyzed for TREO. A factor of 1.27 was
determined by analysis of this data and applied to the sum of CeO(2) + La(2)O(3) +Y(2)O(3) which was analysed for all holes.
Future Exploration Target
An exploration target has been defined by existing 200m to 400m wide
spaced diamond drill holes with between 28Mt and 34Mt at between 4%
TREO and 6% TREO. It is important to point out that the potential
quantity and grade of the exploration target is conceptual in nature.
There has been insufficient exploration to define a mineral resource
and it is uncertain if further exploration will result in the
determination of a mineral resource.
MBAC is currently drilling the deposit at 40 metre spacing in the REO
mineralized area aiming to define measured and indicated resources. The
samples are being analyzed via ICP-MS at SGS Geosol laboratory located
in Belo Horizonte, Brazil.
Surface topography has been completed utilizing a total station to an
accuracy of +/-10cm.
The majority of the exploration data is historical, however Amazon
Geoservices has completed a site visit and validated the drill hole
positions and geology in the field and have reviewed the available
diamond core which is stored in Belo Horizonte. Due diligence grab
samples have been taken in the field by Amazon Geoservices and a
resampling umpire program for the available diamond drill holes
duplicate samples and auger sampling was submitted to SGS Geosol
laboratories along with appropriate QAQC. The full suite of REO has
not been systematically analyzed by historic explorers. A factor of
1.27 has been determined by MBAC and Extramil assays to allow a global
resource estimate to be undertaken at this stage of exploration.Â
Current MBAC drilling will analyze the full suite of rare earth
elements.
Qualified Persons
Beau Nicholls, (MAIG) principal consulting geologist of Amazon
Geoservices, is the qualified person who has approved the contents of
this press release.
About MBAC
MBAC is focused on becoming a significant integrated producer of
phosphate and potash fertilizers in the Brazilian and Latin American
markets. MBAC has an experienced team with over 150 years of combined
experience in the business of fertilizer operations, management,
marketing and finance within Brazil. In October 2008, MBAC acquired
Itafós Mineração Ltda, which consisted of a phosphate mine, a mill and
plant and related infrastructure, all located in central Brazil. MBAC’s
exploration portfolio includes a number of additional phosphate and
potash projects, which are also located in Brazil. The Company
continues to search for additional fertilizer opportunities in the
Brazilian and other Latin-American markets, where strong agricultural
fundamentals and unique opportunities are expected to provide
attractive growth opportunities in the near future. Further
information on MBAC can be found on the Company’s website at www.mbacfert.com and on SEDAR at www.sedar.com.
Antenor Silva
President & Chief Executive Officer
FORWARD LOOKING STATEMENTS
This press release contains “forward-looking statements” within the
meaning of applicable Canadian securities legislation. Forward-looking
statements include, but are not limited to, statements related to
activities, events or developments that the Company expects or
anticipates will or may occur in the future, including, without
limitation, statements related to the Company’s business strategy,
objectives and goals; exploration of the Araxá Project; the completion of further NI 43-101 resource estimates; the
develop of the newly defined exploration target area of the Project and
the results of MBAC’s current infill and extension drilling program at
the Project, the expected results of current metallurgical tests to
confirm the ability to produce the REO concentrates and the completion
of a preliminary economic assessment by Q1 2012. Forward-looking
statements are often identified by the use of words such as “plans”,
“planning”, “planned”, “expects” or “looking forward”, “does not
expect”, “continues”, “scheduled”, “estimates”, “forecasts”, “intends”,
“potential”, “anticipates”, “does not anticipate”, or “belief”, or
describes a “goal”, or variation of such words and phrases or state
that certain actions, events or results “may”, “could”, “would”,
“might” or “will” be taken, occur or be achieved. Forward-looking
statements are based on a number of factors and assumptions made by
management and considered reasonable at the time such statements are
made, and forward-looking statements involve known and unknown risks,
uncertainties and other factors may cause the actual results,
performance or achievements to be materially different from those
expressed or implied by the forward-looking statements. Such factors
include, among others, the inability to complete further NI 43-101
resource estimates, the inability to verify historical data related to
the Araxá Project; the failure to obtain all necessary licenses to
explore and develop the Project; the failure to successfully negotiate
with third parties to develop the Nb-REE area of the Project; the
inability to successfully complete additional drilling at the Project
in order to analyze the full suite of rare earth elements, as well as
those factors disclosed in the Company’s current Annual Information
Form and Management’s Discussion and Analysis, as well as other public
disclosure documents, available on SEDAR at www.sedar.com. Although
MBAC has attempted to identify important factors that could cause
actual actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that forward-looking
statements will prove to be accurate. The forward-looking statements
contained herein are presented for the purposes of assisting investors
in understanding the Company’s plan, objectives and goals and may not
be appropriate for other purposes. Accordingly, readers should not
place undue reliance on forward-looking statements.
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SOURCE MBAC Fertilizer Corp.
