THE BOURSE WHISPERER: Aguia Resources (ASX: AGR) has signed a Term Sheet with IAMGOLD Corporation to acquire a large prospective landholding located to the southwest and along strike from the company’s Tres Estradas phosphate discovery in the state of Rio Grande do Sul in southern Brazil.
Aguia already boasts a prospective land package of over 58,682 hectares (587sqkm) including an exclusive option to acquire 100 per cent of the Três Estradas and Joca Tavares carbonatite-style phosphate projects.
The new Option Agreement with IAMGOLD Corporation (TSX: IMG) covers an additional 27,342 hectares (273sqkm) and covers the southern extension to the magnetic trend that hosts the Três Estradas discovery to the north.
Magnetic image and location of the Option Projects (IAMGOLD
Corporation) in yellow and Aguia projects in Rio Grande do Sul State, SE
Brazil. Source: Company announcement
Aguia announced the Três Estradas discovery in November 2011 and advanced the project with the announcement of an initial JORC-compliant mineral resource of 21 million tonnes at 4.6 per cent phosphate including a higher grade oxide zone from surface of 1.8 million tonnes at 10.9 per cent phosphate in June this year.
“This is a fantastic opportunity for Aguia to make further discoveries and build significant phosphate resources in an area of Brazil where there are currently no active phosphate mines and is reliant on imports of phosphate”, Aguia Resources managing director Simon Taylor said in the company’s announcement to the Australian Securities Exchange.
“In fact the three southern states of Rio Grande do Sul, Santa Catarina and Paraná currently consume around 1.1 million tonnes phosphate or around 29 per cent of Brazilian consumption.
“It is a credit to our technical team in Brazil who have been first movers in the region and made the discovery at Três Estradas with our first drilling program.
“Work will focus on identifying further carbonatites in the region and we still have not drill tested the Joca Tavares carbonatite some 40 kilometres to the east that has returned surface sample assays up to 11.40 per cent phosphate.”
Under the Term Sheet, and after successful due diligence, a formal Option Agreement is to be negotiated and executed within the next 45 days.
Aguia recently completed a Stage 2 drilling program at Três Estradas and indicated its technical team is ready to begin reconnaissance mapping and sampling over the Option ground one the Agreement has been executed.