Lucena Phosphate Project

Lucena Phosphate Project

The Lucena Phosphate Project (“LPP”) covers about 35,000 hectares (~350km2) all located within a 50km radius around the city of João Pessoa, capital of the Paraiba State in northeastern Brazil. The Property was identified based on historical phosphate occurrences reported by the CPRM, the Brazilian Geological Survey. After initial analysis of the occurrences, geology and distribution the available areas were staked along the northern sector of the Paraiba Belt within the same geological setting that hosts several phosphate deposits discovered by CPRM.

Highlights

  • JORC compliant inferred mineral resource of 55.1Mt @ 6.42% P2O5
  • Extensive land position, close to existing infrastructure including roads, water, power and ports
  • The property hosts excellent logistic and infrastructure including roads, water, railways, energy and is located near fertilizer blenders and transportation hubs including the Cabedelo port facilities which can be accessed via 65km of paved roads.

Geology and Mineralisation

The LPP is located within the Pernambuco-Paraiba basin consisting of Cretaceous-Paleocene sediments (sandstones, limestone) covered by the Pleistocene Barreiras Group (sandstone). The basin averages 25km in width and has a maximum thickness of 400 metres. Structurally the sediments are horizontal with slight dip to the east (4 to 25m per km).

The mineralization is typical of sedimentary phosphorite deposits associated with upwelling zones with low sedimentation rate and can be associated with zones where cold water meets warmer waters allowing the precipitation of phosphate. Phosphorite is a variety of sedimentary rock composed by 10% of phosphate, usually francolite Ca5[(F,O)|(PO4,CO3)3] – that represents a “fibrous apatite and fluorapatite”.

From the 47 holes drilled by the CPRM, 22 drill holes within the project area and immediate surrounds intercepted significant phosphate (P2O5) mineralisation. The main mineralized interval is located at the bottom of the Gramame Formation (limestone) near the top of the Itamaraca Formation (sandstone). The depth of the mineralization varies from 15 to 94 meters with thickness in the range of 0.5 to 7.0 metres. The grades found vary from 3.1% to 21.85% P2O5.

Exploration Activities and JORC-Compliant Resource

In 2012 Aguia completed a 49 hole, 3,813.50m diamond drilling campaign on the project, with the majority of holes intersecting phosphate mineralisation. On April, 2013 Aguia announced initial JORC compliant inferred mineral resources of 55 Mt grading 6.42% P2O5.

This mineral resource derives from 40 core holes totaling 3,061 meters drilled in Lucena South Block, with room to potentially expand into adjacent tenements still under application.

LPP tenements extend to north of João Pessoa (Lucena North Block), where Brazilian Geological Survey (CPRM) had delineated Mangereba Phosphate Deposit, with 40Mt @6.70% P2O5. In 2012 Aguia drilled 9 holes, most of them intersecting the mineralization.