Rio Verde Minerals Development Corp.
TSX : RVD

Rio Verde Minerals Development Corp.

February 07, 2012 06:00 ET

Rio Verde Minerals Reports High Grade Sylvinite of 25.0% KCl over 16.7m at the Sergipe Potash Project

TORONTO, ONTARIO--(Marketwire - Feb. 7, 2012) - Rio Verde Minerals Development Corp. (TSX:RVD) ("Rio Verde" or the "Company") is pleased to announce the first set of assay results from its first drill hole at the Sergipe Potash Project, located in the Sergipe Basin in northeastern Brazil. The assays refer to the sylvinite-bearing zones intercepted at the SED-001-11 drill hole at the Sergi Target, which was completed in November 2011. Samples from the drill core were shipped to ERCOSPLAN, Rio Verde's independent engineering consultant, and analysed at ERCOSPLAN's independent partner lab based in Germany.

The sylvinite assay results showed evaporites characterized by high potash content and low anhydrite content distributed in two significant sylvinite-bearing zones with a weighted average grade of 25.01% KCl over 16.73m. Starting at 1189.38m depth, the upper zone ("Sylvinite Zone 1") returned an 8.27m composite interception averaging 20.94% KCl, including 5.08m at 24.84% KCI, and 1.29m at 36.26% KCI. The lower zone ("Sylvinite Zone 2"), which starts at 1221.86m depth, intercepted 8.46m at 28.98%, including 5.47m at 39.65% KCI.

A summary of the sylvinite assay results is provided in the table below:

Category From (m) To (m) Interval (m) Grade (KCl)
Sylvinite Zone 1 1189.38 1197.65 8.27 20.94
including 1189.38 1190.67 1.29 36.26
1192.57 1197.65 5.08 24.84
Sylvinite Zone 2 1221.86 1230.32 8.46 28.98
including 1221.86 1227.33 5.47 39.65
1227.33 1230.32 2.99 9.47

Analysis of the down-hole geophysical logs has been concluded. The information derived from this analysis has been used to refine the location of the next drill hole at the Sergi Target, SED-002-12, to be located 2.69km west-southwest of SED-001-11. In addition, the borehole temperature, an important factor in determining conditions for an envisioned solution mining and recovery process, was estimated at 57°C.

All sample assays contained within the reported interval, as well as the log of the mineralized intercepts, can be accessed at the following link: http://media3.marketwire.com/docs/SED-001-11_Core_Log_Sylvinite_Assay.pdf.

"With the receipt of these assay results, we can confidently say that Rio Verde has confirmed the historical observation of potash on its properties, our primary objective for drilling this first hole," said Rio Verde CEO Stephen Keith. "The excellent grades and potash thicknesses intersected represent an important step in the development of Rio Verde's Sergipe Potash Project. We are also pleased with the results from the down-hole geophysical interpretation; it has indicated favourable down-hole temperature and data, which has allowed us to improve our seismic data interpretation and increase our confidence in the placement of our second drill hole. The relocation of the next drill platform has required us to apply for a new drilling permit, which we anticipate will be granted in the next few days, with rig mobilization to start immediately thereafter."

Carnallitite Assays

As reported in Rio Verde's November 16, 2011, Press Release (http://www.marketwire.com/press-release/rio-verde-minerals-announces-completion-first-drill-hole-with-significant-potash-intersections-tsx-rvd-1587559.htm), drill hole SED-01-011 also intercepted a significant carnallitite horizon of 61m at a vertical depth starting at approximately 1,235.74m. These horizons contain significant high-grade carnallitite mineralization, especially in the middle and the lowermost horizons. As this intercept was much larger than anticipated, the volume of samples sent to the laboratory was also significantly larger than anticipated. ERCOSPLAN thus requires additional time to process the carnallitite assay results. The core samples of this carnallitite-bearing zone are presently being assayed by ERCOSPLAN, with results expected later this month.

Qualified Person

The "Qualified Person," as such term is defined in National Instrument 43-101, who has reviewed and approved the technical information in this new release, is Dr. Henry Rauche of ERCOSPLAN of Erfurt, Germany, an independent consultant for Rio Verde.

About the Sergipe Potash Project

The Sergipe Potash Project is located in the development-friendly state of Sergipe, in an area with established infrastructure, adjacent to Brazil's only producing potash mine, Vale's Taquari-Vassouras mine. Rio Verde's Sergipe Project is comprised of 11 separate land holdings, over a total area of approximately 106,336 hectares. These land holdings have been grouped into nine on-shore and two off-shore prospects, with the main prospects being the Sergi Prospect, the Rio do Sal Prospect and the Capela 1 Prospect. Rio Verde has identified 7 potash drill-ready targets, which were selected following an extensive remodeling of the geology of the Sergipe basin, based on approximately 234 line km of 2D seismic data, and the acquisition of geological data from 286 historical oil wells in the area. Rio Verde's drilling program is targeting sylvinite horizons at its Sergi Prospect, as well as significant potential caranallite horizons.

As part of the Company's ongoing strategic land evaluation, Rio Verde continues to analyse its key potash targets in order to plan future exploration. Taking into consideration extensive historical information and recent seismic interpretation, Rio Verde decided to end its option agreement with Lara Alliance (BVI) Ltd., and has returned control of the project properties under agreement to their original owner. The project properties were not in line with Rio Verde's immediate exploration goals, and were not considered to be a material portion of the Company's assets.

About Rio Verde

Rio Verde Minerals Development Corp. (TSX:RVD) is a publicly traded company focused on the exploration and development of fertilizer projects in Brazil. The Company's goal is to become the leading Brazilian fertilizer mining and development company by selecting prime assets that are near infrastructure, with known mineralization, in regions without significant social or environmental issues. The Company plans to fast-track the best projects to development to create stakeholder value. Rio Verde holds one potash project and a portfolio of phosphate projects in Brazil. Potash and phosphate fertilizers have favourable supply and demand dynamics, and Rio Verde has a significant cost advantage by being based in Brazil, a country that imports about 90% of its potash and 50% of its phosphate needs. Rio Verde's near-term primary objective is to focus its potash exploration on establishing a Canadian National Instrument 43-101 resource.

Forward-Looking Statements

This press release contains forward-looking statements. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding the estimation of mineral resources, exploration results, potential mineralization, potential mineral resources and mineral reserves) are forward-looking statements. Forward-looking statements are often identifiable by the use of words such as "anticipate", "believe", "plan", may", "could", "would", "might" or "will", "estimates", "expect", "intend", "budget", "scheduled", "forecasts" and similar expressions or variations (including negative variations) of such words and phrases. Forward-looking statements are subject to a number of risks and uncertainties, many of differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company's expectations, the price of potash and phosphate, changes to regulations affecting the Company's activities, including tax and trade laws and policies; delays in obtaining or failures to obtain required regulatory permits and approvals from government authorities; delays in commencing the Company's proposed drilling program, exploration costs varying significantly from estimates; uncertainties relating to the availability and costs of financing needed to complete exploration activities and demonstrate the feasibility of the Company's projects; the success of future exploration and development initiatives; and other risks involved in the mineral exploration and development industry. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement

Contact Information

  • Rio Verde Minerals Development Corp.
    Stephen Keith
    President & CEO
    +1 (416) 368-8288
    info@Rvminerals.com

    Rio Verde Minerals Development Corp.
    Alex Penha
    VP Corporate Development
    +1 (416) 368-1573
    apenha@Rvminerals.com