Amazon Initiates Drill Campaign to Explore PhosphaAmazon Mining Holding Plc
TSX VENTURE:
AMZ
Feb 16, 2011 08:00 ET
Amazon Initiates Drill Campaign to Explore Phosphate and Expand Potash Resource
TORONTO, ONTARIO--(Marketwire - Feb. 16, 2011) - Amazon Mining Holding Plc (TSX VENTURE:AMZ)("Amazon" or the "Company") is pleased to announce that the Company hasinitiated an extensive drilling campaign to explore phosphate targetsat the Apatita project and to expand the potash resource at CerradoVerde.
The planned drilling at the Apatita Project includes 4,000mof follow up drilling at the Nau de Guerra and Alto da Serra targetswith a view to produce NI 43-101 compliant resource . In addition, theCompany is planning 3,000m of drilling on five other targets along atrend over 30km long bordering the Cerrado Verde Project. The initialdrilling program at the Apatita Phosphate project showed encouragingpreliminary results (see release dated November 22, 2010), this workwill build on that initial success and test new areas. P2O5concentrations combined with estimative reserves and flotation testswill be the key drivers to moving the Apatita project forward.
The Company has also initiated a wide-spaced drilling programat the Cerrado Verde potash project aimed at producing a NI 43-101compliant resource estimate for the whole deposit, which has a strikelength exceeding 100km. Currently the Company has a NI 43-101 inferredcompliant resource on 105.1 million tonnes grading 10.3% K2Ousing a cut-off of 7.5% (see release dated March 8, 2010). Additionaldrilling is also being conducted to upgrade the current resource tomeasured and indicated to obtain the necessary mining permit.
Amazon has commissioned two drilling companies, GeoSednaPerfurações Especiais S/A and Isoagua Perfurações Especiais S/A, tocarry out a 16,000m drilling program with an option to drill another10,000m. The initial drilling campaign consists of four pieces ofdrilling equipment; three Reverse Circulation drill (15,000m) and oneDiamond drill (1,000m).
Amazon has hired SSMA Advisory and Consultancy, anenvironmental licencing company, to prepare all the necessary reportsand analyze the environmental issues. Their team has already started thework in the Cerrado Verde Project area, where the biotic and physicalsurveys have just begun.
In October 2010, Amazon claimed an area near Cerrado Verdecontaining limestone. The Company plans to drill 2,500m of this area.This potential limestone deposit could make the Company self-sufficientfor ThermoPotash production in terms of raw materials, and potentiallyreduce operating costs.
Commenting, Cristiano Veloso, President and CEO said, "Thisdrilling program aims to create new value with our phosphate andlimestone targets. It will be the first attempt by Amazon to quantifythe tremendous potash resource at Cerrado Verde. The program will alsohelp Amazon solidify its claim over the entire mineralized area as wework to convert our exploration license into a formal mining licenselater in 2011."
Other Matters
Amazon has issued 2,800 shares at a price of $8.00 to Fasken Martineau DuMoulin LLP as arrangement for settlement of debt.
About Amazon
Amazon Mining is a mineral exploration and developmentcompany founded by Brazilians in 2005. The company is focused on thedevelopment of the Cerrado Verde project. Cerrado Verde is a source of apotash rich rock from which Amazon plans to produce a slow-release,non-chloride, multi-nutrient, fertilizer product. Amazon Mining is a UKpublic company with shares listed on the Toronto Stock Exchange sinceNovember 2007.
On behalf of the Board of Directors of Amazon Mining Holding Plc