Harvest Minerals Limited Arapua Project Update (0717J)
June 26 2017 - 2:00AM
UK Regulatory
TIDMHMI
RNS Number : 0717J
Harvest Minerals Limited
26 June 2017
Harvest Minerals Limited / Index: LSE / Epic: HMI / Sector:
Mining
26 June 2017
Harvest Minerals Limited
("Harvest" or the "Company")
Arapua Project Update
Harvest Minerals Limited, the AIM listed fertiliser development
company, is pleased to provide an update highlighting progress at
its advanced Arapua multi-nutrient direct application natural
fertiliser (DANF) project ('Arapua'), located in the heart of the
Brazilian agriculture belt in Minas Gerais.
As previously announced, the Company's focus has been on
completing the first-round agronomic test work so that an
application for certification of KPfértil as a remineraliser can be
submitted to the Brazilian Ministry of Agriculture, Livestock and
Supply ('MAPA'). KPfértil is an organic, multi-nutrient slow
release fertiliser and remineraliser produced from a weathered
potassium and phosphate rich lava, which offers many economic and
agronomic benefits.
As part of the certification process, the Company has been
undertaking multiple agronomy trials, which are being conducted by
three organisations: The Federal University of Varginha; The
Institute of Agricultural Research of Cerrado; and The Federal
University of Uberlandia. The results from the latest round of
tests are due imminently, which will allow the application to MAPA
to be submitted by late July. Subject to MAPA responding in a
timely fashion, the Company anticipates registration of KPfértil as
a remineraliser by the end of 2017, following which an application
for registration as a fertiliser, to further broaden the market,
can be made, if thought necessary by the Company.
In addition to progressing the agronomic test work and
registration processes, the Company actively continues to explore
off-take agreements and aims to strengthen its product sales team
as the year progresses. Notwithstanding that certification is still
pending, based on discussions to date, the Company anticipates
recording first product sales in Q3 2017 as customers start to
incorporate KPfértil into their cropping programmes. The Company
has significant scope to meet customer demand, having recently
stockpiled a total of 50,000 tonnes of product. Notably, as
announced on 27 February 2017, Arapua has a JORC (2012) indicated
and inferred resource is 13.07Mt at 3.1% K20 and 2.49% P205, which
translates into a mine life of over 100 years at a rate of 450k
tonnes per annum; this is based on drilling just 6.7% of the known
mineralisation.
Finally, as previously announced on 28 April 2017, as part of
the application process for a full mining licence, the Company
submitted the Final Exploration Report on Arapua to the DNPM, which
detailed all the geological, metallurgical and agronomic work
completed at Arapua to date. The DNPM continues to consider the
report. Once approved by the DNPM, the Company has up to a year to
submit a feasibility study and environmental report as the final
steps in the application process for the full mining licences. As
previously announced, once granted, the Company will be obliged to
pay US$1 million to the third-party vendors of the Arapua project
and therefore, the Company intends to utilise the full period
available to submit the remaining reports. For the avoidance of
doubt, whilst this process is ongoing, production from Arapua can
continue pursuant to the trial mining license unabated.
Harvest Chairman, Brian McMaster, said, "With a current resource
of over 13Mt, which is easily scalable, Arapua will support decades
of production and generate significant turnover. Our focus remains
on gaining certification and developing sales channels. Sales are
expected to progress following certification and as market
awareness of the product gains traction. Given the expected steady
flow of news over the coming year, including test results,
certification and sales agreements, we are confident that the
foundations are in place for a profitable business."
ENDS
For further information please visit www.harvestresources.org or
contact:
Harvest Minerals Brian McMaster Tel: +61 8 9200
Limited (Chairman) 1847
Strand Hanson Limited James Spinney Tel: +44 (0)20
(Nominated & Financial Ritchie Balmer 7409 3494
Adviser)
Mirabaud Securities Rory Scott Tel: +44 (0)20
LLP 7878 3360
(Joint Broker)
Beaufort Securities Jon Belliss Tel: +44 (0)20
Ltd 7382 8300
(Joint Broker)
Whitman-Howard Grant Barker Tel: +44 (0)20
Ltd 7659 1225
St Brides Partners Isabel de Salis Tel: +44 (0)20
Ltd 7236 1177
Olivia Vita
This information is provided by RNS
The company news service from the London Stock Exchange
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