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TORONTO, ONTARIO–(Marketwire – Nov. 16, 2011) – Rio Verde Minerals Development Corp. (TSX:RVD) (“Rio Verde” or the “Company”) is pleased to announce the completion of the first drill hole, SED-001-11 (“SED-001-11”, the “Hole”) at its Sergipe Potash Project (“Sergipe” or the “Sergipe Project”), located in the Sergipe Basin in northeastern Brazil.
Drilling of the SED-001-11 hole was completed on November 12, 2011, when the target depth of 1,350m was reached. The Hole, which is the first of three holes planned at the Sergi Prospect, is a twin hole of an historical Petrobras oil well located 115m to the northwest of SED-001-11.
Logging and a preliminary determination of potash content based on hand-held X-ray fluorescence (XRF) analyses on the core of SED-001-11 indicates that significant potash mineralization has been intercepted in two sylvinite-bearing zones with thicknesses of 12.97m and 5.05m, and one carnallitite-bearing zone with a total thickness of 61.0m, for a total of about 79m of potash mineralization.
“This is an important milestone for Rio Verde,” stated Stephen Keith, President & CEO of Rio Verde. “The completion of this first drill hole marks the first step to proving out our potash resource. Our goal with this hole was to prove that this target has the potential to host a mineable potash resource. We are pleased with the preliminary evaluation of the hole and the confirmation of sylvinite with considerable thickness. In addition, we were pleased to intercept substantial carnallitite layers, starting at about 27m below the last sylvinite horizon, as this had not been identified in Petrobras’ historical oil well log. With over 79m of potash horizons, Rio Verde has shown the potential for a significant potash development at the Sergi Prospect.”
Drill hole data shows that the two sylvinite-bearing zones contain three single potash horizons composed of considerable amounts of sylvite. These zones have been identified within a vertical depth starting at 1,170.45m to 1,208.3m, and a thickness ranging from 0.75m to 8.60m. The depth of these intercepts correlates with the data shown by the down-hole gamma ray logs indicated in Petrobras’ oil well, which had previously demonstrated combined layers of potash mineralization of up to 18m.
The single thickness carnallitite zone contains three additional potash salt horizons, which have been intercepted within a vertical depth starting at 1,235.74m to 1,296.78m. These horizons contain high-grade mineralization of carnallitite, especially in the middle and the lowermost horizon, with thicknesses of 4.08m to 19.13m, for a combined intersection of 61.0m of carnallitite. The log of the mineralized intercepts can be accessed at the following link: http://media3.marketwire.com/docs/745463.jpg.
This week, work continues on-site with down-hole geophysical surveys, such as gamma ray and density profiles, which will be used for the reinterpretation of historical oil wells, and check-shot surveys to calibrate historical seismic data. These will help in determining the location of our next drill-holes at the Sergi Prospect. At-depth temperature will also be measured in order to determine conditions for an envisioned solution mining and recovery process.
Next week, the samples extracted from the 10 potash layers will be submitted for analysis at the certified laboratory in Germany, which is specialized in salt analysis. Results are expected within 4 to 6 weeks.
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, and is adjacent to Brazil’s only producing potash mine, Vale’s Taquari-Vassouras mine. Rio Verde’s Sergipe Project is comprised of 12 separate land holdings, over a total area of approximately 112,000 hectares. These land holdings have been grouped into 10 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.
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 which 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.
