Americas Petrogas Inc.
TSX VENTURE : BOE

Americas Petrogas Inc.
GrowMax Agri Corp.

GrowMax Agri Corp.

September 09, 2010 09:20 ET

GrowMax Plans Phosphate Exploration Drilling at Bayovar, Peru

CALGARY, ALBERTA--(Marketwire - Sept. 9, 2010) -

GrowMax Agri Corp. and its subsidiary, Americas Potash Peru S.A., (collectively, "GrowMax") is pleased to announce that it is preparing to conduct an exploratory drilling program for phosphates in the southern-most block of GrowMax's Bayovar concession. This phosphate drilling program is a separate and distinct activity from GrowMax's potash brine project.

This southern-most block is 16,837 acres or 68 square kilometers in size and is located a few kilometers to the North-East of the open-pit surface mine which was put into production in July 2010 by Brazilian miner Vale in a joint venture with The Mosaic Company and Japan's Mitsui & Co., Ltd. This mine has an expected capacity of 3.9 million metric tonnes per year of phosphate rock. 

The phosphate zone at the mine is contained in the sedimentary Zapayal formation (miocene), which is dipping to the North under GrowMax's acreage, conforming to the geological attitude of the basin. GrowMax's drilling program targeting the Zapayal formation is expected to confirm the depth and thickness of the phosphate resource. 

GrowMax is in the final stages of obtaining the necessary approvals for the drilling program and is expecting to begin drilling by October 2010. The program includes 20 boreholes, each ranging in depth from 60 meters to 120 meters.

This phosphate drilling program is a separate and distinct activity from GrowMax's potash brine project. GrowMax anticipates finalizing its pre-feasibility study regarding its potash fertilizer project before the end of September 2010.

Barclay Hambrook, President and CEO stated, "Phosphates at GrowMax's Bayovar concession have yet to be fully assessed but, based on the close proximity to Vale's phosphate mine, we believe our Bayovar concession has excellent potential for phosphates – in addition to potash."

About GrowMax

GrowMax is a subsidiary of Americas Petrogas Inc. (TSX VENTURE:BOE) (www.americaspetrogas.com). Americas Petrogas' partner shareholder is Indian Farmers Fertiliser Co-operative (www.iffco.nic.in), the world's largest manufacturer and marketer of fertilizer in the cooperative sector with over 50 million farmers associated with it and five fertilizer plants producing a total of approximately 8.2 million tonnes of phosphate and nitrogen fertilizers.

Highlights of GrowMax's Bayovar potash (and other minerals) brine project:

  • Historical Data -- Historical work on the concession included substantial drilling and coring of wells, sampling, geological mapping and construction of a pilot plant utilizing solar evaporation processing which resulted in the production of high quality potassium chloride (i.e. potash fertilizer). GrowMax has already performed appraisal drilling that re-confirmed the historical data.
  • Low Risk and Low Cost -- Relative to other potash projects, Americas believes that its surface brine potash project will involve low operating costs and low capital investment, given that it will apply solar evaporation processing and its proximity to infrastructure including paved roads, fresh water, power, gas and port facilities.
  • Experienced Team -- GrowMax has assembled a seasoned team of professionals with experience in environmental impact assessment, reserves evaluation, mine building, mining infrastructure construction, mineral recovery including recovery of potash applying solar evaporation processing of brines, chemical analysis of brines, and engineering and construction of solar processing facilities.
  • Research Lab -- GrowMax has established an office and research lab in Piura, Peru, which is 20 km from its potash concession.
  • Accessible Markets -- GrowMax's proposed potash plant will serve fertilizer market demand within Peru and in surrounding countries such as Ecuador, Colombia, and Brazil and has 2 nearby ports for export to Pacific Rim markets such as India and China.
  • Secure Surface Rights -- The mineral and surface rights within the 202,000 acre (82,000 hectare or 820 sq. km.) concession have already been secured.
  • Pre-Feasibility Report – Completion of a pre-feasibility report is expected in late September 2010.
  • Engaged to prepare 43-101 report -- Ercosplan, a German-based consultant, has been engaged to complete a reserve report that is compliant with National Instrument 43-101.
  • Solar Evaporation Processing -- GrowMax's Bayovar potash brine project will utilize solar evaporation processing of mineral rich brines, given its unique location 6 degrees south of the equator in the Sechura Desert on the Pacific Ocean. This location provides the ideal amount of sun and wind for solar evaporation processing.
  • Low Carbon Footprint -- The solar evaporation process involves a low carbon footprint.
  • Additional Potential -- Additional mineral potential such as Phosphate, Calcium Sulphate, Bromine, Lithium, Magnesium Chloride and other potential minerals.

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 oil and gas exploration, development and production activities and holds over 1,808,000 acres of land in Argentina's most prolific Neuquen Basin. Americas Petrogas' plans for 2010 include drilling a minimum of 15 wells on its oil and gas properties. In Peru, through GrowMax, Americas Petrogas is developing a surface potash (and other minerals) brine reservoir and evaporite deposit at Bayovar in the Sechura Desert of Northwest Peru. GrowMax will use solar evaporation processing, allowing GrowMax to be among the lowest cost, lowest capex of potash producers. Management, along with its strategic partner investor IFFCO (Indian Farmers Fertiliser Co-operative), intends to build GrowMax into a potash and specialty fertilizers company. Americas Petrogas owns 80% of GrowMax and IFFCO owns 20%.

Certain statements in this Press Release constitute forward-looking statements under applicable securities legislation. These statements include references to potential for phosphates, expectation for drilling, expectation to confirm depth and thickness of the phosphate resource, construction and development activities, timeline, methods of processing, anticipated levels of risk and cost associated with the Bayovar project, accessibility of markets, security of surface rights, expectations regarding completion of a report compliant with National Instrument 43-101, potential for additional minerals, and intention to build a potash and specialty fertilizers company. Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. In particular, there is no assurance that construction and/or development will occur or even begin, that risks and costs will not increase substantially, that demand for potash will not decline, that a National Instrument 43-101 report can be completed and that additional economically viable minerals will be found. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels and timing of activity and achievements to differ materially from those expressed or implied by such information.

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