|January 16, 2014|
Focus Outlines Plans for Bayovar 12 Phosphate Project in 2014
|January 16, 2014; Vancouver, Canada: Focus Ventures Ltd. (TSX-V: FCV), the Latin American phosphate explorer, is pleased to provide an overview of the Company's 2014 plans for exploration of the Bayovar 12 phosphate project in northern Peru.|
On January 14, 2014, the Company signed a formal Option Agreement for the acquisition of shares in Juan Paulo Quay S.A.C. ("JPQ"), the titleholders of the Bayovar 12 non-metallic mining concession. The concession shows potential to host a large sedimentary phosphate deposit and it will be the main focus of the Company's activities during 2014. The terms of the Agreement were outlined in Focus's news release dated September 10, 2013. Focus can earn a 70% interest of the issued share capital of JPQ by investing in exploration and making a series of cash payments up to the completion of a positive pre-feasibility study, after which Focus will have the first right of refusal to purchase the remaining 30% of JPQ.
A drill permit application has been submitted to the Peruvian Authorities for an initial 20 hole program. The drilling will utilize two diamond drill rigs and is scheduled to begin once the permit is received, most likely in late January.
Drilling will concentrate on the western half of the concession which management hopes will allow for an initial NI 43-101 compliant resource calculation. The conceptual geological target size is between 80-100Mt of phosphate rock grading between 12-17% P2O5 - roughly in line with the other known phosphate rock deposits in the Bayovar district. (The reader is cautioned that the potential quantity and grade is conceptual in nature, and there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the target being delineated as a mineral resource. The calculation is based on the presence of at least 6 phosphate beds averaging 0.75m width, with a specific gravity of roughly 1.7, over an area of approximately 14km2).
Golder Associates have been retained to advise on the planned sampling, QA/QC and analytical protocol for the drill program, and provide recommendations on drill hole spacing optimization for resource classification purposes. A small bulk sample made up of drill core for initial mineral processing testwork will be collected.
Background - geology and phosphates in the Sechura Desert
The Bayovar district is situated in the Sechura Desert, a north-trending basin approximately 22,000 square kilometres in area comprising Miocene-aged rocks covered by recent coastal sand deposits. Phosphate was discovered in the 1950's during drilling for petroleum as beds and horizons of pelletal phosphate within the Zapallal Formation, a sequence of diatomites and sandstones about 200m thick (diatomite is a sedimentary rock composed of fossilized algal shells and is mined locally for cement manufacture). The phosphate layers are remarkably regular in P2O5 content over long distances, a typical characteristic of marine phosphate deposits. The soft and friable nature of the phosphate rock and diatomite permits mining by conventional truck and shovel without the use of explosives.
Vale's Bayovar Mine, located on the Bayovar 2 concession, approximately 15 km west of Bayovar 12, is one of the biggest phosphate deposits in South America. Vale sold minority stakes in the project to Mosaic (35%) and Mitsui (25%) for $660 million in 2010. Fospac (Cementos Pacasmayo / Mitsubishi / Zuari) is developing a phosphate deposit on the Bayovar 9 concession, located immediately north of the Bayovar Mine. The project contemplates a mine life of 20 years based on 130 MT (dry density) of measured and indicated reserves and resources** grading 17.5% P2O5.
* Vale 2010 Annual Report
** Fospac Environmental Impact Assessment Report, October 2013
The scientific and technical information in this release was prepared under the supervision of David Cass, Focus's president, who is a member of the Association of Professional Engineers and Geoscientists of British Columbia, and a Qualified Person in accordance with NI 43-101.
About Focus Ventures
Phosphate rock is a raw material for fertilizers and vital to world food production. Focus is acquiring and developing quality phosphate projects in Latin America where the discovery and development of new deposits is becoming increasingly important given the growing demand and limited local supply of phosphate for fertilizer production. For further information, please call 604-630-5544 or visit our web site www.focusventuresltd.com.
ON BEHALF OF THE BOARD
Ralph Rushton, Director
Contact: Ralph Rushton
Tel: (604) 630-5544; Fax: (604) 682-1514
Some of the statements in this news release contains forward-looking information that involves inherent risk and uncertainty affecting the business of Focus Ventures Ltd. Actual results may differ materially from those currently anticipated in such statement.
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