Gold/Mining/Energy | Verde Potash


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From: 99FXD6/17/2011 2:51:03 PM
1 Recommendation   of 14026
 
All things lead to Potash(NPK) and Brazil being independent of imports


Ethanol – Brazil pours billions into expansion. Shortages have prompted Brazil’s government to introduce new financing and other incentives for sugar-based ethanol production.


Lifted by high international sugar and oil prices, demand for sugarcane for both ethanol and sugar production is sky high, and has – temporarily at least – overtaken Brazil’s ability to supply sufficient volume. Brazil is now importing ethanol for the first time in 17 years. In April alone it imported 45 million gallons – 80% from the US.

Ethanol production in Brazil has stagnated over the last couple of years, as tighter credit in the wake of the global financial crisis made it difficult for the industry to expand, while a poor sugar cane harvest due to bad weather has cut into this year’s supply. Brazil might produce about 6.7 billion gallons of ethanol this season, not even 1% up on last year.

Shortages and consumer protests have led President Dilma Rousseff’s new government to criticise both banks and ethanol producers for not investing more, which it says has left the country vulnerable to cyclical shortages. To ensure funds are available, Brazilian state-run development bank BNDES has now earmarked a hefty $19-$22 billion to finance expansion in the sugar cane sector between now and 2014. State energy regulator ANP wants rapid expansion focused on cane output initially, which will provide a larger pool of raw material to satisfy both ethanol and sugar markets. It takes a tonne of sugar to produce 19 gallons of ethanol, meaning April’s ethanol import volume the equivalent of 2.4 million tonnes of sugar.

Overall, ANP believes sugar cane crushing capacity is adequate at the moment, although high sugar prices saw utilisation for ethanol drop last year by almost 2% to about 55%. ANP expects investment to switch to expanding processing capacity in the medium term. It’s also working with government and private-sector representatives to formulate a 10-year investment plan, during which demand for ethanol is expected to double.

Part of the reason for the ethanol squeeze is Brazil’s ever-expanding car fleet, growing by a staggering 20% per year, with over 85% expected to be flex-fuel by 2020, compared to just under a half now. Unless the ethanol industry starts to gear up, Brazil’s sugar cane association, UNICA, estimates that there could be an annual cane deficit of 400 million tonnes by 2020-21, compared to current production levels of around 650 million tonnes.

The government is also introducing new rules in an attempt to moderate price volatility and guard against domestic shortages, including requiring producers to hold stocks equivalent to 8% of the previous April’s production. Fuel retailers will also be required to hold a 15-day stock of ethanol. Some investors in the sector fear stronger intervention from Roussef’s government, such as the setting of production targets.

While the poor harvest and high prices have reversed the normal flow of ethanol from Brazil to the US this year (overall exports have fallen 20%), tightening environmental fuel standards, notably in California, could boost demand for cleaner Brazilian sugar-based ethanol, especially if support for US import tariffs fall and import barriers – very costly to the US economy – are removed at the end of this year.

Follow the latest sugar prices, news and weather, and get the latest sugar data and research on the WorldCrops.com Sugar page | View/download Brazil country profile


worldcrops.com 

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To: Sultan who wrote (7398)6/17/2011 2:51:39 PM
From: No Mo Mo   of 14026
 
I just got off the phone w/ Iwona the IR person. Jed is still very much with the company in both his management role and sits on the board. He is currently down at the site in Brazil. Javelin is his own, separate thing.

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To: No Mo Mo who wrote (7400)6/17/2011 3:10:33 PM
From: Sultan   of 14026
 
I know.. It is just the way his profile is worded on Javelin that is confusing (it sounded like his gig as VP of Development ended in 2010) if you already know his involvement with Verde..

Any case, not that it matters as such. NPK fortunes are tied to things moving along the path they have laid out.. Nothing to do but wait it out or one can accumulate here.. The fact that it is no longer margineable just adds to pressure.

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From: No Mo Mo6/21/2011 7:55:49 PM
1 Recommendation   of 14026
 
No new news, but a couple of positive posts from Stockhouse. Nice to see someone buying.

stockhouse.com 

"911GTS2

6/21/2011 5:28:47 PM | | 51 reads | Post #29886677

@goldplunger...good post and I fully share your point of view. I have also added to my position at these prices as this is a winner in next months.
I have exchanged some mails with the Verde Potash IR person and I am posting the reply below to some specific questions. They are hard at work and positive news to come soon. They are actively working to reduce the costs...which is great. The most important is the fact that being on the TSX V does not help. According to the response they are working to move to the big board...which will provide the credibility and following it deserves. Plus don't forget that it has Brazilian government support.....which I am sure they want NPK to succeed and will continue to provide the necessary support.
This is a success story and requires patience.
GLTA
IR response

Sekita, Agrifirma and ArcelorMittal all have the product and we expect field test results to be available sometime in October of this year. We have made progress on re-designing the pellet size but have not given the new pellet to growers yet.

We have also ran a semi-commercial plant continuously for 3 days and produced a good product. As you may already know, our plan is to have the semi-commercial plant producing our product on a continued basis this summer. Product registration is still set for Q3/Q4 of this year. We have also been able to reduce some our expenses in the cooling process of ThermoPotash. We have been using water to cool the product once it comes out of the rotary kiln, but have successfully used air instead to do so.

We hope to release some news flow fairly soon on limestone drilling results and then all drilling results end of Q3 this year.

Regarding TSX, we do have plans of graduating to the TSX from the Venture this year. We are one of the bigger companies on the Venture now. It is just a matter of formalities and paperwork.

Please let me know if you have further questions."


stockhouse.com 

"Bought some

goldplunger1

6/21/2011 1:54:29 PM | | 72 reads | Post #29885133

I watched this thing over the last year go from $1 to $11 and literally took it off my quote stream (due to frustration over not buying) until the last couple weeks. I've bought 15,000 shares the last couple days between 5.45-5.60 US.

Heck of a story brewing here, one of those stocks that has the right assets, the right management team, the right share structure, in the right country, at exactly the right time. If everything goes right this is a $20+ in 24 months, maybe much more if its not acquired too soon. If 50% goes right its probably a $12-15 stock. I like the risk reward profile. I'm in and will be adding every dime lower from 5.60 US."

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From: mobility26/22/2011 11:40:51 AM
3 Recommendations   of 14026
 
Major High Grade Limestone Discovery Confirmed by Drilling

TORONTO, ONTARIO, Jun 22, 2011 (Marketwire via COMTEX News Network) --

Verde Potash (TSX VENTURE:NPK) ("Verde" or the "the Company") is pleased to report the discovery of a major high grade limestone unit located approximately 100km from the Cerrado Verde Potash project in Minas Gerais State, Brazil ("Calcario Project"). A total of 20 Reverse Circulation (RC) drill holes for 1,888 metres have been completed (approximately 200 to 570 metre spacing over 8km2). Drilling has targeted the calcitic limestone unit and has returned an average grade of 53.0% CaO and 1.8% SiO2 over an average thickness of 36.4 metres.

The production of ThermoPotash requires significant quantities of limestone as one of its raw materials. The limestone must have CaO content higher than 50% with associated SiO2 lower than 2% ("High Quality"). Therefore, the development of the Calcario Project is a strategic component of Verde's fertilizer production strategy. The Company plans to delineate a NI 43-101 resource and complete a Preliminary Economic Assessment on developing the project during the third quarter of 2011.

Commenting, President and CEO Cristiano Veloso noted: "The high quality of our limestone makes this ancillary project a major achievement for Verde and its shareholders. After almost two years of experience producing ThermoPotash, we have learned how important limestone composition is to the quality of our fertilizer. Having control over such a vital piece of our supply chain will ensure that we consistently deliver a high quality product. This asset also de-risks ThermoPotash by decoupling it from Brazil's limestone market, where limestone's record high consumption is still rapidly increasing because of agricultural demand and cement production. In sum, the development of this asset will help us secure a key raw material and control operating costs."

The limestone mineralization is associated with low metamorphic grade siltstones of the Neoproterozoic Bambui Group. The local geology is represented by a package of limestones of varying composition. The targeted rock for the resource is a thick and continuous bed of very fine grained black limestone. It is characterized by a very low SiO2 content (less than 2%) and high CaO values (52% to 56%). The black limestone is located between lower quality limestones. The lower quality limestone may have economic potential for agricultural soil correction.

The samples were sent to the SGS Laboratory located in Belo Horizonte, where they were analysed under a comprehensive quality control program which includes analysing field duplicates and blanks.

RC ANALYTICAL RESULTS

The drilling has returned an average grade of 53.0% CaO and 1.8% SiO2 over an average thickness of 36.4 metres. Drilling covers an area of approximately 8 km2. Significant intercepts are summarized in the table below. (Cut off of 40% CaO used with up to 2 metres of internal dilution allowed)



----------------------------------------------------------------------------
Hole Thickness (m) Interval (m) CaO (%) MgO (%) SiO2(%)
----------------------------------------------------------------------------
CV-RM-02 50 80 - 130 53.8 - 1.9
----------------------------------------------------------------------------
CV-RM-03 14 72 - 86 32.4 - 1.5
----------------------------------------------------------------------------
CV-RM-05 16 44 - 60 55.0 - 1.4
----------------------------------------------------------------------------
CV-RM-05 20 74 - 94 54.4 - 2.5
----------------------------------------------------------------------------
CV-RM-07 4 34 - 38 54.7 - 1.8
----------------------------------------------------------------------------
CV-RM-07 8 44 - 52 53.2 - 2.7
----------------------------------------------------------------------------
CV-RM-09 48 20 - 68 54.0 - 1.9
----------------------------------------------------------------------------
CV-RM-10 64 12 - 76 54.2 - 1.6
----------------------------------------------------------------------------
CV-RM-11 62 22 - 84 54.3 - 1.3
----------------------------------------------------------------------------
CV-RM-12 18 28 - 46 54.3 - 1.6
----------------------------------------------------------------------------
CV-RM-13 60 52 - 112 54.0 - 1.7
----------------------------------------------------------------------------
CV-RM-14 50 24 - 74 54.6 - 1.4
----------------------------------------------------------------------------
CV-RM-15 62 48 - 110 54.7 - 1.5
----------------------------------------------------------------------------
CV-RM-16 64 74 - 138 54.4 - 1.6
----------------------------------------------------------------------------
CV-RM-17 42 44 - 86 54.8 - 1.1
----------------------------------------------------------------------------
CV-RM-18 56 38 - 94 54.9 - 1.3
----------------------------------------------------------------------------
CV-RM-19 40 16 - 56 52.7 - 1.5
----------------------------------------------------------------------------
CV-RM-20 10 40 - 50 54.4 - 1.3
----------------------------------------------------------------------------
CV-RM-21 10 32 - 42 51.5 - 4.4
----------------------------------------------------------------------------
CV-RM-22 12 38 - 50 53.3 - 2.2
----------------------------------------------------------------------------
CV-RM-23 54 26 - 80 54.4 - 1.6
----------------------------------------------------------------------------


A dolomitic limestone was intersected in two RC holes, it returned an average grade of 40.0% CaO, 11.3% MgO and 4.4% SiO2. The average thickness is 12 metres.



----------------------------------------------------------------------------
Hole Thickness (m) Interval (m) CaO (%) MgO (%) SiO2(%)
----------------------------------------------------------------------------
CV-RM-18 16 16 - 32 38.9 12.8 4.4
----------------------------------------------------------------------------
CV-RM-19 8 14 - 22 41.1 9.8 4.5
----------------------------------------------------------------------------


Competent Person

The technical content of this news release has been prepared by Mr. Beau Nicholls, MAIG, Consulting Geologist, who is a Qualified Person as defined by Canadian National Instrument 43-101.

About Verde Potash

Verde Potash is a fertilizer exploration and development company; it was founded and is led by Brazilians. Verde is developing the Cerrado Verde project in Brazil, a source of potash-rich rock from which the company plans to produce a slow-release, non-chloride, multi-nutrient, fertilizer product named ThermoPotash. Founded as Amazon Mining in 2005, the Company changed its name to Verde Potash in April 2011 to better reflect its core business. Verde is also exploring for phosphate and limestone.

About Cerrado Verde Potash Project

Cerrado Verde is a unique project: 1) its high grade potash rock is found at surface, allowing fast construction of a scalable and low Capex 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 infra-structure.

On behalf of the Board of Directors of Verde Potash, Cristiano Veloso, President and CEO.

Cautionary Language and Forward Looking Statements

THIS PRESS RELEASE CONTAINS CERTAIN "FORWARD LOOKING STATEMENTS", WHICH INCLUDE BUT IS NOT LIMITED TO, STATEMENTS WITH RESPECT TO THE FUTURE FINANCIAL OR OPERATING PERFORMANCE OF THE COMPANY, ITS SUBSIDIARIES AND ITS PROJECTS, STATEMENTS REGARDING USE OF PROCEEDS, EXPLORATION PROSPECTS, IDENTIFICATION OF MINERAL RESERVES, COSTS OF AND CAPITAL FOR EXPLORATION PROJECTS, EXPLORATION EXPENDITURES, TIMING OF FUTURE EXPLORATION AND PERMITTING, REQUIREMENTS FOR ADDITIONAL CAPITAL, GOVERNMENT REGULATIONS OF MINING OPERATIONS, ENVIRONMENTAL RISKS, RECLAMATION EXPENSES, TITLE DISPUTES OR CLAIMS, AND LIMITATIONS OF INSURANCE COVERAGE. 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. 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.

SOURCE: Verde Potash

Verde Potash
Cristiano Veloso
President & Chief Executive Officer
+44 (0) 20 8133 7607
+44(0)20 7405 7773(FAX)
cv@verdepotash.com
Verde Potash
Jed Richardson
VP Corporate Development
+1(416)866-2966
+1(416)866-8829(FAX)
jed@verdepotash.com
www.verdepotash.com

Copyright (C) 2011 Marketwire. All rights reserved.

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To: mobility2 who wrote (7403)6/22/2011 11:53:02 AM
From: kidl   of 14026
 
Lovely. All the pieces are falling into place.

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To: mobility2 who wrote (7403)6/22/2011 11:57:30 AM
From: Threshold1 Recommendation   of 14026
 
oh man sweet.

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To: Threshold who wrote (7405)6/22/2011 12:02:39 PM
From: 99FXD   of 14026
 
very sweet news CIBC back on the buy

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From: Rocket Red6/22/2011 12:08:47 PM
   of 14026
 
Verde Potash discovers limestone unit in Minas Gerais

2011-06-22 11:52 ET - News Release
Shares issued 32,289,928
NPK Close 2011-06-21 C$ 5.46


Mr. Cristiano Veloso reports

MAJOR HIGH GRADE LIMESTONE DISCOVERY CONFIRMED BY DRILLING

Verde Potash has discovered a major high-grade limestone unit located approximately 100 kilometres from the Cerrado Verde potash project in Minas Gerais State, Brazil. A total of 20 reverse circulation (RC) drill holes for 1,888 metres have been completed (approximately 200 to 570 metre spacing over 8km2). Drilling has targeted the calcitic limestone unit and has returned an average grade of 53.0% CaO and 1.8% SiO2 over an average thickness of 36.4 metres.

The production of ThermoPotash requires significant quantities of limestone as one of its raw materials. The limestone must have CaO content higher than 50% with associated SiO2 lower than 2% ("High Quality"). Therefore, the development of the Calcario Project is a strategic component of Verde's fertilizer production strategy. The Company plans to delineate a NI 43-101 resource and complete a Preliminary Economic Assessment on developing the project during the third quarter of 2011.

Commenting, President and CEO Cristiano Veloso noted: "The high quality of our limestone makes this ancillary project a major achievement for Verde and its shareholders. After almost two years of experience producing ThermoPotash, we have learned how important limestone composition is to the quality of our fertilizer. Having control over such a vital piece of our supply chain will ensure that we consistently deliver a high quality product. This asset also de-risks ThermoPotash by decoupling it from Brazil's limestone market, where limestone's record high consumption is still rapidly increasing because of agricultural demand and cement production. In sum, the development of this asset will help us secure a key raw material and control operating costs."

The limestone mineralization is associated with low metamorphic grade siltstones of the Neoproterozoic Bambui Group. The local geology is represented by a package of limestones of varying composition. The targeted rock for the resource is a thick and continuous bed of very fine grained black limestone. It is characterized by a very low SiO2 content (less than 2%) and high CaO values (52% to 56%). The black limestone is located between lower quality limestones. The lower quality limestone may have economic potential for agricultural soil correction.

The samples were sent to the SGS Laboratory located in Belo Horizonte, where they were analysed under a comprehensive quality control program which includes analysing field duplicates and blanks.

RC ANALYTICAL RESULTS

The drilling has returned an average grade of 53.0% CaO and 1.8% SiO2 over an average thickness of 36.4 metres. Drilling covers an area of approximately 8 km2. Significant intercepts are summarized in the table below. (Cut off of 40% CaO used with up to 2 metres of internal dilution allowed)



----------------------------------------------------------------------------
Hole Thickness (m) Interval (m) CaO (%) MgO (%) SiO2(%)
----------------------------------------------------------------------------
CV-RM-02 50 80 - 130 53.8 - 1.9
----------------------------------------------------------------------------
CV-RM-03 14 72 - 86 32.4 - 1.5
----------------------------------------------------------------------------
CV-RM-05 16 44 - 60 55.0 - 1.4
----------------------------------------------------------------------------
CV-RM-05 20 74 - 94 54.4 - 2.5
----------------------------------------------------------------------------
CV-RM-07 4 34 - 38 54.7 - 1.8
----------------------------------------------------------------------------
CV-RM-07 8 44 - 52 53.2 - 2.7
----------------------------------------------------------------------------
CV-RM-09 48 20 - 68 54.0 - 1.9
----------------------------------------------------------------------------
CV-RM-10 64 12 - 76 54.2 - 1.6
----------------------------------------------------------------------------
CV-RM-11 62 22 - 84 54.3 - 1.3
----------------------------------------------------------------------------
CV-RM-12 18 28 - 46 54.3 - 1.6
----------------------------------------------------------------------------
CV-RM-13 60 52 - 112 54.0 - 1.7
----------------------------------------------------------------------------
CV-RM-14 50 24 - 74 54.6 - 1.4
----------------------------------------------------------------------------
CV-RM-15 62 48 - 110 54.7 - 1.5
----------------------------------------------------------------------------
CV-RM-16 64 74 - 138 54.4 - 1.6
----------------------------------------------------------------------------
CV-RM-17 42 44 - 86 54.8 - 1.1
----------------------------------------------------------------------------
CV-RM-18 56 38 - 94 54.9 - 1.3
----------------------------------------------------------------------------
CV-RM-19 40 16 - 56 52.7 - 1.5
----------------------------------------------------------------------------
CV-RM-20 10 40 - 50 54.4 - 1.3
----------------------------------------------------------------------------
CV-RM-21 10 32 - 42 51.5 - 4.4
----------------------------------------------------------------------------
CV-RM-22 12 38 - 50 53.3 - 2.2
----------------------------------------------------------------------------
CV-RM-23 54 26 - 80 54.4 - 1.6
----------------------------------------------------------------------------



A dolomitic limestone was intersected in two RC holes, it returned an average grade of 40.0% CaO, 11.3% MgO and 4.4% SiO2. The average thickness is 12 metres.


----------------------------------------------------------------------------
Hole Thickness (m) Interval (m) CaO (%) MgO (%) SiO2(%)
----------------------------------------------------------------------------
CV-RM-18 16 16 - 32 38.9 12.8 4.4
----------------------------------------------------------------------------
CV-RM-19 8 14 - 22 41.1 9.8 4.5
----------------------------------------------------------------------------



Competent Person

The technical content of this news release has been prepared by Mr. Beau Nicholls, MAIG, Consulting Geologist, who is a Qualified Person as defined by Canadian National Instrument 43-101.

About Verde Potash

Verde Potash is a fertilizer exploration and development company; it was founded and is led by Brazilians. Verde is developing the Cerrado Verde project in Brazil, a source of potash-rich rock from which the company plans to produce a slow-release, non-chloride, multi-nutrient, fertilizer product named ThermoPotash. Founded as Amazon Mining in 2005, the Company changed its name to Verde Potash in April 2011 to better reflect its core business. Verde is also exploring for phosphate and limestone.

We seek Safe Harbor.

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