CALGARY, ALBERTA–(Marketwired – June 27, 2016) – Americas Petrogas Inc. (TSX VENTURE:BOE) (“Americas Petrogas” or the “Company”) is pleased to announce that it has received an updated National Instrument 43-101 compliant Mineral Resource estimate, including an initial Mineral Resource estimate for one of the concessions, for its Bayovar phosphate project on its property located in the Sechura Desert in Peru.
The independent estimate was prepared by Golder Associates (“Golder”) and is an update of the previous Mineral Resource estimates prepared by Golder dated May 11, 2015 and April 28, 2016 titled “Mineral Resource Technical Report on the GrowMax Bayovar Phosphate Project, Piura Region, Peru.”
This Mineral Resource estimate update is based on all drill holes drilled by the Company to date including recent 2016 drilling on the Bayovar 5, 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 zero-metre to 400-metre spacing for Measured Mineral Resources, 400-metre to 800-metre spacing for Indicated Mineral Resources and 800-metre to 1,600-metre for Inferred Mineral Resources.
On Bayovar 5 concession — an independent initial estimate was also prepared by Golder based on three wide spaced reconnaissance drill holes completed in 2015 and an additional eight drill holes in Q1-2016 based on 1600-metre spacing. Inferred Mineral Resources were estimated to be 26.5 million tons and the mean grades of the individual beds vary from 8.93% P2O5 (PH13) to 14.22% P2O5 (PH04). The thickness of beds varied from 0.10 metres (m) up to 0.70 m with the upper most phosphate bed encountered at a shallow depth of 8.85 m in the central portion of the property. Additional drill holes are planned for later this year to further evaluate the area.
On Bayovar 7 concession — the most significant result of the 2016 drilling campaign is the confirmation of 29.7 million tonnes of Measured Mineral Resources, 137.4 million tonnes of Indicated Mineral Resources, and 63.7 million tonnes of Inferred Mineral Resources with mean grades varying from 6.95% P2O5 (PH14) to 15.97% P2O5 (PH02) in the individual beds in the Measured category, from 7.5% P2O5 (PH14) to 15.72% P2O5 (PH02) in the Indicated category, and from 7.33% P2O5 (PH14) to 15.37% P2O5 (PH02) in the Inferred category. In comparison with the previous (April 2016) Mineral Resource estimate, the current estimate represents the first instance of Measured Mineral Resources for the project along with an increase of 127.9 million tonnes of Indicated Mineral Resource, and a decrease of 5.2 million tonnes of Inferred Mineral Resource. The decrease in Inferred Mineral Resource is due to upgrading resources from the Inferred Resources category to the Indicated and Measured Mineral Resource categories. The thickness of the upper four beds varied from 0.45 m up to 0.69 m with the upper most phosphate bed encountered at a shallow depth of 3.00 m in the central portion of the property.
The Company’s executive chairman, Abby Badwi, commented “With the positive results obtained on Bayovar 7, reporting total Measured and Indicated resources exceeding 167 million tonnes and an additional 63 million tonnes of Inferred resources, the Company is focusing its Preliminary Economic Assessment to develop a mine in this area. Bayovar 7 contains significant resources of good concentration of phosphate in the various beds with minimal thickness of the overburden beds and close to existing production by other producers from the same formation.”
Table 1: Summary of Measured* Mineral Resources, All Areas, All Beds
| Area | Vertical Thickness (m) | Dry Tonnes (MT)** | Wet Tonnes (MT)** | P2O5 (wt%) | SiO2 (wt%) |
Dry Density (g/cm3) |
Wet Density (g/cm3) |
|||||
| Bayovar 7 | 0.61 | 29.7 | 38.9 | 12.00 | 30.90 | 1.21 | 1.58 | |||||
| Total Measured | 0.61 | 29.7 | 38.9 | 12.00 | 30.90 | 1.21 | 1.58 |
* In Situ Measured Mineral Resources, no minimum thickness applied.
** MT: million tonnes
Table 2: Summary of Indicated* Mineral Resources, All Areas, All Beds
| Area | Vertical Thickness (m) | Dry Tonnes (MT)** | Wet Tonnes (MT)** | P2O5 (wt%) | SiO2 (wt%) |
Dry Density (g/cm3) |
Wet Density (g/cm3) |
|||||
| Bayovar 7 | 0.60 | 137.4 | 181.0 | 12.33 | 31.38 | 1.20 | 1.58 | |||||
| Bayovar 6S/8N*** | 0.47 | 11.9 | 15.8 | 14.20 | 29.48 | 1.18 | 1.56 | |||||
| Total Indicated | 0.59 | 149.3 | 196.8 | 12.48 | 31.23 | 1.20 | 1.58 |
* In Situ Indicated Mineral Resources, no minimum thickness applied.
** MT: million tonnes
*** Previously reported values have not changed.
Table 3: Summary of Inferred* Mineral Resources, All Areas, All Beds
| Phosphorite Bed | Vertical Thickness (m) | Dry Tonnes (MT)** | Wet Tonnes (MT)** | P2O5 (wt%) | SiO2 (wt%) |
Dry Density (g/cm3) |
Wet Density (g/cm3) |
|||||
| Bayovar 5 | 0.48 | 26.5 | 34.6 | 12.17 | 35.37 | 1.21 | 1.58 | |||||
| Bayovar 7 | 0.58 | 63.7 | 83.8 | 11.94 | 31.34 | 1.21 | 1.58 | |||||
| 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 | 0.47 | 430.1 | 568.8 | 13.60 | 29.97 | 1.18 | 1.55 |
* In Situ Inferred Mineral Resources, no minimum thickness applied.
** MT: million tonnes
*** Previously reported values have not changed.
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.
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 and the Company anticipates completion and release of its results in September, 2016.
The full NI 43-101 report will be posted on SEDAR within 45 days of this news release.
An updated Corporate Presentation will be posted on the Company’s website later today following the close of the North American markets.
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 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 NI 43-101 report on SEDAR, completion of a PEA, and potential for phosphates or other minerals on the Bayovar Property should all be viewed as forward-looking statements. The presence of phosphates in samples and of phosphate resources 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 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.
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.
Abby Badwi, P. Geo.
Executive Chairman
+1 587 390 7015
inquiries@americaspetrogas.com
www.americaspetrogas.com