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Focus Initiates Phase 2 Drilling at its Bayovar 12 Phosphate Project, Peru
April 14, 2015; Vancouver, Canada: Focus Ventures Ltd. (FCV.V “Focus” or the “Company”) is pleased to announce that its Phase 2 drill program has commenced at the Bayovar 12 phosphate project in northern Peru.
Approximately 40 vertical diamond drill holes will be drilled mainly in the eastern part of the original drill grid where the horizontal phosphate beds are closest to surface (for drill location map click link here). The main objective of the program is to increase the confidence category of the existing Inferred and Indicated Resources to Measured category, and expand the resource in the area of least cover in the eastern end of the drill grid. An updated NI 43-101 compliant mineral resource estimate will be incorporated into the Preliminary Economic Assessment study currently underway by a consortium of engineering companies.
The drilling will expand the drill grid to an area approximately 6.4km x 4km (2,500 hectares) within the western end of the 12,575 hectare concession, targeting phosphate beds within the lower part of the Diana Formation, a package of phosphate-bearing diatomites some 35 – 40m thick that are consistent in grade and continuous over long distances. These phosphate units are currently being mined at the Bayovar Mine, a joint venture between Vale, Mosaic and Mitsui, one of the biggest phosphate deposits in South America. The operation is located about 15km to the west of Bayovar 12.
Preliminary Economic Assessment (PEA)
Focus continues to progress on the PEA (see news release dated March 2, 2015) for mine development and conventional phosphate rock beneficiation. The PEA continues on schedule for release during 3Q 2015.
Bulk Samples
As part of the Focus’s ongoing investigation into early production of direct application phosphate rock (DAPR), several large-diameter holes will be drilled during the current drill program to obtain a bulk sample for process development. To that end, Focus has solicited bids from several engineering firms for the dry process test work.
In addition, permitting has begun for an exploration pit to access a bulk sample for advanced process testing and pilot studies for not only conventional phosphate rock production but also production of DAPR.
Background
The Company recently announced its purchase of an outright 70% interest in Juan Paulo Quay S.A.C., the title holder of the Bayovar 12 concession, for US$4 million, and the completion of the US$5 million loan facility from Sprott Resource Lending Partnership. Results of preliminary bench scale metallurgical testwork by Jacobs Engineering in Florida were positive (see news release dated March 2, 2015) and showed that the phosphate beds can be simply processed to concentrate grade via washing and flotation with no milling or grinding. Low levels of impurities make Bayovar 12 concentrates suitable for use in producing phosphoric acid and high analysis fertilizers such as DAP and MAP.
The current Bayovar 12 resource estimate in accordance with Canadian Securities Administrators’ National Instrument 43-101 was prepared by Golder Associates, under the supervision of Jerry DeWolfe, MSc. P.Geo, an Independent Qualified Person defined under National Instrument 43-101. The report provides detail on the Company’s maiden resource estimate announced September 8, 2014, which is summarized as follows:
Category | Million Tonnes Wet * | Million Tonnes Dry * | Grade (% P2O5) |
Indicated (61%) | 151.78 | 114.99 | 12.37 |
Inferred (39%) | 96.83 | 73.36 | 12.44 |
* In-Situ Resource, no minimum thickness applied. Wet Density: 1.65 g/cm3 Dry Density: 1.25 g/cm3 Dry tonnage resources are included in the wet tonnage resources. The independent estimate and report, based on Focus’ initial 20-hole drill program, was prepared by Golder Associates supervised by Jerry DeWolfe, MSc. P.Geo, and an Independent Qualified Person responsible under NI 43-101.
The resource estimate is based on 20 boreholes (2,027m) drilled over 650 ha of the 12,575 ha property, at drill spacings of 800m. The resources are distributed between 13 individual soft, free digging, horizontal phosphate beds hosted within the Diana Formation, a sequence of diatomites that begin as shallow as 26m below surface. The mineralization is open in all directions. The grades and widths of individual beds are very consistent, unaffected by faulting or structural features, and easily correlated across the deposit.
All holes were drilled vertically to between 80m - 110m depth targeting phosphate beds within the Diana Formation, a sequence of phosphoric diatomites and sandstones approximately 40 meters thick. The phosphate beds comprise up to 40% apatite pellets, ooliths and fossil debris consisting of mainly fish teeth, bones and scales representing the remains of marine organisms that accumulated on the sea floor.
Qualified Person
The scientific and technical information in this release was prepared under the supervision of David Cass, Focus’s President, who is a member of the Association of Professional Engineers and Geoscientists of British Columbia, and a Qualified Person in accordance with National Instrument 43-101.
About Focus
Focus is an exploration and development company with two main assets, both located in Peru.
The Aurora porphyry copper-molybdenum property located in the Department of Cusco, which it is developing in a joint venture with Daewoo International Corporation, and the Bayovar 12 Phosphate deposit located in the Sechura district of Northern Peru.
Phosphate rock is a raw material for fertilizers and vital to world food production. Focus is acquiring and developing quality phosphate projects in Latin America where the discovery and development of new deposits is becoming increasingly important given the growing demand and limited local supply of phosphate for fertilizer production. For further information, please call 604-630-5544 or visit our web site www.focusventuresltd.com.
ON BEHALF OF THE BOARD
David Cass, President
Symbol: TSXV-FCV
Shares Issued: 77.9-million
Contact: Ralph Rushton
Tel: (604) 630-5544; Fax: (604) 682-1514
Email: info@focusventuresltd.com
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking statements within the meaning of Canadian securities legislation. All statements included herein, other than statements of historical fact, are forward-looking statements and include, without limitation, statements about the Company’s intended exploration and development of the Bayovar 12 project. Often, but not always, these forward looking statements can be identified by the use of words such as “estimate”, “estimates”, “estimated”, “potential”, “open”, “future”, “assumed”, “projected”, “used”, “detailed”, “has been”, “gain”, “upgraded”, “offset”, “limited”, “contained”, “reflecting”, “containing”, “remaining”, “to be”, “periodically”, or statements that events, “could” or “should” occur or be achieved and similar expressions, including negative variations.
Forward-looking Statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any results, performance or achievements expressed or implied by forward-looking statements. Such uncertainties and factors include, among others, the Company’s ability to explore and develop the Bayovar 12 project as planned; changes in general economic conditions and financial markets; the Company or any joint venture partner not having the financial ability to meet its exploration and development goals; risks associated with the results of exploration and development activities, estimation of mineral resources and the geology, grade and continuity of mineral deposits; unanticipated costs and expenses; and such other risks detailed from time to time in the Company’s quarterly and annual filings with securities regulators and available under the Company’s profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to: that the Company’s stated goals and planned exploration and development activities for the Bayovar 12 project will be achieved; and that there will be no material adverse change affecting the Company or its properties; and such other assumptions as set out herein. Forward-looking statements are made as of the date hereof and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on forward-looking statements.
CAUTIONARY NOTE TO UNITED STATES INVESTORS
The Company is a Canadian “foreign private issuer” as defined in Rule 3b-4 under the U.S. Securities Exchange Act of 1934, as amended (the “U.S. Exchange Act”), which is permitted to prepare the technical information contained herein in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. The terms “mineral resource,” “measured resource,” “indicated resource” and “inferred resource” used in the Company’s disclosure are Canadian mining terms that are defined in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) Best Practice Guidelines for the Estimation of Mineral Resource and Mineral Reserves (the “CIM Standards”), adopted by the CIM Council on November 23, 2003. These terms, however, are not recognized by SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the United States Securities and Exchange Commission (the “SEC”). In particular, the term “resource” does not equate to the term “reserve”. Under U.S. standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made.
Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC Industry Guide 7 standards as in place tonnage and grade without reference to unit measures. The requirements of NI 43-101 for identification of “reserves” are also not the same as those of the SEC.
Accordingly, information contained in this news release containing descriptions of the Company’s mineral properties may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder.