Aguia scores again from phosphate drilling in Brazil

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

Following up its announcement to the ASX last week Aguia has received assays from an additional 15 RC holes with assays still pending for a further seven diamond and 54 RC holes.

Results from shallow reverse circulation drilling include:

–    30 metres at 11.5 per cent phosphate, including 21 metres at 13.9 per cent phosphate, including 9 metres at 16.1 per cent phosphate;

–    30m at 9.50 per cent phosphate, including 7m at 15.81 per cent phosphate, including 3m at 23.2 per cent phosphate; and

–    13m at 10.8 per cent phosphate, including 10m at 12.3 per cent phosphate,, including 2m at 16.1 per cent phosphate.

(All intervals are from surface and within the current resource estimate)

Três Estradas cross section showing results of shallow RC drilling
in oxide material and deeper diamond drilling results. Source: Company
announcement

“These results have further confirmed the high grade nature of the oxide zone that extends from surface to depths in excess of 30 metres,” Aguia Resources managing director Simon Taylor said in the company’s announcement to the Australian Securities Exchange.

“The shallow nature of the oxide zone combined with initial beneficiation test work results that have produced concentrate grades up to 36 per cent phosphate represents an excellent opportunity to initiate early start up by mining and processing of the high grade oxide zone.

“The oxide zone is easily accessible sitting on a ridge top that provides low stripping and mining costs.

“An early start up would provide cash flow to fund ongoing capex and development of the project.”

The company’s aims for the Stage 2 drilling programs are to expand the current 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 diamond drilling is targeting mineralisation below 100m depth to test, define and upgrade the JORC-compliant resource category of the higher grade oxide zone that extends from surface.

Aguia said the latest results highlight the prospective nature of the TE project as they have demonstrated wide zones of phosphate mineralisation at good grades from the surface over a wide area open to depth and to the south west.