Aguia identifies new carbonatite zone which could extend mine life, reduce costs
Aguia Resources (ASX: AGR) has identified a new carbonatite zone along the south-east sector of the Tres Estradas deposit, which is central to the group’s phosphate project located in southern Brazil.
The new carbonatite zone was intercepted at surface and 100 metres from surface with the potential to extend along strike by about 500 metres.
This is important from a number of respects as the discovery of a new shallow mineralised horizon combined with the recent identification of thickening at depth in some areas could have the potential of lowering the overall strip ratio, effectively extending mine life and reducing operating costs.
Because of the substantial changes this could have on the economic metrics of the project management has decided to undertake an additional 1500 to 2000 metres of drilling to delineate the recently discovered carbonatite zone.
Drilling from the original program is now finished and while results have not yet been released, management described the results to date as ‘excellent’ with the potential to expand the size of the current resource.
What this expansion amounts to remains to be seen, so investors should seek professional financial advice for further information.
High conversion of inferred resources to measured and indicated
Managing Director, Justin Reid, said, “The infill drilling program is not only giving us positive results in terms of a high conversion of inferred resources to measured and indicated, it is also giving us a much better understanding of the size and scope of the deposit, far beyond our initial expectations”.
With Brazil’s transformation from a food importer to an export powerhouse where agriculture now represents 20% of the country’s GDP with annual exports now totalling US$175 billion, Aguia’s timing couldn’t be better in terms of tapping into the regions strong fertiliser demand.
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