Amazon Mining Holding Plc
TSX VENTURE : AMZ

Amazon Mining Holding Plc

May 04, 2009 13:30 ET

Amazon Mining Holding Plc: Brazil's Centre for Mineral Technology to Fund Metallurgical Study on Verdete

TORONTO, ONTARIO--(Marketwire - May 4, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Amazon Mining Holding Plc (TSX VENTURE:AMZ) ("Amazon" or the "Company") is pleased to report that Brazil's Centre for Mineral Technology ("CETEM"), a government sponsored research and development institute, has agreed to fund metallurgical tests on verdete slate ("Verdete") from Amazon's Cerrado Verde Potash Project ("Cerrado Verde").

Cerrado Verde is a source of abundant and accessible Verdete, a potash rich rock from which Amazon plans to produce a slow-release, non-chloride and multi-nutrient fertilizer product. The CETEM team commenced work on April 20th, 2009 with a site visit to Cerrado Verde during which Verdete sample collection took place.

Working with CETEM, Amazon and its consultant groups hope to gain objective data that will assist in determining the economic and metallurgical parameters associated with the manufacture of ThermoPotash and to quantify the delivery of potash and other required plant nutrients that may be carried in the potential fertilizer product. CETEM will also investigate from the manufacture of other potash products from Verdete. This work could benefit Amazon by improving potash product concentrations, the developing of specialty products and/or the creation of products for long-haul export. Amazon expects CETEM will present its initial results to the Company by mid-year 2009. CETEM is a publicly funded Brazilian entity and results generated from this study will be made public.

CETEM has assembled a multi-disciplinary team of experts to conduct the study including Dr. Joao Sampaio, Dr. Adao da Luz, Dr. Adriana Soeiro and Dr. Andrea Rizzo. Collectively the group will build on the previous studies that were conducted on Verdete in the 1980's, update the understanding of Verdete, test the technical feasibility of methods to deliver the contained potash to plants and investigate methods to concentrate potash within the product. The team will be working from the research budget of CETEM, electric furnaces and rotary kilns required for the study have already been commissioned by CETEM.

In conjunction with CETEM, Amazon reports that Agrominerais, a Brazilian agricultural research program financed by Sectorial Fund, CT Agro and CT Energy, will carry out its own Verdete research study investigating the proposed fertilizer product as a source of potash for specific use in sugar cane and oil seed plants in support of Brazil's world-leading and rapidly expanding biofuels industry.

CEO Cristiano Veloso stated, "It is a strong validation to Amazon and its investors that Cerrado Verde receive this level of attention from the Brazilian research and development community. We welcome the esteemed professionals both at CETEM and Agrominerais to our project and trust that their expertise and focus will assist Amazon to advance Cerrado Verde to a stage where it can offer the Brazilian agricultural industry a locally sourced, slow-release, non-chloride and multi-nutrient fertilizer. Today's announcement highlights the potential of Cerrado Verde to Brazil and illustrates how the project might be advanced with minimal impact to Amazon's cash reserves."

Cerrado Verde Project Update

The Company has completed a mapping program of more detailed surface sampling, zones have been identified with above average concentrations that could become the focus of test work and potential production.

Independent consultants have also completed an extensive literature review that sourced and referenced all accessible and known Verdete metallurgical papers concluding with a consultant group recommendation that pilot-plant test work use rotary kilns to better understand operating costs and the scalability of any potential commercial operation. It is expected that the CETEM work will include these recommended studies.

About CETEM

Created in 1978, CETEM is linked to the Ministry of Science and Technology ("MCT"). Its mandate is to advance the technological and environmental understanding and development of Brazil's rich and abundant mineral resource for the betterment of Brazilian society. CETEM is mostly funded by Brazilian federal public resources and its established track record includes the provision of over 750 technological project papers that have assisted mainly small and medium sized companies operating in the mining, metallurgical, chemical and materials industries. Further information is available at http://www.cetem.gov.br/ingles/comeco.htm.

About Amazon

Amazon Mining, listed on the TSX Venture Exchange, is a mineral exploration company engaged in creating shareholder value via cost effectively advancing its existing portfolio of projects while diligently assessing additional value-adding opportunities. Amazon is preserving cash and adopting a highly conservative and risk mitigating approach to opportunity assessment and project development.

Competent Person

As required by Canadian National Instrument 43-101, Amazon's designated qualified person required for review of the technical and scientific information herein contained is Dr. Joao Batista G. Teixeira, Chief Geoscientist of the Company.

On behalf of the Board of Directors of Amazon Mining Holding Plc, 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.

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)
    Email: cv@amazonplc.com
    or
    Amazon Mining Holding Plc
    Jed Richardson
    VP Corporate Development
    (416) 866-2966
    (416) 866-8829 (FAX)
    Email: jed@amazonplc.com
    Website: www.amazonplc.com