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DuSolo Sells 1,100 Tonnes of Direct Application Natural Fertilizer

Published: 12:13 22 Apr 2015 EDT

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DuSolo Fertilizers (CVE:DSF) has sold 1,100 tonnes of Direct Application Natural Fertilizer (DANF) at a grade of 15% P2O5, receiving a full payment of BRL 253,000 or C$102,153.

"In the coming weeks, we anticipate an increase in orders for our fertilizer products. Brazil's rainy season is coming to an end, and the local farmers are preparing for a busy planting season," said DuSolo’s President and CEO Eran Friedlander.

On April 7, DuSolo said it concluded the first stage of its 2015 exploration drilling campaign while also receiving a new 10,000 tonnes of DANF order from one of Brazil’s top sugarcane plantations.

The company is therefore on track to address an intense planting season in 2015. The soybean harvest in Brazil was delayed by wet conditions this season but expectations for country’s soybean crop remain very high according to the USDA Foreign Agricultural Service.

To date, DuSolo has obtained firm commitments to acquire a total of 50,000 tonnes of DANF during the 2015 planting season.

DuSolo, formerly known as Eagle Star Minerals, focuses on producing a natural rock phosphate based efficient and very low cost mineral fertilizer, which offers the additional benefit of a greater residual effect in the soil.

DuSolo’s phosphate offers high porosity, allowing for closer contact in the ground, resulting in a larger and more efficient dissolution rate.

The fertilizer can be used in all types of soil, while offering a long residual effect such that the phosphorus and other nutrients are released gradually and progressively throughout the crop cycle. This means they can be tapped by later cultures thanks to its residual effect. Finally, the product is not subjected to any type of chemical or thermal treatment.

Brazilian farmers prefer this kind of Direct Application Natural Fertilizer (DANF), which is typically used in conjunction with the phosphate derivative and much more expensive fertilizer NPK (Nitrogen/Phosphorous/Potassium), which sustains phosphate levels during heavy rainfall.

DuSolo’s project is now focused on a delineation drilling program at the Santiago target resource within the company’s BomFim project. Santiago is a former Vale property located near the Canabrava site run by MbAC Fertilizers.

DuSolo uses simple extraction and processing method (excavating, drying, crushing, bagging and trucking) that has worked well for MbAC Fertilizers, keeping CAPEX and OPEX as low as possible in order to generate good profit margins.

MbAC had sold its product at about USD$ 100/ton, and DuSolo expects to replicate those results.

MbAC has shifted its business focus toward higher end products, leaving DuSolo to address Brazil’s constant demand for DANF.

DANF, as a natural product, offers another important advantage because it offers an alternative to other natural phosphates that had to be imported from Morocco or Tunisia, which ended up doubling – or more – the cost.

DANF is in very high demand because, with an average cost per hectare between USD$ 120 – 200, rock phosphates may help to increase the productivity of soluble fertilizers such as DAP.

 

 

 

 

 

 

 

 

 

 

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