Brazil focused Aguia Resources (ASX: AGR) will acquire two phosphate projects located in the state of Rio Grande do Sul in south east Brazil with high grade phosphate reported from early stage exploration at one of them.
Brazil currently imports 49 per cent of its phosphate needs, providing an opportunity for explorers.
In April, Aguia placed 18.3 million new ordinary shares at $0.82 per share to raise a total of $15 million. The funds raised will explore the Atlantic Potash Project in Brazil and further test Aguia’s Brazilian phosphate projects.
Today, Aguia has reported it has an exclusive option to acquire 100% of the Tres Estradas (“TE”) and Joca Tavares (“JT”) carbonatite style phosphate projects from Companhia Brasileira do Cobre (“CBC”).
The company believes the projects; while at early stages have similarities to the carbonatite style hosted phosphate deposits mined by Vale within Brazil including the Araxa (Reserve: 88.7 Mt @ 11.12% P2O5) and Cajati (Reserve: 85.1 Mt @ 5.45% P2O5) operations.
Interestingly, early surface rock chip sampling at JT has returned high grade phosphate mineralisation including 31.70%, 25.80% and 22.90% P2O5 at TE and 11.40% P2O5.
At TE, three historical diamond drill holes intersected carbonatite host rocks and returned wide zones of low grade phosphate mineralisation within the primary zone.
The top 15 metres of each hole was not sampled and potential exists for higher grade shallow oxidised zones as indicated by grab surface rock samples.
The TE project has a drill ready target zone extending for over one kilometre with thicknesses up to 100 metres.
Both projects in Brazil are located near infrastructure including roads, water, power and potential domestic primary customers and major fertiliser blenders.