DuSolo Concludes Infill Drilling at Santiago and Receives Multiple Results of Significant Interval Length and Excellent Phosphate Grade
September 3, 2014 (Source: Marketwired) — DuSolo Fertilizers Inc., (TSX VENTURE:DSF)(FRANKFURT:E6R)(PINKSHEETS:ELGSF) (“DuSolo” or “the Company”) is very pleased to announce that the first set of results from the Infill Drilling Campaign (“the Campaign”) recently completed at the Santiago Target demonstrate continuous mineralization of significant interval length and excellent grade at or close to surface.
To date, the Company has received results from twenty (20) (STW-RC-19 to STW-RC-38) of the forty one (41) drill holes completed. The best results are shown in the following table:
|Hole ID||From (m)||To (m)||Interval length (m)||P2O5 (%)||Final depth (m)||COMMENT|
|STP-RC-19||0.00||9.00||9.00||9.55||15||Lower Siltstone open at depth|
|STW-RC-20||2.00||6.00||4.00||20.32||20||Lower Siltstone open at depth|
|STW-RC-21||3.00||12.00||9.00||12.48||17||Lower Siltstone open at depth|
|STW-RC-22||0.00||16.00||16.00||13.38||21||Lower Siltstone open at depth|
|STW-RC-24||4.00||13.00||9.00||8.15||17||Lower Siltstone open at depth|
|STW-RC-25||0.00||15.00||15.00||19.92||15||Upper Phosphorite open at depth|
|STW-RC-26||7.00||13.00||6.00||11.28||13||Upper Phosphorite open at depth|
|STW-RC-27||3.00||13.00||10.00||20.56||13||Upper Phosphorite open at depth|
|STW-RC-29||1.00||20.00||19.00||15.20||20||Lower Siltstone open at depth|
|STW-RC-30||0.00||19.00||19.00||11.76||20||Lower Siltstone open at depth|
|STW-RC-31||0.00||19.00||19.00||12.56||20||Lower Siltstone open at depth|
|STW-RC-32||0.00||17.50||17.50||7.16||17.5||Lower Siltstone open at depth|
|STW-RC-36||0.00||16.00||16.00||5.23||19||Lower Siltstone open at depth|
|STW-RC-38||2.00||7.00||5.00||9.15||26||Lower Siltstone open at depth|
The infill drilling campaign was designed to achieve three (3) main objectives:
(1) Prove the lateral continuity of the Upper Phosphorite Layer,
(2) Prove a small portion of the higher-grade Inferred Resources of Santiago (3.4Mt @ 14.5% P2O5 Inferred – 8.0% P2O5 Cut Off Grade) and consequently provide geologic consistency to the other areas within Santiago,
(3) Provide reliable information required to design an open-pit Direct Application Natural Fertilizer (“DANF”) quarry operation within a small portion of the overall Santiago target for multiple years to come.
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With these results now confirmed, DuSolo is happy to report that all three (3) objectives have been attained.
The results received to date (20 holes) provide significant evidence that the Upper Phosphorite Layer is continuous laterally, being observed across geological and geochemical sections spaced 25 meters apart (see figure). The Upper Phosphorite Layer is outcropping or displays a very thin overburden of soil or lower-grade material (lixiviated phosphorite or siltstone). The sections (A to C) with drill results clearly show that the higher-grade mineralization is substantial and remains open, including at depth in some portions.
“We are very pleased to confirm the presence of a continuous high-grade zone of phosphorite by way of infill drilling within this selected area. The results thus far lend even more credibility to the Initial Resource Estimate previously reported for Santiago and provides us with the upmost geological confidence that we could supply DANF to the growing domestic marketplace surrounding our project area for many years to come.” Commented Mr. Paulo Amorim, DuSolo´s Vice-President of Exploration.
INFILL DRILLING CAMPAIGN DETAILED INFORMATION
The programmed holes are defined by the following sequence:
i) The target area (Santiago = ST),
ii) The exploration domain (W or P – See map),
iii) The drilling method (reverse circulation = RC),
iiii) The drill hole number (infill drill holes: 19-59).*
* Holes STW-RC-01 to STW-RC-18 were completed in 2013 and the results were used to elaborate both the exploration model for Santiago and to calculate the Initial Resource Estimate of the Bomfim Project (previously announced January 22nd, 2014).
The Infill Drilling Campaign commenced at the Santiago Target on July 28th, 2014 and was concluded 26 days later with 41 holes completed (782 meters). The Campaign followed a 25 by 25 meter regular grid and covered an area of 30,000 square meters. The infill drill holes were terminated upon passing through the Upper Phosphorite Layer or upon encountering technical problems associated to the water table. Thus, the mineralization remains open at depth towards the Lower Siltstone Layer. In addition, results from hole STW-RC-25 show that the high-grade mineralization remains open at depth after 15m @ 19.92% P2O5. The average depth of the 41 holes completed is 19 meters.
Though this area selected for infill drilling represents a small portion of the Santiago target, it contains, according to the Company’s internal estimates, enough high-grade resources to provide for multiple years of DANF processing based on the capacity of the DANF facility recently secured by DuSolo (previously announced Aug 11th, 2014).
To view the infill drill hole locations, please visit the following link:
To view the cross sections, please visit the following link:
DIRECT APPLICATION NATURAL FERTILIZER
With a processing facility now in place, DuSolo, through a series of crushers, screens and mills intends to process a small portion of the high-grade phosphate discovered at the Santiago target into three (3) DANF products of different phosphate grades (12%, 15%, 18% P2O5). Unlike other phosphate based fertilizer products, DANF processing is simple and apart of screen separation (a process that relies on physical attributes) does not entail flotation and/or further beneficiation. DANF is used alongside the standard and more costly Nitrogen, Phosphate and Potash (“NPK”) blend to compensate for elevated nutrient depletion as a result of heavy tropical rainfalls. Farmers in the region have become accustomed to using DANF on their crops over the past several years but due to recent restrictions in supply, are no longer able to source it locally at a competitive price. DuSolo, as a result of its recent high-grade discovery, intends to fill the current void in this rapidly expanding marketplace by providing farmers with a local alternative supply for years to come.
The Company implements industry recognized QA/QC methods at Bomfim by inserting high and low grade standard samples, blanks and duplicates. Chips from RC drilling are collected in bags for each one-meter interval. Chips are logged at the drill site and the samples are taken to a core shack located at DuSolo’s field office. At the core shack the samples are then crushed and screened to less than 2mm prior to homogenization and quartering. An aliquot of one quarter from each sample is then sent for analysis.
The Qualified Person has reviewed the QA/QC results and inspected all the procedures assuring the quality of the information being reported in this news release. Intertek Laboratories (“Intertek”) of Sao Paulo Brazil, was used for analytical work reported in this news release. Intertek is part of an international group of certified (ISO 9001:2008) laboratories recognized in the industry for geochemical and agricultural testing. Determination of P2O5 was done by Intertek’s method XR55L which prepared the sample with a lithium tetraborate fusion followed by XRF analysis. Intertek is independent of the Company.
Mauricio Prado, Bomfim’s Project Manager, is a Qualified Person under National Instrument 43-101 (“NI 43-101”) and has reviewed and approved the technical disclosures of this press release on behalf of the company.
ABOUT THE COMPANY
DuSolo Fertilizers Inc. is focused on developing a fully integrated process to produce phosphate based fertilizers within the Cerrado region of Brazil as part of a nationwide effort, incentivized by the government to increase supply of domestically sourced fertilizers and achieve agricultural self sufficiency.
The Company’s shares are publicly traded on the TSX Venture Exchange under the symbol DSF, on the OTC Pink Sheets under the symbol ELGSF and on Frankfurt Stock Exchange under the symbol E6R.
On behalf of the Board of Directors
|DuSolo Fertilizers Inc.|
|Eran Friedlander, President|
FORWARD LOOKING STATEMENTS
Certain information contained in this press release constitutes “forward-looking information”, within the meaning of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur”, “be achieved” or “has the potential to”. Forward looking statements contained in this press release may include statements regarding the future operating or financial performance of DuSolo which involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Among those factors which could cause actual results to differ materially are the following: market conditions and other risk factors listed from time to time in our reports filed with Canadian securities regulators on SEDAR at www.sedar.com. The forward-looking statements included in this press release are made as of the date of this press release and DuSolo disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.
Neither the TSX Venture Exchange Inc. nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this press release.
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