Since 2018, Aguia Resources Limited (Aguia) has been building a portfolio of copper assets in the Rio Grande Copper Belt, located in Rio Grande do Sul, the southernmost state of Brazil.

The Rio Grande copper belt is a prolific district that has had very low exploration. Mineralisation is hosted in a 100km long by 60km wide belt with historical production. the belt is located 270-300km from Porto Alegre, the capital of Rio Grande do Sul.

In addition to the Andrade Copper Sulphate Project, Aguia has identified copper at six locations within the belt which have been elevated to targets/assets. Aguia currently has 405km2 of tenements permitted and more than 630km2 of tenements under application.

ASSET HIGHLIGHTS

6 TARGETS
Six targets in the Rio Grande Copper Belt.

405KM² PERMITTED
405km² of tenements permitted and more than 630km² of tenements under application.

CLOSE PROXIMITY
All targets are within close proximity of each other.

With copper mine production forecast to peak in 2019 and a supply deficit looming, Aguia’s portfolio of copper assets have the potential to create significant material value for the company.

AGUIA'S COPPER STRATEGY

  • Build our land position/portfolio of assets (6 targets identified);
  • Establish core project (Andrade Copper Sulphate Project);
  • Conduct widespread exploration;
  • Conduct further geophysics to best define drill targets;
  • Test minerals for leaching (lower CAPEX, fast start up options);
  • Drill targets to identify additional resources;
  • Convert applications to exploration licences.

AGUIA'S RIO GRANDE
COPPER ASSETS

PRIMAVERA:

  • Viewed as Aguia’s second target as it is only 3.8km to the south of Andrade.
  • The asset was mapped during 2019 and had its historical trenches resampled with results returning up to 52 metres grading 1.03% Cu and 6.20 g/t Ag as well as 11 metres grading 1.16% Cu and 25.16 g/t Ag.

ASX Announcement

CARLOTA:

  • Located on the eastern edge of the Caçapava Granite target area.
  • Rock and soil sampling identified anomalous zones of elevated copper and gold including visible free gold. A gold-in-soils anomaly measuring over 500 metres in length with rock chip samples up to 1.63% Cu and 48 g/t Au, and 0.16% Cu and 13.4 g/t Au taken. Eight channels were sampled over 1 metre intervals for a total of 170 samples and grades of up to 29.8 g/t Au were returned. Further to the north, one individual grab rock sample returned 0.16% Cu and 13.4% g/t Au.
  • An IP survey totalling about 12 line-km has been completed over the target to follow-up on the significant copper and gold-in-soils anomalies. It mapped a prominent chargeability anomaly that merits further drilling.
  • An anomaly in excess of 600 metres emerged from the IP modelling and appears to indicate a structurally controlled zone plunging to the south.
IP is an exploration method that introduces electrical currents into the ground and measures how it interacts with the rocks. Sulfide minerals (eg) which are Aguia’s main target, are metallic and able to charge or store electricity, and also offer low resistivity to the flow of electricity. Thus, a chargeability anomaly coupled with low resistivity may indicate the presence of sulfide mineralisation at depth and will serve to refine the collaring of our drillholes.

SEIVAL:

  • Located approximately 25km southwest of Andrade.
    ASX Announcement
  • Interpreted to be associated with the same structural corridor (a major fault) that controlled the Andrade and Primavera trend.
  • The target is crossed by two major NNE trending regional faults. Both are mapped to extend northwards where they narrow and pass through the Andrade Copper Sulphate Project.
    ASX Announcement
  • A possible copper extension is indicated to the south of the target.
  • Initial rock sampling included a sample which returned 2.30% Cu in volcanic
    rock.
    ASX Announcement

PASSO FEIO:

  • Located approximately 16km southeast of Andrade.
  • The target was selected because of a large (16km2) low-magnetic airborne geophysical anomaly interpreted to be related to the hydrothermal oxidation of magnetite to hematite. Further field follow-up resulted in the identification of many copper showings hosted by heavily fractured volcanic rocks which is very similar to what is seen at the Canhada target.
    ASX Announcement
  • Sampling has returned 1.55% Cu and 2.10% Cu in different rock types. Grab samples of sandstone outcrops have returned up to 2.30% Cu.
  • Six trenches have been opened (within the coarse conglomerate layer) to follow-up on rock sample results.
  • The target is predominately located in undulating pastureland and geophysics is planned to define potential drill locations.

BIG RANCH:

    • Located approximately 18km northwest of Andrade, immediately north of the Caçapava Granite target area.
    • The target consists of several copper-in-soils anomalies associated to a strong IP chargeability anomaly in the northern portion of the target.
    • Ten dipole:dipole radial lines were surveyed along the target and guided the first pass exploration drilling that was completed in late 2018.
    • Drilling was used to map the different alteration zones and to test the bulk of the ring-shaped IP chargeability anomaly that was revealed to be primarily associated with iron sulphide minerals (such as pyrite).
    • Minor copper and lead sulphides were intercepted by drilling but so far in very narrow zones.
    • Further drilling is necessary to test second scale east west trending IP anomalies.

ASX Announcement

CANHADA:

    • Located approximately 55km southwest of Andrade in gently undulating
      farmland (adjacent to a road with power).
    • The target has historical rock samples with copper assays of over 4%.
    • The anomaly is 27km2 in size and measures approximately 9km by 3km.
    • The copper minerals occur in veins crosscutting highly fractured volcanic rock and is often weathered to malachite from the original primary copper minerals.
    • Airborne geophysics shows the target as a magnetic low, potentially associated to hydrothermal alteration of magnetite to hematite.
    • Aguia intends to sample the entire distance of an historic trench located in the south west of the target (currently 150 metres) and if confirmed by geophysics, to lengthen the trench.
    • Geophysics (on ground – dipole:dipole) in the north east of the target, has mapped an anomalous zone from near surface down to 200 metres deep that may be associated with copper mineralization. 13 drill holes have been planned to test this anomalous zone.

ASX Announcement