Americas Petrogas Inc.
TSX VENTURE : BOE

Americas Petrogas Inc.
GrowMax Agri Corp.

GrowMax Agri Corp.

March 26, 2015 09:00 ET

Americas Petrogas Peruvian Subsidiary's Inaugural Phosphate Resource Estimate, Sechura Desert, Bayovar, Peru

CALGARY, ALBERTA--(Marketwired - March 26, 2015) - Americas Petrogas Inc. (TSX VENTURE:BOE) and its subsidiary, GrowMax Agri Corp., (collectively, "Americas Petrogas" or the "Company") are pleased to announce that the Company has received its inaugural National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate for its Bayovar phosphate project. The independent estimate was prepared by Golder Associates ("Golder"), supervised by Jerry DeWolfe, MSc. P.Geo, an Independent Qualified Person defined under NI 43-101. The independent estimate, which follows, was based on the Company's historic drill holes on the Bayovar 6, 7 and 8 concessions on its Bayovar Property located in the Sechura Desert, Peru.

Resource Summary - Indicated and Inferred

Table 1. Indicated Mineral Resources* Summary, All Areas, All Beds

Area Vertical Thickness (m)** Millions Tonnes Dry Millions Tonnes Wet P2O5
(wt%)
SiO2
(wt%)
Al2O3
(wt%)
Fe2O3
(wt%)
MgO
(wt%)
CaO
(wt%)
K2O
(wt%)
Na2O
(wt%)
LOI
(wt%)
Bayovar 7 (see Table 3) 0.57 8.7 11.5 13.86 30.78 3.35 1.91 2.21 25.44 0.50 1.92 14.03
Total Indicated 0.57 8.7 11.5 13.86 30.78 3.35 1.91 2.21 25.44 0.50 1.92 14.03
* In Situ Indicated Mineral Resource, no minimum thickness applied. Dry Density: 1.25 g/cm3, Wet Density: 1.65 g/cm3
** Final true widths of some beds have yet to be finalized pending additional shoulder and floor interburden samples currently being analyzed by Certimin Laboratories in Lima, Peru

Table 2. Inferred Mineral Resources* Summary, All Areas, All Beds

Area Vertical Thickness (m)** Millions Tonnes Dry Millions Tonnes Wet P2O5
(wt%)
SiO2
(wt%)
Al2O3

(wt%)
Fe2O3

(wt%)
MgO
(wt%)
CaO
(wt%)
K2O
(wt%)
Na2O
(wt%)
LOI
(wt%)
Bayovar 7 (see Table 4) 0.50 72.6 96.4 13.64 30.58 3.29 1.87 2.31 24.63 0.47 1.96 14.79
Bayovar 6S/8N (see Table 5) 0.58 67.0 88.4 13.70 30.11 3.17 1.88 2.51 23.77 0.41 1.54 15.66
Bayovar 8S(see Table 6) 0.50 18.1 23.9 16.36 26.60 3.32 1.85 1.56 27.60 0.44 1.74 13.09
Total Inferred 0.53 157.7 208.7 13.98 29.92 3.25 1.87 2.31 24.61 0.44 1.76 14.97
* In Situ Inferred Mineral Resource, no minimum thickness applied. Dry Density: 1.25 g/cm3, Wet Density: 1.65 g/cm3
** Final true widths of some beds have yet to be finalized pending additional shoulder and floor interburden samples currently being analyzed by Certimin Laboratories in Lima, Peru

This initial resource estimate is based on 27 historical boreholes drilled by the Company during 2011 and 2012 on its Bayovar 6, 7 and 8 concessions. Three areas have been defined for purposes of the estimation.

The first area ("Area 1") is located on the Bayovar 7 concession. A total of 15 holes were drilled on Area 1. Of the 15 holes, 13 were drilled along three (3) east-west sections on 1,000 meter centers, while the remaining two (2) holes were off-section holes drilled on the western part of the drill grid.

The average indicated grades of individual beds in Area 1 vary from 19.28% P2O5 (Bed PH12) to 10.95% P2O5 (Bed PH14). Significantly, the beds closest to surface (Beds PH01 & PH02) comprise some of the best widths and highest inferred grades (Bed PH01: 0.81m of 13.10% P2O5; Bed PH02: 0.46m of 16.09% P2O5).

The second area ("Area 2") straddles the southern border of the Bayovar 6 concession and the northern border of Bayovar 8 concession. A total of nine (9) holes were used for the resource estimation on Area 2. These holes were drilled along three (3) east-west section lines on 1,000 meter drill centers. The average inferred grades of individual beds in Area 2 vary from 17.04% P2O5 (Bed PH05) to 9.72% P2O5 (Bed PH06). Similar to Area 1, the beds closest to surface (Beds PH01 & PH02) comprise some of the best widths and highest grades (Bed PH01: 0.56m of 13.37% P2O5; Bed PH02: 1.02m of 15.48% P2O5).

The third area ("Area 3") is located in the south-east corner of the Bayovar 8 concession. Three (3) holes, drilled in an irregular distribution over an area of approximately 2 by 1 kilometers, were used in the resource estimation for Area 3. The average inferred grades of individual beds vary from 19.67% P2O5 (Bed PH12) to 11.18% P2O5 (Bed PH14).

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. The phosphate beds within the Diana Formation are currently being mined by Vale S.A. at its Bayovar mine and are also believed to be the main source of phosphate for Fosfatos del Pacifico's deposit in the same Bayovar district.

Barclay Hambrook, President and CEO, said, "We are very pleased with the results of this NI 43-101 Mineral Resource estimate based on just 27 historical boreholes drilled in 2011 and 2012. In late 2014 and early 2015, we drilled numerous new holes which should provide more information for preparing a revised NI 43-101 Mineral Resource estimate later in 2015." Mr. Hambrook went on to say, "Additionally, the near-surface phosphate observed in assays from drilling and previous trench sampling provides the Company with the opportunity to investigate near-term production scenarios."

Additional details regarding the above Table 1 (Indicated Resources) and Table 2 (Inferred Resources) are provided below.

Table 3. Bayovar 7 Indicated Mineral Resources*, Dry and Wet Tonnes

Phosphorite Bed Vertical Thickness (m)** Millions Tonnes Dry Millions Tonnes Wet P2O5
(wt%)
SiO2
(wt%)
Al2O3

(wt%)
Fe2O3

(wt%)
MgO
(wt%)
CaO
(wt%)
K2O
(wt%)
Na2O
(wt%)
LOI
(wt%)
PH01 0.86 2.2 2.9 12.78 36.34 3.52 2.08 1.98 24.28 0.52 1.89 11.14
PH02 0.47 0.7 1.0 17.73 22.52 2.26 1.21 0.83 33.28 0.37 1.73 11.99
PH04 0.49 0.5 0.6 16.82 27.50 3.71 1.85 1.46 28.57 0.56 1.86 11.19
PH06 0.30 0.6 0.8 11.73 33.40 3.65 2.08 2.84 22.86 0.53 1.94 17.35
PH07 0.24 0.6 0.8 10.30 31.06 2.62 1.51 4.65 22.53 0.39 1.68 19.34
PH08 0.17 0.2 0.2 12.15 33.70 3.96 2.23 2.10 21.91 0.53 2.01 15.02
PH09 0.57 1.2 1.6 13.18 30.50 3.66 2.13 2.58 24.34 0.54 1.99 15.75
PH10 0.67 1.0 1.4 12.97 30.47 4.02 2.36 2.12 22.81 0.56 1.94 15.28
PH11 0.24 0.3 0.3 10.95 37.88 3.33 1.88 2.17 19.72 0.50 1.92 15.58
PH12 0.40 0.6 0.8 19.28 18.89 2.52 1.29 2.26 33.55 0.40 2.02 14.36
PH13 0.56 0.9 1.1 15.03 29.87 3.18 1.82 1.77 25.27 0.50 2.14 13.82
All 11 beds 0.57 8.7 11.5 13.86 30.78 3.35 1.91 2.21 25.44 0.50 1.92 14.03
* In Situ Indicated Mineral Resource, no minimum thickness applied. Dry Density: 1.25 g/cm3, Wet Density: 1.65 g/cm3
** Final true widths of some beds have yet to be finalized pending additional shoulder and floor interburden samples currently being analyzed by Certimin Laboratories in Lima, Peru

Table 4. Bayovar 7 Inferred Mineral Resources*, Dry and Wet Tonnes

Phosphorite Bed Vertical Thickness (m)** Millions Tonnes Dry Millions Tonnes Wet P2O5(wt%) SiO2
(wt%)
Al2O3
(wt%)
Fe2O3
(wt%)
MgO
(wt%)
CaO
(wt%)
K2O
(wt%)
Na2O
(wt%)
LOI
(wt%)
PH01 0.81 10.8 14.3 13.10 32.83 3.49 2.00 2.07 24.87 0.50 1.86 12.40
PH02 0.46 6.9 9.1 16.09 29.51 2.71 1.46 0.97 28.09 0.43 2.04 11.66
PH03 0.37 5.1 6.7 12.92 34.91 2.24 1.40 2.48 23.64 0.34 2.25 14.24
PH04 0.35 4.4 5.7 13.56 26.50 3.23 1.75 3.31 25.63 0.45 1.68 16.62
PH05 0.53 8.1 10.7 13.72 29.11 3.15 1.75 2.73 24.16 0.44 1.94 15.49
PH06 0.26 3.2 4.2 11.84 32.76 3.29 1.84 2.85 22.34 0.46 1.92 16.74
PH07 0.25 3.4 4.5 12.65 31.23 3.14 1.72 2.97 23.38 0.45 1.97 16.60
PH08 0.18 2.0 2.6 9.61 39.17 4.31 2.58 1.96 16.90 0.56 2.01 16.08
PH09 0.55 7.2 9.5 14.37 28.76 3.55 2.03 2.23 24.97 0.50 2.03 15.46
PH10 0.61 6.7 8.9 12.45 31.76 4.05 2.39 2.19 22.08 0.56 1.88 16.26
PH11 0.23 3.1 4.1 13.33 30.93 3.69 2.00 2.24 23.81 0.52 2.03 16.17
PH12 0.43 5.9 7.8 17.52 23.49 2.87 1.53 2.12 30.57 0.44 2.07 14.59
PH13 0.47 4.9 6.4 12.79 34.19 3.34 2.04 1.86 21.58 0.51 2.08 14.12
PH14 0.34 0.9 1.8 8.46 19.71 3.63 2.08 8.56 28.21 0.52 1.46 25.09
All 14 beds 0.50 72.6 96.4 13.64 30.58 3.29 1.87 2.31 24.63 0.47 1.96 14.79
* In Situ Inferred Mineral Resource, no minimum thickness applied. Dry Density: 1.25 g/cm3, Wet Density: 1.65 g/cm3
** Final true widths of some beds have yet to be finalized pending additional shoulder and floor interburden samples currently being analyzed by Certimin Laboratories in Lima, Peru

Table 5. Bayovar 6 South - 8 North Inferred Mineral Resources*, Dry and Wet Tonnes

Phosphorite Bed Vertical Thickness (m)** Millions Tonnes Dry Millions Tonnes Wet P2O5(wt%) SiO2
(wt%)
Al2O3
(wt%)
Fe2O3
(wt%)
MgO
(wt%)
CaO
(wt%)
K2O
(wt%)
Na2O
(wt%)
LOI
(wt%)
PH00 0.22 2.3 3.0 11.26 31.16 5.18 3.12 2.02 19.77 0.69 1.46 14.67
PH01 0.56 8.7 11.5 13.37 20.52 2.42 1.47 5.42 29.09 0.31 1.35 19.85
PH02 1.02 13.6 18.0 15.48 31.66 2.79 1.65 1.36 24.24 0.39 1.79 13.52
PH03 0.33 1.6 2.1 12.74 36.67 2.52 1.43 2.30 23.05 0.39 1.58 14.75
PH04 0.30 3.4 4.4 12.74 33.08 2.58 1.55 2.67 22.56 0.35 1.59 16.22
PH05 0.34 2.9 3.8 17.04 23.90 3.15 1.65 2.41 28.54 0.41 1.56 15.32
PH06 0.43 3.7 4.9 9.72 37.88 2.68 1.80 2.99 17.95 0.33 1.50 17.09
PH07 0.43 3.8 5.1 12.34 32.16 3.27 1.85 2.79 22.22 0.41 1.62 16.40
PH08 0.43 3.7 4.9 14.66 32.16 3.27 1.85 1.43 23.55 0.43 1.61 14.78
PH09 0.27 1.8 2.4 11.08 34.57 3.38 1.93 2.40 19.10 0.46 1.34 17.78
PH10 0.50 4.5 6.0 13.43 31.90 3.75 2.20 1.97 21.98 0.46 1.55 14.78
PH11 0.47 4.2 5.5 15.06 28.96 3.45 2.02 1.80 24.62 0.43 1.57 14.14
PH12 0.84 7.5 9.9 14.64 28.60 4.06 2.37 1.86 23.96 0.49 1.40 14.64
PH13 0.21 1.4 1.9 13.72 32.64 3.22 1.89 2.08 23.30 0.41 1.51 14.53
PH14 0.28 1.9 2.5 10.53 28.77 2.43 1.65 4.70 22.65 0.31 1.35 19.30
PH15 0.28 1.9 2.5 10.80 36.58 4.27 2.61 2.33 18.59 0.52 1.35 15.39
All 16 beds 0.58 67.0 88.4 13.70 30.11 3.17 1.88 2.51 23.77 0.41 1.54 15.66
* In Situ Inferred Mineral Resource, no minimum thickness applied. Dry Density: 1.25 g/cm3, Wet Density: 1.65 g/cm3
** Final true widths of some beds have yet to be finalized pending additional shoulder and floor interburden samples currently being analyzed by Certimin Laboratories in Lima, Peru

Table 6. Bayovar 8 South Inferred Mineral Resources*, Dry and Wet Tonnes

Phosphorite Bed Vertical Thickness (m)** Millions
Tonnes
Dry
Millions
Tonnes
Wet
P2O5
(wt%)
SiO2
(wt%)
Al2O3
(wt%)
Fe2O3
(wt%)
MgO
(wt%)
CaO
(wt%)
K2O
(wt%)
Na2O
(wt%)
LOI
(wt%)
PH04 0.7 4.5 5.9 14.75 26.69 3.55 2.15 2.23 26.26 0.48 1.64 13.31
PH06 0.5 3.2 4.3 17.09 26.45 2.91 1.57 1.58 28.33 0.39 1.83 12.93
PH08 0.5 3.3 4.4 17.94 24.99 2.86 1.51 1.35 29.50 0.37 1.81 13.33
PH12 0.4 2.3 3.0 19.67 21.43 3.01 1.62 1.00 31.44 0.39 1.85 11.62
PH13 0.4 2.6 3.4 17.64 23.67 3.72 1.95 1.20 30.56 0.47 1.73 12.76
PH14 0.4 2.2 2.9 11.18 37.93 3.98 2.29 1.50 18.87 0.52 1.63 14.43
All 6 beds 0.5 18.1 23.9 16.36 26.60 3.32 1.85 1.56 27.60 0.44 1.74 13.09
* In Situ Inferred Mineral Resource, no minimum thickness applied. Dry Density: 1.25 g/cm3, Wet Density: 1.65 g/cm3
** Final true widths of some beds have yet to be finalized pending additional shoulder and floor interburden samples currently being analyzed by Certimin Laboratories in Lima, Peru

Geological Modelling and Mineral Resource Estimation Methodology

The Company's Bayovar Project (Bayovar 6, Bayovar 7 and Bayovar 8 concessions inclusive) 3D geological model and resultant phosphate Mineral Resource estimation was prepared by Golder under the supervision of Jerry DeWolfe, MSc. P.Geo, the independent Qualified Person as defined in NI 43-101.

Golder developed a single 3D geological model for the entire Bayovar Project area of the Company (Bayovar 6, Bayovar 7 and Bayovar 8 inclusive) using the Ventyx MineScape geological modelling and mine planning software package. Both the stratigraphic and grade components of the geological model were developed as gridded surface models using a grid cell size of 20-by-20 m. The geological model includes an undifferentiated overburden unit that overlies a sequence of 16 correlatable phosphorite beds identified as PH00 through PH15.

Base data for the geological model included the drill hole data and observations collected by Geominex Consultants Inc. personnel during the relogging and sampling program performed in December 2014. The geological database included downhole lithology records from 34 drill holes totaling 3,747 m of core and 1,349 phosphorite bed and interburden bed analytical samples. The topographic surface in the geological model was developed using data extracted from a 1.5 m cell size digital elevation model.

Grade data in the geological model, including P2O5 and SiO2 (by gravimetric analyses) and major oxides (by ICP-OES analyses) were interpolated for all 16 correlatable phosphorite beds. As sampling in the interburden units was limited to roof and floor wing samples bounding the phosphorite beds, the interburden grade samples were used by Golder to verify phosphorite bed roof and floor picks but the interburden grade data was not interpolated into the geological model.

As reliable density analyses were not available for the Bayovar Project, Golder applied global default relative densities of 1.25 grams per centimetre cubed (g/cm3; dry-basis) and 1.65 g/cm3 (wet basis) to convert estimated phosphorite resource volumes to tonnes. The global default dry and wet bases density values used were established based on Golder's experience in similar phosphate deposits both locally and globally.

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 to a minimum of a Pre-Feasibility level of study as of the effective date of the resource estimate. No minimum thickness, grade cut-off, dilution, recovery or other mining factors have been applied to the in situ resource estimate and no Mineral Reserves are being reported at this time.

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 m spacing for Measured Resources, 400 to 800 m spacing for Indicated Resources and 800 to 1,600 m for Inferred Resources. Based on this classification scheme there are currently no reportable Measured Resources. Indicated and Inferred Mineral Resource tonnes and grade (mass weighted, dry-basis) are reported in the above tables.

The geological model, Mineral Resource estimation and classification of phosphate Mineral Resources will be re-evaluated once the results of the next phase of resource delineation and in-fill drilling, currently underway, have been completed.

The full NI 43-101 report will be posted on SEDAR within 45 days of this news release.

Summary of Drilling

All holes were drilled vertically to between 60-150 m depth targeting horizontal phosphate beds within the Diana Formation, a sequence of phosphoric diatomites and sandstones approximately 40-50 m thick. The phosphate beds comprise up to 40% apatite pellets, ooliths and fossil debris consisting of mainly fish teeth, bones and scales representing the remains of marine organisms that accumulated on the sea floor. Flat-lying deposits such as sedimentary phosphates and other bulk commodities such as bauxite and gypsum may be amenable to precision mechanized strip mining using surface miners, which can efficiently mine beds down to as little as 10cm in thickness.

Sampling Quality Analysis and Quality Control

All drill holes were logged on site in Piura at the Company's facilities by employees of Geominex Consultants Inc. ("Geominex"), a third party consulting firm which is independent of the Company, utilizing protocols established from Golder. All core samples were bagged, sealed and then placed in plastic buckets which were security tagged and sealed. Core samples were then transported by Geominex and/or Company personnel as secured shipments to Certimin S.A. in Lima, Peru. Phosphorus pentaoxide (P2O5%) and silica analysis are determined by gravimetric processes. Major oxides are determined by ICP-OES. Certimin is an affiliated ISO 9001 laboratory which uses standards for phosphate and silica from the Association of Fertilizer and Phosphate Chemists. Analytical precision and accuracy is determined by the insertion of blanks and standards. In addition, QA/QC controls were put in place by Geominex personnel which includes the insertion of blanks, duplicate samples and certified standards on a regular interval basis within the sample stream allowing constant analytical assurance and control.

Background

The Bayovar 6, 7 and 8 concessions show the potential to host various sedimentary phosphate deposits. The Bayovar district is situated in the Sechura Desert, a north-trending basin approximately 22,000 square kilometres in area comprising Miocene-aged sedimentary rocks. Phosphate was discovered in the 1950s during drilling for petroleum. It occurs as beds of pelletal phosphate within the Diana Formation, a sequence of phosphate-bearing diatomites and sandstones. The phosphate layers are remarkably regular in P2O5 content over long distances, a typical characteristic of marine phosphate deposits. The district is currently host to: (1) the producing phosphate mine operated by Vale S.A., Mosaic Company, and Mitsui & Co., Ltd.; (2) the Fosfatos del Pacifico phosphate deposit, which is operated as a joint venture of Cementos Pacasmayo (a Hochschild group company), Mitsubishi Corporation, and Zuari Industries Limited; and (3) Focus Ventures Ltd., which is currently advancing its JPQ (Juan Paulo Quay S.A.C.) option on Bayovar concession 12 involving phosphates. At Vale's Bayovar mine, the soft and friable nature of the phosphate rock and diatomite permits mining by conventional truck and shovel without the use of explosives.

Qualified Person

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 and is an independent qualified person under NI 43-101.

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.

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 has joint venture partners, including ExxonMobil and YPF, on various blocks in the shale oil and gas corridor in the Neuquén Basin, Argentina. Americas Petrogas also owns an 89% interest in GrowMax Agri Corp., a private company involved in the exploration for near-surface potash, phosphates and other minerals, and potential development of a fertilizer project in Peru. Indian Farmers Fertiliser Co-operative Limited (IFFCO) owns an 11% interest in GrowMax Agri Corp. For more information about Americas Petrogas Inc., please visit www.americaspetrogas.com

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 and 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 inaugural NI 43-101 report on SEDAR, completion of a revised NI 43-101 resources report for phosphates in 2015, 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 trenches will be dug or that future wells will be drilled on the Bayovar Property or that if dug/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.

NEITHER THE 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 THE RELEASE.

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