VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 6, 2015) - Focus Ventures Ltd. (TSX VENTURE:FCV) is pleased to report that it has filed on SEDAR an updated NI 43-101 Technical Report for the expanded mineral resource estimate for its Bayovar 12 phosphate project (see news release dated August 19, 2015).
The independent estimate and report, based on the results of Focus's first and second phase drill programs, was prepared by Golder Associates ("Golder") and supervised by Jerry DeWolfe, MSc, PGeo, an independent Qualified Person as defined under NI 43-101. The full report is also posted on Focus' website www.focusventuresltd.ca.
As previously reported, the resource size increased substantially from the initial estimate and also includes a measured tonnes component. The average P2O5 grade also increased slightly over the first estimate. The revised resource is based on slightly lower density measurements for wet and dry material than those used in the initial resource estimate. The resource includes 16 individual phosphate beds.
|Note: In situ resource, no minimum thickness applied; wet density: 1.57 grams per cubic centimetre, dry density: 1.19 grams per cubic centimetre; dry tonnes are a component of wet tonnes that contain negligible humidity
David Cass, the President of Focus commented: "The expanded resource at Bayovar 12 forms the basis of the on-going mine planning underway as part of our pre-feasibility study. The planned pit layout will be centered in the eastern half of the drill grid where the phosphate beds are closest to surface below sand and free digging diatomite. We are also encouraged by how our marketing study is helping shape our vision for Bayovar 12 by the production of organic reactive phosphate rock and potentially blended fertilizers using other natural resources abundant in the Sechura-Piura region such as potash, gypsum, fish meal and potentially urea from natural gas. We believe the region could become an important commercial center for phosphate-based fertilizer products for agricultural markets throughout the Americas."
Resource estimation methodology
The resource estimate is based on 62 boreholes drilled over 2,400 hectares of the 12,575-hectare property, at drill spacings ranging from 400 to 800 metres. The resources are distributed between 16 individual, soft, free-digging, horizontal phosphate beds hosted within the Diana formation, a sequence of diatomites that begin as shallow as 26m below surface. The grades and widths of individual beds are consistent, with no evidence of faulting and the beds can be easily correlated across the drilled area. Vale is believed to be mining the same beds at its Bayovar mine 15 kilometres to the west of Bayovar 12.
The initial Bayovar 12 geological model was developed by Golder using data from the 2014 and 2015 drilling programs. Source data for the geological model included 62 drill holes totaling 2,027 metres and 2,245 analytical samples. A three-metre cell digital elevation model was used for topographic data.
The geological model was constructed using the Ventyx MineScape geological modelling and mine planning software. The geological model incorporated a differentiated overburden model, and a model of the structural and grade data for the Diana formation, including 16 correlatable phosphorite beds and their corresponding overlying diatomite interburden units.
The MineScape model was developed as a stratigraphic grid model using a 20-metre-by-20-metre grid cell size, and a finite element method interpolator for phosphorite and diatomite thickness and grade components of the model. Since the initial resource estimate was completed, 60 specific gravity measurements have been made on samples of phosphorite from drill core.
As per NI 43-101 guidelines, Golder is reporting in situ phosphate mineral resources. No minimum thickness, grade cut-off, dilution, recovery or other mining factors have been applied to the in situ resource estimate, and no mineral reserves are being reported at this time.
Based on an initial geostatistical analysis of the phosphorite unit thickness and P2O5 grade supplemented by Golder's experience in global phosphate deposits, Golder has applied a resource classification scheme of zero to 400m spacing for measured resources, 400 m to 800 m spacing for indicated resources and 800 m to 1,600 m for inferred resources. Measured, Indicated and Inferred Resource tonnes and grade (dry basis) are reported in the associated tables.
The Bayovar 12 concession hosts a large sedimentary phosphate rock system. The Bayovar district is situated in the Sechura Desert, a north-trending basin comprising Miocene-aged sedimentary rocks approximately 22,000 square kilometres in area. Phosphate was discovered in the 1950s during drilling for petroleum. It occurs as beds of pelletal phosphate within the Diana formation, a sequence of phosphate-bearing diatomites and sandstones. The phosphate layers are remarkably regular in P2O5 content over long distances, a typical characteristic of marine phosphate deposits. At Vale's Bayovar mine, the soft and friable nature of the phosphate rock and diatomite allows mining by conventional truck and shovel without the use of explosives.
On January 14, 2014, the Company's Peruvian subsidiary, Agrifos Peru SAC, signed a formal option agreement for the acquisition of shares in Juan Paulo Quay SAC ("JPQ"), the titleholder of the Bayovar 12 non-metallic mining concession. In March 2015, Focus completed the purchase of an outright 70-per-cent interest in JPQ for US$4-million (see Focus news release of March 30, 2015). Agrifos retains a first right of refusal to purchase the remaining 30-per-cent of JPQ.
The scientific and technical information in this release was prepared under the supervision of David Cass, Focus's president, who is a member of the Association of Professional Engineers and Geoscientists of British Columbia, and a Qualified Person in accordance with National Instrument 43-101.
The resource estimation was prepared by Golder Associates under the supervision of Jerry DeWolfe, MSc, PGeo, an independent Qualified Person as defined under National Instrument 43-101.
Focus is developing the the Bayovar 12 phosphate deposit located in the Sechura district of northern Peru. Phosphate rock is a raw material for fertilizers and vital to world food production. Focus is acquiring and developing quality phosphate projects in Latin America where the discovery and development of new deposits is becoming increasingly important given the growing demand and limited local supply of phosphate for fertilizer production. For further information, please call 604-630-5544 or visit our web site www.focusventuresltd.com.
ON BEHALF OF THE BOARD
Ralph Rushton, VP Corporate Development
Symbol: (TSX VENTURE:FCV)
Shares Issued: 97.9-million
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Certain statements contained in this news release constitute forward-looking statements within the meaning of Canadian securities legislation. All statements included herein, other than statements of historical fact, are forward-looking statements and include, without limitation, statements about the Company's intended exploration and development of the Bayovar 12 project.. Often, but not always, these forward looking statements can be identified by the use of words such as "estimate", "estimates", "estimated", "potential", "open", "future", "assumed", "projected", "used", "detailed", "has been", "gain", "upgraded", "offset", "limited", "contained", "reflecting", "containing", "remaining", "to be", "periodically", or statements that events, "could" or "should" occur or be achieved and similar expressions, including negative variations.
Forward-looking Statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any results, performance or achievements expressed or implied by forward-looking statements. Such uncertainties and factors include, among others, the Company's ability to explore and develop the Bayovar 12 project as planned; changes in general economic conditions and financial markets; the Company or any joint venture partner not having the financial ability to meet its exploration and development goals; risks associated with the results of exploration and development activities, estimation of mineral resources and the geology, grade and continuity of mineral deposits; unanticipated costs and expenses; and such other risks detailed from time to time in the Company's quarterly and annual filings with securities regulators and available under the Company's profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to: the Company's stated goals and planned exploration and development activities for the Bayovar 12 project will be achieved ; that there will be no material adverse change affecting the Company or its properties; and such other assumptions as set out herein. Forward-looking statements are made as of the date hereof and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on forward-looking statements.
Cautionary Note to United States Investors Concerning Estimates of Reserves and Resources
Reserve and resource estimates included in this news release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Standards on Mineral Resources and Mineral Reserves. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for public disclosure by a Canadian company of scientific and technical information concerning mineral projects. Canadian standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission ("SEC"), and reserve and resource information contained in this news release may not be comparable to similar information disclosed by U.S. companies. In particular, the term "resource" does not equate to the term "reserves". Under U.S. standards, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made.
The SEC's disclosure standards normally do not permit the inclusion of information concerning "measured mineral resources", "indicated mineral resources" or "inferred mineral resources" or other descriptions of the amount of mineralization in mineral deposits that do not constitute "reserves" by U.S. standards in documents filed with the SEC. You are cautioned not to assume that resources will ever be converted into reserves. You should also understand that "inferred mineral resources" have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. You should also not assume that all or any part of an "inferred mineral resource" will ever be upgraded to a higher category. Under Canadian rules, estimated "inferred mineral resources" may not form the basis of feasibility or pre-feasibility studies except in rare cases. You are cautioned not to assume that all or any part of an "inferred mineral resource" exists or is economically or legally mineable. Disclosure of "contained ounces" in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute "reserves" by SEC standards as in-place tonnage and grade without reference to unit measures. The requirements of NI 43-101 for identification of "reserves" are also not the same as those of the SEC, and reserves reported in compliance with NI 43-101 may not qualify as "reserves" under SEC standards. Accordingly, information concerning mineral deposits set forth in this news release may not be comparable with information made public by companies that report in accordance with U.S. standards.