DJC Carmichael research report

Aguia Resources Ltd (AGR) Site Visit
DJC recently visited AGR’s projects in Southern Brazil in order to evaluate the potential of the 3 deposits and assess the local conditions and infrastructure. We also wanted to gain an understanding of the potential market for AGR products.
Summary Introduction
We travelled to each of AGR’s projects; Três Estradas, Joca Tavaras and Cero Preto as well the AGR field office. We also visited the Rio Grande Port where AGR plans to build its processing facilities.
The trip helped us validate the potential of AGR’s phosphate projects.
Key Findings

The exploration effort in identifying Três Estradas has been conducted to a high standard and we are comfortable with the results presented.

The entire area is amenable to the development of a large scale mining project from the point of view of topography, access to transport infrastructure, source of local labour, land access and power infrastructure.

Agriculture dominates the landscape and local economy and a local source of phosphate for fertiliser will be of a great benefit to the entire agricultural industry in the region.

The port of Rio Grande is an ideal location to build a SSP plant as there are several fertiliser blenders in the area who could be the natural purchasers of AGR product.

AGR has a number of options available to it terms of the development pathway; it can develop the full processing route or produce a phosrock concentrate. Either product will have a market albeit at different price points.

We observed a number of calcite plants in the area confirming there will be a market for AGR calcite product.

 Três Estradas is sufficiently de-risked to assume it will be developed into a viable project.

 Joca Tavaras is not as de-risked as Três Estradas in that it does not have a JORC resource However, we believe there is a strong chance that the current drilling program will lead to a positive economic outcome.

Cero Preto is still at an early stage