Harvest Minerals' initial resource at Sergi impresses
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12:41 24 Jul 2015
The resource paved the way for further work both at Sergi and at Capela, said Mirabaud.
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Mirabaud estimates a net present value of between US$350-US$408mln. Harvest Minerals’ (ASX:HMI) initial resource for the Sergi potash project in Brazil is a very positive development for the firm, according to broker Mirabaud.
Aussie-listed Harvest, which is due to dual-list on AIM shortly, said Sergi has an estimated JORC compliant inferred resource of 105.3Mt at a grade of 21.35% potassium chloride (KCI).
Based on the broker’s forecasts, and depending on the development route for Sergi, Mirabaud estimates a net present value of between US$350-US$408mln.
Further exploration could boost the resource by between 28-32Mt at 22-28% KCl, with drilling scheduled for early next year.
There are also plans to drill a second potash project at Capela and complete test work on phosphate project at Arapua in coming months.
Mirabaud said the resource paved the way for further work both at Sergi and at Capela.
“The plan is now once the dual listing is completed over the summer, to upgrade the resource and start the BFS at Sergi whilst carrying out initial drilling and a scoping study at Capela.
“If mineralisation is intersected at Capela, due to it being far shallower (at 250-330m depth) and closer to Taquari-Vassouras, it may take priority over Sergi.”
HMI Price at posting:
2.2¢ Sentiment: Buy Disclosure: Held
