DuSolo Fertilizers Inc. has completed a positive Preliminary Economic Assessment (PEA) of the company's Direct Application Natural Fertilizer (DANF) Santiago Project. The DANF PEA was prepared by the independent consultants GE21 Ltda.
Giles Baynham, CEO of DuSolo, noted: "We are very pleased to complete this DANF PEA and announce the results. Whilst we have been producing and selling DANF since 2015, this is the first Technical Report which demonstrates the positive economic potential of Santiago, and the Company believes it is the start of demonstrating the longer-term and higher value potential of the Company's assets in Brazil which will be the Company's aim throughout the course of 2017. We are now working on a separate PEA for the acid granulated DANF product (the "AG DANF PEA"), as well as the exploration of the Amaury Concession. Market and product development is underway, as recommended by our market consultants, to achieve the DANF prices in the Upside Case."
The DANF PEA is the first stage of the Company's strategy to demonstrate the economic potential of the Company's mineral resources based on the phosphate deposits at its BonFim Project in Brazil. The Santiago deposit within the Bonfim area currently extracts phosphate rock which is processed into two DANF products grading 12% and 15% P2O5 at the Campos Belos Plant. The second stage of this strategy is to further improve its economic viability through the potential production of an Acid Granulated Phosphate Fertilizer, which combines 15% DANF with sulphuric acid to improve the agronomic performance of the DANF. This granulated product is expected to increase the market available to the Company, and yield higher selling prices due to improved solubility and agronomic performance based on a market study completed by Agroconsult. With the positive results of the DANF PEA, the Company has commenced the second stage of the strategy to produce the AG DANF PEA, which is targeted for completion in 2H17.