• Total Measured and Indicated resource of 83 million tonnes grading 4.1% P2O5, using a cut-off grade of 3% P2O5 and an additional 21.8 million tonnes grading 3.7% in the inferred category. 
  • Measured and Indicated resource of oxidized material occurring at surface of 5.3 million tonnes grading 8.8% P2O5, using a cut-off grade of 3% P2O5. 
  • Measured and Indicated resource of fresh rock located immediately under the oxidized material of 77.9 million tonnes grading 3.8% P2O5, using a cut-off grade of 3% P2O5. 
  • The Measured and Indicated resources could support five years of production mining oxidized material and an additional 15 years mining fresh rock at a production rate of 300 thousand tonnes per year of phosphate concentrate. 

Brazilian fertilizer developer Aguia Resources Limited has reported that the Company has completed the modelling and update of the Três Estradas Phosphate Resource. The entire dataset was subject to independent revision and auditing by Millcreek Mining Group who have signed off on the new resource statement for the project (the “Mineral Resource Statement”). The resource estimate meets the criteria required to be compliant with both JORC and NI 43-101 standards.

The Mineral Resource Statement is based on the results of an extensive drilling campaign carried out by Aguia between December 2016 and June 2017. During this period, Aguia completed 61 core holes (9,708m) and 90 reverse circulation holes (4,496m). The primary goal of this drilling campaign was to increase the geologic assurance and classification of the inferred resources identified in the 2016 resource statement related to the Tres Estradas project.

The drilling campaign was successful in converting most Inferred Resources in the 2016 resource estimate to Measured and Indicated categories as well as discovering and delineating additions to the Tres Estradas deposit, including a new extension to the deposit.

The Mineral Resource Statement now includes 83 million tonnes grading 4.1% P2O5 of Measured and Indicated resources. Thus, 79% of the current resource model now falls in the Measured & Indicated category, whereas the previous model comprised only 21% of Measured and Indicated resources.

In addition to a high rate of conversion of Inferred Resources to Measured and Indicated resources, the Mineral Resource Statement also identified a new shallow zone of mineralization within the existing borders of the Tres Estradas pit shell.

With a 41% larger resource, the Company has the option to select a higher cut-off grade as feedstock for the planned operation, which subject to completion of the ongoing Bankable Feasibility Study (“BFS”), is anticipated to have an annual output of 300,000 tpy of phosphate concentrate

Technical Director Dr Fernando Tallarico commented, “After an extensive drilling campaign, we are very excited by this outcome. Not only were we able to expand the global resource, but the current 83MT of Measured and Indicated resources is bigger than the global resource we reported previously. This resource expansion together with the exceptional conversion rate to Measured and Indicated categories will allow important optimizations of the mining plan, including choices of higher cut-off grades of the run of mine that ultimately we expect will improve the production costs of the project.”

Managing Director Justin Reid added, “The drilling program was expanded due to excellent results. Not only have we had a very high conversion rate from Inferred to Measured & Indicated resources, the identification of the new limb in the southeast zone has allowed us to add to the resource within the existing pit borders. The results we have now prove that this is a high quality, consistent phosphate asset that will now form the basis for the BFS which is laying out the development plan for the Três Estradas project. The option of an increased cut-off grade means we will mine the highest grade, lowest strip, most profitable rock. I am optimistic this will result in a material impact to our overall mining costs and calculated strip-ratio as we finalize the ultimate mine plan.”


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