Aguia Resources Publishes BFS for Três Estradas Phosphate Deposit

Fertilizer developer Aguia Resources (ASX:AGR,TSXV:AGRL) published a bankable feasibility study (BFS) for its Três Estradas phosphate deposit on Tuesday (March 20).

The report examines an open-pit operation with a 16-year mine life, plus an additional 20 years of aglime production from reclaimed tailings, for a total life of 36 years.

According to the study, the deposit will average 300,000 tonnes per year of phosphate concentrate and 1 million tonnes per year of aglime. That translates into total production of 4.7 million tonnes of phosphate concentrate and another 32.9 million tonnes of aglime.

“The BFS confirms that the project is capable of delivering high quality phosphate and aglime with a significant cost advantage compared to what is currently being supplied to the Southern Brazil market,” said Justin Reid, managing director of Aguia.

Production will be focused on high-grade oxidized ore in the initial years of operation. The report shows phosphate concentrate grading 30.1 to 32.7 percent phosphorus pentoxide, and aglime concentrate grading 40 percent calcium oxide with superior reactivity with a total neutralizing power of 84.7 percent.

“The introduction of column flotation was a definitive milestone that resulted in a more efficient and higher performing mill circuit and the excellent outcome of the infill drilling expanded our understanding of the Três Estradas mineral resource,” Technical Director Fernando Tallarico said.

The project, located in Southern Brazil, is estimated to have a pre-tax net present value of US$300 million and an internal rate of return of 21 percent, while phase 1 EBITDA expected to be US$28 million, a further US$37 million for phase 2 and US$26 million for phase 3.

Looking ahead, the company “will continue to explore adjacent properties that have promising indications that there is more phosphate that could eventually feed into the Três Estradas project and substantially expand its current mine life,” Reid added.

Aguia is expecting to have a preliminary license for Três Estradas granted within the next three to four months. On Wednesday (March 21), shares of Aguia closed neutral at AU$0.36.

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Securities Disclosure: I, Priscila Barrera, currently hold no direct investment interest in any company mentioned in this article.