43-101 Scoping Study

NI 43-101 Preliminary Economic Assessment
Cerrado Verde Potash Project

Minas Gerais, Brazil
Prepared for:
Amazon Mining Holding Plc
19 Cedar Road
Sutton, Surrey
SM2 5DA UK
Prepared by:
7175 W. Jefferson Ave.

Suite 3000
Lakewood, Co 80235
SRK Project Number: 343500.010
Effective Date: March 1, 2010

Report Date: December 13, 2010
Endorsed by Qualified Persons:

Neal Rigby, CEng, MIMMM, PhD
Rob Bowell, Ph.D, C.Chem MRSC, C. Geol FGS
Bret Swanson, MAusIMM, BE (Mining)
Jerry Aiken, P.G., MSc
Gielson Coutinho, MSAIMM, BSc
Antonio Carlos Girodo, MSAIMM, BSc

Cerrado Verde Project
i
Table of Contents
1
INTRODUCTION (ITEM 4) ........................................................................................... 1-1

1.1
Terms of Reference and Purpose of the Report ................................................... 1-1
1.2
Qualifications of Consultants ............................................................................... 1-1
1.2.1
Site Visit................................................................................................ 1-2
1.3
Reliance on Other Experts (Item 5) ..................................................................... 1-2
1.3.1
Sources of Information ......................................................................... 1-2
1.4
Effective Date ...................................................................................................... 1-2
1.5
Units of Measure .................................................................................................. 1-2
2
PROPERTY DESCRIPTION AND LOCATION (ITEM 6)........................................... 2-1
2.1
Property Location................................................................................................. 2-1
2.2
Mineral Titles ....................................................................................................... 2-1
2.3
Location of Mineralization .................................................................................. 2-5
2.4
Royalties, Agreements and Encumbrances .......................................................... 2-5
2.5
Environmental Liabilities and Permitting ............................................................ 2-5
3
ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND
PHYSIOGRAPHY (ITEM 7) ...................................................................................................... 3-1
3.1
Topography, Elevation and Vegetation ............................................................... 3-1
3.2
Climate and Length of Operating Season ............................................................ 3-1
3.3
Physiography........................................................................................................ 3-1
3.4
Access to Property ............................................................................................... 3-2
3.5
Surface Rights ...................................................................................................... 3-2
3.6
Local Resources and Infrastructure ..................................................................... 3-2
3.6.1
Access Road and Transportation .......................................................... 3-2
3.6.2
Power Supply ........................................................................................ 3-3
3.6.3
Water Supply ........................................................................................ 3-3
3.6.4
Buildings and Ancillary Facilities ........................................................ 3-5
3.6.5
Potential Processing Plant Sites ............................................................ 3-5
3.6.6
Potential Tailings Storage Area ............................................................ 3-5
3.6.7
Manpower ............................................................................................. 3-6
3.6.8
Other Surface Rights ............................................................................. 3-6
4
HISTORY (ITEM 8) ........................................................................................................ 4-1
4.1
Ownership ............................................................................................................ 4-1
4.2
Past Exploration and Development ...................................................................... 4-1
4.3
Historic Mineral Resource and Reserve Estimates .............................................. 4-1
4.4
Historic Production .............................................................................................. 4-1
5
GEOLOGICAL SETTING (ITEM 9) .............................................................................. 5-1
5.1
Regional Geology ................................................................................................ 5-1
5.2
Local and Project Geology................................................................................... 5-1
5.2.1
The Verdete Unit................................................................................... 5-1
5.2.2
Structure ................................................................................................ 5-1
5.2.3
Elevation and Erosion Level ................................................................. 5-2
6
DEPOSIT TYPE (ITEM 10) ............................................................................................ 6-1
6.1
Geological Model................................................................................................. 6-1
SRK Consulting (U.S.), Inc.
Cerrado Verde_NI 43-101 PEA_343500 010_Final_20101213_013.docx
December 13, 2010

ii
MINERALIZATION (ITEM 11)..................................................................................... 7-1

7.1
Mineralized Zones ............................................................................................... 7-1
7.2
Surrounding Rock Types ..................................................................................... 7-1
8
EXPLORATION (ITEM 12) ........................................................................................... 8-1
9
DRILLING (ITEM 13) .................................................................................................... 9-1
9.1
Type and Extent of Drilling ................................................................................. 9-1
10
SAMPLING METHOD AND APPROACH (ITEM 14)............................................... 10-1
10.1 Reverse Circulation (RC) Sampling .................................................................. 10-1
10.2 Logging .............................................................................................................. 10-1
10.3 Bulk Density ...................................................................................................... 10-1
11
SAMPLE PREPARATION, ANALYSES AND SECURITY (ITEM 15) .................... 11-1
11.1 Sample Security ................................................................................................. 11-1
11.2 Sample Preparation and Analysis ...................................................................... 11-1
11.3 Adequacy of Procedures .................................................................................... 11-1
11.4 Sample Preparation and Assaying Methods ...................................................... 11-1
11.5 Quality Controls and Quality Assurance ........................................................... 11-1
12
DATA VERIFICATION (ITEM 16) ............................................................................. 12-1
12.1 Bureau Veritas Pulp Duplicates ......................................................................... 12-2
12.2 Adequacy of Procedures .................................................................................... 12-2
12.3 Limitations ......................................................................................................... 12-2
13
ADJACENT PROPERTIES (ITEM 17) ........................................................................ 13-1
14
MINERAL PROCESSING AND METALLURGICAL TESTING (ITEM 18) ........... 14-1
14.1 Summary of Proposed Process........................................................................... 14-1
14.1.1 Overview ............................................................................................. 14-1
14.1.2 Project Scenarios and Capital Costs ................................................... 14-2
14.1.3 Product specification and application ................................................. 14-3
14.1.4 Results of Agronomic Testwork ......................................................... 14-3
14.1.5 Summary, Residual issues and recommendations .............................. 14-6
15
MINERAL RESOURCES (ITEM 19) ........................................................................... 15-1
15.1 Introduction ........................................................................................................ 15-1
15.2 Geological Modeling ......................................................................................... 15-1
15.3 Block Model Development ................................................................................ 15-1
15.4 Statistical Analysis ............................................................................................. 15-2
15.5 Variography ....................................................................................................... 15-2
15.5.1 Introduction ......................................................................................... 15-2
15.6 Grade Estimation ............................................................................................... 15-3
15.7 Resource Reporting ............................................................................................ 15-5
15.7.1 Validation ............................................................................................ 15-7
16
OTHER RELEVANT DATA AND INFORMATION (ITEM 20) ............................... 16-1
17
ADDITIONAL REQUIREMENTS FOR DEVELOPMENT PROPERTIES AND
PRODUCTION (ITEM 25) ....................................................................................................... 17-1
17.1 Mining Operations ............................................................................................. 17-1
17.1.1 Pit Optimization .................................................................................. 17-1
17.1.2 Whittle Parameters .......................................................................... 17-1
December 13, 2010

18
19
20
21
iii
17.1.3 Pit Optimization Analysis ................................................................... 17-3

17.1.4 Pit Design ............................................................................................ 17-4
17.1.5 Production Schedule ........................................................................... 17-5
17.2 Mining Method .................................................................................................. 17-6
17.2.1 Recoverability ..................................................................................... 17-7
17.3 Markets .............................................................................................................. 17-8
17.3.1 Introduction ......................................................................................... 17-8
17.3.2 Methodology ....................................................................................... 17-9
17.3.3 Determining the crop portfolio and formulas ..................................... 17-9
17.3.4 Formula optimization process ........................................................... 17-10
17.3.5 ThermoPotash Pricing Process ......................................................... 17-11
17.3.6 Process to determine the potential market for ThermoPotash .......... 17-12
17.4 Contracts .......................................................................................................... 17-12
17.5 Environmental Considerations ......................................................................... 17-12
17.5.1 Remediation ...................................................................................... 17-12
17.5.2 Reclamation ...................................................................................... 17-12
17.6 Taxes and Royalties ......................................................................................... 17-13
17.7 Capital Costs .................................................................................................... 17-14
17.7.1 Payback ............................................................................................. 17-15
17.8 Operating Costs ................................................................................................ 17-15
17.9 Economic Analysis .......................................................................................... 17-17
17.9.1 Sensitivity ......................................................................................... 17-18
17.9.2 Mine Life .......................................................................................... 17-18
INTERPRETATION AND CONCLUSIONS (ITEM 21) ............................................ 18-1
RECOMMENDATIONS (ITEMS 22) .......................................................................... 19-1
19.1 Recommended Work Programs ......................................................................... 19-1
19.1.1 Resources ............................................................................................ 19-1
19.1.2 Metallurgical ....................................................................................... 19-1
19.1.3 Mining ................................................................................................. 19-1
19.1.4 Costs.................................................................................................... 19-2
REFERENCES (ITEM 23) ............................................................................................ 20-1
GLOSSARY .................................................................................................................. 21-1
21.1 Mineral Resources ............................................................................................. 21-1
21.2 Mineral Reserves ............................................................................................... 21-1
21.3 Glossary ............................................................................................................. 21-2
List of Tables
Table 1: Indicative Economics..................................................................................................... IV
Table 2.2.1: Cerrado Verde Potash Project Tenement Schedule ................................................ 2-2
Table 9.1.1: Cerrado Verde Potash Project Summary Drilling Statistics ................................... 9-1
Table 12.1: Standards Utilized by Bureau Veritas.................................................................... 12-2

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iv
Table 14.1.2.1: Results of Carbon Speciation Analysis on Two Samples from the Scoping Level
Pilot Plant ....................................................................................................................... 14-3
Table 14.1.4.1: K content in soil (Mehlich 1) After 60 Days of Incubation with Different
Sources of Potassium in a Clay Soil. ............................................................................. 14-4
Table 14.1.4.2: K Content in Soil (Mehlich 1) After 60 Days of Incubation with Different
Sources of Potassium in a Sandy Soil. ........................................................................... 14-4
Table 14.1.4.3: Exchangeable Ca in the soil after 60 days of incubation with different sources of
potassium in a clay soil. ................................................................................................. 14-5
Table 14.1.4.4: Exchangeable Ca in the soil after 60 days of incubation with different sources of
potassium in a sandy soil. .............................................................................................. 14-5
Table 14.1.4.5: Exchangeable Mg in the soil after 60 days of incubation with different sources
of potassium in a clay soil. ............................................................................................. 14-5
Table 14.1.4.6: Exchangeable Mg in the soil after 60 days of incubation with different sources
of potassium in a sandy soil. .......................................................................................... 14-6
Table 15.3.1: Block Model Summary ....................................................................................... 15-2
Table 15.4.1: Summary Statistic 2m Composites .................................................................. 15-2
Table 15.5.1.1: Cerrado Verde Deposit Unweathered and Weathered Mineralized Domain
Variogram Models ......................................................................................................... 15-3
Table 15.7.1: Cerrado Verde Project Confidence Levels of Key Categorization Criteria ....... 15-6
Table 15.7.2: Cerrado Verde Deposit 27 February 2010 Inferred Resource Grade Tonnage
Report Ordinary Kriging Estimate 100mE x 100mN x 5mRL Selective Mining Unit . 15-7
Table 17.1.2.1: Whittle Block Model Dimensions ............................................................... 17-2
Table 17.1.2.2: Whittle Parameters....................................................................................... 17-3
Table 17.1.3.1: Whittle Results............................................................................................. 17-4
Table 17.1.4.1: Pit Design Parameters ...................................................................................... 17-4
Table 17.1.5.1: First 10 years of 1.1Mtpa production schedule. .............................................. 17-5
Table 17.1.5.2: First 10 years of 2.2Mtpa production schedule. .............................................. 17-6
Table 17.2.1: 1.1Mtpa Product Mine Fleet and Annual Estimated Cost .................................. 17-7
Table 17.2.2: 2.2Mtpa Product Mine Fleet and Annual Estimated Cost .................................. 17-7
Table 17.3.3.1: Example of fertilizing System Adopted for Each Crop Analyzed. ............... 17-10
Table 17.3.4.1: Price Composition of Raw Materials at the Uberaba Center. ........................ 17-11
Table 17.3.4.2: Raw Material Nutrient Levels ....................................................................... 17-11
Table 17.3.4.3: Content Used and Status of Products Evaluated............................................ 17-11
Table 17.7.1: Summary Capital Cost by Facility in Reals and United States Dollars, Including
Applicable Taxes for a 1.1Mtpa Operation.................................................................. 17-14

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v
Table 17.7.2 Summary Capital Cost by Facility in Reals and United States Dollars, Including
Applicable Taxes for a 2.2Mtpa Operation.................................................................. 17-15
Table 17.8.1: Summary of Operational Costs, 1.1Mtpa using Petroleum Coke ...................... 17-16
Table 17.8.2: Summary of Operational Costs, 2.2Mtpa using Petroleum Coke ...................... 17-17
Table 17.9.1: Indicative Economics........................................................................................ 17-17
Table 17.9.1.1: Sensitivity Analysis ....................................................................................... 17-18
Table 19.1.4.1: Recommended Prefeasibility Work Program Cost Estimate (US$000s) ....... 19-2
Table 21.3.1: Glossary .............................................................................................................. 21-2
Table 21.3.2: Abbreviations ...................................................................................................... 21-3
List of Figures
Figure 2-1: Location Plan of Cerrado Verde Potash Project ...................................................... 2-7
Figure 3-1: Cerrado Verde Project Site ...................................................................................... 3-1
Figure 3-2: Cerrado Verde Project Site Schematic ..................................................................... 3-2
Figure 5-1: Cerrado Verde Regional Setting .............................................................................. 5-3
Figure 5-2: Cerrado Verde Project Geology ............................................................................... 5-4
Figure 8-1: Tenements Drilled by Amazon ................................................................................ 8-2
Figure 8-2: Drillhole Location Plan ............................................................................................ 8-3
Figure 11-1: RC Drilling Flowchart ......................................................................................... 11-3
Figure 12-1: Field Duplicates All Sample Data (Includes NQ and HQ Core 0.3 to 5m) ...... 12-3
Figure 14-1: Conceptual Flowsheet for Cerrado Verde ThermoFertilizer Project ................... 14-7
Figure 15-1: Vertical Sections Location ................................................................................... 15-9
Figure 15-2: Cross Section (Section 4) ................................................................................... 15-10
Figure 15-3: Cross Section (Section 5) ................................................................................... 15-11
Figure 15-4: Weathered (Transition Zone) Domain 3 Dimensions ..................................... 15-12
Figure 15-5: Unweathered Domain 3 Dimensions .............................................................. 15-13
Figure 15-6: Sample Length Distribution ............................................................................... 15-14
Figure 15-7: Basic Statistics 2m Composite Unweathered K2O ......................................... 15-15
Figure 15-8: Basic Statistics 2m Composite Weathered K2O ............................................. 15-16
Figure 15-9: K2O % Estimation Steps Plan View ............................................................... 15-17
Figure 15-10: Block Model Domains High and Weathered ................................................... 15-18
Figure 15-11: Grade Tonnage Curve Domain Unweathered - Inferred Resource ............... 15-19

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vi
Figure 15-12: Grade Tonnage Curve Weathered- Inferred Resource ................................... 15-20
Figure 15-13: Comparative Statistics Unweathered % K2O ................................................... 15-21
Figure 15-14: Comparative Statistics % K2O Weathered ....................................................... 15-22
Figure 17-1: Preliminary Pit Design ....................................................................................... 17-19
List of Appendices
Appendix A
Certificate of Author Forms

December 13, 2010

I
Summary (Item 3)
Property Description and Location
The Cerrado Verde Potash Project is located in the Alto Paranaiba region of Minas Gerais State,
Brazil (Figure 2-1). The boundaries of the concessions have not been surveyed as this is not a
requirement of Brazil's mining code. The tenement boundaries are defined by UTM coordinates
with the datum of SAD69 (Centered around coordinates 394,525 East and 7,856,531 North).
Ownership
Cerrado Verde mineral rights were originally requested by the company, by means of
applications for exploration licenses filed with DNPM between 2008 and 2010. Several Cerrado
Verde mineral rights have been granted exploration licenses as presented in this report.
The company applied for the mineral rights directly to the DNPM. There was no prior ownership
of mineral rights.
Geology and Mineralization
The region is mainly underlain by Neoproterozoic and Cretaceous rock units, which are partly
covered by Cenozoic sandstones, lateritic sediments and soils. The oldest rocks, occurring in the
southwestern portion of the region, are represented by a nucleus of calcoschists and diamictites
of the Ibi Formation (Arax Group) surrounded by an undivided domain of the Canastra Group
(quartzites, phyllites and micaschists). A model age of 1,000m.y. (207Pb/ 206Pb) has been
determined for the Canastra Group, which was metamorphosed together with the Arax Group
during the Brasiliano Orogeny (600m.y.). The sequence is followed by the Bambui Group (600550m.y.), which comprises the marine deposits of the Paraopeba Formation, the Santa Helena
Formation and the Serra da Saudade Formation, including the Verdete unit, all these units being
dominated by variegated slates, and the overlying arkoses of the Trs Marias Formation. After
deposition of the Bambui Group, and the Brasiliano Orogeny, the region was exposed to erosion
during the Paleozoic, Triassic and Jurassic periods, giving rise to the development of a
remarkable peneplane. On top of that flat lying surface, the terrigenous sediments of the Areado
Group was deposited during the Lower Cretaceous. The next stratigraphic phase is recorded by
the extensive and dominantly piroclastic kamafugitic volcanism of the Mata da Corda Group of
Upper Cretaceous age.
With some exceptions the Verdete unit are dominantly lying on top of the Serra da Saudade
Formation and underlying the Areado sandstone. Its apparent thickness varies from
approximately 20m in the southernmost domain to over 50m in the northern half of the Serra da
Saudade and up to 80m on the northern end where it started to be covered by younger sediments.
The lower contact with the slates and metapelites of the Santa Helena Formation is transitional.
Glauconite is considered a diagnostic element indicative of continental shelf marine depositional
environments with slow rates of accumulation. It develops as a consequence of diagenetic
alteration of sedimentary deposits, bio-chemical reduction and subsequent mineralogical changes
affecting iron-bearing micas such as biotite, and is also influenced by the decaying process of
organic matter degraded by bacteria in marine animal shells. Glauconite forms under reducing
conditions in sediments.

December 13, 2010

II
Exploration
Amazon Mining has completed remote sensing targeting exercise followed by regional mapping
and grab samples. In addition, Amazon completed a preliminary survey using an Innov-X
portable XRF unit. The portable XRF unit was then correlated to pulp standards and showed
good precision although returned a positive bias in the order of <1% K.
The Verdete Slate is distinctively green in color and as such is very easy to identify in the field
and can be visually estimated based on green color which represents the glauconitic content.
A drilling program was undertaken in early 2010 and has targeted only a select portion of the
regional Verdete Slate within the Amazon tenements. All holes were successful in intersecting
the Verdete Slate.
Mineral Processing and Metallurgical Testing
Cerrado Verde Project's objective is to produce a thermo-fertilizer in the form of calcined
potassium pellets, with diameters between 2 and 4mm, to be produced at Amazon Mining
facilities, located at So Gotardo MG. The process is very similar to lime production from
limestone in a Rotary Kiln in which pelletization and removal of volatiles occur. In the proposed
Verdete process the purpose of calcining is to thermally decay the clay minerals, principally
glauconite (K(Fe3+,Al,Mg)2(Si,Al)4O10(OH)2) so as to make potassium more readily
exchangeable improving its benefits as a fertilizer.
The Verdete slate held within the Amazon tenements can be traced for the entire 120km strike
length with a potential width up to 500m wide. Grab samples along the entire strike length range
from 5 to 12% K2O. The potential tonnage is therefore very large, could reach the magnitude of
billons of tonnes. Weathered (previously referred to as low-grade) material close to surface
typically contains less than 8% K2O whilst the Unweathered (previously referred to as highgrade) material contains between 10-12% K2O.
The Run of Mine (RoM) material will be fed into a primary jaw crusher. The material passing
from feeding grizzly, finer than 75mm, along with the primary crusher product feed will be
conveyed into the secondary crushing circuit. The product from the crusher, with p80 less than
20mm, returns to the secondary crushing feeding bin. The ore passing through screen will be
blended with limestone on a conveyor. The material will be ground to a maximum size of
0.18mm; along with fines will be fed to a pellizition plant. The pellets produced at the
pelletizing discs have a maximum diameter of 6mm and will contain approximately 18%
humidity. The "on size" pellets feed the grizzly car at a rate of 210t/h wet basis. There will be
approximately 7 min residence time and at this time the pellets are dried in current ascending and
descending areas with hot air from the preheating zone. The dust generated at the grizzly car
will be collected by a dust multiple collector and will return the heated and clean air to the pellets
drying areas. From here the pellets will be fed to a rotary kiln at a rate of 172t/h for
approximately 60 minutes. The pellet temperature will be approximately 1300 C and thus go
directly to a reservoir with water for quenching operation. After this treatment the pellets will be
extracted from the bottom of the reservoir and dried in a rotary dryer. Evaporated steam will be
collected and condensed and returned to the quench circuit. From the rotary dryer calcined and
dry pellets will be conveyed to final classification step using a vibrating screen. The pellets
within the specification range, -4 + 2mm, will be conducted by belt to the storage warehouse
where the final product will be stored and further dispatched via trucks.

December 13, 2010

III
It is predicted that a capital cost of US$155M will be required in order to construct an operation
with a production rate of 1,170,000t/y of Verdete fertilizer. This equates to a unit cost of $133/t
for capital cost allowance. For the 2.2Mtpa operation the overall capital cost is predicted to be
US$218M and this equates to a unit cost of $187/t for capital cost allowance.
For the 1.1Mtpa pellet production rate, operating costs are estimated at US$36.93/t of pellets
produced. For the 2.2Mtpa production rate operating costs are estimated at US$32.09/t of pellets
produced. It should be noted this operating cost relates to a fertilizer containing approximately 8
to 10wt percent K2O.
The potassium source is only sparingly water soluble so recovery is anticipated to be better than
90% of the 8% retained potassium as K2O. Agronomic testwork indicates that Thermo-K
provides a potentially superior source of nutrient enrichment in soils not only for potassium but
also calcium and magnesium as well. In addition, the source of potash is a non-chloride, nonsulfate source of potash and thus will not adversely impact soil pH or salinity components. In
addition, Amazon mining conducted mass balance procedures that indicate that nutrient release
is not water soluble and requires a weak acid for leaching.
Resources
Mineral resources were estimated by Coffey at a range of cut-off grades. Estimates ranged from
160Mt @8.75% K2O at a zero cut-off grade to 64Mt @11.17% K2O at a 10% cut-off grade. The
resource estimate has been classified as inferred mainly due to the low confidence in the Bulk
Density determinations, data density of distribution and the limited QAQC program provided by
Amazon Mining. The actual model shows relative homogeneity and is a simple geological
model.
Mining Operations
Mining operations at Cerrado Verde will consist of small mining equipment liberating potentially
minable resources hosted in gently undulating topography over a wide surface extent.
It is expected that mining will be conducted by a local 3rd party mining contractors with Amazon
staff acting as mine owners. Initial static costing for mining operations is based a combination of
track excavators; support equipment and 20t haul trucks.
Resource grades vary physically from an Unweathered zone on the western extent to a lower
grade zone in the east. The grade distribution suggests two pits and multiple working faces can
be open at all times for blending purposes feeding the process plant at a consistent 8.5% K2O.
Two production scenarios were considered by SRK whereby 1.1Mtpa and alternately 2.2Mtpa of
product would be produced annually. SRK conducted a pit optimization, pit design and
production schedules to independently test the assumptions made in mine costing and reported in
the economic model.
Given the course nature of the resource model, the ability to sensitize or understand potential
challenges to future mining operations is difficult to quantify. With a more refined and detailed
block model containing lithology, grade and product distribution, the confirmation that the mine
will produce the appropriate process plant feedstock can be verified and accurately costed.
This Preliminary Economic Assessment is preliminary in nature. It includes inferred mineral
resources that are considered too speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral reserves. Mineral resources
December 13, 2010

IV
that are not mineral reserves do not have demonstrated economic viability. There is no certainty
that the preliminary assessment will be realized.
To accurately predict grade and quality of plant feedstock provided by the mine, a more
complete understanding of the resource is required. In particular, the effect of K2O grade and
mass yield calculations will effect what part of the mine is mined when and in what quantities.
With a detailed infill drill program, continuation of metallurgical testing and further engineering
studies SRK recommends additional work be dedicated to effect of mine dilution, possible effect
of deleterious elements, construction of mining costs from first principles, ROM production
targets, waste dump design and haul profiles for contractor estimation. This can be included as
part pre-feasibility study and will be required for any reserve generation in the future.
Indicative Economics
The indicative economics for the 1.1Mtpa and 2.2Mtpa production rates are presented in Table
17.10.1. This clearly demonstrates the very encouraging economics for the Cerrado Verde
Projects based on the cost projections and price assumptions as presented in this PEA.
However, readers are cautioned that this analysis is only a preliminary assessment based on
inferred mineral resources, which are considered to be highly speculative geologically. Since
there is no estimate of proven or probable reserves for the Cerrado Verde Potash Project, this
assessment cannot include cash flow forecasts on an annual basis.
Table 1: Indicative Economics
Production Rate
NPV (10%)
NPV (12%)
IRR
Opex
Initial Capex
Contingency (15%)
Pre-construction
Total Capex
Payback
1.1Mtpy
US$445.5M
US$331.6M
32.7%
US$41.80/t
US$155.3M
US$23.3M
US$18.2M
US$196.8M
2.38yrs
2.2Mtpy
US$844.1M
US$642.0M
40.0%
US$36.36
US$218.4M
US$32.8M
US$18.2M
US$269.4M
1.87yrs
*Note: The above figures include a sustaining capital provision of 2% per annum of direct capital costs commencing in year 4.
Recommendation
The indicative economics from this scoping study and PEA are encouraging. It is therefore
recommended that the project be advanced to the prefeasibility level of evaluation for which an
outline work program is identified in this report.

December 13, 2010

1-1
Introduction (Item 4)
1.1 Terms of Reference and Purpose of the Report

SRK Consulting (U.S.), Inc. (SRK) were mandated by Amazon Mining Holding Plc
(Amazon) to coordinate the preparation of a National Instrument 43-101 (NI 43-101)
Preliminary Economic Assessment (PEA) on the Cerrardo Verde ThermoFertilizer Project (or
the Project) located in Minas Gerais, Brazil. The contributors and areas of responsibility are
shown below.
Mineral Resource Estimation:
reviewed by SRK
Initially undertaken by Coffey Mining Pty (Coffey) and
Process and Infrastructure: ECM

Mine Planning: SRK
Metallurgical Review: SRK
Markets: AgroConsult
Environmental: Amazon
Indicative Economics: Amazon, ECM, AgroConsult and SRK
The requirements of a PEA are defined in the NI 43-101 Standards of Disclosure for Mineral
Projects.
1.2 Qualifications of Consultants

Neal Rigby of SRK Consulting is the Principal author of the Technical Report and incorporated
the results of the Resource Estimate prepared by Porfirio Cabaleiro Rodrigues of Coffey Mining.
SRK subsequently reviewed the resource estimate prepared by Coffey and made a number of
recommendations for improved procedures and additional work. All persons are Qualified
Persons, independent of Amazon Mining within the meaning of section 1.4 of NI 43-101.
The preliminary assessment is based on inferred mineral resources only that are considered too
speculative geologically to have the economic considerations applied to them that would enable
them to be categorized as mineral reserves, and there is no certainty that the preliminary
assessment will be realized. Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
SRK Consulting is an independent, international consulting practice that provides focused advice
and solutions to clients, mainly from earth and water resource industries. For mining projects,
SRK offers services from exploration through feasibility, mine planning, and production to mine
closure. Formed in 1974, SRK now employs more than 1,000 professionals internationally in 38
permanent staffed offices on 6 continents.
ECM, founded in 1984, is a Brazilian engineering company with extensive experience in
developing multidisciplinary industrial projects of all sizes, including project design for the
minerals and mining industry, from feasibility studies to plant commissioning. ECM has about
550 employees and has been involved in significant mining projects over the past decade in
Brazil.

December 13, 2010

1-2
AgroConsult Consultoria & Marketing is a leading consulting company focused on agribusiness

founded in 2000. Clients include: BHP Billiton, Bunge, Fosfertil, Petrobras, Heringer, Bayer,
Santander, Citibank, John Deere, Banco do Brasil and Syngenta. AgroConsults team is
comprised of a multi-disciplinary group of professionals who follow the market closely, prepare
in depth analyses on the various agribusiness segments with a view to formulating short, medium
and long term market trend reports on the main agricultural commodities as well as to
developing customized studies and projects.
1.2.1 Site Visit
Gielson Coutinho and Antonio Carlos Girodo both Qualifed Persons (QPs) with SRK visited the
Cerrado Verde project site on 11th and 12th of December 2010. The other QPs did not visit the
site since the Cerrado Verde Project is a Greenfield project with very little to gain or observe
from a site visit. In addition, the QP from Coffey Mining, Beau Nicholls visited the site on 10th
and 11th of July, 2009, in connection with the NI43-101 Report on resources prepared by Coffey
Mining.
1.3
Reliance on Other Experts (Item 5)
SRK has relied on and has reviewed the NI43-101 Technical Report on the Cerrado Verde
Potash Project, Brazil, dated 1 March, 2010.
1.3.1 Sources of Information
Information presented in this report has been provided by Amazon and its consultants. SRK has
accepted this information in good faith and has provided comment and review of the data and
information provided.
1.4 Effective Date

The effective date of this report is March 1, 2010.
1.5 Units of Measure

This report provides units of measurement in the standard metric set of units, unless otherwise
specified.

December 13, 2010

2-1
Property Description and Location (Item 6)
2.1 Property Location

The Cerrado Verde Potash Project is located in the Alto Paranaiba region of Minas Gerais
State, Brazil (Figure 2-1). The boundaries of the concessions have not been surveyed as this
is not a requirement of Brazil's mining code. The tenement boundaries are defined by UTM
coordinates with the datum of SAD69 (Centered around coordinates 394,525 East and
7,856,531 North).
2.2 Mineral Titles

The Cerrado Verde Potash Project comprises sixty seven (67) tenements, covering an
aggregate area of 112,366ha as shown in Table 2.2.1 and Figure 2-1.

December 13, 2010

2-2
Table 2.2.1: Cerrado Verde Potash Project Tenement Schedule

Proce ss
Holde r
Siz e
Status of Mining Right
C omme nts
Mine ral
Exploration License valid until

-21/7/2013
Phosphate
831006/2009
FVS
4,79
833284/2008
FVS
1468,97
FVS informed the existence of

potassium rocks at the area on
3/12/2012
28/01/2010.
Diamond
833264/2008
FVS
1511,58

18/11/2012
28/01/2010.
Diamond
833270/2008
FVS
1991,78

10/11/2012
28/01/2010.
Diamond
833276/2008
FVS
1334,71

18/11/2012
28/01/2010.
Diamond
833271/2008
FVS
1524,17

3/12/2012
28/01/2010.
Diamond
833252/2008
FVS
1993,71

3/12/2012
28/01/2010.
Diamond
833272/2008
FVS
1587,61

3/12/2012
28/01/2010.
Diamond
833256/2008
FVS
1994,32

3/12/2012
28/01/2010.
Diamond
10
833259/2008
FVS
1476,58

3/12/2012
28/01/2010.
Diamond
11
833266/2008
FVS
1230,03

3/12/2012
28/01/2010.
Diamond
12
833267/2008
FVS
1663,21

3/12/2012
28/01/2010.
Diamond
13
833269/2008
FVS
1771,42

3/12/2012
28/01/2010.
Diamond
14
833290/2008
FVS
1678,42

3/12/2012
28/01/2010.
Diamond
15
833293/2008
FVS
1793,65

3/12/2012
28/01/2010.
Diamond
16
833294/2008
FVS
1492,78

3/12/2012
28/01/2010.
Diamond
17
833320/2008
FVS
1886,15

3/12/2012
28/01/2010.
Diamond
18
833331/2008
FVS
1366,49

3/12/2012
28/01/2010.
Diamond
19
833333/2008
FVS
1501,36

3/12/2012
28/01/2010.
Diamond
20
833328/2008
FVS
1790,21

3/12/2012
28/01/2010.
Diamond

December 13, 2010

Proce ss
2-3
Holde r
Siz e
C omme nts
Mine ral
21
833324/2008
FVS
1932,31

3/12/2012
28/01/2010.
Diamond
22
833335/2008
FVS
1575,41

3/12/2012
28/01/2010.
Diamond
23
833332/2008
FVS
1854,81

3/12/2012
28/01/2010.
Diamond
24
833334/2008
FVS
1914,94

3/12/2012
28/01/2010.
Diamond
25
833336/2008
FVS
1662,51

3/12/2012
28/01/2010.
Diamond
26
833647/2008
FVS
1907,6

13/11/2012
28/01/2010.
Diamond
27
833648/2008
FVS
1784,49

22/12/2012
28/01/2010.
Diamond
28
833330/2008
FVS
1464,51

3/12/2012
28/01/2010.
Diamond
29
831005/2009
FVS
1893,72
T here is an administrative process

aiming at DNPMs declaration that
17/6/2013
the Exploration License is null. (2)
Phosphate
30
833329/2008
FVS
41,07

24/3/2013
15/10/2010.
Diamond
31
833274/2008
FVS
1994,84
1.1.1 FVS informed the existence of

Diamond
4/1/2013
28/01/2010.
32
833253/2008
FVS
1716,04

12/3/2013
15/10/2010.
Diamond
33
833268/2008
FVS
966,82

12/3/2013
15/10/2010.
Diamond
34
833275/2008
FVS
1994,06

4/1/2013
28/01/2010.
Diamond
35
833277/2008
FVS
1992,24

4/1/2013
28/01/2010.
Diamond
36
833278/2008
FVS
1993,88

4/1/2013
15/10/2010.
Diamond
37
833279/2008
FVS
1952,53

4/1/2013
15/10/2010.
Diamond
38
833285/2008
FVS
1993,69

4/1/2013
28/01/2010.
Diamond
39
833286/2008
FVS
1943,82

4/1/2013
28/01/2010.
Diamond
40
833297/2008
FVS
1985,37

4/1/2013
28/01/2010.
Diamond

December 13, 2010

Proce ss
2-4
Holde r
Siz e
C omme nts
Mine ral
41
833307/2008
FVS
1993,77

4/1/2013
28/01/2010.
Diamond
42
833311/2008
FVS
1993,88

4/1/2013
15/10/2010.
Diamond
43
833308/2008
FVS
1990,91

4/1/2013
28/01/2010.
Diamond
44
833316/2008
FVS
1994,21

4/1/2013
28/01/2010.
Diamond
45
833315/2008
FVS
1992,07

4/1/2013
28/01/2010.
Diamond
46
833325/2008
FVS
1916,57

4/1/2013
28/01/2010.
Diamond
47
833321/2008
FVS
1138,08

12/3/2013
15/10/2010.
Diamond
48
833319/2008
FVS
1993,72

4/1/2013
28/01/2010.
Diamond
49
833322/2008
FVS
1992,7

4/1/2013
28/01/2010.
Diamond
50
833327/2008
FVS
1916,57

4/1/2013
28/01/2010.
Diamond
51
831008/2009
FVS
244,98

1/6/2013
15/10/2010.
Phosphate
52
833273/2008
FVS
1994,32

4/1/2013
28/01/2010.
Diamond
53
833292/2008
FVS
1935,96

4/1/2013
28/01/2010.
Diamond
54
833257/2008
FVS
1993,84

26/8/2012
25/11/2009.
Diamond
55
833263/2008
FVS
1844,23

29/10/2012
25/11/2009.
Diamond
56
833280/2008
FVS
1742,04

29/10/2012
25/11/2009.
Diamond
57
833295/2008
FVS
1571,46

29/10/2012
25/11/2009.
Diamond
58
833306/2008
FVS
1712,36

29/10/2012
25/11/2009.
Diamond
59
833309/2008
FVS
1559,42

29/10/2012
25/11/2009.
Diamond
60
833326/2008
FVS
1920,21

29/10/2012
25/11/2009.
Diamond

December 13, 2010

Proce ss
2-5
Holde r
Siz e
Comme nts
Mine ral
61
833289/2008
FVS
1928,55

29/10/2012
25/11/2009.
Diamond
62
833305/2008
FVS
1555,92

29/10/2012
25/11/2009.
Diamond
63
833317/2008
FVS
1551,02

29/10/2012
25/11/2009.
Diamond
64
833323/2008
FVS
1536,42

29/10/2012
25/11/2009.
Diamond
65
830824/2010
APMM
1308,66

-30/7/2013
Phosphate
66
830406/2010
APMM
1564,78

-30/7/2013
Phosphate
67
831025/2010
APMM
1853,68

-30/7/2013
Phosphate
Once an exploration license is granted, the Company must make annual fee payments to
maintain the license, as explained in Section 17.6 of this report.
2.3 Location of Mineralization

The potash mineralized zones of the Cerrado Verde Project are located within Verdete Slates
of the Serra da Saudade Formation. The known mineralization is located in the concessions
owned by the Company.
2.4 Royalties, Agreements and Encumbrances

The tenements are owned 100% by FVS Minerao Ltda. that is a subsidiary of Amazon
Mining. The Cerrado Verde Project was staked in the third quarter of 2008. The Companys
subsidiary Amazon Pesquisa Mineral e Minerao Ltda (APMM) entered into a discovery
contract (the Cerrado Verde Project Discovery Contract) dated September 29, 2008 (with
retroactive term for July 26, 2008) with Ysao Munemassa (Ysao) pursuant to which Ysao
performed, at the Companys expense, preliminary geological surveys and research studies
on the Cerrado Verde Project area and the Cerrado Verde Project. The Cerrado Verde Project
Discovery Contract was subsequently amended on July 27, 2010 to provide that APMM shall
pay to Ysao: (a) 100,000 Stock Options one year after the application for exploration permits
over the Cerrado Verde Project area to the National Department of Mineral Production
(DNPM), (b) US$500,000 upon approval of a bankable feasibility study, and (c) a 3%
royalty on the net result of production. APMM has the right to purchase the royalties due to
Ysao at a cost of US$1,000,000 for each 1% of the protected right of royalty to Ysao.
2.5 Environmental Liabilities and Permitting

The exploration program of the company foresees the implementation of the necessary work
to obtain the environmental licenses, in due course.
Mining concessions can be applied for following a final exploration report to be submitted to,
and approved by the Brazils Department of Mines and Energy (DNPM) by the final expiry
date of the exploration license. The report must conclude and demonstrate that an economic
mineral resource has been delineated and measured. Normally, a mining plan and feasibility
study must be presented within a year. That is the moment for the environmental licenses.
December 13, 2010

2-6
Those of installation and a license of operations are then issued by the applicable
environmental agency as a prerequisite to the granting of the mining concession. A mining
concession is granted for a period covering the mine life until the mineral reserves of the
deposit are exhausted. A mining concession does not convey title to a mineral deposit but
provides the holder with the right to extract, process, and sell minerals extracted from the
deposit in accordance with a plan approved by the DNPM and environmental authorities.
Environmental Regulation General environmental rules and obligations are relatively similar
to those applicable in Canada. The Brazilian environmental policy is the responsibility of the
Ministry of the Environment and is executed at three levels: federal, state, and municipal.
SRK performed an independent review of the current regulatory context of exploration
activities in Brazil. SRK also consulted with Silva Martins, Vilas Boas, Lopes e Frattari
Advogados (SMVBLFA), a law firm with prior knowledge of the environmental permitting
activities of Amazon.
Based on the SRK review and consultation with SMVBLFA, the requirements stipulated in
the environmental legislation for the mining activities, when the company is in this stage, is
basically consolidated in the following:
Study of Environmental Impacts ("EIA");
Previous License ("LP");
Installation License ("LI");
Operational License (LO); and
Rehabilitation Plan for Degraded Areas ("PRAD").
An EIA is required as a condition for obtaining the LP for any activity which potentially
causes substantial environmental impact. The LP, LI and LO are mandatory for installing,
expanding, and operating any mining activity, except exploration, under the systems of
mining concession or licensing. A PRAD requires suitable technical solutions to rehabilitate
the soil and other aspects of the environment that might be degraded by mining operations. In
recognition that the preparation of an EIA can represent a substantial financial burden for a
smaller projects, a company can undertake a less detailed form of EIA called an
"Environmental Diagnostic Report" in certain cases.
Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renovreis, the federal
environmental agency, is in charge of the licensing of activities with environmental impacts
in more than one state or in federal waters, while SUPRAM is in charge of the licensing of
activities with environmental impacts within the State of Minas Gerais. The determination of
competence between the two environmental bodies may cause overlap which may result in
some cases in problems and delays for mining companies.
The proposed project, while in this phase of exploration, at first, will not require an
environmental license. Parallel, the environmental reports are going to be prepared (EIA).
As of the date of this report, Amazon has not filed new environmental applications for the
proposed exploration activities.
SRK did not perform a formal assessment of the environmental compliance history of the
property. Based on records available for review, Amazon operates in accordance with Brazil
legislation.
All licenses for the Cerrado Verde Potash Project have already been granted as shown in
Table 2.2.1.
December 13, 2010

Location Plan of Cerrado Verde

Potash Project
SRK Project No.: 343500.010

File Name: Figure_2-1.docx
Date: 12/13/10
Approved: NR
Figure: 2-1

3-1
Accessibility, Climate, Local Resources,

Infrastructure and Physiography (Item 7)
3.1 Topography, Elevation and Vegetation

The peneplane developed by the Verdete unit, i.e., the ground over which the Areado Formation
was deposited, undulates between the altitudes of 1.000m and 850m. Higher values are found in
the southern part of the Serra da Saudade. In the middle portion of the ridge, the peneplane is
placed between 880m and 920m. Therefore, all the surface exposures of the Verdete unit were
the result of the Tertiary erosion cycles that stripped off the Mesozoic rocks (Mata da Corda and
Areado groups).
3.2 Climate and Length of Operating Season

The climate of the region is classified, according to IBGE (2002) as half-humid warm tropical,
with annual average temperatures of 22C and annual precipitation of 14.000mm.
Annual rainfall in the area averages between 1,300mm and 1,800mm, 84% of which falls during
the rainy season between October and March. December and January present the most intense
precipitation. The annual average temperature is slightly above 20C. The operating season is
year round.
The local vegetation shows relicts of the primitive savanna ("cerrado") amid the farming area
which includes soya and coffee, and industrial forests of eucalyptus and pine trees. The farms are
mainly confined to the fertile soil of the Mata da Corda Formation that underlines the flat tops of
the mountain range with altitude levels between 1,000m to 2,000m.
3.3 Physiography
The region is inserted in the hydrographic basin of Indai River, a tributary river in the left
margin of So Francisco River. According to SECTES Secretaria do Estado de Cincia e
Tecnologia de Minas Gerais (1938), Indai River basin is part of the geomorphological unit
So Francisco Plateau where the planning surfaces, the edges of the hills and the crests point dip
to NE, with high structural control (COSTA-FILHO et al, 2007).
The main drainages are the rivers Indai, Abaet, Borrachudo and their tributary. The
morphology of those rivers is the meandering channels and the drainage style is dendritic, mainly
when installed over the pelites. In the north of the area is the Trs Marias dam, main mouth of
the region rivers. The water depth of the dam oscillates between the altitudes of 560 and 575m
(LIMA, 2005).
The geomorphology is characterized by mountains, being the main called Serra da Saudade. The
landscape is determined by the rock types and by the topography and can be separated in three
domains correlated to the South American Surfaces (King, 1956) according to Lima, 2005:
Upper Surface: Older stage of the planning that expose the Areado Formation Rocks and
Mata da Corda Group;
Intermediate Surface: Refer to the second stage of the planning after de dissection of the
Upper Surface, triggered by the resumption of the erosive process. The average altitude is
of 750 to 850m. They are irregular surfaces stretched in N-S strike, developed over the

December 13, 2010

3-2
Serra da Saudade Formation represented by psamitic lithotypes. Matches to the South

American Surface I, mio-pliocene; and
Basal Surface: the youngest, bordering the San Francisco River, with elevations from 570
to 630m. Exposure occurs in pelites of the Serra de Santa Helena Formation and Serra da
Saudade.
3.4 Access to Property

Patos de Minas city can be reached by vehicle from Belo Horizonte in 3 hours, via a good quality
sealed road (BR-262). From Patos de Minas city the project is accessed via a number of
secondary gravel roads that connect the farming region. The others important roads in the region
are the BR-354 and the MG-235.
Patos de Minas is the nearest major settlement, but the cities of So Gotardo and Matutina are the
nearest settlements. The project can be accessed by plane from Rio de Janeiro to Belo Horizonte,
and then by vehicle from Belo Horizonte to So Gotardo (approximately 300 km), via a good
quality sealed road (BR-262). From Matutina village the project is accessed via a number of
secondary gravel roads that connect the farming region.
The principal access to the property are; the BR-262, the BR-354, and the MG-235 roads.
Primary access is by gravel roads that connect the farming region. The unpaved roads are in
regular condition and in some portions require upgrading for better access. The road upgrade
costs are imbedded within the mine capital and operating costs.
3.5 Surface Rights

The Project is at the exploration phase and surface rights have yet to be acquired. Discussions
with land owners have been initiated and are ongoing and Amazon consider that the required
surface rights are likely to be obtained.
The Company wishes to clarify that it has an agreement with the appropriate land owner to allow
it to drill on permits 833,306/2008 and 833,280/2008.
3.6 Local Resources and Infrastructure

Belo Horizonte is the capital and also the largest city in the state, with a population in excess of
four (4) million. It is the major centre for the Brazilian mining industry. A large commercial
airport with domestic and international flights services Belo Horizonte, which hosts several state
and federal government agencies and private businesses that provide services to the mining
industry. Skilled labor is readily available in Belo Horizonte and the local city of Patos de Minas.
So Gotardo has a good infrastructure. Its estimated population in 2009 is 32,580 inhabitants
according to the IBGE. The main economic activity is agriculture, followed by livestock, trade
and industry.
3.6.1 Access Road and Transportation
The principal access to the property are; the BR-262 and BR-354, MG-235. Primary access is by
gravel roads that connect the farming region. The road upgrade costs are imbedded within the
mine capital and operating costs.

December 13, 2010

3-3
3.6.2 Power Supply

(Extracted from ECM executive summary, sheet 39) Cerrado Verde Project at So Gotardo is
scheduled to be powered by CEMIG 138kV system, connected through an exclusive
transmission line 23km long, from a substation close to the town of So Gotardo.
In electrical terms the development of the beneficiation shall be considered middle size, with an
estimated demand of around 25MW similar to a small town such as the So Gotardo and the
surrounding places.
The configuration set for the factory system, has the main 138kV receiving substation, lowers to
13.8kV and distributes to the substations that will serve each of the main project areas.
It is observed that over 70% of the demand will be concentrated in three areas, grinding,
calcination kiln, and pellets quenching systems and as a result, the location of the main
substation shall be as close to the grinding and regrinding substations.
For the main substation two 138-13.8kV transformers are provided with 25/40MVA estimated
power, with the load distributed between both, and if one of them fails to work, the other
remaining transformer shall still supply the total demand at the forced ventilation stage.
According to CEMIG (governmental electrical energy agency) regulations harmonic
compensation and power factor systems shall be forecasted so that the operational performance
of large equipment/heavy loads do not affect the basic system network and other consumers.
From the main substation power will be distributed to area substations through 13.8kV feeders,
by means of radial-type simple system, and according to the need cable racks may be used for
beneficiation, aerial lines for distant facilities and piping network at the operational and
administrative support areas or where for safety reasons the use of aerial systems is not possible.
The area substation will be constructed in its majority at masonry buildings, and there will be a
few armored substations, housing all the electrical equipment to receive power at 13.8kV, lowers
it and feed all the electrical charges of the area (s) and / or buildings served by it.
To meet the equipment electrical supply that cannot stop operating in case of electrical failure,
emergency power supply system is provided with diesel generator and an automatic generator
group, mainly targeting the auxiliary grinding systems, some pumps, a compressor for pneumatic
conveying, for emergency lighting and the noble parts of the supervision, control and
communication systems.
3.6.3 Water Supply
(Extracted from ECM executive summary, sheet 38) Essentially, the water system that serves the
beneficiation shall be divided into the following parts:
Process Water - is part of raw water intended for industrial use, which will be stocked at
the reservoir located on the site highest plateau, next to the raw water reservoir and then
distributed as make up water for burnt pellets quenching system at the cooling tower
tank, to process route consumption, for services and general cleaning, including the
central maintenance workshop; and
Raw Water - is the new water which intake will be performed from Indai River and
stored at a tank; the intake from the river will be at dry well, with horizontal pumps, sand

December 13, 2010

3-4
filter box and is located approximately 9km from the raw water reservoir. The raw water
will be used for the following purposes:
For pumps sealing;
For pellets quenching system make up;
For circulating at the heat exchangers of equipment refrigeration systems;
For dust removing systems;
For pelletizing;
For fresh water generation by the Water Treatment Station; and
For firefighting system.
(Extracted from ECM executive summary, sheet 16) Rainwater Drainage

The drainage system shall be designed to comprise all devices designed to intercept, intake and
dispose of run-offs that flow to the plateaus, terraces, accesses and buildings, leading them to the
point of final release.
The plateaus, berms and access designed in different elevations, will be drained and its
contribution will be sent to a sedimentation basin and damping.
The embankment stools slopes (cut / landfill) will be cross slope to collect contributions from
longitudinal discharge and sections with concrete gutters, unloading at water flowing downhill
sent for intake boxes and sequentially to the drainage system.
Hydraulic Sizing
The following criteria and methods shall be considered in establishing the methodology of the
hydraulic design of the devices:
Physical characterization of the Area - Location, type of relief, occupation and land
cover;
Climate Characterization - climate is classified according to the International System of

Kppen;
Studies of heavy rainfall - shall be used Gumbel statistical methods and CETESB rain
disaggregation;
Surface runoff studies - comprising the analysis of the physiographic features of the basin
and its coverage;
Determination of the Project Flow - shall be developed according to the Rational Method;
Surface Runoff Coefficient - shall be considered depending on the type of area to be

drained and surface coverage;
Concentration Time - shall be calculated using the Kirpich formula;
Rainfall intensity - shall be calculated for the rainfall post of the region;
Rainfall Calculation - rain duration (tc) = 2.0 hours shall be adopted;
Precipitation per square meter - the duration of rain (tc) = 2.0 hours shall be adopted;

December 13, 2010

3-5
Precipitation per square meter that drains - the runoff coefficient = 0.90 shall be adopted;
and
Time Period of Return and Recurrence - (TR) = 10 years.
3.6.4 Buildings and Ancillary Facilities

There are no buildings or other facilities on the property, besides a rented small shelter for field
activities support in the city of Matutina, and the main office in Brazil in Belo Horizonte. Plant,
Mill, office, and mine building will be constructed as part of the mine development in the area.
3.6.5 Potential Processing Plant Sites
Among the several possibilities for site location, Amazon is considering to install the plant close
to Matutina, a small town close to the City of Sao Gotardo, which is a local pole. Two sites are
being considered, Fazenda Pirapitinga and Funchal Norte. The potential plant site is shown
below in Figures 3-1 and 3-2.
3.6.6 Potential Tailings Storage Area
Tailings from process are generated due to:
Inadequate particle size, as the product has to be produced in a 2-4mm diameter range.
Tailings are those materials which do not comply with such specification, mainly dust
from pellet handling; and
Unburned or not sufficiently burned material, produced mainly from flushes during kiln
operation.
Both are to be stored in Storage & Reclaiming stockpile, to be reprocessed. Therefore, no tailing
accumulation or landfilling is foreseen for tailings. The Storage & Reclaiming stockpile area has
not yet been defined.
Potential Waste Disposal Area
(Extracted from ECM executive summary, sheet 15) Landfills.
The design criteria adopted for the landfill areas (location not yet defined), shall include the
implementation of the materials deposit, whether from cuts, or loan, within the limits of design
sections ("offset") at the project influence areas facilities.
Confirmation of geotechnical condition will provide evaluation of classification, distribution and
quantification of material to be selected from the 1st and 2nd categories, with the quality and the
allocation provided, during elaboration of detailed earthworks design.
Preliminarily, the following criteria were adopted for the classification, distribution and
geometry of the landfill slopes, until geotechnical surveys geotechnical surveys campaigns to be
programmed are carried out:
Compacted landfills at a minimum 95%: 70%;
Compacted landfills at a minimum 100%: 30%;
degree of blistering: 30%;
Landfill slopes: V=1 / H=1,5;

December 13, 2010

3-6
Berms balance width: 4,0m, with cross slope of 5% and 0.5% longitudinal; and
Maximum height between stools: 5.0m.
The basic design shall present forms for plant restoration, as well as methods of restoration and /
or protection of exposed areas (slopes, areas of loans, stools, water cuts, gutters, ditches, etc.) as
per erosion resistance conditions.
3.6.7 Manpower
So Gotardo and Matutina are the closest towns with a significant population to provide
manpower for a mining operation, having population around 40,000 combined.
Also, the project is very close to Patos de Minas, main city in Alto Paranaiba area which has
strong economic, cultural, educational and social environment.
3.6.8 Other Surface Rights
The project is at the exploration phase and surface rights for processing plant site, tailing storage
and waste disposal areas have yet to be acquired.

December 13, 2010

Cerrado Verde Project Site

Date: 12/13/10
Approved: NR
Figure: 3-1

Cerrado Verde Project Site

Schematic

Date: 12/13/10
Approved: NR
Figure: 3-2

4-1
History (Item 8)
Cerrado Verde Mineral Rights were originally requested by the company, by means of
applications for exploration licenses filed with DNPM between 2008 and 2010. Several Cerrado
Verde Mineral Rights have already been granted exploration licenses.
The company applied for the mineral rights directly to the DNPM. There was no prior ownership
of mineral rights. The areas were free and the company just had to make the necessary
applications.
4.1 Ownership
The company does not have data with respect to past owners or any prior exploration work. The
company is not aware of any historical resource estimation work on the property. There has
been no historical mining on the property.
4.2 Past Exploration and Development

The Verdete Slate has been known as a potential Potash resource since the 1960's although only
regional mapping has been undertaken in the area of the permits held by Amazon.
4.3 Historic Mineral Resource and Reserve Estimates

No historical resource estimates have been released.
4.4 Historic Production

No historical mining of the Verdete slate has been undertaken.

December 13, 2010

5-1
Geological Setting (Item 9)
5.1 Regional Geology

The region is mainly underlain by Neoproterozoic and Cretaceous rock units, which are partly
covered by Cenozoic sandstones, lateritic sediments and soils. The oldest rocks, occurring in the
southwestern portion of the region, are represented by a nucleus of calcoschists and diamictites
of the Ibi Formation (Arax Group) surrounded by an undivided domain of the Canastra Group
(quartzites, phyllites and micaschists). A model age of 1,000m.y. (207Pb/ 206Pb) has been
determined for the Canastra Group, which was metamorphosed together with the Arax Group
during the Brasiliano Orogeny (600m.y.). The sequence is followed by the Bambui Group (600550m.y.), which comprises the marine deposits of the Paraopeba Formation, the Santa Helena
Formation and the Serra da Saudade Formation, including the Verdete unit, all these units being
dominated by variegated slates, and the overlying arkoses of the Trs Marias Formation. After
deposition of the Bambui Group, and the Brasiliano Orogeny, the region was exposed to erosion
during the Paleozoic, Triassic and Jurassic periods, giving rise to the development of a
remarkable peneplane. On top of that flat lying surface, the terrigenous sediments of the Areado
Group was deposited during the Lower Cretaceous. The next stratigraphic phase is recorded by
the extensive and dominantly piroclastic kamafugitic volcanism of the Mata da Corda Group of
Upper Cretaceous age.
5.2 Local and Project Geology

5.2.1 The Verdete Unit
With some exceptions the Verdete unit are dominantly lying on top of the Serra da Saudade
Formation and underlying the Areado sandstone. Its apparent thickness varies from
approximately 20m in the southernmost domain to over 50m in the northern half of the Serra da
Saudade and up to 80m on the northern end where it started to be covered by younger sediments.
The lower contact with the slates and metapelites of the Santa Helena Formation is transitional.
5.2.2 Structure
The slates of the Paraopeba, Santa Helena and Serra da Saudade formations, including the
Verdete unit, develop a pervasive structure of concentric and chevron folding, lacking axial
plane foliation, with one-to three-meter long wave lengths and amplitudes and vertical to steep
westward dips of the axial plane. This overall structural behavior implies a sub-horizontal
folding envelop. The dominant rock type is a centimetric bedded slate, with varying proportions
of silt. The more argillaceous varieties show a characteristic slate cleavage parallel to the
perfectly planar bedding planes. An increase in the proportion of silt-size quartz produces
slightly thicker bedding and the rocks tend to split along a sub-conchoidal cleavage. Two
complementary sets of fracture cleavages are responsible for the fragmental nature of the
outcrops. In most exposures, chemical weathering along theses fractures removes de green color
and whitens the slates to light yellowish shades. The dense nature of the folding system was
welcome in increasing by a factor of two to three the thickness of the Verdete beds. The
northward dip and east-west strike of the Verdete beds in the southern edge of the Serra da
Saudade is suggestive of a conical fold closure of a regional syncline plunging a few degrees to
the north. The syncline axis would run approximately coincident with the Indai River.

December 13, 2010

5-2
5.2.3 Elevation and Erosion Level

The peneplane developed by the Verdete unit, i.e., the ground over which the Areado Formation
was deposited, undulates between the elevation of 1,000m and 850m. Higher values are found in
the southern part of the Serra da Saudade. In the middle portion of the ridge, the peneplane is
placed between 880m and 920m. Therefore, all the surface exposures of the Verdete unit was the
result of the Tertiary erosion cycles that stripped off the Mesozoic rocks (Mata da Corda and
Areado groups).

December 13, 2010

Cerrado Verde Regional Setting

Date: 12-13-10
Approved: NR
Figure: 5-1

Cerrado Verde Project Geology

Date: 12-13-10
Approved: NR
Figure: 5-2

6-1
Deposit Type (Item 10)
Normally, Glauconite is considered a diagnostic element indicative of continental shelf marine

depositional environments with slow rates of accumulation. It develops as a consequence of
diagenetic alteration of sedimentary deposits, bio-chemical reduction and subsequent
mineralogical changes affecting iron-bearing micas such as biotite, and is also influenced by the
decaying process of organic matter degraded by bacteria in marine animal shells. Glauconite
forms under reducing conditions in sediments.
6.1 Geological Model

Until now there is no geological model developed for the potash-rich glauconitic slate. It is a
unique type of mineralization that is known only in the Serra da Saudade Formation in the
western part of the Minas Gerais State. The Verdete is not at the present time a commercial
source of potash.
The rock-type Verdete was baptized by the local farmers of the Serra da Saudade region due to
its beautiful and typical green color. It crops out intermittently along the both sides of the Indai
River for about 120km. No attention has been given until now by the geological community to
map in detail and characterize the Verdete in terms of origin, mineralogy, etc.

December 13, 2010

7-1
Mineralization (Item 11)
The Potash mineralization is associated with the Glauconite mineral which gives the Verdete
Slate its distinctive green color. Glauconite is an iron potassium phyllosilicate (mica group)
mineral of characteristic green color with very low weathering resistance.
applied to them that would enable them to be categorized as mineral
reserves. Mineral resources that are not mineral reserves do not have demonstrated economic
viability. There is no certainty that the preliminary assessment will be realized.
7.1 Mineralized Zones

As stated previously, potash mineralization occurs associated with the glauconite mineral that is
a constituent of verdete.
The Verdete slate held within the Amazon tenements can be traced for the entire 120km strike
length with a potential width up to 500m wide. Grab samples along the entire strike length range
from 5% to 12% K2O. The potential tonnage is therefore very large, and could reach the
magnitude of Billons of tons.
7.2 Surrounding Rock Types

The Verdete unit is partially covered by a thin layer of sandstone of Cretaceous age in its central
part. To the east it is intercalated with red to yellow metapelites (argillites, rhythmites and
siltstones), which forms the transition zone. The transition zone is the basal part of the Verdete
unit and crops out by a combination of folding and erosion. To the west the Verdete is eroded by
a N-S running creek which exposes the underlying carbonatic slate. To the north the Verdete unit
is again intercalated with metapelites. To the south the Verdete is abruptly eroded, occurring
only as the metapelites and slates.
The rock-types in the property display a sub-horizontal pattern and were submitted to a two
folding events. The first event developed a complicated system of chevron folding which
thickened the Verdete unit. The second phase folded the sequence sub-horizontally. Therefore
the Verdete unit has a gently folded monoclinal structure.
The Verdete unit has a N-S strike length of 3100m, an average width of 200m and thickness
varying from 25m to 64m. The average thickness is 40m.

December 13, 2010

8-1
Exploration (Item 12)
Amazon Mining has completed remote sensing targeting exercise followed by regional mapping
and grab samples. In addition, Amazon completed a preliminary survey using an Innov-X
portable XRF unit. The portable XRF unit was then correlated to pulp standards and showed
good precision although returned a positive bias in the order of <1% K.
The Verdete Slate is distinctively green in color and as such is very easy to identify in the field
and can be visually estimated based on green color which represents the glauconitic content.
A drilling program was undertaken in early 2010 and has targeted only a select portion of the
regional Verdete Slate within the Amazon tenements as shown in Figure 8-1. Figure 8-2 shows
the location of the 15 drillholes completed by Amazon. All holes were successful in intersecting
the Verdete Slate.

December 13, 2010

Tenements Drilled by Amazon

Date: 12/13/10
Approved: NR
Figure: 8-1

Drillhole Location Plan

Date: 12/13/10
Approved: NR
Figure: 8-2

9-1
Drilling (Item 13)
9.1 Type and Extent of Drilling

The principal methods used for exploration drilling at Cerrado Verde have been reverse
circulation drilling (RC). Table 9.1.1 summarizes pertinent drilling statistics. The main zone has
been drilled at a nominal spacing of 100m to 400m.
Table 9.1.1: Cerrado Verde Potash Project Summary Drilling Statistics
Company/Year
Drillholes
Meters
Contractor
9.1.1.1.1.1.1
Amazon Mining / 2010
19
997
Fuad Rassi
Engenharia
Indstria e
Comercio
Ltda
Drill Rig
Diameter
Prominas R1-H
4.5
All drillholes have been drilled vertical to an average of 52m deep. No downhole surveys have
been completed due to the short vertical holes and scale of mineralization. The drilling has been
completed perpendicular to mineralization and as such all intercepts reflect the true thickness.
Drillhole collars were surveyed by Amazon Mining surveyors using a portable GPS with
accuracy of +/-5m.
Accuracy of the survey measurements (downhole and surface) meets acceptable industry
standards for the style of mineralization.
Further drilling should be done using core (at least NC in diameter) that could be split for assay,
and detailed logged for mineralogical variations, structure within the unit, and other sedimentary
features that could affect grade controls across the deposit. Several (2or3) of the present reverse
circulation drill holes should be twinned for comparison of geology, mineralogy and assay
collaboration within the present inferred resource.
The drilling completed has been compiled into a 3D geological model as defined in section 15,
Mineral Resources, interpretation of drilling is also covered in this section.

December 13, 2010

10-1
10 Sampling Method and Approach (Item 14)

10.1 Reverse Circulation (RC) Sampling
The samples were taken on 2m intervals and riffle split down to 3kg samples. Sample weights
were not recorded but recoveries were reported as good. The RC method of sampling is not
optimal and SRK would recommend that a Jones Riffle Splitter be utilized in future RC sampling
programs. Although the quartering technique used by Amazon is not optimal the homogenous
nature of the verdete slate will remove any sampling bias created.
10.2 Logging
Drill samples were sieved during drilling and a small sample of the chips was stored in chip trays
for future reference.
Basic weathering and lithologies were recorded by the geologists and entered into a digital
database.
Detailed geologic logging of the chips should be done to determine subtle changes within the
formation that could be correlated with changes in grade of K2O and/or changes in the K2O
content of the Glauconite.
10.3 Bulk Density

Amazon utilized a consulting group, ConcreSolo, to undertake Bulk Density measurements.
Coffey Mining has reviewed the methodology used by the company ConcreSolo, and noted that
the 22 samples measured the saturated Bulk Density of grab samples collected from surface.
Coffey Mining considers that given the apparent leached zone in the first 10m of drilling that
down hole samples should be undertaken, to determine if there is any change in density with
depth.
Coffey Mining also considers that saturated bulk density measurements are not appropriate for
resource estimation. Dry bulk density should be determined. Saturated bulk density
measurements will result in a positive bias, as it is the weight of the rock plus the water that is
absorbed into the rock. The result is an over estimation of the tonnage by the moisture content.
Additional dry bulk density measurements are required.
The dry bulk densities should be determined at several intervals down hole (across the thickness
of the section) and specifically in reference to the weathered vs. the Unweathered portions of the
deposit. A number of dry bulk densities should also be taken along strike and averaged to come
up with a valid density to calculate tonnage.

December 13, 2010

11-1
11 Sample Preparation, Analyses and Security

(Item 15)
11.1 Sample Security

All samples following drilling were sent via an Amazon Mining vehicle to the Bureau Veritas
laboratory in Belo Horizonte for analysis. All sample reject, pulps and chip trays are stored at the
Amazon Mining base in Belo Horizonte.
11.2 Sample Preparation and Analysis

All samples have been prepared and analyzed by Bureau Veritas in Belo Horizonte.
The samples were received then dried, crushed to 2mm and riffle split; and
Samples were analyzed by XRF for Fe2O3, SiO2, Al2O3, CaO, MgO, MnO, TiO2, Na2O,
K2O, BaO, P2O5, Cr2O3, SrO and LOI.
Bureau Veritas insert duplicates, blanks and certified standards at a rate of 5% to maintain their
quality control.
11.3 Adequacy of Procedures

Coffey Mining considers the sample preparation, analysis and sample security to be of
acceptable standards.
11.4 Sample Preparation and Assaying Methods

The aliquots for the laboratory were prepared in the office. Initially, the six firsts holes drilled
were sampled meter by meter and the others were made samples every 2m. The homogenization
was the first stage of the preparation. In one corner of a tarpaulin of 2 x 2m were disposed
samples of 1m (from the six first holes) or of 2m (for the other holes drilled). Next, the bulk was
rolled in a unique way (clockwise or counter-clockwise) raising the edges of the tarpaulin until
the sample became homogeneous in terms of distribution of color and granulometry. After
mixing, the sample was divided into four equal parts (splitting). In this fourth part of the sample
aliquots were separated for the lab, for archive (chips). To collect the first two aliquots, a quarter
of the material was distributed on the tarpaulin in a linear shape, and then small portions were
collected randomly with a shovel. These aliquots were properly packaged, labeled and weighed
between 2kg and 2.5kg. Something around 1kg to 2kg was separated to 5mm, and the fraction
upper than 5mm was filed in core boxes, identified with name of the hole, size and number of
laboratory sample. The fraction under 5mm was discarded. The other three quarters of the
sample were archived (Figure 11-1).
11.5 Quality Controls and Quality Assurance

At the time of the drilling Amazon did not have appropriate internal QA/QC systems. Future
drilling should include at least one twinned hole from the existing set that has good QA/QC in
place that could be used to verify the values from the present reverse circulation drilling
program.
In May 2010, the Company introduced a QAQC program. For the internal control, materials
reference are inserted every 20 samples and sent to the laboratory. Standard samples, duplicates
and blanks have been used since then. The patterns consist of certified reference materials. There
December 13, 2010

11-2
are three types of patterns used, with low, medium and high levels of analyte, entered according
to the levels expected for the batch sent. Duplicates are prepared from the reject of the splitting
of the previous sample. The blank consists of a material whose absence of the analyte is certified.

December 13, 2010

RC Drilling Flowchart

Date: 12-13-10
Approved: JA
Figure: 11-1

12-1
12 Data Verification (Item 16)

Amazon did not carry out a proper QA/QC program. The current QA/QC analysis is the internal
Bureau Veritas program.
5% of samples sent to the Bureau Veritas were then sent to SGS-Geosol in Belo Horizonte to
undertake an umpire sample.
In the QAQC program implemented by the Company in May 2010, as the analytical results are
received, they are immediately imported into the respective sampling spreadsheets, where any
undesirable analytical deviations of standards, blanks, duplicates, or inconsistency between the
sample result and its respective lithology can be easily compared. Simple inversions of sample
results and typing errors of the spreadsheets after receiving the certificates, are also common and,
therefore, all the results of all samples must be checked one by one and not only the control
samples introduced.
The accuracy, precision and contamination of the analysis should be evaluated.
All reference materials require validation, to check the level of accuracy and reliability of the
laboratories. The mistakes detected in the analytical procedures are identified and evaluated
having as reference the precision of the method.
The results for the certified reference materials (standard samples) must be between the limits of
2.SD (twice the standard deviation).
The validation method of the blank samples consists in verifying the presence of the analyte.
Therefore it is necessary to observe the detection limit of the method.
If there is any analysis deviation of the control samples or inconsistencies with the respective
lithologies, the batches should be re-examined and eventually re-sampled. Depending on the
situation, and certifying that there couldnt have been any mistake on sampling (which is
common), the costs of re-examination will be on the laboratory. If the blank values are very high,
the method of sample preparation should be checked. If all values for the standards are off the
defined limits, the digestion method of the samples should be checked. When the results of
standards and blanks are following a same trend, higher or lower than expected, the analysis for
all the batch of samples sent should be repeated, including the reference ones.
Besides the analysis of the results obtained, an unannounced visit to the laboratory is
programmed to check the conditions of the analysis.
Only after all results from each batch of samples are checked and validated, can information be
fed into the database.
The final validation of the results obtained is performed by an independent consultant (Qualified
Person).
Coffey Mining has reviewed the QA/QC results returned by Bureau Veritas as follows.

December 13, 2010

12-2
Table 12.1: Standards Utilized by Bureau Veritas
With the exclusion of IPT146 (Which is less than the quoted detection limit for K2O) all blanks
and standards inserted by Bureau Veritas are within a 10% tolerance level.
12.1 Bureau Veritas Pulp Duplicates

A pulp duplicate was completed by Bureau Veritas every 20 samples. The results of these
duplicates are shown in the Table 12.1. (Analyzed using the Coffey Mining internal QC Assure
statistical software).
The results show excellent precision for K2O with 97% of the data being within 10% HARD.
12.2 Adequacy of Procedures

No Quality control data has been supplied by Amazon Mining. Coffey Mining recommends that
Amazon Mining adopt a QA/QC program which includes the use of certified standards, blanks
and pulp duplicates. In addition Coffey Mining would recommend that field duplicates which
would require the resplitting of the reverse Circulation field reject sample to be submitted at a
rate of 5%.
The Bureau Veritas QA/QC data shows good precision and accuracy.
12.3 Limitations
The grade estimates for all domains have been classified as Inferred based on the confidence
levels of the key criteria that were considered during the resource estimation.
The resource estimate has been classified as inferred mainly due to the low confidence in the
Bulk Density determinations, data density of distribution and the limited QA/QC program
provided by Amazon Mining.

December 13, 2010

Field Duplicates All Sample

Data (Includes NQ and HQ Core
0.3 to 5m)

Date: 12-13-10
Approved: JA
Figure: 12-1

13-1
13 Adjacent Properties (Item 17)

There are no advanced potash properties in the immediate vicinity of the Cerrado Verde Project.

December 13, 2010

14-1
14 Mineral Processing and Metallurgical Testing

(Item 18)
Cerrado Verde Project's objective is to produce a thermo-fertilizer in the form of calcined

potassium pellets, with diameters between 2 and 4 mm, to be produced at Amazon Mining
facilities, located at So Gotardo MG. The primary feed material is a slate that typically
contains 8 to 10% K2O primarily as glauconite. The project base case is the production of 1.1Mt
of thermo-fertilizer per year 8.34% K2O with an expected life of around 100 years at this level of
production.
The process approach is summarized in the conceptual flowsheet in Figure 14-1.
14.1 Summary of Proposed Process

14.1.1 Overview
The process is very similar to lime production from limestone in a Rotary Kiln in which
pelletization and removal of volatiles occur. In the proposed Verdete process the purpose of
calcining is to thermally decay the clay minerals, principally glauconite
(K(Fe3+,Al,Mg)2(Si,Al)4O10(OH)2) so as to make potassium more readily exchangeable
improving its benefits as a fertilizer. As the product is pelletized the majority of the mined
material is retained and Amazon consider that the potassium source is only sparingly water
soluble so recovery is anticipated to be better than 90% of the 8% retained potassium as K2O.
Verdete slate fragments up to 500mm will be transported in 25t trucks and discharged into the
circuit through a fixed grizzly. Oversized ore will be retained at this grizzly and then will be
disaggregated through an ore breaker.
The RoM material will be feed into a 60m3 capacity bin. Screening at 75mm will feed oversize
into a primary jaw crusher. The material passing from the grizzly, finer than 75mm, along with
the primary crusher product feed will be conveyed into the secondary crushing circuit.
The useful volume of the receiving bin is 40m3 and this will feed into a vibrating screen from
which ore in the -75 to +16mm fraction will feed a secondary cone type crusher. The product
from the crusher, with p80 less than 20mm, returns to the secondary crushing feeding bin. The ore
passing through the screen will be blended with limestone on a conveyor. Limestone chips with a
maximum size of 16mm will be held in a conical stack with a volume of 1300m2 and fed into a
hopper by a loader. The combined limestone and Verdete will be fed from a conical pile with a
volume of 2,800m into the grinding circuit at a nominal rate of 169t/h dry basis. The grinding
circuit will be received from the supplier as a closed "package" and comprise of; vertical roller
mill, belt feeder, dynamic separator, bag filter, hood and pneumatic conveying system of milled
product. The installed power will be 1360kW.
The ore from grinding, with maximum size of 0.18mm, along with fines from the dried pellets
and the green pellets that are out of specification will feed the belt conveyor and the nominal
total flow to feed the intensive vertical mixer will be 215t/h dry basis. This mixer will operate
continuously and will be a vertical type, as commercial reference adopted, Eirich model RV24K.
The ore from this will be fed via belt conveyors to pelletizing regularization bins through the
flow diverters type belt plow. Pelletizing will be held in three lines at a nominal dry basis rate
of 72t/h each. The ore from the mixer will feed three pelletizing regularization bins, which will
December 13, 2010

14-2
dose the ore at the respective pelletizing disks with a diameter of 5.5m. Water will be added to
the pelletizing discs. The pellets produced at the pelletizing discs will have a maximum diameter
of 6mm and will contain approximately 18% humidity.
The "on size" pellets feed the grizzly car at a rate of 210t/h wet basis. There will be
approximately 7 min residence time and at this time the pellets are dried in ascending and
descending areas with hot air from the preheating zone. The total effective length of the grizzly
car will be approximately 40m with a width of 3m.
The dust generated at the grizzly car will be collected by a dust collector and will return the
heated and clean air to the pellets drying areas. Fines collected return through pneumatic
conveying to the fines dosing system, making part of the load that feeds the mixer. The fines
generated along the bed of the grizzly car will be transported back to the bins.
After drying the pellets feed the rotary kiln 4352-FR-001 at a rate of 172t/h dry basis. There will
be approximately 12% kiln volumetric occupancy and 60 minutes residence time is considered
acceptable for the specification of the desired product. The power supply demand for the kiln and
all its peripherals will be about 3700kw. A 15 percent mass loss will occur due to pelletization
such that the quenching feeding rate will be 143t/h dry basis. The pellet temperature will be
approximately 1300C and thus will go directly to a reservoir with water for the quenching
operation. After this treatment the pellets will be extracted from the bottom of the reservoir and
dried in a rotary dryer. Evaporated steam will be collected and condensed and returned to the
quench circuit. Evaporation losses in the pellets drying condenser and cooling tower will be
compensated with "Make Up" water added at the cooling tower basin.
From the rotary dryer calcined and dry pellets will be conveyed to a final classification step
using a vibrating screen. The pellets within the specification range, -4 + 2mm, will be conveyed
by belt to the storage warehouse where the final product will be stored and further dispatched by
trucks.
14.1.2 Project Scenarios and Capital Costs
For this project, three potential scenarios for heating the calciner have been identified;
1. Petroleum Coke heating directly in the kiln with the Verdete;
2. A dead roaster for utilizing any fuel with heat exchange to the kiln (i.e., no transfer of
residue); and
3. Natural Gas heating.
These are summarized in Table 14.1.4.1. As can be observed although capital cost is lowest for
option 3 the operating cost is double options 1 and 2.
Option 1 presents the middle capital cost and lowest operating cost but Amazon cannot yet
confirm that petroleum products do not contaminate the product during the kiln roasting and as
such cautious has to be applied in advocating this process option. However, it has been stated
by Dr. Gaspar Korndorfer, University of Uberlandia that even if residual organics from
combustion were absorbed by the pellets, there will be a positive effect regarding agronomic
efficiency.
Dead burnt carbon has beneficial properties, increasing water retention in the soil, ensuring
better fertilizer retention (negative surface charge), therefore reducing deleterious elements
December 13, 2010

14-3
leaching. In the case of residual hydrocarbons adsorbed by the pellets, in minor quantities, it will
be hard to determine any negative effect. Indeed in some applications of the fertilizer industries
waste oil was applied to fertilizer to provide mechanical particle stability. This supports the
application of option 1 or 2 for heating but requires confirmation.
Option 2 would have the benefit that any fuel source could be utilized in a dead roaster up front
of the kiln and transfer heat to the kiln ensuring there would be no mix of fuel and product in the
kiln keeping the product pure. Although this option has the highest capital cost, the operational
cost is similar to the direct petroleum coke application in the calcine and a small incremental
increase in operating costs (<10 percent) Whether the Company chooses option 1 or option 2, at
this stage natural gas heating can be removed from the options to be carried forward into a prefeasibility study.
Further to this, two samples have been submitted to SGS for preliminary assessment of potential
carbon carry over from burnt fuel. From the results of these two samples no evidence can be
found for this problem (Table 14.1.2.1).
Table 14.1.2.1: Results of Carbon Speciation Analysis on Two Samples from the Scoping
Level Pilot Plant
Raw material
Thermo K
Carbonate, percent
0.016
1.14
Element Carbon, percent

0.034
0.094
Organic Carbon, percent

<0.005
<0.005
Thus most likely this is not an issue although such analysis should be carried in the project
through pre-feasibility to confirm this.
14.1.3 Product specification and application
Dr. Gaspar Korndorfer, University of Uberlandia has undertaken agronomic evaluation of the
Verdete product to determine its value and application. A series of incubation tests were
completed over a period of 60 days in which the fertilizer was placed in contact with the soil.
After the incubation period, soil samples were taken for analysis of the levels of available
potassium. To evaluate the immediately available K to plants, the Mehlich 1 extractor method
was applied. This methodology allows estimation of the released exchangeable K from the
fertilizer and how much K is available to plants in the soil before and after the incubation period.
The incubation tests comprised of using pots containing 300g of moist soil (80% of water
holding capacity). Two different types of soil, a clayey (> 60% clay) and sandy (<15% clay)
were used: typical Oxisol (LVDT) and Quartzipsamment soil (RQo) respectively.
The potassium sources tested were KCl, Thermo-K and Verdete (raw material), which before
being mixed with the soil were ground to pass 100% on 50 mesh sieve . The doses used in the
test were 0, 50,100, 200 and 400kg ha-1of K2O and the quantity of each fertilizer (potassium
sources) were calculated based on the total contents of K2O. Potassium chloride was used as a
standard against which other sources of potassium were compared.
14.1.4 Results of Agronomic Testwork
The available K in the soil shown in Table 14.1.4.1 and 14.1.4.2 indicated that there is no
difference between the water soluble K source (KCl) and Thermo-K, 60 days after application in
sandy and clay soil, using dosage applications of 200 and 400kg/ha K2O.
December 13, 2010

14-4
This result shows that the thermal treatment applied to the Verdete (raw material used in the
manufacture of Thermo-K) was very efficient from an agronomic point of view. This can be seen
when comparing the results against those of the pure Verdete, without heat treatment. In this
case, the K in the soil did not differ from the control standard which means that virtually no
potassium from the Verdete was released to the soil, indicating a low efficiency of this material
as a source of potassium for plants.
Table 14.1.4.1: K content in soil (Mehlich 1) After 60 Days of Incubation with Different
Sources of Potassium in a Clay Soil.
Dose K2O
K Source
kg ha-1
KCl
Thermo-K
0
--200
0,24 * a B
0,23 * a B
400
0,36 * a A
0,32 * b A
Average
0,30
0,27
CV% = 9,40
DMS dose = 0,03; DMS source = 0,03; DMS Dunnet = 0,04
Verdete
-0,07 ns b A
0,07 ns c A
0,07
Average
0,07
0,18
0,25
Averages followed by distinct letters, lowercase on the line and uppercase in the column, differ by Tukey test at 0.05 significance;
significant by the Dunnett test at 0.05 significance, * significant by the Dunnett test at 0 05 significance;
ns
not
Table 14.1.4.2: K Content in Soil (Mehlich 1) After 60 Days of Incubation with Different
Sources of Potassium in a Sandy Soil.
Dose K2O
Source
-1
kg ha
KCl
Thermo-K
0
200
0,25 * a B
0,24 * a B
400
0,41 * a A
0,38 * a A
Average
0,33
0,31
CV% = 12,89
DMS dose = 0,04; DMS source = 0,05; DMS Dunnet = 0,05
Verdete
0,04 ns b A
0,04 ns b A
0,43
Average
0,04
0,18
0,28
ns
not
In addition to potassium addition the application of Thermo-K also appears to increase available
Ca and Mg in the soil after 60 days of incubation. Presumably magnesium is also released from
glauconite and other clays in the slate and Ca is present as lime from calcining of limestone in
the kiln (Tables 14.1.4.3 through 14.1.4.6). Further with a higher application mass of Thermo-K
(400kg/ha) greater availability of Ca and Mg was also observed. Potassium chloride did not
affect the Ca and Mg in the soil because it simply does not have these elements in their
composition.
The Verdete, however, despite containing Ca and Mg in its composition, did not increase the
levels of these elements in the soil, strengthening the conclusion that the Verdete has low
reactivity and is not able to release nutrients to the soil in the short term.
When comparing the doses of 200 and 400kg/ha K2O, only Thermo-K showed an increase in the
nutrient content in the soil, which further demonstrates the high reactivity of the product even
when analyzed in the short term.

December 13, 2010

14-5
Table 14.1.4.3: Exchangeable Ca in the soil after 60 days of incubation with different
sources of potassium in a clay soil.
Dose K2O
K-Source
kg ha-1
KCl
Thermo-K
0
----200
0,08 ns b A
1,40 * a B
400
0,09 ns b A
2,20 * a A
Average
0,08
1,79
CV% = 6,70
DMS dose = 0,07 ; DMS source = 0,06 ; DMS Dunnet = 0,08
Verdete
--0,10 ns b A
0,10 ns b A
0,10
Average
0,09
0,52
0,80
significant by the Dunnett test at 0.05 significance, * significant by the Dunnett test at 0 05 significance
ns
not
Table 14.1.4.4: Exchangeable Ca in the soil after 60 days of incubation with different
sources of potassium in a sandy soil.
Dose K2O
K-Source
kg ha-1
KCl
Thermo-K
0
----200
0,08 ns b A
1,54 * a B
400
0,12 ns b A
2,26 * a A
Average
0,10
1,90
CV% = 8,84
DMS dose = 0,08 ; DMS source = 0,1 ; DMS Dunnet =0,11
Verdete
--0,14 ns b A
0,11 ns b A
0,12
Average
0,09
0,58
0,83
ns
not
Table 14.1.4.5: Exchangeable Mg in the soil after 60 days of incubation with different
sources of potassium in a clay soil.
Dose K2O
K-Source
kg ha-1
KCl
Thermo-K
0
----200
0,04 ns b A
0,43 * a B
400
0,05 ns b A
0,69 * a A
Average
0,04
0,56
CV% = 5,54
Verdete
--0,05 ns b A
0,04 ns b A
0,04
Average
0,04
0,17
0,26

ns
not
December 13, 2010

14-6
Table 14.1.4.6: Exchangeable Mg in the soil after 60 days of incubation with different
sources of potassium in a sandy soil.
Dose K2O
K-Source
kg ha-1
KCl
Thermo-K
0
----200
0,05 ns b A
0,48 * a B
400
0,05 ns b A
0,64 * a A
Average
0,04
0,60
CV% =
12,75
Verdete
--0,05 ns b A
0,04 ns b A
0,05
Average
0,05
0,19
0,24
ns
not
This initial testwork indicates that Thermo-K provides a potentially superior source of nutrient
enrichment in soils not only for potassium but also for calcium and magnesium. In addition,
the source of potash is a non-chloride, non-sulfate source of potash and thus will not adversely
impact soil pH or salinity. In addition, Amazon conducted mass balance testwork, which
demonstrated that Thermo-K is practically insoluble in water. Ergo, Thermo-K also provides a
superior source of fertilizer as it would be a slow release source of nutrients which is important
in climates with notably wet and dry seasons where traditional fertilizers have been weathered
from soils during seasonally heavy meteoric events and unavailable during the dry season
reducing the quality of agricultural soils.
14.1.5 Summary, Residual issues and recommendations
The testwork undertaken to date demonstrates that this unique process and product are
potentially a valuable contribution to agriculture, particularly in regions where soils have a low
natural exchangeable nutrient component. In addition although Thermo-K is relatively
expensive when compared to similar potassium concentrations from salar salts it has the distinct
advantages that:
the source of salts is a non-chloride, non-sulfate source of salt and thus will not adversely
impact soil pH or salinity components;
additional nutrients such as calcium, magnesium and silicon are present; and
the nutrient source is slow release and as such more sustainable than traditional sources
of fertilizer and thus will have lower usage costs for farmers as less frequent applications
will be required.
However residual issues remain with the product that need to be addressed in further studies.
The rate of water solubilization of nutrients from the calcined product needs to be established
through rinse tests simulating the quench step post calcining and long term exposure to meteoric
rinsing. In addition this testwork needs to also address potential mobilization of aluminum,
manganese and iron as well as trace metals from the Thermo-K product that would adversely
impact crop quality or yield. From preliminary studies Amazon does not consider this to be a
problem but more testwork needs to be undertaken before definitive conclusions can be made.
In addition during pre feasibility assessment frequent samples to demonstrate consistency in
product production and to demonstrate lack of impurities need to be undertaken.
December 13, 2010

Conceptual Flowsheet for

Cerrado Verde ThermoFertlizer
Project

Date: 12-13-10
Approved: RB
Figure: 14-1

15-1
15 Mineral Resources (Item 19)

15.1 Introduction
Coffey Mining was commissioned by Amazon Mining Holding plc to complete a resource
estimate for the Cerrado Verde Potash Project in Brazil. Coffey Mining has estimated the
Preliminary Mineral Resource for the Cerrado Verde Potash Project as at 27 February 2010. All
grade estimation was completed using Ordinary Kriging ('OK') for Potash. This estimation
approach was considered appropriate based on review of a number of factors, including the
quantity and spacing of available data, the interpreted controls on mineralization, and the style of
mineralization. The estimation was constrained with mineralization interpretations.
15.2 Geological Modeling

Based on grade information and geological observations from Coffey Mining and site based
Amazon geologists, one Unweathered domain and one Weathered domain (transition zone) have
been interpreted using E-W oriented vertical sections.
Interpretation and digitizing of all constraining boundaries has been undertaken on cross sections
orientated at 90 (drill line orientation). The interpretation was completed using 8 vertical
sections. Figure 15-1 shows the vertical sections location. The resultant digitized boundaries
have been used to construct wireframe defining the three-dimensional geometry of each
interpreted feature. The interpretation and wireframe models have been developed using the
Gemcom Surpac mine planning software package.
As the drill holes collars were surveyed using a portable GPS the RL values of each one were
defined by Coffey draping those collars to the 3D topography surface.
For the purpose of the resource estimation, 2 mineralized domains were interpreted and modeled
to the Verdete slate which is characterized by the green glauconitic mineralization. Cross section
examples are shown in Figures 15-2 through 15-3.
Figures 15-4 and 15-5show the two domain wireframes interpreted in 3 dimensions.
15.3 Block Model Development

A three-dimensional block model was constructed for the Cerrado Verde deposit, covering all the
interpreted mineralization zones and including suitable additional waste material to allow later
pit optimization studies. The block model has been developed using Gemcom Surpac Mine
planning software.
A parent block size of 100mE x 100mN x 10mRL has been used for all materials with subblocking to 50mE x 50mN x 5mRL to allow adequate volume resolution. To obtain a robust
flagging of the wireframe in the block model, a percent model technique was used which
calculates the percentage of the block inside the Unweathered wireframe. This provides a more
accurate volume estimate. Bulk density has been coded to the block model based on the defined
density values provided by Amazon.
The Table 15.3.1 shows the summary of the block model created.

December 13, 2010

15-2
Table 15.3.1: Block Model Summary
15.4 Statistical Analysis

The drillhole database was composited to a 2m downhole composite interval, recording. The 2m
composites were used for all statistical, geostatistical and grade estimation studies. The decision
to use 2m composites was based the raw sample lengths of sampled intervals (Figure 15-6).
Statistical analysis of the composite datasets was completed within the Weathered and
Unweathered domains. Descriptive statistics are presented in Table 15.4.1.
Table 15.4.1: Summary Statistic 2m Composites
"Box and whisker" plots for the mineralized intervals were compiled for Unweathered and
Weathered K2O in Figures 15-7 and 15-8, respectively.
Based on the statistical review a top cut was applied to Weathered mineralization based on the
97.5 percentile which included only one Unweathered assay being reduced to 10.73% K2O.
15.5 Variography
15.5.1 Introduction
Variography is used to describe the spatial variability or correlation of an attribute. The spatial
variability is traditionally measured by means of a variogram, which is generated by determining
the averaged squared difference of data points at a nominated distance (h), or lag (Srivastava and
Isaacs, 1989). The averaged squared difference (variogram or v(h)) for each lag distance is
December 13, 2010

15-3
plotted on a bivariate plot, where the X-axis is the lag distance and the Y-axis represents the
average squared differences (v(h)) for the nominated lag distance.
Several types of variogram calculations are employed to determine the directions of the
continuity of the mineralization:
Traditional variograms are calculated from the raw assay values;
Log-transformed variography involves a logarithmic transformation of the assay data;
Gausssian variograms are based on the results after declustering and a transformation to a
Normal distribution;
Pairwise-relative variograms attempt to 'normalize' the variogram by dividing the

analyses; and
Correlograms are 'standardized' by the variance calculated from the sample values that
contribute to each lag.
Fan variography involves the graphical representation of spatial trends by calculating a range of
variograms in a selected plane and contouring the variogram values. The result is a contour map
of the grade continuity within the domain.
The variography was calculated and modeled in the mining planning software, Gemcom Surpac
Software. The rotations are tabulated as input into Gemcom Surpac Software (geological
convention), with X representing the bearing, Y representing dip and Z representing plunge. Dip
and dip direction of major, semi-major and minor axes of continuity are also referred to in the
text.
Grade variography was generated to enable grade estimation via OK. Interpreted anisotropy
directions correspond well with the modeled geology and overall geometry of the interpreted
domain. The results are show in Table 15.5.1.1.
Table 15.5.1.1: Cerrado Verde Deposit Unweathered and Weathered Mineralized Domain
Variogram Models
15.6 Grade Estimation

Resource estimation for the Cerrado Verde mineralization was completed using Ordinary
Kriging (OK) within the Weathered and Unweathered mineralized domain.
OK is the most commonly used type of kriging. It assumes a constant but unknown mean.
Typical ordinary kriging assumptions.
The typical assumptions for the practical application of ordinary kriging are:
Intrinsic stationarity or wide sense stationarity of the field; and
Enough observations to estimate the variogram.

December 13, 2010

15-4
The mathematical condition for applicability of ordinary kriging is:
The mean E[Z(x)] = u is unknown but constant
The variogram v(x,y) = E[(Z(x) - Z(y))2] of Z(x) is known. Ordinary Kriging equation
Ordinary Kriging equation

The kriging weights of ordinary kriging fulfill the unbiasedness condition
and are given by the ordinary kriging equation system:
the additional parameter is a Lagrange multiplier used in the minimization of the kriging error
to honor the unbiasedness condition.
Ordinary kriging interpolation
The interpolation by ordinary kriging is given by:
Ordinary kriging error

The kriging error is given by:

December 13, 2010

15-5
Properties of kriging (Cressie 1993, Chiles&Delfiner 1999, Wackernagel 1995)
The kriging estimation is unbiased:
The kriging estimation honors the actually observed value:
The kriging estimation
As with any method: If the assumptions do not hold, kriging might be bad.
There might be better nonlinear and/or biased methods.
No properties are guaranteed, when the wrong variogram is used. However typically still
a 'good' interpolation is achieved.
Best is not necessarily good: e.g. In case of no spatial dependence the kriging
interpolation is only as good as the arithmetic mean.
Kriging provides
assumptions hold. However (e.g. Cressie 1993):
correctness of the variogram.
Additional to the drilling samples, channel composites samples, from complementary sampling
campaign were used, after a test of adequacy of support. Figure 15-9 shows the estimation steps
undertaken in the Cerrado Verde estimation.
15.7 Resource Reporting

The grade estimates for all domains have been classified as Inferred based on the confidence
levels of the key criteria that were considered during the resource estimation. Key criteria are
tabulated below. A summary of the estimated resources for the Cerrado Verde deposit is
provided in Table 15.7.1 below.

December 13, 2010

15-6
Table 15.7.1: Cerrado Verde Project Confidence Levels of Key Categorization Criteria
The Inferred resource has been classified based on blocks estimated until step 5 with a maximum
range of 1000m.
The total Inferred resource estimate is shown in Table 15.7.2 utilizing different cut off grades.
The additional figures are different views of the model as used in the validation process. Mineral
resources that are not mineral reserves do not have demonstrated economic viability. Quantity
and grade or quality is an estimate and should be rounded to reflect approximation.

December 13, 2010

15-7
Table 15.7.2: Cerrado Verde Deposit 27 February 2010 Inferred Resource Grade
Tonnage Report Ordinary Kriging Estimate 100mE x 100mN x 5mRL Selective Mining
Unit
There are no mineral reserves at the Cerrado Verde property at this time. All mineral resources
are classified as inferred. The mineral resource estimates may be influenced by a range of
factors including environmental, permitting, legal, title, taxation, socio-economic, marketing,
political and other issues. However, such influences cannot be determined at this time.
The resource estimate has been classified as inferred mainly due to the low confidence in the
Bulk Density determinations, data density of distribution and the limited QAQC program
provided by Amazon Mining. The actual model shows relative homogeneity and is a simple
geological model.
Figures 15-11 and 15-12 show the grade and tonnage curve for the high and low domains.
15.7.1 Validation
Validation of the grade estimate was completed with a comparative Nearest Neighbor estimation.
Validation consists of a comparative statistical analysis over inferred results for Weathered and
Unweathered mineralized intervals. In addition an interactive visual validation utilizing the drill
holes and the block model was completed in plan and cross section (Figures 15-13 and 15-14).
The visual validation of the OK model shows a good correlation, considering the inferred level
of resource classification, between the blocks estimated and the original samples.
The use of OK and the simple block model method for determining resource is the accepted
practice and appears to have been applied correctly in the Coffey resource estimation. The
caveat is that the underlying data base is weak in that the influence of the individual drill holes
December 13, 2010

15-8
varies across the deposit and in the northern section do not have any east-west component to use
in the model. This has the result that there is insufficient data, other than geologic inference, to
construct the blocks in those areas. Given that the deposit appears to be geologically highly
predictable gives the results some credence, but more drilling should be done and the assay
values should be inserted into the model before assigning more than low credibility to the
tonnage and grade inferred by this exercise.

December 13, 2010

Vertical Sections Location

Date: 12/13/10
Approved: BS
Figure: 15-1

Cross Section (Section 4)

Date: 12/13/10
Approved: BS
Figure: 15-2

Cross Section (Section 5)

Date: 12/13/10
Approved: BS
Figure: 15-3

Weathered (Transition Zone)

Domain 3 Dimensions

Date: 12/13/10
Approved: BS
Figure: 15-4

Unweathered Domain 3
Dimensions

Date: 12/13/10
Approved: BS
Figure: 15-5

Sample Length Distribution

Date: 12/13/10
Approved: BS
Figure: 15-6

Basic Statistics 2m Composite

Unweathered K2 O

Date: 12/13/10
Approved: BS
Figure: 15-7

Basic Statistics 2m Composite

Weathered K2 O

Date: 12/13/10
Approved: BS
Figure: 15-8

K2 O% Estimation Steps Plan

View

Date: 12/13/10
Approved: BS
Figure: 15-9

Block Model Domains High and

Weathered

Date: 12/13/10
Approved: BS
Figure: 15-10

Grade Tonnage Curve Domain

Unweathered Inferred Resource

Date: 12/13/10
Approved: BS
Figure: 15-11

Grade Tonnage Curve Weathered Inferred Resource

Date: 12/13/10
Approved: BS
Figure: 15-12

Comparative Statistics
Unweathered % K2 O
Date: 12-10-10
Approved: BS
Figure: 15-13

Comparative Statistics % K2 O
Weathered

Date: 12-10-10
Approved: BS
Figure: 15-14

16-1
16 Other Relevant Data and Information (Item 20)

There is no other relevant data and information that has not been presented within the
appropriate sections of this report.

December 13, 2010

17-1
17 Additional Requirements for Development

Properties and Production (Item 25)
applied to them that would enable them to be categorized as mineral reserves. Mineral resources
that are not mineral reserves do not have demonstrated economic viability. There is no certainty
that the preliminary assessment will be realized. Additional core drilling and assaying, with
adequate QA/QC, is needed to bring this property to a level where a reliable resource can be used
to do the next stage of Economic Assessment.
17.1 Mining Operations

Mining operations at Cerrado Verde will consist of small mining equipment liberating potentially
minable resources hosted in gently undulating topography over a wide surface extent.
It is expected that mining will be conducted by a local 3rd party mining contractors with Amazon
staff acting as mine owners. Initial static costing for mining operations is based on a combination
of excavators, support equipment and 20t haul trucks.
Resource grades vary physically from an Unweathered zone on the western extent to a lower
grade zone in the east. The grade distribution suggests two pits and multiple working faces can
be open at all times for blending purposes feeding the process plant at a consistent 8.5% K2O.
Two production scenarios were considered by SRK whereby 1.1Mtpa and alternately 2.2Mtpa of
product would be produced annually. SRK conducted a pit optimization, pit design and
production schedules to independently test the assumptions made in mine costing and reported in
the economic model.
17.1.1 Pit Optimization
Pit optimization was carried out on the Cerrado Verde deposit using Whittle v4.3 pit
optimization software in conjunction with Mapteks Vulcan (v8) general-purpose mine
planning package.
The Preliminary Assessment includes the inferred mineral resources that are considered too
speculative geologically to have the economic considerations applied to them that would enable
them to be categorized as mineral reserves. There is no certainty that the preliminary assessment
will ever be realized. Mineral resources that are not mineral reserves do not have demonstrated
economic viability.
17.1.2 Whittle Parameters
Table17.1.2.1 illustrates the parameters and dimensions of the Vulcan block model exported to
Whittle for pit optimization.

December 13, 2010

17-2
Table 17.1.2.1: Whittle Block Model Dimensions

Whittle Parameter
Base Units
Inferred
Block Model Dimensions
Type
Unit Product
Geological
X
Y
Z
No. X
No. Y
No. Z
Value
Tonnes
100
100
10
20
35
45
Slope
All Walls
Bearing
0
Slope Angle
45
As part of the preliminary analysis of the Cerro Verde deposit, Amazon will evaluate the cost
benefit analysis of building a 1.1Mpta versus 2.2mpta process plant. Due to changes in market
conditions, economies of scale and operating costs based on production, SRK performed a
Whittle analysis of both operating conditions. These parameters are detailed in table 17.1.2.2.
Recoveries used in the pit optimization represent the mass yield of plant feed to product
produced.
The Whittle parameters are estimated before the final economic model is constructed and may
require further iterations in the future.

December 13, 2010

17-3
Table 17.1.2.2: Whittle Parameters

Whittle Parameter
Mining Cost
Price
Processing Cost 1.1 Mt

Rock Type
Process Cost ($/ore.t)
Recoveries
Type
Value
Reference Mining Cost

Mining Recovery Fraction
Mining Dilution Factor
2
1
1
Process Name
Rocktype 1
Rocktype 2
Ore Selection Method
Process Cost (1.1 Mtpa)
Process Cost (2.2 Mtpa)
Mass Product Recovery (HG)
Mass Product Recovery (LG)
PRCS
HG
LG
Cash Flow
41.8
36.4
0.83
0.83
Revenue and Selling Cost

Product
Product Price (1.1 Mtpa)
Product Price (2.2 Mtpa)
unit
$151.82/prod.t
$133.23/prod.t
Optimization
Operational Scenario - Time Costs
(Really sustaining)
Revenue factor range
0.01-.99 50 factors
Initial Capital Cost (1.1 Mtpa)

Initial Capital Cost (2.2 Mtpa)
Discount Rate Per period
$
$
197,000,000
269,000,000
10
Operational Scenario Limits

Mining Limit
Processing Method Limit (1.1 Mtpa)
Processing Method Limit (2.2 Mtpa)
na
1,111,968 prod.t
2,223,158 prod.t
17.1.3 Pit Optimization Analysis

The results achieved through the process of pit optimization, indicated that there is minimal
variability or selectivity for mining related decisions within the orebody block model at this time
(2010). Given the size of block (100mx100mx10m), consistent strip ratio and profitability each
block model block contains (using input parameters), the Whittle analysis is better suited as an
independent check on production rate, mine life and NPV.

December 13, 2010

17-4
Table 17.1.3.1: Whittle Results

Production Rate
Potentially Mineable Resources
Waste
SR
Product Tonnes
Initial Capital
Sales Price
NPV
Life
Payback
IRR
Units
t
t
w:o
t
US$
US$
US$
yr
yr
%
1.1 Mtpa
152,411,794
46,206,355
0.30
126,501,784
197,000,000
152
881,992,227
137
1.82
54
2.2 Mtpa
152,411,794
46,206,355
0.30
126,501,784
269,000,000
133
1,647,723,559
57
1.41
71
*The Preliminary Assessment includes the inferred mineral resources that are considered too speculative geologically to have the economic
considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary
assessment will ever be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability
It must be stressed that the results reported in Table 17.1.3.1 are for comparative purposes to
check effect of production rate. If compared to the economic model, the NPV number will vary
considerably given lack of taxes, duties, depreciation and other miscellaneous expenses. The
mine life achieved for both cases re-enforce that resource inventory for feed stock is not a
limiting factor for the potential operation.
17.1.4 Pit Design
Pit designs for the Cerrado Verde deposit were constructed using Vulcan 8 general-purpose
mine planning package. The final pit design used was based on pit optimization results as a
guide for toe and crest location. No Ramps were added given the preliminary nature of the block
model and because the majority of the resource daylights within current valley systems on site.
Pit Dimensions
SRK used default pit parameters illustrated in table 17.1.4.1.
Table 17.1.4.1: Pit Design Parameters
Dump Parameter
Batter/Bench Face Angle
Berm Width
Bench Height
Overall Slope
Value
64
2.5m
5m
45
SRK constructed three pit designs representing three phases used in construction of a preliminary
production schedule. Figure 17-1 illustrates the final pit design layout and tonnage basis for the
production schedule.
SRK did not construct any form of dump design. Given the low stripping ratio and abundance of
land that waste can be placed, SRK does not consider creating a waste dump design material for
the project at this stage.

December 13, 2010

17-5
17.1.5 Production Schedule

SRK produced a mine production schedule based on the resource block model and phased pit
design. Using a target rate of either 1.1 or 2.2Mt of produced product, the RoM tonnage and
variable stripping ratio of the deposit was calculated for each case. A simple pancake extraction
method of benches within each phase made up the mining sequence.
As the mine life was so extensive, the first 10 years of the production schedule for the 1.1 and
2.2Mpta cases have been illustrated in tables 17.1.5.1 and 17.1.5.2 respectively.
Table 17.1.5.1: First 10 years of 1.1Mtpa production schedule.
Period
Target Tpd
10
3,940
3,940
3,940
3,940
3,940
3,940
3,940
3,940
3,940
3,940
Target
1,339,720
1,339,720
1,339,720
1,339,720
1,339,720
1,339,720
1,339,720
1,339,720
1,339,720
1,339,720
Accumulation
1,339,720
1,339,720
1,339,720
1,339,720
1,339,720
1,339,720
1,339,720
1,339,720
1,339,720
1,339,720
Accumulated Grade
8.66
9.00
8.74
8.62
8.65
8.86
8.86
9.38
8.61
8.80
TargetGradeK20
8.50
8.50
8.50
8.50
8.50
8.50
8.50
8.50
8.50
8.50
Stripping Ratio
2.43
1.20
0.63
0.66
0.75
0.65
0.65
0.46
0.32
0.35
13,530
8,674
6,415
6,524
6,911
6,489
6,489
5,759
5,217
5,327
Total Tpd
BK2O
8.66
9.00
8.74
8.62
8.65
8.86
8.86
9.38
8.61
8.80
BK2O_MASS
1,339,720
1,339,720
1,339,720
1,339,720
1,339,720
1,339,720
1,339,720
1,339,720
1,339,720
1,339,720
TOTAL_MASS
4,600,230
2,949,073
2,181,106
2,218,264
2,349,726
2,206,411
2,206,411
1,957,952
1,773,900
1,811,074
HGBK2O
HGBK2O_MASS
HGTOTAL_MASS
10.32
10.76
10.69
10.61
10.61
10.89
10.89
10.89
10.89
10.85
895,600
847,423
718,432
695,448
695,448
709,445
709,445
851,334
558,060
629,961
895,600
847,423
718,432
695,448
695,448
709,445
709,445
851,334
558,060
629,961
WASTETOTAL_VOLUME
1,212,085
598,272
312,783
326,596
375,467
322,190
322,190
229,826
161,405
175,224
WASTETOTAL_MASS
3,260,510
1,609,353
841,385
878,543
1,010,005
866,690
866,690
618,231
434,180
471,353
5.33
5.97
6.48
6.48
6.53
6.57
6.57
6.75
6.98
6.98
LGBK2O_MASS
444,121
492,298
621,289
644,273
644,273
630,276
630,276
488,387
781,660
709,760
LGTOTAL_MASS
444,121
492,298
621,289
644,273
644,273
630,276
630,276
488,387
781,660
709,760
LGBK2O

December 13, 2010

17-6
Table 17.1.5.2: First 10 years of 2.2Mtpa production schedule.

Period
Target Tpd
Target
Accumulation
Accumulated Grade
TargetGradeK20
Stripping Ratio
Total Tpd
BK2O
BK2O_MASS
TOTAL_MASS
HGBK2O
HGBK2O_MASS
HGTOTAL_MASS
WASTETOTAL_VOLUME
WASTETOTAL_MASS
LGBK2O
LGBK2O_MASS
LGTOTAL_MASS
1
7,878
2,678,504
2,678,504
9.47
8.50
1.67
21,042
9.47
2,678,504
7,154,331
10.57
2,113,730
2,113,730
1,663,876
4,475,827
5.33
564,774
564,774
2
7,878
2,678,504
2,678,504
9.12
8.50
0.79
14,133
9.12
2,678,504
4,805,259
10.61
1,738,619
1,738,619
790,615
2,126,755
6.36
939,885
939,885
3
7,878
2,678,504
2,678,504
8.83
8.50
0.51
11,900
8.83
2,678,504
4,045,860
10.89
1,418,890
1,418,890
508,311
1,367,356
6.50
1,259,614
1,259,614
4
7,878
2,678,504
2,678,504
8.86
8.50
0.65
12,973
8.86
2,678,504
4,410,934
10.89
1,418,890
1,418,890
644,026
1,732,430
6.57
1,259,614
1,259,614
5
7,878
2,678,504
2,678,504
9.17
8.50
0.45
11,414
9.17
2,678,504
3,880,893
10.85
1,551,163
1,551,163
446,985
1,202,389
6.85
1,127,341
1,127,341
6
7,878
2,678,504
2,678,504
9.08
8.50
0.36
10,683
9.08
2,678,504
3,632,330
10.85
1,453,635
1,453,635
354,582
953,826
6.98
1,224,869
1,224,869
7
7,878
2,678,504
2,678,504
9.92
8.50
0.28
10,106
9.92
2,678,504
3,436,012
10.91
2,003,330
2,003,330
281,601
757,508
6.98
675,174
675,174
8
7,878
2,678,504
2,678,504
9.78
8.50
0.28
10,091
9.78
2,678,504
3,430,840
10.91
1,905,802
1,905,802
279,679
752,336
6.98
772,702
772,702
9
7,878
2,678,504
2,678,504
9.32
8.50
0.36
10,716
9.32
2,678,504
3,643,504
10.92
1,587,025
1,587,025
358,736
964,999
7.00
1,091,479
1,091,479
10
7,878
2,678,504
2,678,504
9.24
8.50
0.40
11,044
9.24
2,678,504
3,755,079
10.92
1,521,407
1,521,407
400,214
1,076,575
7.02
1,157,097
1,157,097
17.2 Mining Method

Given the limited amount of drill hole information for such a large resource, the development of
a specific mine fleet is somewhat premature. For the purposes of this report, standard operating
procedures, costing and equipment sizing for a deposit of this nature has been considered.
Mining will consist of clear and grubbing, waste stripping and extraction of potential resource;
using front-end-loaders suitable for 20t highway trucks. The need for drill and blast operations
has not been considered at this stage.
Amazon has indicated that a mine contractor will be employed to haul mineralized material from
the mine face to the process plant facility. ECM has suggested a static mining cost per year. This
static cost has been estimated over the SRK production schedule to determine a reference mining
cost for comparison purposes.
Along with a suggested mining fleet the total annual cost is detailed in Tables 17.2.1 and 17.2.2.

December 13, 2010

17-7
Table 17.2.1: 1.1Mtpa Product Mine Fleet and Annual Estimated Cost
Equipments
Truck
Track Excavators
Tractor
Motor Grader
Truck
Wheel Loaders
Mitsubishi
Truck M.Benz
Truck M.Benz/Lubrication
Water Truck
TOTAL
Model
Scania 420
R964
D9-T
16G
Scania 40t
980G
L200
1315C/48
1315C/48
Scania 40t
Amount
4
2
2
1
2
2
2
1
1
2
Operating Costs (US$/year 000s)

1,340
1,390
1,005
251
558
894
107
102
102
371
$6,120
Source: ECM S/A Projectos Industrias, 623-01-0000-N-H25-0102, 2010
SRK is of the opinion that this cost is conservative when applied over 1.3Mtpa of RoM
production at a strip ratio of 0.4 (for the 1.1Mtpa base case). Over the life of the mine this would
equate to a mining cost of approximately $3.3/t moved.
Table 17.2.2: 2.2Mtpa Product Mine Fleet and Annual Estimated Cost
Equipments
Truck
Track Excavators
Tractor
Motor Grader
Truck
Wheel Loaders
Mitsubishi
Truck M.Benz
Truck M.Benz/Lubrication
Water Truck
TOTAL
Model
Scania 420
R964
D9-T
16G
Escnia 40t
980G
L200
1315C/48
1315C/48
Escnia 40t
Amount
6
3
3
1
2
2
2
1
1
2
Operating Costs (US$/year 000s)

2,010
2,085
1,508
251
558
894
107
102
102
371
$7,988
Source: ECM S/A Projectos Industrias, 623-01-0000-N-H25-0104, 2010
SRK is of the opinion that this cost is conservative when applied over 2.6Mtpa of RoM
production at a strip ratio of 0.4 (for the 2.2Mtpa base case). Over the life of the mine this would
equate to a mining cost of approximately $2.5/t moved. While closer to expected contract rates in
Brazil, but this is still quite expensive.
17.2.1 Recoverability
Verdete slate deposits owned by Amazon are essential outcropping, leading to a very low
stripping ratio. In the scoping study, a stripping ratio of 0.1:1 was assumed, and open pit
operation is being foreseen.
Researches were carried out to determine an Unweathered Verdete area close to which plant site
will be erected.

December 13, 2010

17-8
During ThermoPotash processing, all the run-of-mine is supposed to be used for grinding the raw
meal to heat treatment. Intensive quality control during processing ensures. Therefore, losses of
RoM Verdete slate are not expected.
In all pellet handling steps, dust is expected to be generated due to superficial friction. The dust
is to be collected and sent to raw preparation area for recycling.
As a result of this, recoverability is assumed to be in the range of 90 to 100%.
17.3 Markets
17.3.1 Introduction
The goal of AgroConsult study is to analyze the economic feasibility of using ThermoPotash
(8% K2O) as a source of potassium for fertilizing activities in the states of Minas Gerais, Mato
Grosso, Mato Grosso do Sul, So Paulo, Paran, Gois and Bahia.
In order to determine a market potential of ThermoPotash, was conducted a comparative analysis
of its pricing competitiveness in relation to traditional raw materials. The project looked at
possible uses for ThermoPotash as a source of potassium in the main NPK formulas most
commonly used on each crop (soybeans, cotton, sugarcane, summer corn, second crop corn, dry
rice, irrigated rice, beans, potatoes, coffee, pasture, reforestation, wheat, sorghum and fruit and
vegetables) in each state.
Today, Brazil is the world's fourth-largest consumer of fertilizers. In 2009, 22.5Mt of fertilizer
were used in Brazil and this figure is expected to rise to 23.58 million in 2010. (Source: 2009
Statistical Yearbook of the Fertilizer Industry from ANDA Associao Nacional para Difuso
de Adubos Nacional Association for Promotion of Fertilizer) Fertilizer application is vital for
the performance of the farming industry and is likely to remain important for the foreseeable
future. However, more than half of the fertilizer consumed in Brazil is imported, which
represents a fundamental weakness for local agribusiness. There is an even greater dependence
on potash, which is supplied as potassium chloride, more than 90% of which has to be imported.
Since 2008, the government, the private sector and Brazilian agribusiness leaders have been
playing closer attention to this issue. There is clear agreement that Brazil needs to reduce its
dependence on imported fertilizers. To do so, Brazil needs to take two steps: expand raw
material production and develop new sources of nutrients.
In this case, introducing ThermoPotash as a new source of potassium on the Brazilian fertilizer
market is a timely move, in line with government, private sector and producer concerns.
Was used the forecast data for 2010 fertilizer deliveries estimated at 23.58Mt of product and 3.97
million K2O, 82% of which is consumed as NPK formulas and 18% on its own. Using the same
information, the states included in this survey represent 76% of the fertilizer market and 76.1%
of Brazilian K2O consumption.
The following sections will provide information on the Brazilian agribusiness and fertilizer
markets, the methodology adopted these results by the survey as well as the price and market
potential for ThermoPotash in each state.

December 13, 2010

17-9
17.3.2 Methodology
The goal of this study is to analyze the economic feasibility of using ThermoPotash (8% K2O) in
the main fertilizer formulas marketed in Minas Gerais, Mato Grosso, Mato Grosso do Sul, So
Paulo, Paran, Gois and Bahia.
To do so, we evaluated the fertilizer markets in the selected regions during 2010 and estimated
fertilizer delivery volumes by crop and nutrient (N, P e K2O). The data was taken from the
AgroConsult database, which is frequently updated with market information.
These results from the database were validated by comparing fertilizer volumes, nutrient
volumes and the average formula with information from the National Association for Fertilizer
Diffusion ANDA. Furthermore, we verified that nutrient consumption by crop was compatible
with estimated or actual productivity. The final results are converted into raw material
consumption and consolidated figures for Brazil are compared with the supply and demand
figures.
Based on this data, after building an optimization model based on linear programming, we
initially calculated the costs of traditional formulas (not including ThermoPotash) based on the
best combination (lowest cost) of raw material mixtures best suited to expected productivity
levels in each region.
Subsequently, was used the same procedure including ThermoPotash with 8% K2O at a price of
zero to determine the maximum product volume in NPK formulas. Based on the formula
compositions obtained by the model, we estimated a price for ThermoPotash so that the cost of
the differentiated formula was identical to the traditional formula. This allows us to calculate the
average quantity of ThermoPotash per ton of fertilizer and by applying this to the planted area
for each crop; we were able to estimate potential demand for ThermoPotash in the main fertilizer
formulas used in each state.
The raw materials were priced at market value for September/2010, based on an AgroConsult
survey. In this case, the product cost at each mixing center also took into account domestic
shipping as well as breakage and inventory costs. The exchange rate used was 1.8 BRL/US
dollars.
17.3.3 Determining the crop portfolio and formulas
The project took into account the fertilizer technology for the following groups of crops:
Major Crops
These crops are present around 97% of the market and include pasture, soybeans,
summer corn and second crop corn, rice (dry and irrigated), beans (3 types), wheat,
reforestation, sugarcane, cotton, coffee and potatoes (three crops); and
Other crops
These crops represent 3% of the market and include bananas, cocoa, grapes, avocados,
pineapples, ramie, sisal, figs, pears, apples, melons, watermelons, strawberries, guava,
guaran, mango, passion fruit, cashew, coconuts, peanuts, other fruits, vegetables and
fibers, sunflowers, sorghum and tobacco.

December 13, 2010

17-10
The survey looked at the fertilizer technology adopted in each state based on the fertilizer system
used. We analyzed the main formulas and dosages used to adequately fertilize in line with
productivity expectations, for each crop (Table 17.3.3.1).
In each region, we looked at the six main formulas used for each crop, the proportional
relationship between the formulas and optimization of each formula in relation to its raw material
composition.
Table 17.3.3.1: Example of fertilizing System Adopted for Each Crop Analyzed.
COTTON
SOYBEAN SUGAR CANE
Frmula NPK Frmula NPK
05.20.15
08.25.15
05.25.15
08.28.16
20.00.20
36.00.12
00.20.20
02.20.18
00.18.18
00.20.10
02.20.10
00.20.18
CORN
CORN (WINTER) RICE (DRY) RICE (IRR)
Frmula NPK
Frmula NPK
Frmula NPK
Frmula NPK
Frmula NPK
05.25.25
20.05.20
14.07.28
15.05.15
20.00.20
36.00.12
08.16.16
08.20.20
08.25.15
06.30.15
20.00.20
36.00.12
08.16.16
08.25.15
12.15.15
08.20.20
20.00.20
36.00.12
04.20.20
04.20.15
04.22.15
04.25.15
20.00.20
36.00.12
04.20.20
04.20.15
05.25.15
04.25.15
20.00.20
36.00.12
Source: AgroConsult.
17.3.4 Formula optimization process
The optimization model, structured by linear programming, takes into account:
List of the main raw materials available at mixing centers;
Raw material nutrient levels;
Chemical incompatibility between raw materials;
Nutrient supplies (primary, secondary and micronutrients);
Lowest cost; and
Market price system. For nitrogenous fertilizer and potash prices, imported raw materials
were taken into account. For phosphates, imported and domestic prices for used, given
the level of supply in the Minas Gerais and Catalo, GO regions.
The formulas were optimized using the following criteria:
Conventional formula not including ThermoPotash;
The same formula using ThermoPotash at zero price, in order to determine the maximum
volume of the product in the composition;
A likely end price for ThermoPotash was determined so that the formula including
ThermoPotash cost the same as the formula without ThermoPotash; and
We then determined the average dose of ThermoPotash per ton and per crop.
For raw material prices; the price composition in each mixing center was calculated based on
raw material cost, transport value and breakage and inventory expenses. As an example, the
prices from the Uberaba center are shown below. The exchange rate used was 1.8 BRL/US
dollars.

December 13, 2010

17-11
Table 17.3.4.1: Price Composition of Raw Materials at the Uberaba Center.

Blender
Raw material
Origin
URIA
SAM GR
Nitrato de Amnio
MAP GR
TSP GR
SSP GR
KCL GR
Uberaba
Raw material
Cost
Importada
Importada
Fosfertil
Fosfertil
Fosfertil
BPI - Cubato
Importada
Freight
(domestic)
310,00
209,82
506,00
403,68
247,35
226,00
462,80
Cost at
Factory
51,35
42,11
3,46
3,46
3,46
3,46
42,11
Break
(%)
361,35
251,93
509,46
407,14
250,81
229,46
504,91
Storage
(%)
1,00
1,00
0,50
0,50
0,50
0,50
0,50
Total
Cost
0,4
1,6
0,4
0,4
0,4
0,4
1,6
366,42
258,52
514,06
410,81
253,07
231,53
515,55
Source: Survey data

The N, P and K levels in the raw materials used during optimization are listed in Table 17.3.4.2.
Table 17.3.4.2: Raw Material Nutrient Levels
Element
SAM
Urea
NAM
TermK
20,0%
46,0%
34,5%
0,0%
SSP
STP
20,0%
46,0%
MAP
DAP
10,5%
16,0%
54,0%
45,0%
8,0%
KCl
60,0%
Source: Survey data

The levels of K2O, CaO, SiO2, MgO and S, as well as the status of each of the three products
evaluated are listed in Table 17.3.4.3.
Table 17.3.4.3: Content Used and Status of Products Evaluated
Content (%)
Elements
Product 01
Product 02
Product 03
K2O
8,00%
8,00%
8,00%
CaO
30,00%
19,50%
30,00%
SiO2
40,00%
32,70%
40,00%
MgO
2,30%
8,60%
2,30%
S
Status
10,00%
Product used in the study
Product with Ca and Mg
Product undergoing
included in balancing
technological development
Source: Survey data

17.3.5 ThermoPotash Pricing Process
After conducting the optimization process, the model provides us with the demand for
ThermoPotash and the product price, so that the differentiated formula costs the same as the
traditional formula.
Based on these prices, AgroConsult calculated a weighted ThermoPotash price for each of the
crops based on proportion of each of the formulas in the fertilizing system. Then, in order to
reach an average price per mixing center, the ThermoPotash benchmark price for each of the
December 13, 2010

17-12
crops was weighted in accordance with the relevant demand potential. The assumption that
formula costs would be the same was applied during this stage.
However, the average weighted price obtained reflects individual prices per crop. Consequently,
the price would exceed the maximum price for some crops and the product would be too
expensive. Therefore, the price was realigned to cater to 95% of the potential market. In this
case, the resulting price is the potential price for ThermoPotash at the mixing center.
Then, discounting transport and ICMS costs, we obtained an adjusted ThermoPotash price at
source (So Gotardo-MG).
17.3.6 Process to determine the potential market for ThermoPotash
Was calculated the potential market for ThermoPotash for each of the crops and the results were
then added together to calculate the potential in each state.
In this calculation, the data was based on 2010 fertilizer demand for each crop in each state.
Then, based on frequent market surveys carried out by AgroConsult, we defined the market share
of each of the six formulas selected during the fertilizer process, totaling 100%. This is how we
obtained the fertilizer volume used in each of the formulas.
Based on the proportion of ThermoPotash in each of these formulas (1000kg), obtained using the
optimization process, we calculated the ThermoPotash potential for each formula. In this case,
we multiplied the proportion of ThermoPotash by the volume of fertilizer in each of the
formulas.
Total ThermoPotash potential for each of the six formulas provides us with the potential market
for each crop. Market potential by state is obtained by adding together the results from each crop.
17.4 Contracts
Amazon does not yet have any contracts in place at the time of this report.
17.5 Environmental Considerations

17.5.1 Remediation
With the completion of this Scoping Study, Amazon will formalize reliable information of the
project and have elements to start the preparation of the necessary reports for obtaining the
environmental permits.
The selection of companies qualified and specialized in making those reports, with experience
and commitment to the observance of legal standards and best practices for implementing this
will mitigate the risk of future remediation costs.
17.5.2 Reclamation
It is difficult to determine the exact amounts which will be required to complete all land
reclamation activities in connection with Cerrado Verde Project.
The project is in an exploration phase and the reclamation bonds and other forms of financial
assurance represent only a portion of the total amount of money that will be spent on reclamation
activities over the life of a potential mine. Accordingly, it may be necessary to make a complete
planned expenditures and operating plans in order to fund reclamation activities.

December 13, 2010

17-13
As the Cerrado Verde Project seems to have a good recoverability, it appear won`t going to have
the usual potential future liability for cleanup of tailings deposited on the expected future mining
license areas and reprocessing. It is not possible to quantify at this time what the potential
liability may be and detailed assessments need to be made to determine future land reclamation
costs.
As Cerrado Verde Project is in the exploration stage, it still doesn`t have a final Mine Plan of
Operations and the conceptual level closure plan for the property, and consequently no
reclamation and closure cost estimate budget.
17.6 Taxes and Royalties

In Brazil, the DNPM, Brazils Department of Mines and Energy, monitors exploration, mining,
and mineral processing. This body also administers mineral exploration licenses and mining
concessions. Mineral exploration licenses are issued by DNPM and mining concessions by the
Ministry of Mining and Energy.
Exploration licenses are granted for a maximum period of three years. As prerequisite, the
requestor should provide all requirements and the area of interest does not overlap with an
existing license. There is an annual fee of R$2.02 per hectare during the initial period. It is
possible to request for an extension, situation that increase this annual tax (TAH) to R$3.06
during this extension period. Those values are in force since March 2010, before that it was
respectively R$1.90 and R$2.87. That mineral rights tax should to be paid to the Brazilian
government. Exploration licenses can be extended for a second period no longer than three years.
DNPM has the discretion of the whether requested renewal.
Until the final expiry date of the exploration license, concessions can be applied for following a
final exploration report. This one should be submitted to, and approved by the DNPM. The
report must conclude and demonstrate that an economic mineral resource has been delineated
and measured. Done the protocol of this report in the DNPM, a mining plan and feasibility study
must be presented within a year. A license of installation and a license of operations are then
issued by the applicable environmental agency as a prerequisite to the granting of the mining
concession. A mining concession is granted for a period covering the mine life until the mineral
reserves of the deposit are exhausted. A mining concession does not convey title to a mineral
deposit but provides the holder with the right to extract, process, and sell minerals extracted from
the deposit in accordance with a plan approved by the DNPM and environmental authorities.
A mining concession leads a royalty payment to the federal government. It is the Financial
Compensation for the Exploitation of Mineral Resources ("CFEM"), which is established at 2%
of the net sales of fertilizers. There is also a royalty to the landowner, if the surface rights do not
belong to the mining titleholder that is the case of the Cerrado Verde Project. This royalty
amounts to 50% of CFEM. However, it is common practice to negotiate a separate compensation
agreement, if this amount may not be sufficient for the land owner. Surface rights in Brazil are
distinct from mining rights and must be acquired separately. The land owner has no title to the
sub soil or minerals contained therein. The Brazilian mining code provides for some form of
expropriation of privately held surface rights subject to fair compensation. The holder of a
mineral right is entitled to use the surface to conduct mining operations, including the
construction of facilities required for such operations. The access to the land and reclamation of
disturbed areas must be negotiated with each individual surface right holder. However, the
landowners are obliged by law to provide access to the mineral license holder to conduct
December 13, 2010

17-14
exploration. If an agreement cannot be reached by negotiation there are legal mechanisms in

place to allow courts to lead an arrangement.
17.7 Capital Costs

Total capital costs are estimated at US$155.3 million for the 1.1Mtpa production rate and
US$218.4 million for the 2.2Mtpa production rate. A detailed breakdown of the capital cost
estimates is given in Table 17.7.1 and 17.7.2 respectively.
Table 17.7.1: Summary Capital Cost by Facility in Reals and United States Dollars,
Including Applicable Taxes for a 1.1Mtpa Operation.
SUB-AREA
TOTAL PRICE R$
WITH TAXES
TOTAL PRICE US$

WITH TAXES
TOTAL
R$
279.543.978 $
155.302.210,13
GENERAL AREA
R$
57.447.856 $
31.915.475,69
PRIMARY CRUSHING
R$
3.173.281
1.762.933,98
SECONDARY CRUSHING
R$
5.253.264
2.918.479,94
STOCKPILE
R$
736.784
409.324,41
LIMESTONE STORAGE AND DOSING
R$
7.690.929
4.272.738,15
GRINDING
R$
11.620.931 $
6.456.072,77
PELLETIZING
R$
28.489.885 $
15.827.713,80
FURNANCE
R$
69.781.689 $
38.767.604,79
QUENCHING
R$
6.275.951
3.486.639,53
PELLETS CLASSIFICATION
R$
5.560.736
3.089.297,61
BULK PRODUCT CLASSIFICATION, STORAGE, LOADING AND SHIPPING
R$
4.294.871
2.386.039,33
RAW WATER INTAKE
R$
9.935.681
5.519.822,82
FIRE FIGHTING
R$
3.990.304
2.216.835,66
COMPRESSED AIR
R$
6.702.326
3.723.514,42
ELECTRICAL SUBSTATIONS
R$
33.254.260 $
18.474.589,02
MAIN SUBSTATION AND TRANSMISSION LINE
R$
25.335.231 $
14.075.128,22
*Exchange Rate is R$1.80=USD1

December 13, 2010

17-15
Table 17.7.2 Summary Capital Cost by Facility in Reals and United States Dollars,
Including Applicable Taxes for a 2.2Mtpa Operation
SUB-AREA
TOTAL PRICE R$
WITH TAXES
TOTAL PRICE US$

WITH TAXES
TOTAL
R$
393.131.419 $
218.406.343,99
GENERAL AREA
R$
57.447.856
31.915.475,69
PRIMARY CRUSHING
R$
6.204.209
3.446.782,66
SECONDARY CRUSHING
R$
8.909.651
4.949.805,99
STOCKPILE
R$
1.964.757
1.091.531,76
LIMESTONE STORAGE AND DOSING
R$
9.530.640
5.294.799,89
GRINDING
R$
20.010.070
11.116.705,68
PELLETIZING
R$
40.138.484
22.299.157,64
FURNANCE
R$
139.563.377 $
77.535.209,58
QUENCHING
R$
12.551.902
6.973.279,06
PELLETS CLASSIFICATION
R$
8.119.356
4.510.753,57
BULK PRODUCT CLASSIFICATION, STORAGE, LOADING AND SHIPPING
R$
4.294.871
2.386.039,33
RAW WATER INTAKE
R$
9.935.681
5.519.822,82
FIRE FIGHTING
R$
3.990.304
2.216.835,66
COMPRESSED AIR
R$
6.702.326
3.723.514,42
ELECTRICAL SUBSTATIONS
R$
38.432.704
21.351.502,03
MAIN SUBSTATION AND TRANSMISSION LINE
R$
25.335.231
14.075.128,22
Thus it is projected that a capital cost of US$155,302,210 will be required in order to construct
an operation with a production rate of 1,170,000t/y of Verdete fertilizer. This equates to a unit
cost of $133 per annual tonne. For the 2.2Mtpa operation the overall capital cost is projected to
be US$218,406,343 and this equates to a unit cost of $187 per annual tonne.
17.7.1 Payback
For the 1.1Mtpa pellet production rate, project payback occurs in Year 3. For the 2.2Mtpa
production rate project payback occurs in Year 2.
17.8 Operating Costs

For the 1.1Mtpa pellet production rate, operating costs are estimated at US$41.80/t of pellets
produced, inclusive of General and Administrative costs. A summary breakdown of operating
costs is presented in Table 17.8.1. For the 2.2Mtpa production rate operating costs are estimated
at US$36.36/t of pellets produced, inclusive of G&A costs. A detailed breakdown of operating
costs is presented in Table 17.8.2. It should be noted this operating cost relates to a fertilizer
containing approximately 8 to 10% K2O.

December 13, 2010

17-16
Table 17.8.1: Summary of Operational Costs, 1.1Mtpa using Petroleum Coke

OPERATIONAL COSTS RESUME
ANNUAL PRODUCTION OF PELLETS (DRY BASIS)
1,111,968
tones
TOTAL/
YEAR (USD)
8,317,150
USD/tonnes pellets
20.3%
7.48
12,196,664
29.7%
10.97
2,524,500
6.1%
2.27
88,495
0.2%
0.08
PARTS / MAINTENANCE MATERIAL
1,996,158
4.9%
1.80
TOTAL COSTS VARIABLES (USD)
25,122,966
61.2%
22.59
OWN WORK FORCE (USD)
9,823,307
23.9%
8.83
MINE (USD)
6,120,000
14.9%
5.50
TOTAL OPERATIONAL COSTS (USD)
41,066,274
100%
36.93
TOTAL OPERATIONAL COSTS (R$)
73,919,292
100%
66.48
ITEM
ELECTRIC POWER
PETCOKE
LIMESTONE
WEAR MATERIAL

December 13, 2010

17-17
Table 17.8.2: Summary of Operational Costs, 2.2Mtpa using Petroleum Coke

OPERATIONAL COSTS RESUME
ANNUAL PRODUCTION OF PELLETS (DRY BASIS)
ITEM
2,223,158 tones
%
USD/tones pellets
TOTAL COSTS VARIABLES (USD)
16,093,943
24,377,809
7,574,850
165,782
3,364,935
51,577,319
22.6%
34.2%
10.6%
0.2%
4.7%
72.3%
7.24
10.97
3.41
0.07
1.51
23.20
OWN WORK FORCE (USD)
11,765,783
16.5%
5.29
7,988,000
11.2%
3.59
71,331,102
100%
32.09
128,395,983
100%
57.75
TOTAL/ YEAR (USD)
ELECTRIC POWER
PETCOKE
LIMESTONE
WEAR MATERIAL
PARTS / MAINTENANCE MATERIAL
MINE (USD)
TOTAL OPERATIONAL COSTS (USD)
TOTAL OPERATIONAL COSTS (R$)
17.9 Economic Analysis

The indicative economics for the 1.1Mtpa and 2.2Mtpa production rates are presented in Table
17.9.1. This clearly demonstrates the encouraging economics for the Cerrado Verde Projects
based on the scoping study concepts, cost projections and price assumptions as presented in this
PEA.
However, readers are cautioned that this analysis is only a preliminary assessment based on
conceptual mine plans and process flowsheets and inferred mineral resources, which are
considered to be highly speculative geologically. Since there is no estimate of proven or
probable reserves for the Cerrado Verde Potash Project, this assessment cannot include cash flow
forecasts on an annual basis.
Table 17.9.1: Indicative Economics
Production Rate
NPV (10%)
NPV (12%)
IRR
Opex
Initial Capex
Contingency (15%)
Pre-construction
Total Capex
Payback
1.1Mtpy
US$445.5M
US$331.6M
32.7%
US$41.80/t
US$155.3M
US$23.3M
US$18.2M
US$196.8M
2.38yrs
2.2Mtpy
US$844.1M
US$642.0M
40.0%
US$36.36
US$218.4M
US$32.8M
US$18.2M
US$269.4M
1.87yrs
*Note: The above figures include a sustaining capital provision of 2% per annum of direct capital costs commencing in year 4.

December 13, 2010

17-18
17.9.1 Sensitivity
The Cerrado Verde Project is most sensitive to the received ThermoPotash product price.
Table 17.9.1.1: Sensitivity Analysis
Certainty level of 90%
Simulation
Rate
Opex
Capex
Sales Price
IRR range
NPV range (US$)
Sim_1
12%
-10% +10%
-10% +30%
-10% +10%
27,76% to
35,26%
281.158.506 to
380.386.904
Sim_3
12%
-10% +10%
-10% +30%
-30% +10%
23,07% to
34,50%
181.936.696 to
370.319.268
Sim_4
12%
-1% +50%
-10% +30%
-10% +10%
25,86% to
34,02%
239.926.212 to
359.530.634
17.9.2 Mine Life

Given the extensive resource base available; albeit all of which is in the inferred category, a mine
life of 40 years has been assumed for both the 1.1Mtpa and 2.2Mtpa production rates.

December 13, 2010
*Map image not to scale. For illustrative purposes only.

Preliminary Pit Design

Date: 12-10-10
Approved: BS
Figure: 17-1

18-1
18 Interpretation and Conclusions (Item 21)

The pertinent observations and interpretations which have been developed in producing this
report are detailed in the sections above.

December 13, 2010

19-1
19 Recommendations (Items 22)

19.1 Recommended Work Programs
19.1.1 Resources
The current resource estimate confidence can be improved by:
Undertaking additional Bulk Density measurements on diamond core downhole and

across the deposit;
Improve the current surface topography;
Improve current internal quality control procedures;
Additional drilling (core drilling) should be completed to collaborate grades within the
weathered and un-weathered zones. The spacing of the drilling should conform to the
size of the block model used for resource estimate, giving both down dip information as
well as vertical constraints on the ore horizons;
Structural interpretations from the core holes will help in detailed mine planning as well
as defining grade boundries and controls within the deposit; and
A mineralogical study of the Gluaconite may indicate varying amounts of K2O across the
slate and further define areas of higher grade.
19.1.2 Metallurgical
It has to be confirmed at what level, if any, will contamination of the Thermo-K product by
residual fuel components, particularly petroleum hydrocarbons, make the product unusable or
limited in application across the agricultural industry. If this is the case, then a gas- or indirect
dead roaster-fired solution is possible, the latter having the advantage of giving flexibility for
low cost alternative fuel utilization. Due to the high temperatures (above 1100oC) it is unlikely
that any residual fuel will be present.
The rate of water solubilization of nutrients from the calcined product needs to be established
through rinse tests simulating the quench step post calcining and long term exposure to meteoric
rinsing.
19.1.3 Mining
To accurately predict grade and quality of plant feedstock provided by the mine, a more
complete understanding of the resource is required. In particular, the effect of K2O grade and
mass yield calculations will effect what part of the mine is mined when and in what quantities.
With a detailed infill drill program, continuation of metallurgical testing and further engineering
studies SRK recommends additional work be dedicated to the effect of mine dilution, possible
effect of deleterious elements, construction of mining costs from first principles, RoM
production targets, waste dump design and haul profiles for contractor estimation. This can be
included as part pre-feasibility study and will be required for any reserve generation in the future.
Given the course nature of the resource model, the ability to sensitize or understand potential
challenges to future mining operations is difficult to quantify. With a more refined and detailed

December 13, 2010

19-2
block model containing lithology, grade and product distribution, the confirmation that the mine
will produce the appropriate process plant feedstock can be verified and accurately costed.
19.1.4 Costs
SRK recommends that the Project be advanced to the prefeasibility level of evaluation and
design. The cost estimate for the recommended work program is shown in Table 19.1.4.1.
Table 19.1.4.1: Recommended Prefeasibility Work Program Cost Estimate (US$000s)
Description
Infill Drilling
Metallurgical Testwork
Engineering Studies
Site Investigations
Environmental Baseline
Other
Total

Cost
500
1,500
500
1,000
500
1,000
5,000
December 13, 2010

20-1
20 References (Item 23)

(Coffey)
Jose Valarelli et al - 1992 - Ardosias "Verdete" de CEdro do Abaete na Producao de
Termofosfato Potassico Fundido e sua Eficiencia Agronomica.
Persio Mandetta 2009 - Planejamento de Sondagem Exploratoria.
Luis A.M Da Costa et al, Sept 2008 - Potential of Potassium-Bearing Rock of the Cedro do
Abaete Region, State of Minas Gerais, Brazil.
http://en.wikipedia.org/wiki/Glauconite.
http://en.wikipedia.org/wiki/Kriging#Ordinary kriging.
COSTA-FILHO, P. L. D. R., 2007. Estudo preliminar da vegetao da parte do mdio curso do
Rio Indai (MG) utilizando imagem ASTER. Anais XIII Simpsio Brasileiro de Sensoriamento
Remoto, Florianpolis, Brasil, 21-26 abril 2007, INPE, p. 1631-1638.
LIMA, O. N. B., 2005. Grupo Bambu: Estratigrafia regional no Alto Rio So Francisco e
geologia dos depsitos fosfticos da Serra da Saudade - MG. Dissertao de Mestrado, Instituto
de Geocincias, Universidade Federal de Minas Gerais, 142 p.
ECM 2010 General Project Description for Scoping Study. Report to AMAZON PESQUISA
MINERAL E MINERAO LTDA. 59p.
Agroconsult 2010 Price and competitiveness survey for introducing ThermoPotash on the
Brazilian fertilizer market Verde Fertilizantes. Agroconsult Industry Surveys November 2010.
198p.
Coffey Mining, Cerrado Verde Potash Project, Brazil, Technical Report to Amazon Mining
Holding Plc, March 2010.

December 13, 2010

21-1
21 Glossary
21.1 Mineral Resources
The mineral resources and mineral reserves have been classified according to the CIM
Standards on Mineral Resources and Reserves: Definitions and Guidelines (December 2005).
Accordingly, the Resources have been classified as Measured, Indicated or Inferred, the
Reserves have been classified as Proven, and Probable based on the Measured and Indicated
Resources as defined below.
A Mineral Resource is a concentration or occurrence of natural, solid, inorganic or fossilized
organic material in or on the Earths crust in such form and quantity and of such a grade or
quality that it has reasonable prospects for economic extraction. The location, quantity, grade,
geological characteristics and continuity of a Mineral Resource are known, estimated or
interpreted from specific geological evidence and knowledge.
An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade
or quality can be estimated on the basis of geological evidence and limited sampling and
reasonably assumed, but not verified, geological and grade continuity. The estimate is based on
limited information and sampling gathered through appropriate techniques from locations such
as outcrops, trenches, pits, workings and drillholes.
An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or
quality, densities, shape and physical characteristics can be estimated with a level of confidence
sufficient to allow the appropriate application of technical and economic parameters, to support
mine planning and evaluation of the economic viability of the deposit. The estimate is based on
detailed and reliable exploration and testing information gathered through appropriate techniques
from locations such as outcrops, trenches, pits, workings and drillholes that are spaced closely
enough for geological and grade continuity to be reasonably assumed.
A Measured Mineral Resource is that part of a Mineral Resource for which quantity, grade or
quality, densities, shape, physical characteristics are so well established that they can be
estimated with confidence sufficient to allow the appropriate application of technical and
economic parameters, to support production planning and evaluation of the economic viability of
the deposit. The estimate is based on detailed and reliable exploration, sampling and testing
information gathered through appropriate techniques from locations such as outcrops, trenches,
pits, workings and drillholes that are spaced closely enough to confirm both geological and grade
continuity.
21.2 Mineral Reserves

A Mineral Reserve is the economically mineable part of a Measured or Indicated Mineral
Resource demonstrated by at least a Preliminary Feasibility Study. This Study must include
adequate information on mining, processing, metallurgical, economic and other relevant factors
that demonstrate, at the time of reporting, that economic extraction can be justified. A Mineral
Reserve includes diluting materials and allowances for losses that may occur when the material
is mined.
A Probable Mineral Reserve is the economically mineable part of an Indicated, and in some
circumstances a Measured Mineral Resource demonstrated by at least a Preliminary Feasibility
Study. This Study must include adequate information on mining, processing, metallurgical,
December 13, 2010

21-2
economic, and other relevant factors that demonstrate, at the time of reporting, that economic
extraction can be justified.
A Proven Mineral Reserve is the economically mineable part of a Measured Mineral Resource
demonstrated by at least a Preliminary Feasibility Study. This Study must include adequate
information on mining, processing, metallurgical, economic, and other relevant factors that
demonstrate, at the time of reporting, that economic extraction is justified.
21.3 Glossary
The following general mining terms may be used in this report.
Table 21.3.1: Glossary
Term
Assay:
Capital Expenditure:
Composite:
Concentrate:
Crushing:
Cut-off Grade
(CoG):
Dilution:
Dip:
Fault:
Footwall:
Gangue:
Grade:
Hangingwall:
Haulage:
Hydrocyclone:
Igneous:
Kriging:
Level:
Lithological:
LoM Plans:
LRP:
Material Properties:
Milling:
Mineral/Mining
Lease:
Mining Assets:
Ongoing Capital:
Ore Reserve:
Pillar:
RoM:
Sedimentary:
Shaft:
Definition
The chemical analysis of mineral samples to determine the metal content.
All other expenditures not classified as operating costs.
Combining more than one sample result to give an average result over a larger distance.
A metal-rich product resulting from a mineral enrichment process such as gravity
concentration or flotation, in which most of the desired mineral has been separated from
the waste material in the ore.
Initial process of reducing ore particle size to render it more amenable for further
processing.
The grade of mineralized rock, which determines as to whether or not it is economic to
recover its gold content by further concentration.
Waste, which is unavoidably mined with ore.
Angle of inclination of a geological feature/rock from the horizontal.
The surface of a fracture along which movement has occurred.
The underlying side of an orebody or stope.
Non-valuable components of the ore.
The measure of concentration of gold within mineralized rock.
The overlying side of an orebody or slope.
A horizontal underground excavation which is used to transport mined ore.
A process whereby material is graded according to size by exploiting centrifugal forces of
particulate materials.
Primary crystalline rock formed by the solidification of magma.
An interpolation method of assigning values from samples to blocks that minimizes the
estimation error.
Horizontal tunnel the primary purpose is the transportation of personnel and materials.
Geological description pertaining to different rock types.
Life-of-Mine plans.
Long Range Plan.
Mine properties.
A general term used to describe the process in which the ore is crushed and ground and
subjected to physical or chemical treatment to extract the valuable metals to a concentrate
or finished product.
A lease area for which mineral rights are held.
The Material Properties and Significant Exploration Properties.
Capital estimates of a routine nature, which is necessary for sustaining operations.
See Mineral Reserve.
Rock left behind to help support the excavations in an underground mine.
Run-of-Mine.
Pertaining to rocks formed by the accumulation of sediments, formed by the erosion of
other rocks.
An opening cut downwards from the surface for transporting personnel, equipment,

December 13, 2010

Term
Sill:
Smelting:
Stope:
Stratigraphy:
Strike:
Sulfide:
Tailings:
Thickening:
Total Expenditure:
Unweathered
Variogram
Weathered
21-3
Definition
supplies, ore and waste.
A thin, tabular, horizontal to sub-horizontal body of igneous rock formed by the injection
of magma into planar zones of weakness.
A high temperature pyrometallurgical operation conducted in a furnace, in which the
valuable metal is collected to a molten matte or dor phase and separated from the gangue
components that accumulate in a less dense molten slag phase.
Underground void created by mining.
The study of stratified rocks in terms of time and space.
Direction of line formed by the intersection of strata surfaces with the horizontal plane,
always perpendicular to the dip direction.
A sulfur bearing mineral.
Finely ground waste rock from which valuable minerals or metals have been extracted.
The process of concentrating solid particles in suspension.
All expenditures including those of an operating and capital nature.
Fresh rock or protolith that has not been subject to physical or chemical changes as a
result of surface processes.
A statistical representation of the characteristics (usually grade).
Material has been influenced by surface geochemical and physical processes that have
resulted in removal of some potassium and other leachable salts.
Abbreviations
The following abbreviations may be used in this report.
Table 21.3.2: Abbreviations
Abbreviation
A
AA
A/m2
ANFO
Ag
Au
AuEq
C
CCD
CIL
CoG
cm
cm2
cm3
cfm
ConfC
CRec
CSS
CTW
dia.
EIS
EMP
FA
ft
ft2
ft3
Unit or Term
ampere
atomic absorption
amperes per square meter
ammonium nitrate fuel oil
silver
gold
gold equivalent grade
degrees Centigrade
counter-current decantation
carbon-in-leach
cut-off grade
centimeter
square centimeter
cubic centimeter
cubic feet per minute
confidence code
core recovery
closed-side setting
calculated true width
degree (degrees)
diameter
Environmental Impact Statement
Environmental Management Plan
fire assay
foot (feet)
square foot (feet)
cubic foot (feet)

December 13, 2010

Abbreviation
g
gal
g/L
g-mol
gpm
g/t
ha
HDPE
hp
HTW
ICP
ID2
ID3
IFC
ILS
K
kA
KCl
kg
km
km2
koz
kt
kt/d
kt/y
kV
kW
kWh
kWh/t
L
L/sec
L/sec/m
lb
LHD
LLDDP
LOI
LoM
m
m2
m3
masl
MARN
MDA
mg/L
Mm
mm2
mm3
MME
Moz
Mt
Mtpa
MTW
MW
m.y.
NGO
21-4
Unit or Term
gram
gallon
gram per liter
gram-mole
gallons per minute
grams per tonne
hectares
Height Density Polyethylene
horsepower
horizontal true width
induced couple plasma
inverse-distance squared
inverse-distance cubed
International Finance Corporation
Intermediate Leach Solution
Potassium
kiloamperes
potassium chloride, also known as muriate of potash
kilograms
kilometer
square kilometer
thousand troy ounce
thousand tonnes
thousand tonnes per day
thousand tonnes per year
kilovolt
kilowatt
kilowatt-hour
kilowatt-hour per metric tonne
liter
liters per second
liters per second per meter
pound
Long-Haul Dump truck
Linear Low Density Polyethylene Plastic
Loss On Ignition
Life-of-Mine
meter
square meter
cubic meter
meters above sea level
Ministry of the Environment and Natural Resources
Mine Development Associates
milligrams/liter
millimeter
square millimeter
cubic millimeter
Mine & Mill Engineering
million troy ounces
million tonnes
million tonnes per annum
measured true width
million watts
million years
non-governmental organization

December 13, 2010

Abbreviation
NI 43-101
OSC
oz
%
PLC
PLS
PMF
ppb
ppm
QA/QC
RC
RoM
RQD
SEC
sec
SG
SOP
SPT
st
t
t/h
t/d
t/y
TSF
TSP
m
V
VFD
W
wt
XRD
y
21-5
Unit or Term
Canadian National Instrument 43-101
Ontario Securities Commission
troy ounce
percent
Programmable Logic Controller
Pregnant Leach Solution
probable maximum flood
parts per billion
parts per million
Quality Assurance/Quality Control
rotary circulation drilling
Run-of-Mine
Rock Quality Description
U.S. Securities & Exchange Commission
second
specific gravity
sulphate of potash
standard penetration testing
short ton (2,000 pounds)
tonne (metric ton) (2,204.6 pounds)
tonnes per hour
tonnes per day
tonnes per year
tailings storage facility
total suspended particulates
micron or microns
volts
variable frequency drive
watt
weight
x-ray diffraction
year

December 13, 2010
Appendix A
Certificate of Author Forms

7175 West Jefferson Avenue, Suite 3000
Lakewood, CO
USA 80235
denver@srk.com
www.srk.com
Tel: 303.985.1333
Fax: 303.985.9947
CERTIFICATE OF AUTHOR
I, Neal Rigby, CEng, MIMMM, PhD, do hereby certify that:

1. I am Corporate Mining Engineer of:
7175 W. Jefferson Ave, Suite 3000
Denver, CO, USA, 80235
2. I graduated with a BSc degree in Mineral Exploitation with first class honors in 1974 and a PhD in
Mining Engineering in 1977 both from the University of Wales, UK.
3. I am a member of the Institute of Materials, Mining and Metallurgy.
4. I have worked as a Mining Engineer for a total of 36 years since my graduation from university.
5. I have read the definition of qualified person set out in National Instrument 43-101 (NI 43-101) and
certify that by reason of my education, affiliation with a professional association (as defined in NI 43101) and past relevant work experience, I fulfill the requirements to be a qualified person for the
purposes of NI 43-101.
6. I am responsible for the preparation of Sections 1, 2 ,3, 4, 13, 16, 17, 18, 20 and 21 of the technical
report titled NI 43-101 Preliminary Economic Assessment, Cerrado Verde Potash Project, Minas
Gerais, Brazil and dated December 13, 2010 (the Technical Report) relating to the Cerrado Verde
property. I have not visited the Cerrado Verde property.
7. I have not had prior involvement with the Cerrado Verde property that is the subject of the Technical
Report. .
8. I am independent of the issuer applying all of the tests in section 1.4 of National Instrument 43-101.
9. I have read NI 43-101 and Form 43-101F1, and the Technical Report has been prepared in
compliance with that instrument and form.
10. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority
and any publication by them for regulatory purposes, including electronic publication in the public
company files on their websites accessible by the public, of the Technical Report.1
Group Offices:
Canadian Offices:
U.S. Offices:
Africa
Asia
Australia
Europe
North America
South America
Saskatoon
Sudbury
Toronto
Vancouver
Yellowknife
Anchorage
Denver
Elko
Fort Collins
Reno
Tucson
306.955.4778
705.682.3270
416.601.1445
604.681.4196
867.445.8670
907.677.3520
303.985.1333
775.753.4151
970.407.8302
775.828.6800
520.544.3688
Page 2 of 2
11. As of the date of this certificate, to the best of my knowledge, information and belief, the Technical
Report contains all scientific and technical information that is required to be disclosed to make the
Technical Report not misleading.
1
If an issuer is using this certificate to accompany a technical report that it will file only with the
exchange, then the exchange recommends that this paragraph is included in the certificate.
Dated this 13th Day of December, 2010.
Signed by Neal Rigby

________________________________
Dr. Neal Rigby, CEng, MIMMM, PhD
Certificate_of_Author_NealRigby_CerradoVerdePEA_20101213.docx

Lakewood, CO
USA 80235
denver@srk.com
www.srk.com
Tel: 303.985.1333
Fax: 303.985.9947
I, Rob Bowell, Ph.D, C.Chem MRSC, C. Geol FGS, do hereby certify that:
1. I am Principal Geochemist of:
2. I graduated with a degree in Geochemistry/Geology, with Class 1 Honours from the University of
Manchester in 1987. In addition, I have obtained a Doctor of Philosophy from University of
Southampton in 1991.
3. I am a past President of the International Association of Applied Geochemists (2005-2009), VP
(2003-2004). Member of the International Mine Water Association, Geological Society of London,
Society of Economic Geology, Royal Society of Chemistry, Chartered Chemist, RSC (1997),
Chartered Geologist, GSL (2001), Chartered Professional European Geologist (2002), Accreditation
auditor, Cyanide code (2005), Visiting Research Associate, Division of materials and Minerals,
Cardiff University 1998 present, Aberystwyth University 2000-2006.
4. I have worked as a Geochemist for a total of 20 years since my graduation from university.
6. I am responsible for the preparation of Sections 14 and 19 of the technical report titled NI 43-101
Preliminary Economic Assessment, Cerrado Verde Potash Project, Minas Gerais, Brazil and dated
December 13, 2010 (the Technical Report) relating to the Cerrado Verde property. I have not
visited the Cerrado Verde property.
Report.
Group Offices:
Canadian Offices:
U.S. Offices:
Africa
Asia
Australia
Europe
North America
South America
Saskatoon
Sudbury
Toronto
Vancouver
Yellowknife
Anchorage
Denver
Elko
Fort Collins
Reno
Tucson
306.955.4778
705.682.3270
416.601.1445
604.681.4196
867.445.8670
907.677.3520
303.985.1333
775.753.4151
970.407.8302
775.828.6800
520.544.3688
Page 2 of 2
1
Signed by Rob Bowell

________________________________
Rob Bowell, PhD, C.Chem MRSC, C. Geol FGS
Certificate_of_Author_RobBowell_CerradoVerdePEA_20101213.docx

Lakewood, CO
USA 80235
denver@srk.com
www.srk.com
Tel: 303.985.1333
Fax: 303.985.9947
I, Bret Swanson, BE (Mining), MAusIMM #112411, do hereby certify that:

1. I am Senior Mining Engineer of:
2. I graduated with a degree in Bachelor of Engineering in Mining Engineering from the University of
Wollongong in 1997.
3. I am a current member of the Australian Institute of Mining and Metallurgy, #112411.
6. I am responsible for the preparation of Sections 17 and 18 of the technical report titled NI 43-101
Preliminary Economic Assessment, Cerrado Verde Potash Project, Minas Gerais, Brazil and dated
December 13, 2010 (the Technical Report) relating to the Cerrado Verde property. I did not visit
the Cerrado Verde property.
7. I have not had prior involvement with the Cerrado Verde that is the subject of the Technical Report.
Group Offices:
Canadian Offices:
U.S. Offices:
Africa
Asia
Australia
Europe
North America
South America
Saskatoon
Sudbury
Toronto
Vancouver
Yellowknife
Anchorage
Denver
Elko
Fort Collins
Reno
Tucson
306.955.4778
705.682.3270
416.601.1445
604.681.4196
867.445.8670
907.677.3520
303.985.1333
775.753.4151
970.407.8302
775.828.6800
520.544.3688
Page 2 of 2
1
Signed by Bret Swanson

________________________________
Bret Swanson, BE (Mining), MAusIMM
Certificate_of_Author_BretSwanson_CerradoVerdePEA_20101213.docx

Lakewood, CO
USA 80235
denver@srk.com
www.srk.com
Tel: 303.985.1333
Fax: 303.985.9947
I, Jerry Aiken, P.G., do hereby certify that:

1. I am a Senior Associate Geologist of:
2. I graduated with a degree in Geology, Geography and Secondary Education from Western Michigan
University in 1966. In addition, I have completed three semesters toward a Masters in Exploration
Geology with emphasis on base and precious metals and geochemistry at the University of Idaho
prior to entering the Army in June of 1968.
3. I am a Registered Geologist in the State of Washington, USA (#1283) and have been continuously
since 2002.
4. I have worked as a Geologist for a total of 35 years since my graduation from university.
6. I am responsible for the preparation of Sections 5, 6, 7, 8, 9, 10, 11, 12, 15, and 18 of the technical
report titled NI 43-101 Preliminary Economic Assessment, Cerrado Verde Potash Project, Minas
Gerais, Brazil and dated December 13, 2010 (the Technical Report) relating to the Cerrado Verde
property. I did not visit the Cerrado Verde property.
Report.
Group Offices:
Canadian Offices:
U.S. Offices:
Africa
Asia
Australia
Europe
North America
South America
Saskatoon
Sudbury
Toronto
Vancouver
Yellowknife
Anchorage
Denver
Elko
Fort Collins
Reno
Tucson
306.955.4778
705.682.3270
416.601.1445
604.681.4196
867.445.8670
907.677.3520
303.985.1333
775.753.4151
970.407.8302
775.828.6800
520.544.3688
Page 2 of 2
1
Signed by Jerry Aiken

________________________________
Jerry Aiken, P.G.
Certificate_of_Author_JerryAiken_CerradoVerdePEA_20101213.docx
Sealed by Jerry Aiken

Lakewood, CO
USA 80235
denver@srk.com
www.srk.com
Tel: 303.985.1333
Fax: 303.985.9947
I, Gielson A Coutinho, [Extension e.g. B.Sc., P.Eng.] do hereby certify that:

1. I am Principal Mining Engineer of:
SRK Consulting (Brazil),
6664 Contorno Ave, 9th Floor
Belo Horizone, MG, Brazil, CEP: 30.1 10-928
2. I graduated with a degree in BSc Minng Engineering from Engineering School of Federal University
of Minas Gerais in 1995.
3. I am a member of the CREA MG: 64208/D Registered in Brazil Regional Engineering Council,
MSAIMM Member of Southern African Institute of Mining and Metallurgy.
6. I visited the Cerrado Verde property on 11th and 12th of December, 2010 for two days.
Report. .
Group Offices:
Canadian Offices:
U.S. Offices:
Africa
Asia
Australia
Europe
North America
South America
Saskatoon
Sudbury
Toronto
Vancouver
Yellowknife
Anchorage
Denver
Elko
Fort Collins
Reno
Tucson
306.955.4778
705.682.3270
416.601.1445
604.681.4196
867.445.8670
907.677.3520
303.985.1333
775.753.4151
970.407.8302
775.828.6800
520.544.3688
Page 2 of 2
Signed by Gielson Coutinho

________________________________
Gielson A Coutinho
Certificate_of_Author_GielsonCoutinho_CerradoVerdePEA_20101213.docx
Sealed by Gielson Coutinho

Lakewood, CO
USA 80235
denver@srk.com
www.srk.com
Tel: 303.985.1333
Fax: 303.985.9947
I, Antonio Carlos Girodo, B.Sc. Mining Engineer do hereby certify that:

1. I am Senior Mining Engineer of:
SRK Consulting (Brazil),
6664 Contorno Ave, 9th Floor
Belo Horizone, MG, Brazil, CEP: 30.110-928
2. I graduated with a degree in BSc Mining Engineer USP from Plytechnic School of University of Sao
Paulo, Brazil, in 1966.
3. I am a member of the CREA SP 19.828/D Registered in Brazil Regional Engineering Council,
MSME Member of American Society of Mining Engineers, MAusIMM Member of Austalasian
Institute of Mining and Metallurgy.
6. I visited the Cerrado Verde property on 11th of December, 2010 for one day.
Report.
Group Offices:
Canadian Offices:
U.S. Offices:
Africa
Asia
Australia
Europe
North America
South America
Saskatoon
Sudbury
Toronto
Vancouver
Yellowknife
Anchorage
Denver
Elko
Fort Collins
Reno
Tucson
306.955.4778
705.682.3270
416.601.1445
604.681.4196
867.445.8670
907.677.3520
303.985.1333
775.753.4151
970.407.8302
775.828.6800
520.544.3688
Page 2 of 2
1
Signed by Antonio Carlos Girodo

________________________________
Antonio Carlos Girodo
Certificate_of_Author_Girodo_CerradoVerdePEA_20101213.docx
Item 24
Amazon Mining Holding Plc, NI 43-101 Preliminary Economic Assessment, Cerrado Verde
Project, Minas Gerais, Brazil, 1st of March, 2010.
Dated this 13th day of December, 2010

QP Signature
Signed
Dr. Neal Rigby, CEng, MIMMM, PhD
QP Signature
Signed
Bret Swanson, BE (Mining), MAusIMM #112411
QP Signature
Signed
Rob Bowell, Ph.D, C.Chem MRSC, C. Geol FGS
QP Signature
Signed
Jerry Aiken, P.G.
QP Signature
Signed
Gielson Coutinho, BSc Mining Engineer
QP Signature
Signed
Antonio Carlos Girodo, BSc Mining Engineer

43-101 Scoping Study

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43-101 Scoping Study

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NI 43-101 Preliminary Economic Assessment

Cerrado Verde Potash Project

7175 W. Jefferson Ave.

Effective Date: March 1, 2010

Endorsed by Qualified Persons:

Amazon Mining Holding Plc

INTRODUCTION (ITEM 4) ........................................................................................... 1-1

December 13, 2010

Amazon Mining Holding Plc

MINERALIZATION (ITEM 11)..................................................................................... 7-1

December 13, 2010

Amazon Mining Holding Plc

17.1.3 Pit Optimization Analysis ................................................................... 17-3

SRK Consulting (U.S.), Inc.

December 13, 2010

Amazon Mining Holding Plc

SRK Consulting (U.S.), Inc.

December 13, 2010

Amazon Mining Holding Plc

SRK Consulting (U.S.), Inc.

December 13, 2010

Amazon Mining Holding Plc

SRK Consulting (U.S.), Inc.

December 13, 2010

Amazon Mining Holding Plc

SRK Consulting (U.S.), Inc.

December 13, 2010

Amazon Mining Holding Plc

SRK Consulting (U.S.), Inc.

December 13, 2010

Amazon Mining Holding Plc

December 13, 2010

Amazon Mining Holding Plc

SRK Consulting (U.S.), Inc.

December 13, 2010

Amazon Mining Holding Plc

1.1 Terms of Reference and Purpose of the Report

Initially undertaken by Coffey Mining Pty (Coffey) and

Process and Infrastructure: ECM

1.2 Qualifications of Consultants

SRK Consulting (U.S.), Inc.

December 13, 2010

Amazon Mining Holding Plc

AgroConsult Consultoria & Marketing is a leading consulting company focused on agribusiness

Reliance on Other Experts (Item 5)

1.4 Effective Date

1.5 Units of Measure

SRK Consulting (U.S.), Inc.

December 13, 2010

Amazon Mining Holding Plc

Property Description and Location (Item 6)

2.1 Property Location

2.2 Mineral Titles

SRK Consulting (U.S.), Inc.

December 13, 2010

Amazon Mining Holding Plc

Table 2.2.1: Cerrado Verde Potash Project Tenement Schedule

Status of Mining Right

Exploration License valid until

FVS informed the existence of

FVS informed the existence of

FVS informed the existence of

FVS informed the existence of

FVS informed the existence of