Amazon Mining Holding Plc
TSX VENTURE : AMZ

Amazon Mining Holding Plc

January 21, 2010 07:00 ET

Amazon Mining Completes First Drill Program at Cerrado Verde Project

Delineates 3,000m by 350m Enriched Potash Zone

TORONTO, ONTARIO--(Marketwire - Jan. 21, 2010) - Amazon Mining Holding Plc (TSX VENTURE:AMZ) ("Amazon" or the "Company"), is pleased to report the completion of resource confirmation drill holes in the Funchal Norte target at the Cerrado Verde project. In total 1,000 metres in 19 vertical holes were drilled to evaluate potash grades. The drilling program confirmed a zone with higher potash sample grades between 10 to 13% K2O for an area of approximately 3,000m by 350m.

Drilling has increased the understanding of the geology at the Cerrado Verde project, allowing the Company henceforth to focus exploration and resource calculation on higher grade zones. The mineralization was classified into two distinct parallel zones.

  • Massive Glauconite Zone: 10% to 13% K2O. Dark green in colour, with rare argillite intercalations. This zone will be the focus of resource calculation and economic analysis.
  • Transition Zone: 5% to 9% K2O. Light green in colour, with more abundant argillite intercalations.

Samples from reverse circulation drilling were analyzed using x-ray fluorescence (XRF), measuring concentrations of 13 compounds present in the glauconite. K2O values are reported below. See attached detailed drilling map and regional claim map.

Massive Glauconite Zone

Hole Thickness (m)              Interval          K2O (%)
CV-RC-01* 46.0 0.0 – 46.0m 11.8
CV-RC-02 40.0 10.0 – 50.0m 11.8
CV-RC-03 50.0 0.0 – 50.0m 10.8
CV-RC-04 46.0 0.0 – 46.0m 11.0
CV-RC-05 40.0 0.0 – 40.0m 10.7
CV-RC-06 50.0 16.0 – 66.0m 9.9
CV-RC-07 60.0 0.0 – 60.0m 10.6
CV-RC-11 64.0 0.0 – 64.0m 10.5
CV-RC-13 50.0 0.0 – 50.0m 11.9
CV-RC-14 38.0 0.0 – 38.0m 10.4

*Previously Reported

The drilling program revealed that the Massive Glauconite Zone extends 3,000m north-south and 350m east-west. Surface mapping, sampling and chemical analysis indicate that these rocks have a regular concentration of glauconite, varying from 10 to 13% K2O, and that potassium is evenly distributed both in surface and subsurface samples.

Transition Zone

Hole Thickness (m) Interval K2O (%)
CV-RC-08 31.0 11.0 – 42.0m 5.0
CV-RC-09 48.0 0.0 – 48.0m 6.2
CV-RC-10 46.0 0.0– 46.0 m 7.6
CV-RC-12 28.0 0.0 – 28.0m 8.6
CV-RC-15 44.0 0.0 – 44.0m 7.3
CV-RC-16 34.0 8.0 – 42.0m 5.6
CV-RC-17 42.0 0.0 – 42.0m 6.2
CV-RC-18 28.0 16.0 – 44.0m 5.9
CV-RC-19 27.0 9.0 – 36.0m 6.0

The Transition Zone extends 3,000m north-south and 600m east-west, this zone is not of immediate interest to Amazon.

The Funchal Norte target is one verdete outcrop in a group of outcrops called Funchal. The Funchal targets have good potential to expand mineralization over an area of 1,100 ha of outcrop, of which Funchal Norte target represents only 170 ha.

Commenting on the results, President & CEO Cristiano Veloso said, "Amazon hopes to use the results from the Massive Glauconite Zone to define a 43-101 inferred resource. The resource will be the basis for our preliminary economic assessment, both to be completed with the help of Coffey Mining. New understanding of lithological structural controls has helped us to define this higher grade zone, which further improves our initial expectations for average grade."

About Coffey Mining

Coffey Mining is a global specialist consultancy providing a wide range of technical services and products to all sectors of the international mining industry, from target generation to mine closure. Coffey has 50 years of experience, over 4,000 people working on projects in more than 80 countries and permanent offices throughout the Americas, Africa, Asia Pacific, Europe and the Middle East.

Geological Information

Verdete is a metasedimentary, areno-pelitic rock of Neoproterozoic age (600 to 700Ma), which is part of the Bambuí Group in Serra da Saudade. The basement for the verdete is composed of dark-to light gray mudstone, sometimes with layers of reddish argillite.

Discordantly superimposed on these rocks occur Cretaceous sandstones, known as Areado Group. These rocks outcrop in the central part of verdete body, sustaining a topographic height. The sandstone is less than 12m thick, soft and friable. Its outcrop area is of about 20% of the total target area.

Structurally, this lithologic package, except for the coverage sandstone, is folded in anticlines and synclines, with approximately north-south axial planes and with fold axes plunging gently towards the north or towards the south.

The geological mapping has allowed us to define a litho-structural control for the verdete and massive glauconite, which occupies a synclinal fold hinge, trending N10E, with the fold axis dipping 10 to 20 degrees towards the southwest. The Massive Glauconite Zone generally outcrops in the uppermost terraced hills, with altitudes varying from 860 to 940m, and can be followed for approximately 80km inside Amazon's property.

Sampling and Analysis Protocol

Assay results presented in this news release are from samples (chips and fragments) collected from Reverse Circulation (RC) drilling. RC samples were taken at intervals over one metre (Holes CV-RC-01 to CV-RC-05) and over two metres (Holes CV-RC-06 to 18) throughout the zone of potassium-rich rock ("verdete"). The samples were homogenized, mixed and quartered to give primary samples of 1 to 3 kg. Samples were then prepared and analyzed at the independent ISO-Certified Bureau Veritas Laboratory, located near Belo Horizonte, Brazil using industry standard XRF (SiO2, Al2O3, Fe2O3, MgO, TiO2, MnO, CaO, Na2O, K2O, P2O5, Cr2O3, SrO and BaO). Additionally, 20% of the samples were submitted to multi- element analysis (31 elements) by ICP-OES. Pulp blanks, duplicates, and known standards were inserted on a routine basis. In total they consist of 10.5 % of submitted samples.

Competent Person

As required by Canadian National Instrument 43-101, Amazon's designated qualified person responsible for reviewing the technical and scientific information herein contained is Dr. João Batista G. Teixeira.

About Amazon

Amazon Mining is a mineral exploration and development company founded by Brazilians in 2005. The company is focused on the development of Cerrado Verde project. Cerrado Verde is source of a potash rich rock from which Amazon plans to produce a slow-release, non-chloride, multi-nutrient, fertilizer product. Amazon Mining is a UK public company with shares listed on the TSX Venture Exchange since November 2007.

On behalf of the Board of Directors of Amazon Mining Holding Plc, Jed Richardson, Vice President of Corporate Development

To view the Funchal detailed drill map, please visit the following link: http://media3.marketwire.com/docs/Funchal_detailed_drill_map1.pdf

To view the CV regional claim map, please visit the following link: http://media3.marketwire.com/docs/CV_regional_claim_map1.pdf

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.

The potential grades detailed in this release are conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the targets being delineated as a mineral resource.

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 Amazon's website (www.amazonplc.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.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Amazon Mining Holding Plc
    Cristiano Veloso
    President & Chief Executive Officer
    +44 (0) 20 8133 7607
    +44(0)20 7405 7773 (FAX)
    cv@amazonplc.com
    or
    Amazon Mining Holding Plc
    Jed Richardson
    VP Corporate Development
    +1(416)866-2966
    +1(416)866-8829 (FAX)
    jed@amazonplc.com
    www.amazonplc.com