The Sergipe Potash Project, located in the Northeastern region of Brazil in the State of Sergipe, is one of Rio Verde’s principal projects. The project is comprised of 12 separate land holdings, over a total area of approximately 112,000 hectares. These land holdings have been grouped into ten on-shore and two off-shore prospects.
The on-shore prospects are divided into four northern prospects located just south of the Rio Sao Francisco (the northern border of the State of Sergipe) and six southern prospects located around the city Aracaju. The northern prospects consist of the Ilha das Flores Prospect, the Capela 1 Prospect, Capela 2 Prospect and the Panqueca Prospect; the southern prospects are the Rio do Sal Prospect, the Sergi Prospect, the Passagem Prospect, the Porto das Cobras Prospect, the Barra dos Coqueiros Prospect and the Orla de Aracaju Prospect. The Project’s main prospects are the Sergi Prospect, the Rio do Sal Prospect and the Capela 1 Prospect. An overview of the locations and approximate boundaries of the prospects is shown above.
These on-shore land holdings are situated in the Sergipe Basin, the same sedimentary basin as established oil producing wells and also Brazil’s only producing potash mine, the Vale’s Taquari-Vassouras mine. Vale’s mine produced 607,000 tonnes of potash in 2008, equalling roughly 10% of the Brazilian market demand at that time. These figures demonstrate the high potential for other Potash projects, like Rio Verde’s, in this area.
Rio Verde’s two off-shore prospects are the Mosqueiro Prospect and the Guacirema Prospect; both located approximately 8 km off Aracaju’s coastline.