DRILLING OF SOUTHEAST ZONE AT TRÊS ESTRADAS CONTINUES

Highlights:

• Drilling along the newly discovered southeast zone with strike-length of at least 700 metres continues to discover mineralisation with thicknesses and grades analogous to the current Três Estrada deposit:
  • Hole TED-17-121 returned 28.60 meters grading 3.53% P₂O₅
  • Hole TED-17-124 returned 54.00 meters grading 3.70% P₂O₅
  • Hole TED-17-126 returned 40.05 meters grading 3.08% P₂O₅
  • Hole TED-17-127 returned 28.55 meters grading 3.87% P₂O₅

• Strike length of NE extension remains open past 700 metres and the company will initiate a shallow reverse circulation to test this potential extension for further oxidized mineralisation

• Infill drill of Tres Estradas deposit continues to return excellent results that confirm the homogeneous nature of mineralisation and continuity laterally and at depth:
  • Hole TED-17-111 returned 45.70 meters grading 4.51% P₂O₅
  • Hole TED-17-114 returned 79.00 meters grading 3.23% P₂O₅

• 13,710 metres of infill drilling has been completed and the program is anticipated to be finalised at month end

• Pilot plant flotation test of oxidised carbonatite bulk sample is currently underway at Eriez

• Proposed TSXV listing progressing well

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 13,710 metres has been drilled, which includes 9,495 metres of diamond drilling and 4,215 metres of reverse circulation drilling. The recent drill program, which commenced in late 2016, has been a major undertaking and represents approximately 50% of the total 27,800 metres of diamond and reverse circulation that has been undertaken on the property since 2011.

As announced on 16 February 2017, the Company 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 oxidised high-grade material. This northeast extension will be tested with an additional 500 metres of reverse circulation drilling that will target potential oxidised material near surface.

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 will be added to the current resource. It is expected that inclusion will not only improve the overall strip ratio of the proposed operation but will 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 attested by results of hole TED-17-124 returning 54.00 metres grading 3.70% P₂O₅ and TED-17-126 returning 40.05 metres grading 3.08% P₂O_5.

The pilot plant test of bulk fresh carbonatite sample was completed at the Flotation Division of Eriez in Pennsylvania. Assays of the fresh carbonatite test are still pending and will be released as soon as available. With the fresh carbonatite testing complete, bulk samples of the oxidised carbonatite are now being tested at the Pilot Plant.

The Company has recently engaged Nano, a communication firm based in Porto Alegre, to focus our development message and communication with the local Três Estradas and Lavras do Sul community as well as with the state agencies and authorities in Porto Alegre and all project stakeholders. Several community awareness events have taken place recently including workshops with the community and presentations about the project to several local audiences.

Technical Director Dr. Fernando Tallarico commented, “Drilling results along the new southeast zone and within the deposit are very consistent and highlight how continuous and homogeneous nature of the Três Estradas deposit. We are quietly confident of possibly finding additional oxidised material along the northeast extension of this recently discovered new zone.”

Managing Director Justin Reid added, “Our technical success at Tres Estradas continues to drive the project’s value higher with each metre we drill.  The consistency of the ore body will drive a simplistic mine model for the BFS, and our new extension is providing the opportunity for a material increase in shallow, accessible ore that ultimately will lower strip and further reduce our mining costs.

“I have recently returned from site where I was presented with our long-term community and regional communication plan by NANO who have laid out a holistic communications approach to build upon the incredible work completed by the team to date.  As well, our team enjoyed a warm welcome at a meeting with the Mayor of Lavras do Sul, who continues to support our efforts and is working closely with us to expand our contributions to all the local stakeholders of our project.  We already feel like an important part of the community and look forward to becoming an employer and producer.”

Aguia also notes that its proposed listing on the Toronto Venture Exchange is on track with the majority of required documentation now filed with the TSXV regulators for review. An update on timing of the listing will be provided shortly.    

For further information, please contact:

Justin Reid, Managing Director

E: jreid@aguiaresources.com.au 

T: +1 416-216-5446

Catherine Stretch, Chief Commercial Officer

E: cstretch@aguiaresources.com.au

T: +1 416-309-2695

Jan-Per Hole, Vice President Corporate Development Australia

E: jph@aguiaresources.com.au

T: +61 (0) 414 899 732

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 listed company whose primary focus is on the exploration and development of phosphate 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.