Brazilian fertiliser developer Aguia Resources Limited (ASX: AGR) (“Aguia” or “Company” - http://www.commodity-tv.net/c/mid,36622,VRIC_2017/?v=297284 ) is pleased to update shareholders on the infill drilling program at its flagship Três Estradas Phosphate Project in southern Brazil. The program continues to return highly encouraging results that demonstrate the homogeneous and continuous nature of the deposit. Four diamond rigs continue to operate at site while the reverse circulation program is now complete.
To date a total of 12,680 metres have been drilled, which includes 8,465 metres of diamond drilling and 4,215 metres of reverse circulation drilling. After identifying a new zone of mineralisation along the southeast border of the deposit, management decided to extend the drill program by 1,500 – 2,000 metres (as announced February 16th, 2017). Infill drilling along this zone continues and as a result of the very positive results the program will total about 14,000 metres, approximately a 40% increase relative to the initial plan. Drilling is expected to be complete by the end of April, with results to be incorporated into an updated JORC compliant resource for Três Estradas which will be released to the market upon completion. The identification of the new carbonatite zone has the potential to substantially increase the overall resource at Três Estradas and justifies the expanded scope of drilling works.
The objective of the program to convert Inferred resource to Measured and Indicated categories is being achieved so far as the infill drilling continues to return grades and thicknesses that are at times even better than the original Três Estradas model, as demonstrated in Figures 2 and 3 below. For example, hole TED-16-091 intersected 90.1 meters of carbonatite, which was 50.1 metres or 125% more than expected and hole TED-16-094 intersected 61.8 metres of carbonatite, which was 29.8 metres or 93% more than expected.
The oxidised mineralisation at surface has returned high grades such as TER-17-202 that intercepted 30.00 metres grading 13.67% P2O5 from surface including 8.00 metres grading 18.85% P2O5 and TER-17-203 that intercepted 24.00 metres grading 16.02% P2O5 from surface including 10.00 metres grading 20.03% P2O5 (See Table 1 – Assay Results of the Drilling Campaign below).
Millcreek Mining Group, the firm overseeing the Bankable Feasibility Study, recently completed a site visit as part of their audit of the resource model, and Aguia considers that reports from this site inspection were positive and our work met and surpassed all quality control measures.
Technical Director Dr. Fernando Tallarico commented, “We couldn’t be happier with the results, this deposit just continues to deliver as demonstrated by the expanded drill program. Not only are we validating our original resource model, but we are identifying aspects of the deposit that we believe have the potential to increase the resources at Três Estradas. The implications of this are a decrease in the expected strip ratio and which eventually would improve operating cost for mining, given the increased thickness of the deposit and that the new zone comes to surface within the previous pit limits.”
Managing Director Justin Reid added, “The size and value of Três Estradas continues to grow with every additional metre we drill, and the results are simply outstanding. Our technical team has worked very hard over the last few months to deliver these results and they are to be congratulated on this outcome.
“As infill drilling concludes, we are now focused on the ramping up the pilot plant metallurgical program with Eriez, completing our Trade-off study which is expected to demonstrate materially improved project costs, and progressing the BFS to completion. Permitting activities remain on track. We have made significant progress on our eastern limb discovery and we continue to move forward with our plans to apply for a listing on the TSX Venture exchange as part of our ongoing global market expansion strategy.
For further information, please contact:
Justin Reid, Managing Director
T: +1 416-216-5446
Catherine Stretch, Chief Commercial Officer
T: +1 416-309-2695
Jan-Per Hole, Vice President Corporate Development Australia
T: +61 (0) 414 899 732
Released through: Ben Jarvis, Six Degrees Investor Relations: +61 413 150 448
Follow Aguia on Twitter: @ Aguia_Resources
Aguia Resources Limited, (“Aguia”) is an ASX listed company whose primary focus is on the exploration and development of phosphate projects in Brazil. Aguia has an established and highly experienced in-country team based in Belo Horizonte, Brazil with corporate offices in Sydney, Australia. Aguia’s key projects are located in Rio Grande do Sul, a prime farming area which is 100% dependent on phosphate imports. The Rio Grande phosphate deposits exhibit high quality and low cost production characteristics, and are ideally located with proximity to road, rail, and port infrastructure. Aguia’s experienced management team has a proven track record of advancing high quality mining assets to production in Brazil.
The information in this announcement that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Dr Fernando Tallarico, who is a member of the Association of Professional Geoscientists of Ontario. Dr Tallarico is a full-time employee of the company. Dr Tallarico has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Tallarico consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.