Aguia Resources (ASX: AGR) is focused on the exploration and development of its potentially large scale phosphate projects and other phosphate opportunities in Brazil and is well positioned to capitalize on the growing demand for phosphorous-based fertilisers in the expanding agriculture sector in Brazil.
Aguia Resources’ Tres Estradas mimicks Vale’s prospective Araxá and Cajati phosphate deposits
Aguia Resources (ASX: AGR) Tres Estradas Phosphate Project in Brazil is indicating similarities to Vale’s 88.7 million tonne at 11.12% Araxá and 85.1 million tonne at 5.45% Cajati deposits.
Assays from recently completed auger and diamond drilling continue to return significant phosphate mineralisation.
Highlights from auger drilling include 9.8 metres at 20.48% phosphate, 9.8 metres at 11.71%, 9.8 metres at 14.58% and 9.8 metres at 13.83%.
Meanwhile the best intersections from diamond drilling are 50.75 metres at 6.42% phosphate, including 10.8 metres at 11.15%; 98 metres at 4.25%, including 3.8 metres at 8.96%; and 78.2 metres at 4.11%, including 8.6 metres at 6.78%.
The results highlight the prospective nature of the Tres Estradas Project, returning wide zones of phosphate mineralisation at good grades from the surface over a wide area that is open in all directions.
Phosphate mineralisation occurs in both the near surface weathered carbonatite and in the deeper primary zone as is typical of producing carbonatite hosted mines in Brazil.
Grades at producing mines in Brazil vary from 5.45% to 12.36% phosphate with an average grade of 9%.
Vale’s carbonatite projects beneficiate readily to concentrates as high as 36% phosphate and are typically zoned with higher grade oxide ore sitting above lower grade primary ore.
Importantly, operating mines in Brazil are highly profitable due to their excellent mineralogy enabling the ores to be beneficiated to a concentrate grade above 32% phosphate and their close proximity to markets including fertiliser blenders and end users.
Next Steps
Aguia has begun beneficiation test work and engaged independent consultants to assist in delivering a JORC Resource at the Tres Estradas Phosphate Project.
The company has an exclusive option to acquire 100% of the Tres Estradas and Joca Tavares carbonatite style phosphate projects from Companhia Brasileira do Cobre.
The projects are located in the state of Rio Grande do Sul, the southernmost Brazilian state adjacent to the border with Uruguay. The region has well developed infrastructure with excellent roads, rail, power, port and services.
The three southern States of Rio Grande do Sul, Santa Catarina and Paraná currently consume around 1 million tonnes of phosphate, or around 30% of Brazilian consumption, with no currently active phosphate mines in the States.
Brazil is heavily reliant on imports of around 50% of its phosphate needs.
Aguia’s projects will be logistically advantaged to supply into this region, and is strategically located with a railway line to Rio Grande in the south bordering the property.
