DuSolo Drill Results Confirm Additional High Grade Phosphate Mineralization at the Bomfim Project
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 5, 2015) - DuSolo Fertilizers Inc. (TSX VENTURE:DSF)(OTC PINK:ELGSF)(FRANKFURT:E6R) ("DuSolo" or "the Company") is pleased to announce the drill results from the first round of its 2015 drilling campaign (the "Campaign") at the Bomfim Agro-mineral Project ("Bomfim Project"). Drill result highlights include:
- Hole STW-RC-91: 27.00 metres at 12.31% P2O5 including 6 metres at 22.85%
- Hole STW-RC-100: 21.50 meters at 11.31% P2O5 including 4 metres at 18.65%
- Hole STW-RC-106: 19.00 metres at 13.32% P2O5 including 5 metres at 18.91%
"These drill results indicate that our phosphate mineralization extends beyond the areas identified in our initial resource estimate. They also confirm that we have found additional high-grade phosphate mineralization suitable for future production of Direct Application Natural Fertilizer at Bomfim. Going forward, our exploration program will continue to focus on further delineating resources and the additional upside potential of these and other targets," said Prof. Paulo Amorim, DuSolo´s Vice President of Exploration.
"As the Company makes progress towards increasing its resources, it also looks to increase its sales. The company has already announced the receipt of orders to supply up to 51,100 tonnes of Direct Application Natural Fertilizer for approximately C$4.5 million. The company expects additional orders to ramp up once the rainfall in the region comes to a halt and farmers begin planting their crops," said Eran Friedlander, President and CEO of DuSolo.
During this round of drilling, a total of 90 holes totaling 1,902 meters were completed at both the Santiago and Tataco targets, located within the Bomfim Project. At the Santiago target, the results from drilling confirm the existence of phosphate mineralization in areas considered to date as "exploration potential" based on mapping and surface sampling. At the Tataco target, the results from drilling confirm the presence of higher grade mineralization within a thicker lower grade siltstone package. The drill results from both targets will be used to expand and further define the inferred resource previously reported in the Bomfim National Instrument 43-101 Initial Resource Estimate ("NI 43-101") published January 5th, 2014, and amended on February 6, 2015. The updated NI 43-101 resource estimate, will be released later this year.
Significant intersections with more than 10% P2O5 (suitable for production of Direct Application Natural Fertilizer) are shown in the table below.
Table 1: Santiago and Tataco Drill Results with intersections containing mineralization greater than 10% P2O5
| Hole ID | From (m) | To (m) | Total | P2O5% |
| STW-RC-60 | 0.00 | 11.00 | 11.00 | 10.43 |
| including | 0.00 | 3.00 | 3.00 | 24.28 |
| STW-RC-61 | 0.00 | 4.00 | 4.00 | 18.06 |
| STW-RC-63 | 0.00 | 11.00 | 11.00 | 11.81 |
| including | 0.00 | 4.00 | 4.00 | 17.23 |
| STW-RC-81 | 0.00 | 3.00 | 3.00 | 22.82 |
| STW-RC-83 | 0.00 | 4.00 | 4.00 | 23.56 |
| STW-RC-86 | 0.00 | 13.00 | 13.00 | 13.18 |
| including | 0.00 | 8.00 | 8.00 | 17.69 |
| including | 0.00 | 4.00 | 4.00 | 21.42 |
| STW-RC-87 | 0.00 | 3.00 | 3.00 | 17.23 |
| STW-RC-91 | 0.00 | 27.00 | 27.00 | 12.31 |
| including | 0.00 | 16.00 | 16.00 | 17.67 |
| including | 0.00 | 6.00 | 6.00 | 22.85 |
| STW-RC-92 | 0.00 | 9.00 | 9.00 | 13.26 |
| STW-RC-93 | 0.00 | 4.00 | 4.00 | 12.97 |
| STW-RC-98 | 6.00 | 10.00 | 4.00 | 11.74 |
| STW-RC-100 | 0.00 | 21.50 | 21.50 | 11.31 |
| including | 1.00 | 10.00 | 9.00 | 14.11 |
| including | 2.00 | 6.00 | 4.00 | 18.65 |
| STW-RC-101 | 2.00 | 9.00 | 7.00 | 11.01 |
| STW-RC-105 | 5.00 | 9.00 | 4.00 | 21.19 |
| STW-RC-106 | 8.00 | 27.00 | 19.00 | 13.22 |
| including | 8.00 | 23.00 | 15.00 | 15.83 |
| including | 11.00 | 16.00 | 5.00 | 18.91 |
| STW-RC-107 | 0.00 | 10.00 | 10.00 | 16.47 |
| including | 0.00 | 3.00 | 3.00 | 19.26 |
| STW-RC-108 | 5.00 | 10.00 | 5.00 | 13.50 |
| STW-RC-109 | 10.00 | 19.00 | 9.00 | 11.60 |
| TT-RC-14 | 0.00 | 4.00 | 4.00 | 10.41 |
| TT-RC-16 | 0.00 | 17.00 | 17.00 | 9.99 |
| including | 0.00 | 6.00 | 6.00 | 17.28 |
DETAILED DRILL HOLE INFORMATION
The Campaign started on November 18, 2014 and was concluded March 27, 2015 with a total of 90 reverse circulation ("RC") holes drilled at Santiago and Tataco targets.
The holes at Santiago are defined by the following sequence:
i) The target area (Santiago = ST),
ii) The exploration domain (W or P),
iii) The drilling method (reverse circulation = RC),
iiii) The drill hole number (*)
The holes at Tataco Target are defined by the following sequence:
i) The target area (Tataco = TT),
ii) The drilling method (reverse circulation = RC),
iii) The drill hole number (01-32).
* Holes STW-RC-01 to STW-RC-18 were completed in 2013 and the results were used to elaborate both the exploration model for Santiago and to calculate the Initial Resource Estimate of the Bomfim Project (previously announced January 22nd, 2014). Holes STW-RC-19 to STW-RC-59 were completed in 2014 and drilled at a 25 by 25 meter grid spacing as part of the pre mining drilling campaign. Holes STW-RC-60 to STW-RC-63, STW-RC-78 to STW-RC-80 and STW-RC-84 to STW-RC-115 were completed in 2015 as part of the 50 by 50 meter infill grid spacing over the area with inferred resources of the STW Domain. Holes STW-RC-64 to STW-RC-77 and STW-RC-81 to STW-RC-83 were completed in 2015 as part of the scout drilling program of Santiago´s "exploration potential".
To view accompanying map, visit the following link: http://media3.marketwire.com/docs/DuSolo_Map1.jpg
QUALITY CONTROL
The Company implements industry recognized QA/QC methods at the project by inserting high and low grade standard samples, blanks and duplicates. Chips from RC drilling are collected in bags for each one-meter interval. Chips are logged at the drill site and the samples are taken to a core shack located at DuSolo's field office. At the core shack the samples are then crushed and screened to less than 2mm prior to homogenization and quartering. An aliquot of one quarter from each sample is then sent for analysis.
A Qualified Person (identified below) has reviewed the QA/QC results and inspected all the procedures assuring the quality of the information being reported in this news release. Intertek Laboratories ("Intertek") of Sao Paulo Brazil, was used for analytical work reported in this news release. Intertek is part of an international group of certified (ISO 9001:2008) laboratories recognized in the industry for geochemical and agricultural testing. Determination of P2O5 was done by Intertek's method XR55L which prepared the sample with a lithium tetraborate fusion followed by XRF analysis. Intertek is independent of the Company.
Mauricio Prado, Bomfim's Project Manager, is a Qualified Person under National Instrument 43-101 and has reviewed and approved the technical disclosures of this press release on behalf of the company.
ABOUT THE COMPANY
DuSolo Fertilizers Inc. is focused on developing a fully integrated process to produce phosphate based fertilizers within the Cerrado region of Brazil as part of a nationwide effort, incentivized by the government, to increase supply of domestically sourced fertilizers and achieve agricultural self sufficiency.
The Company's shares are publicly traded on the TSX Venture Exchange under the symbol DSF, on the OTC Pink Sheets under the symbol ELGSF and on Frankfurt Stock Exchange under the symbol E6R.
On behalf of the Board of Directors
DuSolo Fertilizers Inc.
Eran Friedlander, President and CEO
Forward-looking statements
Certain information contained in this press release constitutes "forward-looking information", within the meaning of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur", "be achieved" or "has the potential to". Forward looking statements contained in this press release may include statements regarding the future operating or financial performance of DuSolo which involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Among those factors which could cause actual results to differ materially are the following: market conditions and other risk factors listed from time to time in our reports filed with Canadian securities regulators on SEDAR at www.sedar.com. The forward-looking statements included in this press release are made as of the date of this press release and DuSolo disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.
Disclosure
The Company is not basing its decision to begin production of DANF on a feasibility study of mineral reserves demonstrating economic and technical viability. Without a technical report demonstrating economic and technical viability, there is increased uncertainty as to whether DuSolo will be able to economically produce DANF products and as to whether DuSolo will be confronted with any unforeseen technical impediments. Similarly, the Company has not completed a preliminary economic assessment before making production and project expansion decisions.
The potential quantities (10 - 20 million tonnes) and grades (5.5 - 10% P2O5) disclosed in the discussion of "exploration potential" in the aforementioned drilling targets are conceptual in nature and there has been insufficient exploration to define a mineral resource for the additional "exploration potential" targets disclosed therein. It is uncertain if further exploration will result in this additional "exploration potential" yielding a mineral resource. The basis for estimating the target ranges of the additional "exploration potential" is based on block modeling, drilling, detailed mapping, and surface sampling.
Neither the TSX Venture Exchange Inc. nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this press release.
