Diamond Drilling Program Underway, Três Estrada Phosphate Project, Southern Brazil

Potash and phosphate exploration and development company Aguia Resources Limited (“Aguia” or “Company”) is pleased to announce that diamond drilling has commenced at the Tres Estrada Phosphate Project located in the state of Rio Grande do Sul in Southern Brazil.

Highlights:

  • The Três Estradas (“TE”) project has a drill ready target zone extending for over one kilometre with thicknesses up to 100 metres.
  • A 1,100 metre diamond drilling program is underway testing the zone at 200 metre section spacing.
  • At TE, three historical diamond drill holes intersected carbonatite host rocks and returned wide zones of phosphate mineralisation within the primary zone. The top 15 metres of each hole was not sampled and potential exists for higher grade shallow oxidised zones as indicated by grab surface rock samples, including 32.0%, 31.7%, 29.3% and 25.8% P2O5.
  • The projects show early stage signs similar to the carbonatite style hosted phosphate deposits mined by Vale within Brazil, examples include the Araxa (Reserve: 88.7 Mt @ 11.12% P2O5) and Cajati (Reserve: 85.1 Mt @ 5.45% P2O5) operations.
  • Aguia has an exclusive option to acquire 100% of the “TE” and Joca Tavares (“JT”) carbonatite style phosphate projects from Companhia Brasileira do Cobre (“CBC”).
  • Brazil imports 49 per cent of its phosphate needs and both projects are located near excellent infrastructure including roads, rail, water, power and potential domestic primary customers and major fertiliser blenders.