Verde is developing a fertilizer product from its at-surface potash rich rock concessions for the large and growing Brazilian market.
Developing Potassium Chloride, KCl:
Verde is working on its patent-filed process to convert its potash rich rock to conventional potash, potassium chloride ("KCl"). In pursuit of eventual commercialization of KCl, the Company commissioned SRK to complete a Preliminary Economic Assessment ("PEA) to estimate operating and capital costs for KCl production based on the flow sheet developed by Verde and an Engineering Consortium. Results of the PEA were released on January 31, 2012 with an update on February 29, 2012.
Drilling Program and Calcario Limestone:
Verde is drilling the concessions to 1) demonstrate the long-life potential of the asset and 2) establish the full scope of the project. Management believes that it is sufficient to supply all of Brazil's potash needs. The drilling program will allow Verde to permit the whole 100km of the project and protect the resource under one mining permit. Verde has also drilled the limestone asset and received a mineral resource estimate in the indicated and inferred category, which will allow Verde to secure the supply and guarantee the quality of limestone for the production of KCl.