TORONTO, April 30, 2014 /CNW/ - Verde Potash (TSX: "NPK") ("Verde" or the "Company") is pleased to announce the
results of a two-year-long independent trial on sugarcane,
demonstrating ThermoPotash ("TK")'s superiority over potassium chloride
("KCl").
The Federal University of Uberlândia ("UFU") conducted the field trials
over a growing cycle of two years (2011/2012 and 2012/2013 harvests) at
Cia Energética Vale do São Simão, a large sugar mill and ethanol
producer located in Minas Gerais State. In the first growing cycle,
50kg of K2O was applied using TK. The TK fertilized plot yielded three tonnes per
hectare ("t/ha") more sugarcane than an equal plot fertilized using
100kg of K2O from KCl. When two growing cycles were taken into account and an equal
dosage of K2O, 100kg, was applied, the TK applied area produced 12.3 t/ha more
sugarcane as compared to the KCl applied area. The total cultivated
area for these tests was 1.5 ha (15,000m2).
These tests confirm that farmers can reduce the dosage of fertilizer
applied when using TK and still increase crop yields. The main reason
for this is because TK is not leached in water as other potassium salt
fertilizers such as potassium chloride, potassium sodium nitrate,
potassium nitrate, potassium sulfate and potassium magnesium sulfate. A
potassium-leaching test conducted by UFU in 2010 established that TK
suffers minimal nutrient loss as a result of leaching, 0.3%, whereas
KCl loses 26% under the same conditions (see press release dated
December 16, 2010).
Due to Brazil's heavy rainfall, leaching is one of the main causes of
potassium deficiency in the sugarcane plant when repeatedly fertilized
with chlorine sources, such as KCl, compromising the quality of
sugarcane, a crop highly sensitive to an excess of chlorine. Unlike
KCl, which has 47% chloride in its composition, TK has no chloride thus
contributing to productive plant growth and to the maintenance and
sustainability levels of soil fertility.
Figure 1 below illustrates the results, which emphasize not only TK's
efficiency as a fertilizer source, but also the crop's dependence on
potassium for growth and productivity of sugarcane culture.
The residual potassium levels in soils fertilized with TK for sugarcane
cultivation was up to five times higher after the harvest when compared
to soils fertilized with KCl.
Sugarcane Market in Brazil
The sugarcane industry represents an important segment of Brazil's
economy. In 2012, the industry accounted for US$36 billion- equivalent
to almost 1.6% of Brazil's GDP. In Brazil, sugarcane covers more than
12.5 million hectares; the crop's highest total planted area in the
world. Brazil is the world's largest producer and exporter of
sugarcane, accounting for one third of the world's production and the
second largest ethanol producer - sugarcane is used as a feedstock for
producing the fuel. In Brazil, 92% of all new cars and light vehicle
fleet are flex fuel powered (i.e. run both on gasoline and ethanol, or
any mixture of the two), driving domestic demand and spurring growth of
the sugarcane market.
The Company's Cerrado Verde Project is located next to the main center
of national sugarcane production. The Center-South region, shown in
Figure 2 below, accounts for approximately 90% of the 658.8 million
tonnes of sugarcane produced in the 2013/14 harvest, a net increase of
11.9% from 2012/2013. Production in the State of Minas Gerais, where
Verde's deposit is located, accounts for approximately 9% of all
Brazilian production, while the neighboring State of São Paulo accounts
for more than 55%. In Brazil, after soybeans, sugarcane is the second
most valuable crop produced, accounting for 19.8% of the total value of
Brazil's 2012 agronomic production.
About Verde Potash
Verde Potash, a Brazilian fertilizer development company, is focused on
advancing the Cerrado Verde Project located in the heart of Brazil's
largest agriculture market. Cerrado Verde is the source of a
potash-rich deposit from which the Company intends to produce both
ThermoPotash (TK) and potassium chloride (KCl). TK is a
controlled-release, non-chloride, multi-nutrient fertilizer that is
ideally suited for Brazilian soils. In addition, the Company is
developing its Calcario limestone project, limestone being a key raw
material in the Company's process to produce both TK and KCl.
About the Cerrado Verde Potash Project
Cerrado Verde is a unique project: 1) its high grade potash rock
outcrops and is amenable to strip mining, allowing fast construction of
a scalable operation; 2) it is located in the midst of the world's
third largest and fastest growing fertilizer market; 3) it connects to
Brazil's largest fertilizer distribution districts via existing and
high quality infrastructure; 4) it has the potential to supply TK and
KCl to Brazil's local agriculture market from its large potash-rich
deposit.
Cautionary Language and Forward Looking Statements
NEITHER THE TSX EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT
TERM IS DEFINED IN THE POLICIES OF THE TSX EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. THIS PRESS RELEASE CONTAINS CERTAIN "FORWARD LOOKING STATEMENTS", WHICH
INCLUDE BUT IS NOT LIMITED TO, STATEMENTS WITH RESPECT TO THE RESULTS
OF THE PFS FOR THE PRODUCTION OF THERMOPOTASH, ANTICIPATED PRODUCTION
LEVELS AND TIMING OF COMMENCEMENT OF PRODUCTION, ESTIMATED TK PRICES,
PRODUCTION LIFE, COSTS AND COMPLETION OF A FEASIBILITY STUDY FOR TK,
STATEMENTS WITH RESPECT TO THE FUTURE FINANCIAL OR OPERATING
PERFORMANCE OF THE COMPANY, ITS SUBSIDIARIES AND ITS PROJECTS, AND
STATEMENTS REGARDING USE OF PROCEEDS. FORWARD LOOKING STATEMENTS CAN
GENERALLY BE IDENTIFIED BY THE USE OF WORDS SUCH AS "PLANS", "EXPECTS",
OR "DOES NOT EXPECT" OR "IS EXPECTED", "ANTICIPATES" OR "DOES NOT
ANTICIPATE", OR "BELIEVES", "INTENDS", "FORECASTS", "BUDGET",
"SCHEDULED", "ESTIMATES" OR VARIATIONS OF SUCH WORDS OR PHRASES OR
STATE THAT CERTAIN ACTIONS, EVENT, OR RESULTS "MAY", "COULD", "WOULD",
"MIGHT", OR "WILL BE TAKEN", "OCCUR" OR "BE ACHIEVED". FORWARD LOOKING
STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER
FACTORS WHICH MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS
OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS,
PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SAID
STATEMENTS.SUCH FACTORS INCLUDE A MATERIAL CHANGE IN BRAZIL'S POTASH
CONSUMPTION, GOVERNMENT REGULATIONS OF MINING OPERATIONS, ENVIRONMENTAL
RISKS, RECLAMATION EXPENSES, TITLE DISPUTES OR CLAIMS, LIMITATIONS OF
INSURANCE COVERAGE, FLUCTUATION LAB AND CONSULTANT AVAILABILITY,
MATERIAL CHANGE IN COMPANY FINANCES AND OTHER FACTORS DISCLOSED UNDER
THE HEADING "RISK FACTORS" IN THE COMPANY'S CURRENT ANNUAL INFORMATION
FORM AVAILABLE ON SEDAR AT WWW.SEDAR.COM.THERE CAN BE NO ASSURANCES
THAT FORWARD-LOOKING STATEMENTS WILL PROVE TO BE ACCURATE, AS ACTUAL
RESULTS AND FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE
ANTICIPATED IN SAID STATEMENTS. ACCORDINGLY, READERS SHOULD NOT PLACE
UNDUE RELIANCE ON FORWARD-LOOKING STATEMENTS.
Readers are cautioned not to rely solely on the summary of such
information contained in this release and are directed to the complete
set of drill results posted on Verde's website (www.verdepotash.com) and filed on SEDAR (www.sedar.com) and any future amendments to such. Readers are also directed to the
cautionary notices and disclaimers contained herein.
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SOURCE Verde Potash Plc
Image with caption: "Figure 1: Production of sugarcane (t/ha) in the areas receiving a dose of 100 kg/ha K2O from ThermoPotash (TK) and potassium chloride (KCl) and a control group (without K) (CNW Group/Verde Potash)". Image available at: http://photos.newswire.ca/images/download/20140430_C5804_PHOTO_EN_39794.jpg
Image with caption: "Figure 2: Production of Sugarcane in Brazil (CNW Group/Verde Potash) (CNW Group/Verde Potash Plc)". Image available at: http://photos.newswire.ca/images/download/20140430_C5804_PHOTO_EN_39795.jpg
