Positive Exploration Results from Rio Grande Project

Further positive exploration results from Cerro Preto, Rio Grande Project, Brazil

  • Trenching results of up to 55.0 meters grading 6.99% P2O5 at Cerro Preto
  • These results onfirm the potential of this new discovery by Aguia Aguia has continued to carry out reconnaissance work over a number of regional targets within the Rio Grande project area.

This work has continued to target the Arroio Marmeleiro Formation (Figure 1), which hosts the Joca Tavares and Porteira carbonatites, as well as several other occurrences of intrusive phosphatic and magnetic breccias.In addition occurrences of nodular and sedimentary phosphatic mineralisation have been recognised within the formation. This possibly represents a sedimentary/volcaniclastic sequence coeval with the Joca Tavares and Porteira carbonatites.

As previously announced to the market (October 8, 2014) this work has resulted in the grassroots discovery of the Cerro Preto sediment‐hosted phosphate mineralisation. Mineralisation is related to black phosphorite beds that were found to occur in the Arroio Marmeleiro Formation, a Proterozoic shelf sequence that outcrops in an area that extends some 30 km along strike by 5 km wide. So far three beds of black phosphorite have been mapped in the Cerro Preto target, along strike lengths that vary from about approximately 700m to 5km and with an apparent thickness from 50m to up to 200m (Figures 2 and 3). Highly encouraging results were returned from initial systematic rock chip sampling, including assays with grades up to 20.4% P2O5. This work included follow‐up sampling in two trenches which returned very encouraging results.

Subsequent work has included sampling another 26 trenches, which has provided some very encouraging results, including:

  • 55.0 meters grading 6.99% P2O5 – CH‐AM‐28
  • 23 meters grading 8.61 P2O5 – CH‐AM‐23

Full results are included as Table 1 – results from trench CH‐03 onwards have not been previously released to the market.

Technical Director Dr. Fernando Tallarico indicates, “The ongoing work at Cerro Preto has confirmed the potential of the discovery. The grades and potential scale of the Cerro Preto Target resembles those of Idaho Phosphate District where several important commercial phosphate deposits are clustered in a geological environment that is similar to the one we have found in Rio Grande. These ongoing results are extremely promising and further exploration work, including drilling, is being planned with the intention of delineating a resource”.

Managing Director Mr Prakash Hariharan added, “The exploration program in the Rio Grande project area continues to provide exceptional results. The discoveries at Tres Estradas, Joca Tavares and now Cerro Preto reinforce our thesis that there is potential to develop a producing camp with multiple deposits developed in this area, where the present phosphate supply is entirely dependent upon imports. ”.