Toronto-MBAC Fertilizer Corp. reports that its recent studies suggest that a near-shore potash solution mining operation off the Brazilian coast could be profitable. It said consultant AMEC Americas Ltd. concluded that the concept is technically valid based on current information and foresaw no “fatal flaws” preventing the Coastal Potash Project from advancing to the next stage – a pre-feasibility study in conjunction with a NI 43-101 report – once an appropriate ore deposit is identified. “We are excited about the results of this preliminary study,” said Antenor Silva, MBAC president and CEO. “The results warrant further geological studies using the public domain data available and geological modeling in the vicinity of sylvinite intersections identified within our claim areas. The long-term potential value of the Coastal Potash Project will complement our near-term focus on the Itafos phosphate project, which we expect to generate significant cash flow growth starting in 2012.” In the meantime, MBAC says it continues to advance its Itafos phosphate project. MBAC expects to have a feasibility study completed for Itafos in April 2010. MBAC is focused on becoming a significant integrated producer of phosphate and potash fertilizer in the Brazilian market. In October 2008, MBAC indirectly acquired all of Itafos Mineracao Ltda, which holds a 100 percent interest in the Itafos phosphate mine and related infrastructure (the Arraias-Campos Belos Project). MBAC says it has also recently expanded its property portfolio in Brazil with the acquisition of two potash exploration projects and one additional phosphate exploration project.
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