Mandacaru Phosphate Project

RNS Number : 5748J

Harvest Minerals Limited

21 December 2015

ACQUISITION OF THE PROSPECTIVE MANDACARU PHOSPHATE PROJECT.

Harvest Minerals Limited AIM:HMI ASX:HMI ("Harvest" or "the Company") is pleased to announce it has been awarded two exploration licences covering the Mandacaru Phosphate Project ("Mandacaru") located in Ceara State, Brazil. The Mandacaru assets complements Harvest's portfolio in Brazil which includes the Arapua fertilizer project (Minas Gerais State), the Sergi Potash Project and the Capela Potash Project (both Sergipe State).

MANDACARU PHOSPHATE PROJECT

Mandacaru is located approximately 140 km west of Fortaleza city, which is the capital of Ceara State, located in the north east region of Brazil (Figure 01). The closest major center is the town of Irauçuba with approximately 22,000 inhabitants and reliable infrastructure that can support a mining operation. Mandacaru is strategically located at approximately 22 km south of the BR-222 highway and 37 km south of the CFN railroad which links with the Pecém seaport.

Figure 01 - Country location of Mandacaru Phosphate Project
http://www.rns-pdf.londonstockexchange.com/rns/5748J_-2015-12-18.pdf

Mandacaru comprises two applications for exploration licenses covering a total area of 3,956.48 hectares. The Company has been advised it has the priority grant position in relation to these licenses and that the Exploration Licenses will be granted shortly.

Historical exploration activities conducted over the property include ground radiometric survey, mapping, surface rock sampling, trenching and a 2,141 metre diamond drilling programme from 31 holes of diamond drilling. Harvest has acquired the existing exploration data from the asset's former owner, B&A Mineração Ltda, in return for a 2% Net Smelter Royalty from future production (capped at an aggregate amount of US$1 million). The Company is currently reprocessing the data in advance of a development programme.

HISTORICAL DRILLING AT MANDACARU PROJECT

The data obtained by Harvest is based on a 32-hole diamond drilling programme in 2013, for a total of 2,141.80 metres of drilling. All drill holes were angled holes with inclinations varying from 55 to 70 degrees in respect with the horizontal level. The shallowest drill hole was drilled to a depth of 50.10 metres and the deepest hole to a depth of 91.75 metres (see Table 01). Phosphate mineralized intercepts ranged in thickness from 1.0m to 25.08m and with average grades from 2.5% to 14.38% P₂O_5. Full drill hole data is attached as Annexure 1.

A typical cross-section (Figure 02) indicates a flat-lying structural control of the phosphate mineralization. High-grade phosphate mineralization is related to a highly soluble amorphous apatite. At Mandacaru, colophanite is hosted in hydrothermal breccias, calcissilicated and gneissic rocks (Figure 03). In general terms, the phosphate mineralization is associated with an anomalous radiometric response which can be used directly in the field to delineate the potential intervals and level of grades that can be expected (Figure 04). Radiometrics can also be used to delineate the mineralization close to surface, as well as to identify new potential targets.

Figure 02 - Cross-section showing the phosphate mineralization following a flat-lying structure
http://www.rns-pdf.londonstockexchange.com/rns/5748J_1-2015-12-18.pdf

Figure 03 - (a) Amorphous apatite ("colophanite") injections along gneiss foliation plans, (b) hydrothermal breccia with colophanite injections and fragments, (c) colophanite associated to marble and (d) massive colophanite
http://www.rns-pdf.londonstockexchange.com/rns/5748J_2-2015-12-18.pdf

Figure 04 -Hole MDD-007-13. Strip log with P₂O₅ results and radimetric profiles for total count, U, Th and U/Th ratio
http://www.rns-pdf.londonstockexchange.com/rns/5748J_3-2015-12-18.pdf

Commenting on the acquisition, Harvest Executive Chairman, Brian McMaster stated:

"The Mandacaru Phosphate project adds further to Harvest's strategy of being a focused producer of fertilizer products in Brazil. We are very excited about this acquisition and the potential for it to dovetail into the Company's existing plans to develop a direct application natural fertilizer product. The Company looks forward to progressing development of the project along with its other projects".

Brian McMaster

Executive Chairman

Competent Persons Statement

The technical information in this release 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 report 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.

Annexure 01

Historical Drillhole results in relation to the Mandacaru Project.

HOLE ID	FROM (m)	TO (m)	INTERVAL (m)	P₂O₅ Grade
MDD-001-13	18.30	23.30	5.00	7.34 %
	27.30	35.30	8.00	4.30 %
	39.30	41.60	2.30	2.69 %
MDD-002-13	9.85	21.28	11.43	10.08 %
	23.75	36.36	12.61	7.10 %
	47.82	56.60	8.78	3.52 %
MDD-003-13	2.38	10.03	7.65	8.26 %
	47.70	50.20	2.50	4.32 %
	52.70	54.85	2.14	5.19 %
MDD-004-13	71.51	73.05	1.54	5.36 %
MDD-005-13	10.00	15.50	5.50	6.87 %
MDD-007-13	0.00	5.20	5.20	10.24 %
	7.20	20.00	12.80	10.85 %
	23.50	29.80	6.30	4.65 %
	40.80	46.93	6.13	3.21 %
MDD-008-13	0.00	4.00	4.00	9.81 %
	17.00	20.80	3.80	6.74 %
	24.45	26.45	2.00	5.21 %
	32.30	42.30	10.00	5.58 %
MDD-008-13	62.37	64.63	2.26	4.42 %
MDD-009-13	2.00	4.80	2.80	2.73 %
MDD-010-13	9.00	10.00	1.00	7.94 %
MDD-011-13	7.60	14.00	6.40	14.37 %
MDD-011-13	18.40	21.35	2.95	3.32 %
MDD-012-13	0.00	10.15	10.15	8.93 %
MDD-012-13	25.55	26.95	1.40	2.80 %
MDD-013-13	16.98	19.00	2.02	8.38 %
MDD-014-13	0.26	5.00	4.74	4.16 %
MDD-014-13	16.00	30.55	14.55	5.16 %
MDD-015-13	13.10	30.80	17.70	8.73 %
MDD-015-13	38.50	42.02	3.52	3.14 %
MDD-016-13	25.39	35.00	9.61	7.13 %
MDD-016-13	38.00	60.00	22.00	6.26 %
MDD-017-13	1.80	5.50	3.70	3.99 %
	30.60	34.35	3.75	6.61 %
	40.00	43.14	3.14	4.25 %
	44.74	50.74	6.00	7.61 %
MDD-018-13	39.50	64.58	25.08	5.60 %
MDD-019-13	31.02	32.87	1.85	5.19 %
	33.90	34.90	1.00	3.27 %
	47.46	49.10	1.64	5.5 %
MDD-021-13	35.00	36.50	1.50	5.5 %
	39.68	47.45	7.77	7.69 %
	53.16	55.00	1.84	4.96 %
	58.50	63.00	4.50	5.46 %
	67.62	70.50	2.88	4.80 %
MDD-022-13	51.50	53.00	1.50	10.67 %
	65.50	70.50	5.00	4.59 %
	76.00	79.00	3.00	10.00 %
	82.50	84.00	1.50	6.14 %
MDD-023-13	73.70	78.25	4.55	4.67 %
MDD-025-13	13.37	19.19	5.82	4.32 %
MDD-026-13	2.10	7.89	5.79	6.85 %
MDD-027-13	11.75	13.30	1.55	4.67 %
MDD-027-13	24.16	37.70	13.54	3.70 %
MDD-028-13	9.71	11.00	1.29	9.09 %
	15.48	18.60	3.12	3.93 %
	22.10	24.71	2.61	6.02 %
	26.06	27.30	1.24	5.70 %
MDD-029-13	6.17	20.58	14.41	4.54 %
MDD-030-13	12.64	15.81	3.17	2.50 %
MDD-030-13	17.09	18.38	1.29	4.62 %
MDD-031-13	17.10	23.34	6.24	12.31 %
	28.15	33.83	5.68	5.09 %
	35.70	37.24	1.54	8.20 %
	41.40	45.80	4.40	2.82 %
	79.58	81.49	1.91	5.18 %

JORC Code, 2012 Edition - Table 1

Section 1 Sampling Techniques and Data

Criteria	JORC Code Explanation	Commentary
Sampling Techniques	· Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole, gamma sondes, or handheld XRF instruments etc). These examples should not be taken as limiting the broad meaning of sampling.	· No samples have been collected yet by Harvest Minerals ("HMI").
	· Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	· No samples have been collected yet by HMI.
	· Aspects of the determination of mineralisation that are Material to the Public Report. In cases where "industry standard " work has been done this would relatively simple (e.g. 'reverse circulation drilling was used to obtain 1m samples from which 3kg was pulverised to produce a 30g charge for fire assay). In other cases more explanation may be required, such as where there is course gold that has inherent sampling problems. Unusual commodities or mineralisation types ( e.g. submarine nodules ) may warrant disclosure of detailed information.	· No samples have been collected yet by HMI.
Criteria	JORC Code Explanation	Commentary
Drilling Techniques	· Drill types (e.g. core, reverse circulation, open hole hammer, rotary air blast, auger, Bangka, sonic etc ) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is oriented and if so by what method etc).	· No drilling has been conducted yet by HMI. · The announcement includes historical core drilling data conducted by B&A Mineração in 2013.
Drill Sample Recovery	· Method of recording and assessing core and chip sample recoveries and results assayed.	· No drilling has been conducted yet by HMI.
	· Measures taken to maximise sample recovery and ensure representative nature of the samples.	· No drilling has been conducted yet by HMI.
	· Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine /course material.	· No drilling has been conducted yet by HMI.
Logging	· Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.	· No drilling has been conducted yet by HMI.
	· Whether logging is qualitative or quantitative in nature. Core ( or costean, channel, etc) photography.	· No drilling has been conducted yet by HMI.
	· The total length and percentages of the relevant intersections logged.	· No drilling has been conducted yet by HMI.
Sub- Sampling Techniques and Sampling Procedures	· If core, whether cut or sawn and whether quarter, half or all core taken.	· No drilling has been conducted yet by HMI.
Sub- Sampling Techniques and Sampling Procedures	· If non-core, whether riffled, tube sampled, rotary split etc and whether sample wet or dry.	· No drilling has been conducted yet by HMI.
Criteria	JORC Code Explanation	Commentary
	· For all sample types, the nature, quality and appropriateness of the sample preparation technique.	· No samples have been conducted yet by HMI.
	· Quality control procedures adopted for all sub - sampling stages to maximise representivity of samples.	· No samples have been conducted yet by HMI.
	· Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second -half sampling.	· No samples have been conducted yet by HMI.
	· Whether sample sizes are appropriate to the grain size of the material being sampled.	· No samples have been conducted yet by HMI.
Quality of Assay Data and Laboratory Tests	· The nature quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.	· No assays have been conducted yet by HMI. · The announcement includes historical assays drilling data conducted by B&A Mineração in 2013.
	· For geophysical tools, spectrometers, hand held XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation etc.	· No samples have been conducted yet by HMI.
	· Nature of quality control procedures adopted ( e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	· No samples have been conducted yet by HMI.
Verification of Sampling and Assaying	· The verification of significant intersections by either independent or alternative company personnel.	· No drilling has been conducted yet by HMI. · The announcement includes historical assays drilling data conducted by B&A Mineração in 2013. · The intersections mentioned in this announcement were calculated based on historical assays produced by B&A Mineração in 2013. The CP verified the intersections included in this announcement
	· The use of twinned holes	· No drilling has been conducted yet by HMI.
	· Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	· No drilling has been conducted yet by HMI.
	· Discuss and adjustment to assays	· No assays have been conducted yet by HMI. · The announcement includes historical assays drilling data conducted by B&A Mineração in 2013.
Criteria	JORC Code Explanation	Commentary
Location of Data Points	· Accuracy and quality of surveys used to locate drill holes (collar and down hole surveys), trenches, mine workings and other locations used in Mine Resource estimation	· To date, no exploration works have been done by HMI. · The announcement includes historical drilling location data reported by B&A Mineração in 2013.
Location of Data Points	· Specification of grid system used	· To date, no exploration works have been done by HMI. · Historical drilling data have been reported in Datum SAD69, UTM coordinate system Zone 24S.
	· Quality and adequacy of topographic control.	· To date, no exploration works have been conducted by HMI.
Data Spacing and Distribution	· Data spacing for reporting of Exploration results.	· To date, no exploration works have been conducted by HMI.
	· Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classification applied.	· To date, no exploration works have been conducted by HMI.
	· Whether sample compositing has been applied.	· No samples have been collected yet.
Orientation of Data in relation to Geological Structure	· Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which is known, considering the deposit type.	· No samples have been collected yet.
Orientation of Data in relation to Geological Structure	· If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	· No drilling has been conducted yet by HMI. · Drilling data reported in this announcement are historical in nature.
Sample security	· The measures taken to ensure sample security.	· No samples have been collected yet by HMI.
Audit or Reviews	· The results of any audits or reviews of sampling techniques and data.	· The property has not enough exploration data that supports an audits or reviews.

Section 2 Reporting of Exploration Results

Criteria	JORC Code Explanation	Commentary
Mineral tenement and land tenure status	· Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. · The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	· The Mandacaru project included on this announcement covers a total area of 3,956.48 hectares. The project comprises 2 Applications for Exploration. The Exploration Licences are currently not granted and the Competent Person relies on a legal opinion provided by HMI that the company has priority on the referred applications. · The mineral property is registered under the following processes; 800.122/2015 and 800.651/2015.
Exploration done by other parties	· Acknowledgment and appraisal of exploration by other parties.	· In 2013, TSX listed Rio Verde Minerals Ltd conducted an exploration program on the project which was subsequently extended by a Brazilian mining company, B&A Mineração Ltda ("B&A"). · Thirty-two historical diamond drill holes were drilled within the property in 2013. · The historical exploration activities developed by both companies included; ground radiometric survey, mapping, surface rock sampling, trenching and a 2,141 meters diamond drilling programme.
Geology	· Deposit type, geological setting and style of mineralisation.	· Amorphous apatite (collophanite) phosphate mineralization in Paleoproterozoic metamorphic rocks.
Drill hole Information	· A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length. · If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	· Drilling data mentioned in this report is historical data and produced by B&A Mineração in 2013. Drill hole information is included in Annexure 01 of the announcement. · Drilling data presented in this announcement is historical in nature and, currently, the available data were not verified by HMI.
Data aggregation methods	· In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. · Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. · The assumptions used for any reporting of metal equivalent values should be clearly stated.	· The company is not reporting any grades in this report except some historical grades obtained by another company (B&A Mineração, 2013). · The intercepts included in this report are historical in nature. Harvest has still not conducted any drilling. · No assumptions are included in this report.
Relationship between mineralisation widths and intercept lengths	· These relationships are particularly important in the reporting of Exploration Results. · If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. · If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').	· The geometry of the mineralization is not clearly defined at the current level of exploration. · Drilling has not being done by HMI. · Drilling intercepts included in this Announcement are historical in nature. Drilling has not being done by HMI.
Diagrams	· Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	· Harvest has not conducted any exploration works on the property. The results presented in this announcement are historical in nature and diagrams related to this historical data are included in the announcement.
Balanced reporting	· Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	· Not drilled yet. Grades included in this announcement are historical in nature and not generated by Harvest.
Other substantive exploration data	· Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	· To date, there is no material data to be reported.
Further work	· The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). · Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	· Re-interpretation of historical exploration data. · Extension of ground radiometric survey. · Diamond drilling program.