Highlights:
- Assessing all options to realise the potential value of Big Ranch and Canhada Prospects including funding inside Aguia, joint venture/strategic partner or spinning out into a new listing
- Diamond drill program at Big Ranch targeted for completion by end of year with drilling at Canhada scheduled to commence in Q1 2019
- Mineralisation hosted in a 100km long x 60km wide belt with historical production from Iron Oxide Copper Gold deposits
- Good mining jurisdiction with excellent infrastructure, mining service providers and skilled manpower in place
- Copper market forecast to be undersupplied while demand for copper from electric vehicle sector is growing
TORONTO, Nov. 29, 2018 (GLOBE NEWSWIRE) -- Aguia Resources Limited (ASX: AGR, TSXV: AGRL) (“Aguia” or the “Company”) is currently evaluating opportunities to enhance shareholder value through its Big Ranch and Canhada copper prospects in Rio Grande do Sul. As announced previously, Aguia has discovered a new zone of copper mineralisation and staked 23 tenements, totalling 34,000 hectares within the Rio Grande Copper Belt, Rio Grande do Sul, Brazil.
Aguia believes that the market for copper will be positive over the next few years and could be in undersupply globally as early as next year.
Earlier this year, Aguia’s field crews reviewed potential targets in the Rio Grande copper belt which is a 100km by 60km wide belt with historical production from Hydrothermal-Magmatic Copper deposits. After identifying copper mineralisation, Aguia was able to secure the ground at Big Ranch and Canhada through application to the Brazilian Mining Authority (DNPM) and commence exploration. The geological environment in this region is considered highly prospective and includes the past producing Camaqua copper mine, a new Zinc-Lead project being permitted by Nexa Resources (Votorantim Group) and the Andrade copper deposit owned by Brazilian based Referencial (see Figure 1). Camaqua was an open pit operation and both of the new operations being developed are amenable to open pit.
Drilling is currently underway at Big Ranch with completion targeted by the end of the year which will be followed up with a drill program on the Canhada claims in Q1 of 2019.
The Big Ranch and Canhada targets could have significant potential advantages due to the extensive infrastructure already in place related to the pre-existing operations in the belt, including power and paved roads and the claims are in close proximity to the cities of Caçapava and Lavras do Sul where Aguia already has a presence. The region has a strong history in mining with experienced service providers and skilled manpower readily available.
In the coming weeks, Aguia will be investigating strategic alternatives to unlock value of the Rio Grande Copper prospects for our shareholders including a new listing on the ASX, a joint venture or strategic investment with parties that have expressed an interest in the project, securing funding to more aggressively pursue exploration opportunities and developing a copper division within Aguia. All options are being considered equally.
Meanwhile, Aguia remains very engaged with FEPAM, the environmental regulator in Rio Grande do Sul in the final analysis and approval of the Environmental Impact Assessment for the Três Estradas phosphate project.
To view Figure 1. - Regional geological map of the Rio Grande Copper Belt, highlighting the distribution of Aguia’s Claims - please click on the following link: http://www.globenewswire.com/NewsRoom/AttachmentNg/4ae44f06-6eed-4761-98d8-db31ef52cd13
Commentary
Managing Director Justin Reid commented: “Promising exploration results have encouraged us to start formulating plans on how best to develop these exciting new assets as we take exploration activities to the next level. The Board is now actively evaluating options to fund further exploration and determine how best to unlock value for Aguia’s shareholders. This may include spinning out the asset into a new company at the appropriate time and given market conditions, a joint venture or strategic partner among other options. Ultimately we want to make sure that current Aguia shareholders participate in any value that could be created from our current exploration activities in addition to the potential upside from our more advanced Três Estradas phosphate project.”
“Copper remains a major focus of exploration and acquisition for major producers such as BHP Billiton. We are fortunate to have Brian Moller on the Board of Directors of Aguia as he is also the Chairman of SolGold (LON, TSX: SOLG), which is developing the Cascabel copper-gold project in Ecuador. Brian’s insight and advice will be invaluable as we consider the optimal path to deliver value to our shareholders.”
For further information, please contact:
Justin Reid, Managing Director
E: jreid@aguiaresources.com.au
T: +1 416-216-5446
Spyros Karellas, Investor Relations North America
E: spyros@pinnaclecapitalmarkets.ca
T: +1 416-433-5696
Released through: Ben Jarvis, Six Degrees Investor Relations: +61 413 150 448
Follow Aguia on Twitter: @ Aguia_Resources
About Aguia:
Aguia Resources Limited, (“Aguia”) is an ASX and TSX Venture listed company whose primary focus is on the exploration and development of mineral resource projects in Brazil. Aguia has an established and highly experienced in-country team based in Belo Horizonte, Brazil with corporate offices in Sydney, Australia. Aguia’s key projects are located in Rio Grande do Sul, a prime farming area which is 100% dependent on phosphate imports. The Rio Grande phosphate deposits exhibit high quality and low cost production characteristics, and are ideally located with proximity to road, rail, and port infrastructure. Aguia’s experienced management team has a proven track record of advancing high quality mining assets to production in Brazil.
The information in this announcement that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Dr Fernando Tallarico, who is a member of the Association of Professional Geoscientists of Ontario. Dr Tallarico is a full-time employee of the company. Dr Tallarico has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Tallarico consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Qualified Person
The technical information in this press release has been reviewed and approved by Dr. Fernando Tallarico, who is a member of the Association of Professional Geoscientists of Ontario, Technical Director for Aguia and a Qualified Person as defined by National Instrument 43-101. Dr. Tallarico consents to the inclusion of his name in this release.
Cautionary Statement on Forward Looking Information
This press release contains "forward-looking information" within the meaning of applicable Canadian and Australian securities legislation. Forward-looking information includes, without limitation, statements regarding the results of exploration activities at the Canhada and Big Ranch Targets, soil and assay results, plans for future drilling and exploration programs, the mineral resource estimates, production targets, the anticipated timetable, permitting, forecast financial information, bankable feasibility study and ability to finance the project, and the prospectivity and potential of the Canhada and Big Ranch Targets.
Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including risks inherent in the mining industry and risks described in the public disclosure of the Company which is available under the profile of the Company on SEDAR at www.sedar.com, on the ASX website at www.asx.com.au and on the Company's website at www.aguiaresouces.com.au. These risks should be considered carefully.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Persons reading this news release are cautioned that such statements are only predictions and there can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company disclaims any intent or obligation to update or revise any forward looking statements whether as a result of new information, estimates, options, future events, results or otherwise and does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
NEITHER THE AUSTRALIAN STOCK EXCHANGE, TSX VENTURE EXCHANGE NOR THEIR REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.