EDITOR: | June 21st, 2013

Aguia Resources Ltd: Significant Phosphate Intersections from Surface at Joca Tavares Project in Southern Brazil

| June 21, 2013 | No Comments
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June 21, 2013 — (Source: Aguia Resources Ltd) — Summary

  • Previous rock chip assay results of up to 12.5% P2O5 are now supported by excellent first pass results from shallow auger holes that include:
  • 14.7 metres @10.8P2O5 from surface (hole ended in mineralisation)
    • Includes 10.7 metres @ 12.7 % P2O5
  • 6.4 metres @ 8.2% P2O5 from surface (hole ended in mineralisation)
    • Includes 2.4 metres @ 12.6% P2O5
  • 5.5 metres @ 7.7 P2O5 from surface (hole ended in mineralisation)
    • Includes 3.5 metres @ 9.9% P2O5
  • Programs of soil and rock chip sampling confirm mineralised carbonatite host rocks outcropping at surface over a large area in excess of 400 metres x 1,350 metres.
  • Ground magnetic survey now completed with interpretation to assist follow up reverse circulation drill testing and resource definition
  • Joca Tavares is located 41 kilometres east -south-east from Aguia’s Três Estrad as project.
  • The projects show similarities to the carbonatite style hosted phosphate deposits mined by Vale within Brazil, including the Cajati (Reserve: 85.1 Mt @ 5.45% P2O5 ) operations.
  • The Company holds an extensive land position in the region and believes Rio Grande do Sul has the potential to host a major new phosphate province in close proximity to infrastructure, primary agriculture customers and fertiliser blenders

Aguia Resources Limited (ASX: AGR) (“Aguia” or “Company”) is pleased to announce that the Company has received excellent initial results from the Joca Tavares project located in the state of Rio Grande do Sul in southern Brazil.

The Company has completed detailed programs of mapping, rock, soil and auger sampling to delineate the dimensions of the Joca Tavares carbonatite for follow up programs of drill testing.

To date 25 shallow auger drillholes on four 100 metre spaced lines have been completed. Assays from the first 3 holes have been received and returned significant intersections of phosphate mineralisation from surface at similar grades to the recent discovery at Três Estradas (Figure 1, Table 2).

Joca Tavares has not been previously drill tested and these early results indicate phosphate bearing carbonatite host rock is present over an extensive area. All the holes were drilled to refusal and mineralisation is open at depth.

Figure 1: Joca Tavares - Ground magnetic image, location of auger drilling and phosphate assay results

Figure 1: Joca Tavares – Ground magnetic image, location of auger drilling and phosphate assay results

 

Figure 2: Airborne magnetic image of Joca Tavares, interpreted outline of carbonatite, soil and rock chip assay results

Figure 2: Airborne magnetic image of Joca Tavares, interpreted outline of carbonatite, soil and rock chip assay results

 

Aguia’s Managing Director, Simon Taylor, said “We are extremely pleased with the initial results from Joca Tavares and in particular the shallow auger holes that have outlined the potential for shallow oxide phosphate mineralisation. Together with the JORC compliant resource identified nearby at Três Estradas we believe the projects located in Rio Grande do Sul have the potential to form a solid basis for future project development opportunities including a potential early start up and cash flow.”

Both the Três Estradas and Joca Tavares projects represent significant new phosphate discoveries with characteristics similar to existing producers in Brazil. Importantly, the grade and mineralogy is similar to that of other operating mines globally including Yara’s Siilinjärvi mine in Finland and Vale’s Cajati mine in Brazil, both of which produce a high quality concentrate from phosphate within carbonatite host rocks.

Table   1: Comparative Phosphate (P2O5) Deposits Within Carbonitite Hosted Rocks1
Name of Deposit Location Tonnage (Mt) Head Grade Recovery Concentration Grade Stage
Siilinjärvi (Yara) Finland 465 4.00% 84% 35% Production
Cajati (Vale) Brazil 85 5.50% 78% 36% Production
Três Estradas (Aguia) Brazil 292 4.30% 65-83% 31-36%3 Exploration / Development
Notes
1. JSA Consultoria e   Assessoria Técnica, Company data 3. Based on preliminary beneficiation test work, optimisation test work underway
2. Inferred resource   calculated from 45% of potential target length
Figure 3: Location of Rio Grande Phosphate Projects and Vale Cajati Phosphate Mine, SE Brazil

Figure 3: Location of Rio Grande Phosphate Projects and Vale Cajati Phosphate Mine, SE Brazil

 

The three southern States of Rio Grande do Sul, Santa Catarina and Paraná currently consume over 1 million tonnes P2O51 or almost 30% of Brazilian consumption, however there are currently no producing phosphate mines in the region.

The Três Estradas, Joca Tavares and other Aguia projects will be logistically advantaged to supply the region compared with phosphate mined in Minas Gerais and Goias and imports.

Table   2: Joca Tavares Auger Assay Results
HOLE_ID UTM_E UTM_N Lithology DEPTH (m) FROM (m) TO (m) WIDTH (m) XRF* (P2O5%)
JTT-13-001 234200 6566925 Siltstone 4.5 Not Mineralised
JTT-13-002 234202 6566874 Carbonatite 6.4 0 6.4 6.4 8.21
Includes 4 6.4 2.4 12.62
JTT-13-003 234195 6566824 Carbonatite 14.7 0 14.7 14.7 10.82
Includes 4 14.7 10.7 12.73
Includes 11 13.7 3.7 14.2
JTT-13-004 234200 6566775 Carbonatite 5.5 0 5.5 5.5 7.7
Includes 2 5.5 3.5 9.92
Figure 4: Google images at the same scale showing Vale’s Cajati Phosphate Mine and Infrastructure (top) and Aguia’s Joca Tavares carbonatite phosphate discovery (below)

Figure 4: Google images at the same scale showing Vale’s Cajati Phosphate Mine and Infrastructure (top) and Aguia’s Joca Tavares carbonatite phosphate discovery (below)

JORC Code Competent Person Statements
The Três Estradas Phosphate Project has a current JORC compliant inferred mineral resource of 28.49Mt @ 4.25% P2O5 (total initial contained phosphate of 1.21Mt P2O5).
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Dr Fernando Tallarico, who is a member of the Association of Professional Geoscientists of Ontario. Dr Tallarico is a full-time employee of Aguia Resources Limited. Dr Tallarico has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code”). Dr Tallarico consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.


Raj Shah

Editor:

Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>


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