AGAPITO ASSOCIATES, INC.
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Fertilizer Mineral Projects


ISX Resources, Inc., Subsurface Mineral Permit, Saskatchewan, Canada
   AAI completed a NI 43-101 compliant Technical Report concerning the potash resources contained in the Subsurface Mineral Permit KP 289 in the Findlater area in southern Saskatchewan Canada. The permit area is immediately north of the Mosaic Belle Plaine potash solution mining operation and contains similar quality potash beds as that successfully solution mined by Mosaic and its predecessors for over 30 years. ISX proposes a confirmation drilling and testing program to confirm the potash resource to support a 2-million-tons-per-year potash operation. AAI was selected to complete the study with Mike Hardy, President, as a designated Qualified Person because of his experience in potash solution mining, solution mining of similar minerals, and independence from the project.

   The permit area covers approximately 97,000 acres and is intersected by six core holes. Historically two pilot tests were conducted on the property in the 1960s at the same time that Mosaic was developing the technology for solution mining the deep potash beds in southern Saskatchewan. The property has been surveyed using 2D seismic and is estimated to contain recoverable K2O of over 10,000 tonnes per acre using demonstrated solution mining methods.


Jacobs Engineering Group, Inc., Apatit Fertilizers Mining Complex Technical Audit, FL
   AAI conducted the mining section of a technical audit of the Apatit phosphorite mining operations located at Kirovsk and Apatity, Kola Peninsula, Russia. The objective of the study was the assessment of the technical status and capabilities of the underground and open pit mining operations providing feed to concentrating and chemical processing facilities. The mines included two underground and two open pit operations situated north of the Arctic Circle.

Two of the four mines were comprised of consolidations of smaller underground and open pit mines. The underground mining operations were recovering reserves beneath and adjacent to open pit operations that are exhausting the strippable reserves.

Underground mining methods practiced at both underground mines include mass blast stopes and sublevel caving, both of which ultimately draw cave fill from surface.

Jacobs Engineering Group, Inc., Roca Fosforica Mexicaná San Juan de la Costa Basic Mine Engineering, FL
   AAI conducted basic mine engineering studies for the San Juan de la Costa Mine to assess the viability of expanding production from an underground phosphorite mine. The study was preceded by reviews of previous work, site investigations, mine inspections, and data gathering. Basic engineering included consideration of alternate mining methods, recommendation of a selected method, description of the recommended scheme, and detailed definition and specification of the components for the mining system.

The process included simulation of a mechanized room-and-pillar mining system supported with belt conveyor haulage for mine development and production.

Jacobs Engineering Group, Inc., Spur Ventures, Inc., Yichang Phosphate Evaluations, FL
   AAI has provided mining engineering services for the proposed development of phosphate resources in central China. The project included site visits to inspect existing small-scale mining operations, review of existing data, selection of pertinent information, and preparation of a conceptual report outlining subsequent study proposals on development of a detailed mine feasibility study.

The conceptual report included a review of mining methods and recommendation of the preferred method for subsequent studies and analyses.

A feasibility mine plan and cost estimate were developed based on Jacobs developed resource and ore reserve models to provide detailed mine plans including ventilation, operating schedules, equipment and manpower schedules, and estimates of capital and operating costs for mine development and production.


Intrepid Mining Company, Cane Creek Mine, Moab, Utah, USA
   AAI has supported Intrepid Potash, Cane Creek operations since Intrepid purchased the Moab potash solution mining operation from TG Potash in 2000. Solution mining by flooding existing room-and-pillar workings in Bed 5 was initiated in 1970. AAI participated in the technical evaluation of resource recovery utilizing long, horizontal solution caverns developed by horizontal drilling in Bed 9, some 800 ft below Bed 5. Engineering contributions include estimation of cavern heat loss, evaluation of hydraulic fracture gradients surrounding deep caverns, assessment of cavern stability, permitting support, and generation of resource maps. Subsequently, geologically constrained, horizontal directional drilling of deep wells in Bed 9 was supervised on-site by AAI geological personnel.

   In 2004 and again in 2007, AAI has reviewed the resource data and mining history in developing an independent assessment of the resource and reserves at Cane Creek for long-term financing of the operations.


Mississippi Chemical, Inc./Intrepid New Mexico, Mississippi Potash Inc. Reserve Evaluation, Carlsbad, New Mexico, USA
   An independent confirmation of sylvinite and langbeinite reserves held by Mississippi Potash, Inc., in Eddy and Lea Counties, New Mexico, was conducted by AAI for parent company Mississippi Chemical, Inc. As part of the reserve confirmation, AAI visited the Mississippi West Mine to assess underground operations and gathered drill hole, geologic, lease, and assay data. Proven and probable mineable reserves were determined for four separate beds. Reserve criteria included ore grade, thickness, proximity to sample location, accessibility, sterilization by existing mining, and dilution resulting from mixed ores. Local mining methods and historical extraction ratios were considered in the final evaluation of recoverable tons within the reserve. Production methods included continuous miner mining and solution mining of existing workings. Forecasts of plant operating life followed from the reserve evaluation.

   The process of reviewing the New Mexico resource and reserve estimates for these potash deposits has continued for Intrepid New Mexico who purchased the operations from Mississippi Chemical in 2004.


Rio Tinto, Rio Colorado Solution Mining Project, Argentina
   AAI has completed studies leading to pre-feasibility level mine plans for solution mining the Potasio Rio Colorado potash deposits in Mendoza Provence, Argentina. These deposits have long been known and were drilled in the late 1980s, early 1990s, and again in 2005. A pilot test was conducted in the early 1990s and again after Rio Tinto acquired the property in 2004. AAI has supported Rio Tinto’s evaluation of the property assisting in development and evaluation of the pilot test, completing thermo-mechanical tests on core, evaluating cavern and pillar dimensions, and designing the well-field layout. In addition, AAI has completed assessments of potential subsidence to support permitting efforts and participated in management evaluations of the property serving as the in-house expert on solution mining. Recently, AAI was asked to certify the resource and reserve estimates as a Competent Person per the requirements of the JORQ code.

 

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Project Summaries - Capability

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