Amazon Mining Holding Plc
TSX VENTURE : AMZ

Amazon Mining Holding Plc

September 09, 2010 08:00 ET

Major Natural Gas Discovered Near Amazon's Cerrado Verde Potash Claims

TORONTO, ONTARIO--(Marketwire - Sept. 9, 2010) - Amazon Mining Holding Plc (TSX VENTURE:AMZ) ("Amazon" or the "Company") is pleased to announce that a local exploration syndicate prospecting for natural gas in areas within and near the Company's Cerrado Verde Project have resulted in a significant natural gas discovery. While mining rights under Brazilian law are distinct from hydrocarbon claims, the presence of local fuel supply could dramatically reduce operating costs for the Company's potash fertilizer.

The announcement of the discovery in the municipality of Morada Nova de Minas was made by the governor of Minas Gerais, Antonio Anastasia. The state of Minas Gerais holds a 49% participation in the syndicate which is also composed of Orteng, Imetame Engenharia and Delp Engenharia. The discovery is located within 40 km of Amazon's mineral claims and was the first well drilled by the syndicate in one of its 5 exploration areas.

Despite its growing production, Brazil is currently an importer of natural gas, with over 30 million cubic meters a day being imported from Bolivia. The current price for delivered Bolivian gas is around US$ 7.42 per million BTUs, 35% higher than locally produced Brazilian gas. The expectation is that the recent discoveries in the Cerrado Verde region will lead to even lower prices to the local market because the region is not yet served by a gas pipeline that could serve to transport the product to more distant consumers.

The natural gas reserves were publicized following the intersection of free flowing gas at 1,440 meters, which is expected to be the first of a multiple horizon system that might reach the depth of 2,500 meters. The drill will reach that depth within 60 days. According to the state Secretary of Mining, Metallurgy and Energy, Paulo Sergio Machado Ribeiro: "irrespective of any long term project, the aim is to already start production by next year in order to benefit the industries established in the region".

Minas Gerais state governor Antonio Augusto Anastasia highlighted the synergy of the discovery and local industries: "This cheaper gas will serve all consumers, particularly the industrial ones, because this means a significant reduction in production costs". State Secretary Machado Ribeiro completed in particular regard to the Cerrado Verde Potash project: "We are pleased to see that the discovery of natural gas will also be a boon to the agricultural sector because it will lower costs for the local production of potash. We are undertaking talks with Amazon Mining in order to reach an agreement that will ensure the flow of benefit in the near future."

Commenting President & CEO Cristiano Veloso, "We are pleased to learn about the important regional discovery of natural gas because energy costs have been our key concerns in developing the Cerrado Verde project. This regional exploration success should provide a low cost option to enhance the economics of our future potash production. Amazon applauds the bold action by the state government".

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 TSX Venture Exchange since November 2007.

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)
    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