ARAPUA FERTILISER PROJECT UPDATE

RNS Number : 9918S

Harvest Minerals Limited

30 December 2016

 

30 December 2016

Harvest Minerals Limited

("Harvest" or the "Company")

ARAPUA FERTILISER PROJECT UPDATE
Results of the Second Air Core Drilling Programme at Maximus Prospect 

Harvest Minerals Limited ("Harvest" or "the Company") is pleased to announce the completion of the second air core drilling programme at the Maximus Prospect, part of its Arapua Fertilizer Project ("Arapua"), located in the Brazilian state of Minas Gerais.

The results from the second drilling programme, which firstly focused on the extension of the area drilled in the previous drilling stage, confirms the continuity of the weathered kamafugite ore body with consistent K₂O, P₂O₅, CaO and MgO grades.

Additional holes were drilled over outcropping kamafugite which previously have been mapped by the Company's geologists. These holes had a regional spacing and produced results compatible to the grades in the current resource area, indicating the potential to further substantially increase the mineral resources. 

Drilling Results Highlights:

·    A total 39 vertical air core drill holes (MXAC026 to MXAC064) have been completed to a depth of between 6 to 40 meters, providing a total of approximately 775m of drilling data.

·    As in the first drilling programme, drilling ceased when unweathered kamafugite was intersected.

·    All drill holes intersected consistent phosphate (P₂O₅), potassium oxide (K₂O), calcium oxide CaO and magnesium oxide MgO enriched clay weathered kamafugite rocks

·    Results from samples submitted to SGS Geosol, which is based in Belo Horizonte, indicate average mineralized interceptions ranging from 1.23% to 5.93% P₂O₅ and from 1.86% to 5.86% K₂O.

Next Steps

Harvest has retained the services of independent consultants GE21 (formerly Coffey Mining Brazil) to revise the current resource using the additional drill data. GE21 will be on site in mid-January to check the results and an updated resource is expected by mid February.

Commenting on the update, Executive Chairman of Harvest, Brian McMaster stated:

"These latest drilling results confirm the consistent quality of the mineralisation at Maximus. As discussed we have retained independent consultants GE21 to revise the current resource using this additional drill data. This is expected to be completed by mid February and should allow us to increase the potential production well above the 100Ktpa over 7 years, based on the current resource as detailed in the scoping study. The wider spaced drilling, including of the (non-diamondiferous) kimberlite, indicates that the grades and thickness of the weathered mineralisation are consistent throughout the entire area we previously mapped and should provide enough material to support any future expansion plans.

This concludes, what has been a very busy 2016, during which we have been able to accomplish and surpass all our stated objectives. Harvest has progressed from field mapping to production in under a year. Highlights for the year include, completing a capital raising, producing a maiden resource, completing a scoping study, receiving both our environmental and trial mining permits, completing civil works, commencing trial mining and signing a LOI for off take during 2017. Additionally, this has been done on a tight budget. This has been an exceptional achievement by the whole team. We will look to build on this next year.

In addition to the direct team at Harvest, none of this would be possible without the support of our broader team, namely the owners of the company, our shareholders and the advisory teams listed below.  On behalf of Harvest I wish you all a happy holiday period and a safe and happy 2017."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Enquiries:

Harvest Minerals Limited	Brian McMaster, Chairman	Tel: [phone]
Strand Hanson Limited (Nominated & Financial Adviser)	Rory Murphy James Spinney Ritchie Balmer	Tel: [phone]
Mirabaud Securities LLP (Broker) Beaufort Securities Ltd (Joint Broker) Whitman-Howard Ltd (Equity Advisors) Buchanan (Financial PR)	Rory Scott Jon Bellis Grant Barker Bobby Morse Anna Michniewicz	Tel: + 44 20 7878 3360 Tel: + 44 20 7382 8300 Tel: + 44 20 7659 1225 Tel: [phone]

Background: 

The Arapua Fertilizer Project is strategically located in the Brazilian Cerrado, 360 km to NW from Belo Horizonte, the capital of Minas Gerais State. The project consists of seven granted exploration licenses covering total area of 12,997.6 hectares, divided across both the Arapua and Maximus prospects.

The initial resource estimate, based on the first air core drilling programme of only the ~3% of the known weathered kamafugite, identified a JORC (2012) compliant total Indicated resource of 883 Kt at 4.21% K2O and 3.53% P₂O5 at a 3.5% K₂O cut-off, with an additional exploration potential within the drilled area of between 3.0 to 3.5Mt with average grades from 2.7 to 3.5% K₂O at 1% cut-off.

Harvest has progressed from field mapping to production in under a year. Highlights during 2016 included, completing a capital raising, producing a maiden resource, completing a scoping study, receiving both our environmental and trial mining permits, completing civil works, commencing trial mining and signing a LOI for off-take during 2017, subject to satisfactory results from ongoing agronomic testwork.

The preliminary results of the agronomic testwork, mainly from chemical and physical specifiations, were all well within the required minimum specifications and guarantees for the soil remineraliser product.

Harvest has recently started further agronomic testwork and growth tests with two different laboratories and a major coffee producer in the region. The latest drilling campaign aims to increase the current resource, to extend the project life and increase the potential production capacity above that proposed in the scoping study.

Air Core Drilling

The second air core drill programme at the Maximus Prospect focused on targeting the extension of weathered kamafugite rocks with K₂O, P₂O₅, CaO and MgO grades detected in the previous drilling campaign. The programme finished with a total of 775.05 drilled meters distributed in 39 vertical drill holes. The holes were distributed as resumed below (Figure 01):

·    26 drill holes were distributed in a grid area, with spacing of 50m to 90m one from another, located to the east of the current resource area.

·    8 drill holes regionally distributed over the known kamafugite as mapped by the Company's geologists.

·    5 drill holes were located in the kimberlite body at the northwest portion of the project areawhich had previously shown P₂O₅ and K₂O values from auger sampling.

Click here to view Figure 01 - Maximus Prospect - Air core drilling location.

http://www.rns-pdf.londonstockexchange.com/rns/9918S_-2016-12-29.pdf

Including the drill holes of the first campaign (25 holes) and the second campaign (26 holes), a total area of approximately 222,400 m² was covered in the west portion of Serra do Maxixe plateau (Figure 02). The holes drilled to extend the current resource were between 1,000 and 1,057 meters in elevation and reached depths varying from 4.0 m to 40.0 meters. All holes intercepted weathered kamafugitic rocks from the top to the bottom of the holes and stopped when intersecting hard kamafugitic rock.

Click here to view Figure 02 - Maximus Prospect - Air core holes distributed with grid spacing.

http://www.rns-pdf.londonstockexchange.com/rns/9918S_-2016-12-29.pdf

The regional holes were drilled between elevations of 1,004 and 1,046 meters and reached depths varying from 6.0m to 27.0m. Most of the holes finished into unweathered kamafugitic rock. The only exceptions were holes MXAC053 and MXAC055 which intersected sedimentary rocks of Areado Group, stratigraphically below the kamafugitic unit, at depths of 11m and 15m.

An additional five holes were drilled over the kimberlite pipe located at the northwest portion of the project area. These holes were terminated at depths between 6.5m and 14.0m and intercepted weathered kimberlite rock.

Sample Procedures

Samples from the air core drilling had been recovered directly from the cyclone at each 1 m of drilling advance in numbered plastic bags. Once the samples were received at the field facilities, they were identified and logged.  A total of 775 samples, representative of the 775.05 drilled meters were collected.

After geological logging, sample preparation was systematically done at the Company's field facilities. Sample preparation procedures included, drying, crushing and screening (at 4mm), homogenization and splitting. A small portion with approximately 250gr, representative of each 1m interval sample, was collected to be preserved in the archives.

Prior to sending to the laboratory, samples had been composited in intervals varying from a minimum of 1 m to a maximum 4 m, in compliance to the geological description. A total of 303 samples were composited and dispatched to the SGS Geosol Lab for chemical analysis of SiO₂, Al₂O₃, Fe₂O₃, CaO, MgO, TiO₂, P₂O₅, Na₂O, K₂O and MnO.

QA/QC samples, including reference materials, blanks, and duplicates, were systematically introduced into the batches sent to the lab iat a  nominal rate of 2:10. This practice has been useful in determining the quality of sample collection, sample preparation and lab analytical precision.

Drilling Results

All drill holes intersected widespread phosphate (P₂O₅) and potassium oxide (K₂O) enriched clay weathered kamafugite rocks. Results from air core samples submitted to SGS Geosol lab had sample grades ranging from 0.79% to 10.87% P₂O₅ and 1.01% to 6.83% K₂O. 

The weathered mineralized interceptions range from 6.0m to 40.0m in thickness. The composite grades ranged from 1.23% to 5.93% P₂O₅ and from 1.86% to 5.86% K₂O (Table 01). The mineralization is associated with kamafugite saprolite rocks, with the higher grades appearing to be related to the breccia facies within the kamafugite rocks.

Hole ID	Depth From (m)	Depth To (m)	Length (m)	P2O5 Intersection grade (%)	K2O Intersection grade (%)	Comments
MXAC026	0.0	10.0	10.0	3.86	3.29	Including 2m @ 4.24% P2O5 and 4.26% K2O (from 5.0 to 7.0m)
MXAC027	0.0	7.5	7.5	2.82	4.48	Including 3m @ 3.11% P2O5 and 5.43% K2O (from 3.0 to 6.0m)
MXAC028	7.0	17.0	10.0	3.79	4.52	Including 4m @ 4.67% P2O5 and 5.39% K2O (from 7.0 to 11.0m)
MXAC029	0.0	6.0	6.0	3.13	4.66
MXAC030	1.0	7.0	6.0	3.82	4.40
MXAC031	1.0	7.0	6.0	5.69	4.11	Including 2m @ 9.31% P2O5 and 4.61% K2O (from 3.0 to 5.0m)
MXAC032	0.0	23.5	23.5	3.21	4.74	Including 7.5m @ 3.38% P2O5 and 5.42% K2O (from 3.0 to 5.0m)
MXAC033	13.0	33.5	20.5	2.47	3.27	Including 3m @ 3.73% P2O5 and 4.10% K2O (from 22.0 to 25.0m)
MXAC034	0.0	13.0	13.0	5.20	1.86
MXAC035	0.0	18.5	18.5	3.12	4.03	Including 9.5m @ 2.71% P2O5 and 4.90% K2O (from 9.0 to 18.5m)
MXAC036	2.0	21.0	19.0	3.85	4.81
MXAC037	0.0	17.0	17.0	3.14	4.45	Including 3m @ 5.56% P2O5 and 5.42% K2O (from 12.0 to 15.0m)
MXAC038	5.0	14.0	9.0	2.52	4.24
MXAC039	4.0	14.0	10.0	1.35	3.68
MXAC040	3.0	5.0	2.0	1.60	4.94
MXAC041	4.0	26.0	22.0	1.94	2.53
MXAC042	10.0	26.0	16.0	5.93	3.54	Including 6.0m @ 10.07% P2O5 and 5.12% K2O (from 16.0 to 22.0m)
MXAC043	0.0	29.0	29.0	3.34	3.44	Including 10m @ 4.00% P2O5 and 3.80% K2O (from 12.0 to 15.0m)
MXAC044	24.0	38.75	14.75	2.62	3.72	Including 7.75m @ 3.47% P2O5 and 4.19% K2O (from 31.0 to 38.75m)
MXAC045	4.0	27.0	23.0	2.45	3.29
MXAC046	3.0	30.0	27.0	2.32	4.22
MXAC047	4.0	29.0	25.0	1.74	3.86
MXAC048	0.0	14.0	14.0	3.56	3.23
MXAC049	0.0	15.0	15.0	1.60	2.53
MXAC050	0.0	9.0	9.0	3.97	3.24
MXAC051*	0.0	27.0	27.0	2.44	3.32	Including 6.0m @ 2.32% P2O5 and 4.29% K2O (from 21.0 to 27.0m)
MXAC052*	0.0	11.0	11.0	2.56	3.23	Including 3.0m @ 2.56% P2O5 and 3.23% K2O (from 8.0 to 11.0m)
MXAC053*	0.0	11.0	11.0	2.00	3.01	Including 3.0m @ 1.86% P2O5 and 4.17% K2O (from 4.0 to 7.0m)
MXAC054*	0.0	15.0	15.0	1.76	2.27
MXAC055*	4.0	15.0	11.0	2.56	3.33	Including 4.0m @ 3.08% P2O5 and 4.38% K2O (from 8.0 to 12.0m)
MXAC056*	2.0	12.0	10.0	1.98	4.25
MXAC057*	5.0	20.0	15.0	1.23	3.11	Including 4.0m @ 1.35% P2O5 and 5.09% K2O (from 16.0 to 20.0m)
MXAC058*	0.0	6.0	6.0	2.10	5.76
MXAC059	0.0	40.0	40.0	3.09	3.44	Including 12.0m @ 2.76% P2O5 and 4.61% K2O (from 28.0 to 40.0m)
MXAC060**	0.0	6.5	6.5	1.25	4.22
MXAC061**	0.0	7.0	7.0	1.85	5.86
MXAC062**	0.0	10.0	10.0	1.52	4.54
MXAC063**	0.0	10.0	10.0	1.71	3.30
MXAC064**	0.0	10.0	10.0	1.42	3.30

*air core holes located with a regional spacing. ** air core holes located over the kimberlite.

Table 01 - Maximus Prospect - Air core drill holes mineralized interceptions (2^nd drilling campaign).

The CaO and MgO grades detected in the kamafugite weathered rocks range from 0.16% to 17.80% and from 2.39% to 17.30%, respectively.

Results for QA/AC samples, including blanks, duplicates and standards were all as expected.

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.

 

END

 

 

MSCAKCDDPBDDCBB