Atacama Acquires Major
New Potash Project in Brazil
July 14, 2008? Atacama Minerals Corp. (?Atacama? or the ?Company?) (TSX
Venture: AAM) is pleased to announce that it has acquired a large land package in a
major new potash region in northeastern Brazil. Application has
been made for exploration permits in the state of Bahia covering 1,444 square
kilometers (357,000 acres) of lands located 30 kilometres west of the port city
of Salvador.
The ?Salvador
Potash Project? is located along the Atlantic coast within the highly
prospective southern on-shore portion of the Reconcavo Basin.
Research of historical data concerning the history and development of
oil, gas and halite salt deposits in the Reconcavo Basin has revealed the
occurrence of potash beds of various meters in thickness directly
overlying the halite salt bed located within the evaporitic section of
the lower Alianca Formation of upper Jurassic age*. Petrographic work**
has confirmed the existence of potash minerals sylvite and sylvinite interbedded
in halite salt within a 9 meter section of drill core from hole MQ-3, drilled
in 1972.
The potash was found in the ?Intermediate Interval? of the evaporitic
Matarandiba Member at a depth of 1,100 meters. The thickness of the
Intermediate Interval varies between 32 and 37 meters. Underlying the
Intermediate Layer is the halite salt bed which varies between 29 and 60 meters
in thickness. The area of the original discovery of the halite salt bed on the
Island of Matarandiba has been mined by Dow Chemical for the last thirty years
using solution mining methods.
There are no historical resource estimates of grade or tonnage of potash
within the project area, but Atacama has initiated an aggressive exploration
program to define the economic potential of what is considered a major new
potash exploration target in South America.
The exploration permits are expected to be granted to the Company within
the coming weeks. Existing seismic data are being studied and new gravity
surveys will be conducted with plans to initiate a scout drill program in the
fourth quarter of this year.
Potash is basically potassium chloride, an essential plant nutrient,
currently in high demand as an agricultural fertilizer. Recent world-wide
demand has been accelerated by the need for fertilizers in countries such as
China, India and Brazil. Prices have increased from $200/tonne CFR Brazil in
2006 to current levels of $1,000/tonne CRF Brazil.
The Reconcavo Basin is a large rift basin extending 600 kilometers in
length by 100 kilometers in width. It is one of the important oil and gas
producing areas of Brazil with several existing fields currently producing a
total of approximately 50,000 barrels of oil per day. The evaporite section of
interest within the Reconcavo Basin containing the potash and halite salt
beds overlies crystalline PreCambrian basement which lends itself to
interpretation of depth and configuration using seismic and gravity methods.
Ghignone and Assis state: ?The halite salt beds of the Matarandiba
Member were discovered in 1964-65 with the drilling of an exploration well
(IDM-1, Matarandiba Island) by the Brazilian state-owned petroleum company,
Petrobras. This well encountered the halite salt beds at a depth of 1,110
meters. In 1969, Mineracao e Quimica do Nordeste S/A (Mining and Chemical
Company of the Northeast) was organized with the specific objective of
investigating the salt section encountered earlier. Two exploratory wells were
drilled on the small island of Matarandiba, MQ-2 and MQ-3, encountering
32.5 meters and 44 meters thickness, respectively, of vertically continuous,
high-grade halite salt?. These holes formed the basis for subsequent commercial
halite salt development using solution mining methods. Nine meters of
potash consisting of sylvite and sylvinite interbedded with halite salt were
subsequently described by Coutinho and Fernandes in drill hole MQ-3.
The halite salt bed is currently exploited by solution mining on the
island of Matarandiba with the recovered saturated brine sent by a 51 kilometer
pipeline across the Bay of Todos os Santos to a processing plant near the port
city of Salvador. Chlorine and sodium hydroxide have been produced by a division
of Dow Chemical for more than thirty years.
Ghignone and Assis also state ?the identification of the mineral species
present in the evaporitic interval where thicknesses are in excess of one
meter can be easily identified using the logging results of density and
gamma radiation:?
|
Density in g/cm3
|
Gamma Rays in API units
|
Anhydrite
|
2.95 to 2.97
|
0 to 75
|
Salt (Halite)
|
2.03 to 2.05
|
60 to 75
|
Sylvite (Potash)
|
1.8-1.95
|
More than 150
|
Edward Posey, President of Atacama, stated ?The successful development
of the Salvador Potash Project will form an important part of the Company?s
strategic growth plan for becoming a major supplier of fertilizers for the
growing world market. Atacama is currently planning a $61 million specialty
nitrate fertilizer plant at the Aguas Blancas operation in northern Chile, and
potash forms a major component of the specialty potassium and sodium-potassium
nitrate fertilizers we intend to produce. The excellent infrastructure
surrounding the Salvador Potash Project, including proximity to the major port
city of Salvador, along with a long local history of solution mining, will help
insure the rapid acceleration of project development if economic deposits can
be confirmed?.
The acquisition is subject to receipt by the Company of requisite
regulatory approval, including the approval of the TSX Venture Exchange.
Juki Laurikko, Euro Geologist, a qualified person in accordance with
N.I. 43-101 has reviewed and approved the information contained in this news
release.
* Ghignone & Assis, Principal Mineral Deposits of Brazil,
CPRM/DMPM, Volume IV, Parte C, Brasilia, 1997
** Coutinho & Fernandes, XXVII Braziian Geologic Congress, Aracaju,
1973.
On Behalf of the Board
Edward F. Posey
President
For further information, please contact:
Sophia Shane, Corporate Development (604) 689-7842
This news release contains forward-looking statements concerning the
Company?s plans for its operations. These forward-looking statements are
subject to a variety of risks and uncertainties which could cause actual events
or results to differ materially from those reflected in the forward-looking
statements, including, without limitation, risks and uncertainties relating to
political risks involving the Company?s exploration and development of its
properties, the inherent uncertainty of cost estimates and the potential for
unexpected costs and expenses, commodity price fluctuations, the inability or
failure to obtain adequate financing on a timely basis and other risks and
uncertainties. Such information contained herein represents management?s
best judgment as of the date hereof based on information currently available. The
Company does not intend to update this information and disclaims any legal
liability to the contrary.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.