Calcium Sulphate Extraction, World Class Potash Opportunity
Potential Demand for Calcium Sulphate over 600M Tonnes
Why Pan American Fertilizer?
- Location – Santiago Del Estero, Argentina
- Current Extraction – First sales in August 2011
- Goal – Be a major Supplier of Calcium Sulphate (CaSO4) to the South American fertilizer market
- Term on Property – PAF has secured mining rights for 20 years with the right to extend for another 20 years
- Asset Growth – Currently negotiating to acquire other relevant properties
- Cash investment to date – Over $3.0m
- De-Risked – Management team has already established permits for extraction and sales are already in progress
- Potential Demand - Potential Demand for Calcium Sulphate over 600M Tonnes
Agricultural gypsum is calcium sulphate dihydrate (CaSO4•2H2O). When dissolved in water, gypsum becomes calcium ions (Ca2+) and sulphate-sulfur ions (SO42-). Both of these ions are required nutrients for growing plants. In addition to being a major plant nutrient, calcium also plays a vital role in establishing and maintaining good chemical balance in soil, water and plants.
The core benefits of Agricultural Gypsum are:
- Ability to neutralize toxic aluminum,
- Best source of calcium and sulphate-sulfur,
- Soil conditioner,
- Improves root environment and promotes the development of deep roots,
- Promotes greater access to the volume of water and nutrients,
- Increases resistance to drought,
- Increases resistance to disease; and
- Increases productivity.
Already extracting for profit, our operation is strategically located in close proximity to the well-known “Nucleus Agricultural Zones” of South America where the majority of the continents’ important and dynamic agribusiness activity is located.
Location – Guasayan, Santiago Del Estero, Argentina
The Market Opportunity
Proposed Acquisition of:
Pacific Potash is engaged in the exploration and development of the Provost Potash Property and the surrounding potash claims targeting the Prairie Evaporite Formation. Pacific Potash also has an option to acquire up to an 80% interest in Western Potash
Corporation’s Amazonas Basin claims in Brazil.
Investment Highlights - Brazil
Amazonas Potash Basin
- The Brazilian Government plans to reduce Brazil’s reliance on potash imports from 91% to 60% over the next 5 years
- Soils in Brazil are deficient in potassium and require potash to remain productive
- The Amazonas potash basin is similar in geology and dimension to the Saskatchewan potash basin in Canada
- The claims are situated close to a primary market: Brazil is the 2nd largest importer and 3rd largest user of potash in the world
Two deposits owned by Petrobras—Arari and Fazendinha—are located 20 and 40 km west of the property being optioned by Pacific Potash. These two deposits have reported historic resources as follows*:
Fazendinha – 520 Mt @ 28.8% KCl
Arari – 659 Mt @ 17.7% KCl
- 80:20 Joint Venture
- On execution of the option agreement, Pacific Potash Corp will earn an 80:20 joint venture division with Western Potash Corp.
Investment Highlights - Alberta
Provost Potash Property
- Two 100%-owned MAIM permits totaing 17,781 hectares of land, located 250 km southeast of Edmonton and 45 km west of the historic Unity Potash Mine
- Exceptional infrastructure (access to water, paved roads, services lines, railway, workforce)
- Alberta was ranked the No. 1 jurisdiction for Mining and Exploration by the Fraser Institute in 2011
- The Alberta Department of Energy (Mineral Development Division) advised that potash royalty would be similar to salt at $.045/tonne compared to Saskatchewan’s $6.00/tonne
- 50:50 Joint Venture Twenty-four MAIM permits totaling 213,269 hectares, owned in a 50:50 Joint Venture with Grizzly Discoveries Inc.