25 May 2017
SOUTHEAST DISCOVERY ZONE AT TRÊS ESTRADAS DELIVERS SIGNIFICANT INTERSECTION
Drilling along the newly discovered southeast zone with a strike-length of at least 700 metres continues to exhibit mineralisation with thicknesses and grades analogous to the main body of the Três Estrada deposit:
o Hole TED-17-128 returned 78.25 meters grading 4.12% P2O5
Drilling of the strike extension to date has not cut off the mineralization. The strike length of the extension remains open past 700 metres to the northeast and the company is currently performing shallow reverse circulation holes to test this extension for oxidized mineralization
Infill drill program continues to return excellent results that confirm the homogeneous nature of mineralisation and continuity laterally and at depth:
o Hole TED-17-129 returned 9.00 meters grading 3.65% P2O5
13,775 meters of infill drilling has been completed and the program is anticipated to be wrapped up next week
New Reserve Report to be published incorporating results from new mineralised zones – results likely to have a positive impact on Três Estradas mine model
AGR to provide further updates on exploration, project development and corporate initiatives shortly
Brazilian fertiliser developer Aguia Resources Limited (ASX: AGR) (“Aguia” or “Company”) is pleased to update shareholders on the ongoing infill drilling program at its flagship Três Estradas Phosphate Project in southern Brazil. The program continues to return positive results that demonstrate the homogeneous and continuous nature of the deposit.
One diamond rig and one reverse circulation rig continue to operate at site. To date, a total of 13,775 metres have been drilled, which includes 9,495 metres of diamond drilling and 4,280 metres of reverse circulation drilling.
As announced on 16 February 2017, the Company has identified a new shallow zone of
mineralisation along the southeast border of the proposed Três Estradas pit shell. Drilling has proven continuity of this zone for at least 700 metres of strike with the NE extension remaining fully open. Geological modelling of the results along this zone indicate that the folded structure is plunging to the southwest, thus the northeast extension that remains open should reach the surface and potentially develop oxidized high-grade material. This northeast extension is currently being tested with an additional 500 meters of reverse circulation drilling targeting potential near surface oxidized material.
Infill drilling along these 700 metres of strike continues with the objective of producing a measured and indicated category resource from surface to a depth of only 100 metres. The technical team’s strategy has been to target shallow mineralisation that can be added to the current resource. It is expected that the inclusion will not only improve the overall strip ratio of the proposed operation, but ultimately reduce mining costs. Results of this zone continue to indicate that thicknesses and grades are in accordance with the bulk of the deposit as reflected in hole TED-17-128 returning 78.25 metres grading 4.12% P2O5.
Technical Director Dr. Fernando Tallarico commented, “As we approach the completion of this very significant drilling program, we couldn’t be more pleased as the results clearly prove the steadiness of the deposits morphology and grades. Holes like TED-17-128 that returned 78.25 metres of near-surface mineralisation indicate that this new southeast zone could substantially improve our strip ratio.”
Managing Director Justin Reid added, “The impact of our new Southeast zone discovery, coupled with the incredibly successful infill program, will be incorporated into an updated reserve statement very shortly. RC drilling of the surface oxide manifestation of the new discovery may also have an impact on our ultimate mine model as we complete our trade-off studies and BFS. We look forward to updating the market on meaningful corporate developments very shortly that also add considerable value to Três Estradas.”
Aguia also advises that it continues to move forward with its application for a dual listing on the TSXV with the majority of documentation now submitted for review by the regulators. The Company will continue to provide updates as to anticipated timing of the Canadian listing as information becomes available.