Aguia extends strike by 700 metres at Tres Estradas
Brazilian fertiliser developer, Aguia Resources (ASX:AGR) announced on Monday morning that ongoing infill drilling at its flagship Tres Estradas Phosphate Project was continuing to return positive results that demonstrated the continuous nature of the deposit.
More specifically, drilling along the newly discovered south-east zone has proven a strike extension of at least 700 metres of shallow, additional mineralisation with thicknesses and grades analagous to the current Tres Estradas deposit.
Although, it should be noted here that this is an early stage play and investors should seek professional financial advice if considering this stock for their portfolio.
Furthermore, drilling of the strike extension to date has not cut off the mineralisation, indicating the strike length of the north-east extension remains open beyond 700 metres.
To date, a total of 13,000 metres have been drilled, including 8800 metres of diamond drilling and 4200 metres of reverse circulation drilling.
AGR announced in February that it had identified a new shallow zone of mineralisation along the south-east border of the proposed Tres Estradas pit shell, and further drilling has proven continuity of this zone.
Infill drilling along the 700 metres of strike continues with the objective of producing a measured and indicated category resource from surface to a depth of 100 metres.
The company’s strategy has been to target shallow mineralisation that can be added to the current resource, and on this note Managing Director, Justin Reid said, “It is expected that inclusion will not only improve the overall strip ratio of the proposed operation, but will ultimately reduce mining costs.”
Increased resource and reduced costs to have positive impact on Bankable Feasibility Study
Infill drilling has demonstrated that there is continuity of mineralisation both laterally and at depth, and in highlighting the significance of this development, Technical Director, Doctor Tallarico said, “The outcome of the drilling along the new south-east zone and within the deposit continues to be very positive and we are not only able to prove continuity of mineralisation along strike and at depth, but we also have been able to define additional shallow resources that should positively impact our mining costs.”
As new mineralisation is converted into a measured and indicated resource it will positively impact the group’s Bankable Feasibility Study, an important step in defining enough tonnes to drive a robust mine model.
It is important to note the ideal location of the project in that it is situated in the heart of the Brazilian farming region that currently relies entirely on imported phosphate.
With ready access to these markets through established road and rail infrastructure AGR’s product should be substantially more competitive price wise compared with imported overseas product.