Harvest Minerals Limited ARAPUA FERTILISER PROJECT UPDATE (4325O)

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RNS Number : 4325O

Harvest Minerals Limited

07 November 2016

07 November 2016

Harvest Minerals Limited

("Harvest" or the "Company")

ARAPUA FERTILISER PROJECT UPDATE

Harvest Minerals Limited ("Harvest" or "the Company") is pleased to provide an update on progress at the Maximus Prospect, part of its Arapua Fertilizer Project ("Arapua"), located in the Brazilian state of Minas Gerais.

A number of work streams are being actively pursued at Maximus and a brief status report on each of these work streams is outlined below.

Trial Mining Permit

Harvest's application for a trial mining permit is pending confirmation from the Departamento Nacional de Produção Mineral (DNPM). As a closing stage in the approval process, the DNPM is required to physically inspect the site and presently Harvest is finalizing the scheduling of this inspection to coincide with the completion of the civil and infrastructure works. It is expected that this matter will be concluded this month.

Completion of Drilling Programme

The second drilling programme at the Maximus prospect was recently completed. The programme aims to increase the size of the current resource to support an increased mine life and production rate and define the full extent of the mineralisation.

A total of 39 air core holes were drilled for 771.05m, with an average thickness of 19.8m. The majority of the holes were drilled to the east of the current resource, whilst a further ten holes were drilled to test the extent of the mineralisation over the Maximus prospect, including four holes in a kimberlite which had previously shown elevated P(2) O(5) and K(2) O values from auger sampling. The drill core is currently being split and sampled and will be sent for analysis within the next week. The initial results are expected by mid-January 2017.

Click here to view Figure 01 - Location of new resource drill holes.

http://www.rns-pdf.londonstockexchange.com/rns/4325O_1-2016-11-4.pdf

Civil and Infrastructure Work

The civil and infrastructure work has progressed well and is expected to be complete by mid-November. During construction, Harvest elected to increase the size of the storage pads to enable more material to be mined, processed and stored. To keep within the planned timeframe, an additional excavator and more haulage trucks were mobilized. In addition, some of the topsoil has been removed from the open pit areas and a 16 tonne bulk sample was removed from four sites (see below).

Click here to view Figure 02 - Plan of initial civil and infrastructure works and open pit area for trial mining alongside location of previous and new resource drill holes.

http://www.rns-pdf.londonstockexchange.com/rns/4325O_1-2016-11-4.pdf

Click here to view Figure 03 - View of the pad area looking southwest (20/10/2016)

http://www.rns-pdf.londonstockexchange.com/rns/4325O_1-2016-11-4.pdf

Click here to view Figure 04 - Haul Road looking south from pit to stockpile area (11/10/2016)

http://www.rns-pdf.londonstockexchange.com/rns/4325O_1-2016-11-4.pdf

Agronomic Test Work

Harvest has received outstanding agronomic test results from Geosol Environmental Laboratory and the Campo Agronomic Laboratory. The two samples were split into different size fractions to simulate different products sizes. The results confirmed the material was inside the MAPA specifications for a 'remineralizer'. Furthermore, petrographic analysis has also confirmed there is no free silica in the product, which is significant, as free silica is considered a health hazard if inhaled during application.

Based on these results, Harvest has started further agronomic testwork and growth tests with two different laboratories and a major coffee producer in the region.

As part of this process, a 16 tonne bulk sample was extracted from four locations (4 x 4 tonne) within the initial open pit area based on the results from the air core drill holes from the first drilling campaign:

   -     MXAC001 from 0 to 1.0 m = 3.91% P(2) O(5) and 5.23% K(2) O 
   -     MXAC004 from 0 to 3.0 m = 4.28% P(2) O(5) and 4.97% K(2) O 
   -     MXAC006 from 0 to 3.0 m = 3.39% P(2) O(5) and 4.96% K(2) O 
   -     MXAC019 from 0 to 1.0 m = 4.65% P(2) O(5) and 3.28% K(2) O 

Click here to view Figure 05 - Location of bulk sample in the initial resource area

http://www.rns-pdf.londonstockexchange.com/rns/4325O_1-2016-11-4.pdf

Click here to view Figure 06 - Sample points to bulk sample composition.

http://www.rns-pdf.londonstockexchange.com/rns/4325O_1-2016-11-4.pdf

Prior to commencing the sampling process, the thin organic soil coverage (10 to 20 cm) was removed to avoid any contamination in the samples. Approximately 4 tonnes from each point was collected to compose the bulk sample for a total of 16 tonnes. The expected bulk sample final grade, after a complete homogenization, is 4.05% P(2) O(5) and 4.61% K(2) O.

The bulk sample was put on a tarpaulin to dry and then homogenised. During next week, the total bulk sample will be transported to Piracicaba City to be crushed and milled to produce different sized products (powder and filler) according to the Ministry of Agriculture (Ministério da Agricultura, Pecuária e Abastecimento or MAPA) specifications.

Click here to view Figure 07 - Drying part of the bulk sample.

http://www.rns-pdf.londonstockexchange.com/rns/4325O_1-2016-11-4.pdf

Once the bulk sample has been prepared and milled it will be sent to:

-- The Federal University of Uberlândia (UFU) as part of the product registration process with the Ministry of Agriculture (MAPA).

-- The Federal University of Varginha (UFV) and Institute of Agricultural Research of Cerrado (IPACER) to test with crops which have a high nutrient demand over a shorter time frame and will need reapplication after each cycle. These are crops which are increasingly being cultivated in the São Gotardo region (60km south of Maximus), which could potentially be a key market for the product requiring high rates of fertilizer application.

Harvest expects to get the first test results during the second quarter of 2017.

Marketing

As part of the commercialisation of the Arapua project, the Company under the guidance of our agronomist Dr. Eduardo Spolidorio, is registering the product name and logo KPfértil. This will be used in all the Company's marketing activities locally as we seek to establish and expand the market for the DANF product from Arapua.

Click here to view Figure 08 - KPfértil logo

http://www.rns-pdf.londonstockexchange.com/rns/4325O_1-2016-11-4.pdf

Commenting on the update, Executive Chairman of Harvest, Brian McMaster stated:

"We continue to make very good progress at Maximus. The civil and infrastructure work has advanced according to plan and once the DNPM have been to site, we expect to receive the trial mining permit and commence mining before the end of the year. The agronomic testwork continues to confirm the suitability of the product and we are now able to start the growth tests as the final part of product registration. Progress is being made rapidly and continues to exceed the Company's expectations."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Enquiries:

 
 Harvest Minerals        Brian McMaster,        Tel: [phone] 
  Limited                 Chairman                          4323 
 Strand Hanson           Rory Murphy            Tel: [phone] 
  Limited (Nominated      James Spinney                     3494 
  & Financial             Ritchie Balmer 
  Adviser) 
 
   Mirabaud Securities     Rory Scott               Tel: + 44 20 
   LLP (Broker)                                        7878 3360 
 
   Beaufort Securities     Jon Bellis 
   Ltd                                              Tel: + 44 20 
   (Joint Broker)                                      7382 8300 
                           Bobby Morse 
   Buchanan                Anna Michniewicz 
   (Financial PR)                               Tel: [phone] 
                                                            5000 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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November 07, 2016 02:00 ET (07:00 GMT)