Americas Petrogas Inc.
TSX VENTURE : BOE

Americas Petrogas Inc.
GrowMax Agri Corp.

GrowMax Agri Corp.

March 14, 2016 09:00 ET

Americas Petrogas Announces Updated Phosphate Resource Estimate at Bayovar, Sechura Desert, Peru

CALGARY, ALBERTA--(Marketwired - March 14, 2016) - Americas Petrogas Inc. (TSX VENTURE:BOE) subsidiary, GrowMax Agri Corp., (collectively, "Americas Petrogas" or the "Company") is pleased to announce that the Company has received an updated National Instrument 43-101 ("NI 43-101") compliant Mineral Resource estimate for its Bayovar phosphate project on its property located in the Sechura Desert, Peru.

The independent estimate was prepared by Golder Associates ("Golder"), is an update of the Mineral Resource estimate prepared by Golder dated May 11, 2015 entitled "Mineral Resource Technical Report on the GrowMax Bayovar Phosphate Project, Piura Region, Peru".

This Mineral Resource estimate update is based on a total of 58 drill holes drilled on the Bayovar concessions, which include 34 historical drill holes drilled by the Company during 2011 and 2012, 15 drill holes drilled in Q4-2014 and nine additional drill holes drilled in Q1 and Q2-2015 on the Bayovar 6, 7 and 8 concessions.

Based on an evaluation of the drill hole spacing and geological continuity of the phosphorite beds (both thickness and grade parameters were evaluated) Golder has applied a Mineral Resource classification schema of 0 to 400 metres (m) spacing for Measured Resources, 400 to 800 m spacing for Indicated Resources and 800 to 1,600 m for Inferred Resources.

Table 1: Summary of Indicated* Mineral Resources, All Area, All Beds

Area Vertical Thickness (m) Dry Tonnes (MT)** Wet Tonnes (MT)** P2O5 (wt%) SiO2
(wt%)
Dry Density
(g/cm
3)
Wet Density
(g/cm
3)
Bayovar 7 0.48 9.5 12.5 13.72 30.39 1.19 1.57
Bayovar 6S/8N 0.47 11.9 15.8 14.20 29.48 1.18 1.56
Total Indicated 0.47 21.4 28.3 13.99 29.88 1.19 1.56

* In Situ Indicated Mineral Resources, no minimum thickness applied.

** MT: million tonnes

Table 2: Summary of Inferred* Mineral Resources, All Area, All Beds

Area Vertical Thickness (m) Dry Tonnes (MT)** Wet Tonnes (MT)** P2O5 (wt%) SiO2
(wt%)
Dry Density
(g/cm
3)
Wet Density
(g/cm
3)
Bayovar 7 0.40 68.9 90.9 12.94 30.19 1.19 1.56
Bayovar 6S/8N 0.42 114.5 151.6 13.86 29.94 1.17 1.54
Bayovar 8S 0.46 225.4 298.8 14.10 28.97 1.17 1.54
Total Inferred 0.44 408.7 541.3 13.84 29.45 1.17 1.54

* In Situ Inferred Mineral Resources, no minimum thickness applied.

** MT: million tonnes

On Bayovar 7 concession, a total of 15 holes were drilled. Five holes were drilled on 500 m spacing and 10 holes on 1,000 m spacing. The mean grades of the individual beds vary from 8.53% P2O5 (PH14) to 19.14% P2O5 (PH12) in the indicated category and from 7.64% P2O5 (PH14) to 17.66% P2O5 (PH12) in the inferred category. Individual beds assayed as high as 25.03% P2O5. The thickness of the upper four beds varied from 0.20 m up to 1.11 m with the upper most phosphate bed encountered at a minimum depth of 5.45 m in the central portion of the property.

On Bayovar 6 South and Bayovar 8 North concessions, nine new infill drill holes, drilled on 800 m and 1,600 m centres, as well as 10 historical drill holes, were included in the resource update. The mean grades of individual beds in this area vary from 8.68% P2O5 (PH15) to 17.55% P2O5 (PH12) in the indicated category and from 7.97% P2O5 (PH15) to 17.23% P2O5 (PH05) in the inferred category. Individual beds assayed as high as 28.19% P2O5. (PH02). Thickness of the upper most phosphate beds varied from 0.19 m to 1.25 m with the upper most phosphate bed encountered at 53 m depth.

On Bayovar 8 South concession, 15 drill holes drilled on 1,600 m spacing, and four historical drill holes were included in the resource update. The mean inferred grades of individual beds vary from 8.92% P2O5 (PH15) to 17.88% P2O5 (PH02). Individual beds assayed as high as 28.38% P2O5 (PH04). Phosphate beds were initially encountered at a minimum depth of 18 m in the western portion of the concession and at 114.0 m at the eastern boundary of the concession.

The resources are distributed among 16 individual soft, free-digging, horizontal phosphate beds hosted predominantly within the Diana Formation, which is a sequence of bedded diatomite, sandstone and phosphate beds. All drill holes were drilled vertically to between 60 to 150 m depth targeting horizontal phosphate beds within the Diana Formation, a sequence of phosphoric diatomites and sandstones approximately 40 to 50 m thick.

The phosphate beds within the Diana Formation are currently being mined by Vale S.A. at its Bayovar mine 25 kilometres southwest of Bayovar 7.

As per NI 43-101 guidelines, Golder is reporting only in situ phosphate Mineral Resources as a mine plan, processing/metallurgy study, environmental study, economic analysis, marketing analysis, and other modifying factor studies have not been completed as of the effective date of the resource estimate. A Preliminary Economic Assessment ("PEA") study incorporating the above information is currently underway.

The Company's Executive Chairman, Abby Badwi, commented, "We are very pleased with the results of this updated NI 43-101 Mineral Resource estimate. We expect to have a further update in Q2-2016 which will incorporate additional infill and reconnaissance drilling conducted by the Company during Q4-2015 and Q1-2016 on Bayovar 5, 6, 7 and 8. The Preliminary Economic Assessment initiated last month is progressing on schedule and we anticipate releasing the results also in Q2-2016."

The scientific and technical information within this news release was prepared under the supervision of John A. Nicholson, P.Geo, of Geominex, who is a member of the Association of Professional Engineers and Geoscientists of British Columbia, is an independent qualified person under NI 43-101 and who has approved the contents of this press release.

The Resource Estimation was prepared by Golder, under the supervision of Jerry DeWolfe, MSc. P.Geo, an Independent Qualified Person as defined under NI 43-101 and who has approved the contents of this press release.

Detailed summary tables of this update are available on the Company's website www.americaspetrogas.com and the full updated NI 43-101 report will be posted on SEDAR within 45 days of this news release.

About Americas Petrogas Inc.

Americas Petrogas Inc. is a Canadian company whose shares trade on the TSX Venture Exchange under the symbol BOE. Americas Petrogas has conventional and unconventional shale oil and gas and tight sands oil and gas interests in numerous blocks in the Neuquén Basin of Argentina. Americas Petrogas owns 89% and Indian Farmers Fertiliser Co-operative Limited (IFFCO) owns 11% of GrowMax Agri Corp, a private company involved in the exploration for near-surface phosphates, potash and other minerals, and potential development of a fertilizer project in Peru.

Forward-Looking Statements

Certain statements contained in this press release constitute "forward-looking statements" as such term is used in applicable Canadian and US securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or are not statements of historical fact should be viewed as "forward-looking statements". These statements relate to analyses and other information that are based upon forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Such 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 such forward-looking statements.

In particular, statements (express or implied) contained herein regarding filing of the NI 43-101 report on SEDAR, completion of a PEA and a revised NI 43-101 resources report for phosphates in Q2-2016, additional assay results and potential for phosphates or other minerals on the Bayovar Property should be viewed as forward-looking statements. The presence of phosphates in samples is not necessarily indicative that phosphates are capable of being successfully produced in commercial quantities. There is no assurance reserves will be assigned to such phosphate-bearing formations. There is no assurance that future drill holes will be drilled on the Bayovar Property or, if drilled, will be successful.

There can be no assurance that such forward-looking statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements and if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.

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