Amazon Mining Holding Plc
TSX VENTURE : AMZ

Amazon Mining Holding Plc

August 31, 2010 08:00 ET

Amazon Provides Corporate Update

TORONTO, ONTARIO--(Marketwire - Aug. 31, 2010) - Amazon Mining Holding Plc (TSX VENTURE:AMZ) ("Amazon" or the "Company") reported its unaudited interim consolidated financial statements for the three month period ended June 30, 2010 and provides the following corporate update.

During the three-month period ended June 30, 2010, Amazon incurred a net loss of $1,094,372 compared to a net loss of $1,035,230 for the three-month period ended June 30, 2009. The larger loss in the second quarter of 2010 was due to exploration expenditure write-offs related to the decision not to continue the Caximbo and Mimoso projects. Amazon currently has a working capital position of approximately $5.4MM. The Company maintains a strong cash position and continues advancing the Cerrado Verde Potash project ("Cerrado Verde project").

President and Chief Executive Officer, Cristiano Veloso said; "We have been heavily engaged in the Cerrado Verde project. Its many activities are coming together to yield what promises to be an important potash fertilizer extracted and processed in Brazil's agricultural heartland. We are glad to announce independent engineering studies are progressing well and the pilot plant should produce enough ThermoPotash to start field tests during the coming growing season to start in September."

Preliminary Economic Assessment

Independent Engineering work began on the Preliminary Economic Assessment ("PEA or Scoping Study") for the Cerrado Verde project in July, 2010. The work is being completed jointly by ECM.S.A - Projetos Industriais and SRK Global Mining Consulting. The delay in initiating the study occurred as management sought the best engineering company for the work and put team members in place to oversee the work. Amazon is pleased with the pace and quality of the work so far, and hopes to have results to share with investors early Q4 2010.

Corporate

The addition of Mauricio Sampaio to Amazon's team as Vice President Operations (see press release dated June 9, 2010) marked an acceleration in work on the development of the Cerrado Verde project. Mr. Sampaio has taken a leading role in establishing ThermoPotash's distribution strategy and expanding agronomic trials. During 2008, the company had moved to an outsourcing model for much of the technical functions to reduce costs and maximize flexibility. The advancement of the Cerrado Verde project has prompted the company to move away from the consultant model and strengthen its in house team to prepare for project construction and further product development.

Pilot Plant Operation

Amazon has been manufacturing trial versions of its proposed ThermoPotash product since March 2010. Trials have been instrumental in adapting Pyrometallurgical process, which had previously been done in an electric arc furnace, to the lower cost rotary kiln. In recent months, Amazon run extended trials of the pilot plant, manufacturing three to four tonnes per day for two day periods, to study the process, refine the product composition and provide material for agronomic test work.

Agronomic Test Work

As evidenced by results produced in August (see release dated August 11, 2010), Amazon is in the midst of lab scale testing of preliminary ThermoPotash products. To date, the company has received excellent results from solubility tests and nutrient availability tests. Tests are also being conducted to demonstrate ThermoPotash's resistance to leaching and how effective ThermoPotash is on reducing limestone requirements to reduce the acidity of soil. For both tests it should compare quite favourably to KCl, which is known to leach away in heavy watering, and increases soil acidity with application. Thus far work has progressed under the supervision of Professor Gaspar Korndorfer at the University of Uberlandia, in Minas Gerais, Brazil.

The Company has entered into an agreement with the University of Lavras, Minas Gerais, Brazil, to complete a full slate of tests required to register the ThermoPotash product as a fertilizer in Brazil. The goal is to complete the requirements and register the product in Q3 2011. Amazon intends to deliver its first shipments of test material to development partners in Minas Gerais state; ArcelorMittal (see release dated September 23, 2009), Sekita Agribusiness (See release dated March 22, 2010) and EMBRAPA (See release dated August 4, 2009), in time for Brazil's main growing season, which starts in September. Expectations are that initial results from the field test could be available in Q1 2011. Plans for tests with Agrifirma and other partners away from the Company's base of operations in Minas Gerais, Brazil will wait until the company has hired a full-time agronomist to oversee and compile all of the data collected from the plots.

Geological Work

During Q2 2010, Amazon completed a 300m drill program at the Tucano Project in Bahia, Brazil, to maintain its claims. The drill holes were assayed for only vanadium and the results were poor. Historical work suggests that Tucano is host to potentially economic grades of vanadium and uranium, uranium was not assayed for as it remains a controlled mineral in Brazil. Amazon's management believes in the economic potential of the property. Work at Cerrado Verde pre-empted work planned at Amazon's Madeira Gold project in Amazonas, Brazil.

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 Toronto Stock Exchange since November 2007.

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

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