Aguia encouraged by Brazilian drill results

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THE DRILL SERGEANT: Fertiliser development company Aguia Resources (ASX: AGR) has received encouraging drilling results from the company’s Três Estradas phosphate project located in the state of Rio Grande do Sul in southern Brazil.

The company completed a program of drilling in October consisting 21 holes of diamond drilling totalling 4,016 metres and 105 reverse circulation drill holes totalling 2,151 metres.

 

Location of Rio Grande phosphate rojects, SE Brazil. Source: Company announcement

 

Aguia has reported assays from the first 14 diamond holes and 36 RC holes.

Results include:

From shallow reverse circulation drilling (all intervals are from surface and within the current resource estimate):

–    30 metres at 11.1 per cent phosphate, including 6 metres at 20.2 per cent phosphate; and

–     30m at 8.4 per cent phosphate, including 14m at 11.7 per cent phosphate.

From diamond drill holes:

–    25.2 metres at 6.0 per cent phosphate, including 5.1m at 15.2 per cent phosphate;

–     37.4 metres at 8.3 per cent phosphate, including 22.9m at 10.9 per cent phosphate, including 11.1m at 13.3 per cent phosphate; and

–    72.1m at 4.4 per cent phosphate, including 21.2m at 5.2 per cent phosphate.

The aim of the drilling was to expand the initial JORC-compliant inferred resource of 21 million tonnes at 4.6 per cent phosphate, including 1.8 million tonnes at 10.9 per cent phosphate – high grade oxide the company announced in June 2012.

“These drilling results from only 40 per cent of the target area have confirmed the high-grade nature of the oxide zone that extends from surface and the extension of mineralisation at depth below the initial JORC-compliant resource reported in June 2012,” Aguia Resources Managing Director Simon Taylor said in the company’s announcement to the Australian Securities Exchange.

“We look forward to reporting more results as they come to hand and a JORC-compliant resource upgrade in early 2013.”

Aguia said the results highlight the prospective nature of the TE project returning wide zones of phosphate mineralisation at good grades from the surface over a wide area that is open to depth and to the south west.