Aguia Resources (AGR)

Shares / Stock Code

AGR

Stock Exchange / Sharemarket

Australian Securities Exchange

Aguia Resources (AGR) formerly Newport Mining Limited, is a mineral exploration company. Aguia is engaged in exploration and development of resource projects, and investment in the resources sector. It was listed on the Australian Stock Market (ASX) on 13 Feb 2008. Whereas on June 23, 2010, the Company completed the acquisition of Aguia Metais Ltda. Aguia Metais Ltda holds two phosphate projects: The Mata da Corda Phosphate Project (MCPP) and The Lucena Phosphate Project (LPP).

MATA DA CORDA PHOSPHATE

The Mata da Corda Phosphate Project (“MCPP”) is located within 150km of the three largest phosphate mines in Brazil; Araxá – Vale (290Mt @ 14.88% P2O5), Tapira – Vale (744Mt @ 8.35% P2O5) and Catalão – Anglo/Vale (203Mt @ 8.80% P2O5). These three mines account for 95% of the phosphate rock production in Brazil. Within this existing transportation corridor there are 32 major bulk fertilizer blenders.

The MCPP now covers approximately 310,000 hectares (3,100km2) and sits in the middle of the agricultural and industrialized heartland of the southeast region of Brazil in the state of Minas Gerais (English Translation = General Mining State) some 250km to the west of Belo Horizonte.

Previous historical exploration activities in the Mata da Corda region including drilling and rock chip sampling was completed by the National Bureau of Mines (“DNPM”) in association with the Brazilian Geological Survey (“CPRM”) between 1968 and 1971 for phosphates. This program identified up to seven small high-grade phosphate deposits, most of which were mined in artisanal quarries. Since this period no systematic exploration has been performed in the region as most of the initiatives were concentrated in the surrounding carbonatite pipes where phosphate is currently mined.

The property was identified as potentially attractive because of the historical phosphate occurrences. After an initial analysis of these occurrences, the geology and its distribution, Aguia staked ~ 10,000 hectares in August 2008. This triggered a staking rush in the area with Amazon Mining Ltd (late August 2008) and Vale (September 2008) staking to the north, south and west.

MCPP contains sediment hosted phosphate mineralisation. On receiving initial high-grade surface rock chip and soil sampling results in June 2010, the Company completed a full desktop study of all results with respect to geology, host rock, topography and magnetics. Results of this study indicated large areas with similar coherent characteristics that host high grade surface phosphate mineralisation at Mata da Corda and in late June 2010 Aguia staked a further 300,000 hectares in the region.

The MCPP is located next to excellent logistics and infrastructure (roads, water, railway, energy) and is near potential primary (agriculture) customers, fertilizer blenders and is on the main transportation route for the expanding agricultural districts of Mato Grasso Brazil.

Tectonically the project area sits within the southernmost portion of the Neoproterozoic Brasilia Mobile Belt and includes a variety of highly deformed and metamorphosed rocks mostly of sedimentary origin. The area comprises tightly folded slates and phyllites of the Serra da Saudade Formation (Neoproterozoic) which are overlain by Cretaceous rocks of the Areado and Mata da Corda Formation. The contact between the Neoproterozoic and the Cretaceous rocks is well defined by a discrete angular and erosive unconformity.

Phosphate was mined in the region in several artisanal quarries for local use as a direct application fertilizer. Most of these quarries occur adjacent to the unconformity zone in regions were the overlaying sandstone was eroded allowing the mineralization to outcrop. Rock chip sampling has returned some outstanding results with high-grade phosphate returned from surface including best grades of 20.0% and 18.15% P2O5.

On Aguia’s ground phosphate mineralization is associated with epiclastic rocks of the Capacete Formation that bear elevated Fe2O3, TiO2 and rare earth elements suggesting a carbonatite source. Interestingly the three largest phosphate mines in Brazil are located within 100 to 150 kilometres to the west and southwest and are all hosted by carbonatites. Initial results are encouraging with respect to CaO/ P2O5 ratios suggesting that apatite is the dominant the phosphate source.

LUCENA PHOSPHATE

The Lucena Phosphate Project (“LPP”) covers 73,361 hectares (733km2) all located within a 50km radius around the city of João Pessoa, capital of of the Paraiba state in north eastern Brazil. The Property was identified based on historical phosphate occurrences reported by the CPRM (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. No systematic exploration work has been conducted since the historical government program.

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. The LPP area was first investigated by the CPRM in the late seventies to early eighties where several intercepts containing P2O5 were defined during the drilling exploration program. This program also identified the Recreio - Acais Deposit located further south (25km) from the Project area and Goiania deposit located 50km northward from Olinda.

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, 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 depth with thickness in the range of 0.5 to 7.0 metres. The grades found vary from 3.1% to 21.85% P2O

Aguia Resources (AGR) Products and Services

  • Exploration
  • Development and Investment in the resources sector

Aguia Resources (AGR) Locations and Subsidiaries

Aguia Resources Head Office
LEVEL 5, 115 GRENFELL STREET,
ADELAIDE, SA, AUSTRALIA, 5000
Phone: 0294192966
Fax: 0294192944

Aguia Resources (AGR) Share Price

Submitted by ASX Listed Company on 23 January, 2011 - 06:47