Harvest Minerals provides Arapua project update

Harvest Minerals' 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 fertilizer 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 fertilizer 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 3Q17 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 t of product. Notably, as announced on 27 February 2017, Arapua has a JORC (2012) indicated and inferred resource is 13.07 Mt at 3.1% K20 and 2.49% P205, which translates into a mine life of over 100 years at a rate of 450 000 tpy based on drilling just 6.7% of the known mineralisation.

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. Once granted, the company will be obliged to pay US$1 million to 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.