Aguia Resources identifies thickening mineralisation at Tres Estradas phosphate project
Aguia Resources (ASX: AGR) has released promising results from drilling undertaken at its Tres Estradas phosphate project located in southern Brazil. The company has now completed 89% of the total 9500 metre drilling program.
AGR has delineated thicker than anticipated intercepts of phosphorus pentoxide with grades up to 3.96% at depths between 120 metres and 160 metres.
Oxidised mineralisation continues to return high-grade material near surface with notable intercepts of 20 metres grading 6.31% phosphorus pentoxide and 31 metres grading 9% phosphorus pentoxide. There were also thinner intercepts grading up to 11.5%.
These results should have a positive impact on the group’s upcoming bankable feasibility study (BFS) as they demonstrate that the mineralised carbonatite is very consistent and continuous both along strike and at depth.
Overall, however, this is an early stage play and as such any investment decision should be made with caution and professional financial advice should be sought.
The latest drill results, as well as those reported on January 17 reveal that certain parts of the deposits are thicker than predicted in the previous resource model.
On this note, Technical Director, Fernando Tallarico said, “Drilling continues to progress very well and we are confident that the additional metres we are adding to the program will further improve the conversion of inferred resources to measured and indicated categories”.
Aguia’s Managing Director, Justin Reid highlighted the fact that these results will be used to determine the size of the pit constrained resource, making them a key factor in terms of calculating the strip ratio and mining costs.
Robust supply demand dynamics
Once these metrics are combined with previous analysis, a vastly improved resource model could improve the value proposition of Tres Estradas, particularly given it is the only local future supply source in southern Brazil, an area where demand for phosphate is growing off an already strong base.