Capela Potash Project

The Company has acquired a 51% interest with option to acquire remaining 49% in the Capela Potash Project sitting next to Taquari-Vassouras the only potash mine in Brazil.
 
  • The project is located in the Sergipe Alagoas Basin, which hosts significant deposits of sylvinite and carnallitite. Rocks with highest potassium concentrate.
  • The Capela Potash Project is located in the development friendly state of Sergipe, in an area with established infrastructure, 13km adjacent to Brazil’s only producing potash mine, Vale’s Taquari-Vassouras mine.
  • Capela Potash Project is composed by eight mineral properties with exploration licenses granted andcovering total area of 11,212 hectares.
  • The world class SED-001-11 well intersected over 16m of high grade Sylvinite as part of a total of 79m over multiple horizons. 
  • 3D seismic confirmed that the Capela Potash Project is the possible northern extension to Vales Taquari-Vassouras Potash Mine to the south.
  • 3D seismic at the Capela Project has also confirmed potential salt layers at shallow depths of 235 - 325 meters.
The Company acquired 51% of the Capela Potash Project in August 2014,which is also located in the north-eastern part of Brazil, in the State of Sergipe. It is located approximately 13 km away from Vale’s Taquari-Vassouras mine. The Company has the option to increase its interest in the Capela Potash Project to 100% by performing the final payment obligation in accordance with the terms of the Capela Potash Project Agreement.

A recently completed 3D seismic has confirmed that the Capela Potash Project is the possible northern extension to Vale’s Taquari-Vassouras mine to the south. The 3D seismic has identified the potential presence of salt layers at relatively shallow depths. The Company advanced its preparation for a potential drilling programme, subject to available funding, through the completion of pre-drilling site visits as well as the progression of drilling quotes, landowner access permits and environmental licenses.