Recent developments boost Aguia Resources’ (ASX:AGR) optimism across Brazilian projects - Kalkine Media

Highlights

• Aguia Resources (ASX:AGR) is committed to advancing its high-grade Brazilian projects into production.
• Ongoing drilling operations at the company’s copper project have delivered encouraging results to date.
• Amid legal proceedings in relation to the phosphate project, AGR remains confident of receiving the installation licence in 2022.

Multi-commodity player Aguia Resources Limited (ASX:AGR) has shown a strong commitment to advancing its projects into production through various exploration and developmental activities. The company has preproduction phosphate and metallic copper projects in its Brazilian portfolio.

AGR appears to be playing out its cards well, as its strategic exploration tenement portfolio has churned out robust results.

The company has had long-held beliefs about the geology at its Andrade copper project in southern Brazil. In line with expectations, the first phase drilling program at the Andrade has delivered excellent assay results.

Source: AGR Announcement 12/07/22

Meanwhile, AGR has been pursuing legal proceedings in relation to its phosphate asset, the Tres Estradas Phosphate Project (TEPP).  

Excellent grades and thick intersections at Andrade Project

The Andrade project has delivered high-grade mineralisation along with thick intersections, validating the company’s expectations.

These intercepts were based on the existing model, which is around 80% indicated mineral resource category. This means that there already existed a good degree of certainty at the time of planning the campaign.

Source: AGR Announcement 12/07/22

AGR is continuing to enhance the numbers for its Andrade Project and remains confident that this will allow the company to move the Andrade resource to the measured and indicated category.

The development will enable the company to support an improved economic approach to the project as a couple of test works on the processing side are continuing in tandem with the drilling program.

The company’s strategy remains unchanged, with AGR aiming for a small-scale and highly lucrative corporate project as the quickest path to production and cash flow.  

Favourable developments in TEPP legal proceedings   

On the legal proceedings front, AGR believes that the developments to date are favourable for the phosphate project. The ongoing court case does prevent the company from advancing the project but does not prevent the State Environmental Protection Agency (FEPAM) from issuing the installation licence (LI).

Once AGR secures the LI, the company will be able to initiate construction of the plant. The company is closely engaged with the environmental agency to conclude a series of questions related to the final design provided to the agency.

Source: AGR

Given the favourable developments in relation to the ongoing proceedings, AGR believes that the process to secure the LI has gained pace. The company anticipates obtaining the LI before year-end.

The project is expected to unlock high-growth capabilities for the company.

To know why the project offers lucrative opportunities, read Aguia (ASX:AGR) on consistent success with agronomic tests on various crops

Way forward

AGR continues to validate its model at Andrade while also investigating innovative ways for the processing of copper ore from the project. The company aims to develop a carbon-neutral copper processing unit that uses the most modern and environmentally friendly methods.

On the other hand, AGR remains focused on meeting the requirements of the FEPAM for issuing the LI in a timely manner for the TEPP.