Peru

GrowMax Agri Corp. - Potash and Minerals

GrowMax Agri Corp's ("GrowMax") large concession in the desert in Northern Peru on the coast of the Pacific Ocean, offers a unique opportunity to exploit a potash-rich brine resource in addition to other minerals.

This is supported by historical data, experimentation, close proximity to infrastructure and markets. Potash is an essential commodity for fertilizer in the global market.

Our immediate objective is to bring into production a plant capable of 250,000 tons per year of potash fertilizer. Simultaneously we are investigating the feasibility of producing other valuable minerals.

 

Concession

At Bayovar, in Northwest Peru's Sechura Desert - immediately adjacent to Vale's four-million-ton-per-year phosphate development that is now in production - we're exploring to develop a very unique surface potash brine reservoir, solid evaporite deposit and other mineral-rich brine resource.

We acquired the rights from the Peruvian government to this large concession (821 square kilometers) and entered into an agreement with the local community for right of surface access for 33 years (option to extend to 100 years).

 

Infrastructure

Our concession is uniquely situated near existing and expanding infrastructure including first class roads, deep water ports, and airports as well as electricity, gas and fresh water supply. Towns and universities provide access to professional and labor markets. The desert environment has easy access for construction and year round operations.

 

 

Markets

This concession is ideally located in relation to the large and growing potash markets of Peru, Brazil, Ecuador, Colombia, Argentina and other Latin American countries, as well as the principal Asia markets of China and India.

 

Historical Information

Initial exploration of the concession was conducted in the 1960's by Kaiser Chemical. This early undertaking included the drilling of numerous core holes, logging and sampling and the construction of a pilot plant, using Solar Evaporation processing, which proved to be successful in recovering the primary resource objective, high quality potash, over 99% potassium chloride (KCl). The historical database has been acquired by GrowMax in its entirety and the pilot plant still exists in a condition which is presently being brought up to production standard. In addition, most importantly, GrowMax has been able to recruit two of the key engineering personnel who had supervisory responsibilities of the pilot plant.

 

Team

GrowMax has assembled a team of professionals with experience in mineral recovery, in particular using solar evaporation processing of brines, chemical analyses of brines, reserves evaluation and construction and operation of solar evaporation facilities. GrowMax has established an office and research lab (through is wholly owned subsidiary Americas Potash Peru SA) in Piura, Peru, 20 kilometers from the potash concession.

Ercosplan is an independent consulting firm considered the world leader in the potash and mineral salts industry. Located in Central Germany, the birthplace of the modern potash industry, Ercosplan provides support at all stages of development from exploration concept studies, pre-feasibility studies and process design to capital-cost assessment studies, market studies and supervision of construction activities.

Dr. Henry Rauche, Managing Director and CEO of Ercosplan, serves as the qualified person under National Instrument 43-101. During a visit to Bayovar, Dr. Rauche commented that the sun and wind conditions at six degrees from the equator offers the project the very unique opportunity to employ solar evaporation processing.

 

Solar Evaporation Processing

Given its unique location, 60 degrees South of the equator, the climate of the Sechura Desert will provide adequate heat and wind for solar evaporation processing. The success of this method was demonstrated in the pilot plant which recovered potash in the form of potassium chloride and potassium sulphate (a higher priced form of potash in a fast growing market segment). The advantage of solar evaporation lies in its lower operating and capital cost structure and has an extremely low carbon footprint which will generate carbon credits.

 

Other Valuable Minerals

The Bayovar brines have been chemically analyzed and contain other valuable minerals including bromine, magnesium, diatomite, sulphate, and lithium. GrowMax is currently evaluating plans for the recovery of these resources. Another valuable product is sodium chloride (salt). Salt is a commodity which has many uses (over 14,000 applications including de-icing, food processing, pharmaceuticals and water conditioning as well as a feedstock to the chlor-alkali industry.

Highlights of GrowMax's Bayovar potash brine project:

  • Experienced Team - GrowMax has a seasoned team of professionals with experience in reserves evaluation, mineral recovery including recovery of potash applying solar evaporation processing of brines, chemical analysis of brines, and engineering and construction of solar processing facilities.
  • Solar Evaporation Processing - GrowMax's Bayovar potash brine project will utilize solar evaporation processing of mineral rich brines, given its unique location 6 degrees south of the equator in the Sechura Desert on the Pacific Ocean. This location provides the ideal amount of sun and wind for solar evaporation processing.
  • Large Concession Area - GrowMax has rights to four concessions with a total area of 202,000 acres (82,000 hectares or 820 square kilometers).
  • Secure Surface Rights - The mineral and surface rights within the 202,000 acre (82,000 hectare or 820 sq. km.) concession have been secured.
  • Transportation Infrastructure Advantages - GrowMax's project has a nearby container and bulk terminal for export to offshore markets in the Pacific, the Atlantic and the Gulf. Also, 2 main highways run nearby GrowMax's project, connecting Brazil, Chile, Bolivia, Colombia, and Panama to North Americas.
  • Accessible Markets - GrowMax's potash plant will serve fertilizer market demand within Peru and in surrounding countries such as Ecuador, Colombia, and Brazil and has 2 nearby ports for export to markets in Asia such as India and China.
  • Low Capex and Low Opex - Relative to other potash projects, GrowMax's surface brine potash project will involve low operating costs and low capital investment, given that it will apply solar evaporation processing and its proximity to infrastructure including paved roads, fresh water, power, gas and port facilities.
  • New Pilot Plants - GrowMax has constructed three new pilot plants (one pilot plant for laboratory simulation and the other two pilot plants located on the concession). These pilot plants have produced potash using solar evaporation under laboratory conditions and under the ambient conditions of the Sechura Desert.
  • Research Lab - GrowMax has offices and a research lab in Piura, Peru, which is 20 km from its potash concession.
  • Historical Data - Historical work on the concession included substantial drilling and coring of wells, sampling, geological mapping and construction of a pilot plant utilizing solar evaporation processing which resulted in the production of high quality potassium chloride to re-confirm historical data and to provide information fro the National Instrument 43-101 report.
  • Engaged to prepare 43-101 Report - Ercosplan, a German-based consultant, has been engaged to complete a reserve report that is compliant with National Instrument 43-101.
  • Low Carbon Footprint - The solar evaporation process involves a low carbon footprint.
  • Additional Potential - Additional mineral potential such as Phosphate, Calcium Sulphate, Bromine, Lithium, Magnesium Chloride and other potential minerals.