Aguia Resources (ASX:AGR) has made a new grassroots discovery of...

Aguia Resources (ASX:AGR) has made a new grassroots discovery of a sediment-hosted phosphate mineralisation in the Rio Grande Project, southern Brazil. 

Mineralisation is related to black phosphorite beds that were found to occur in the Arroio Marmeleiro Formation, a Proterozoic shelf sequence that outcrops in an area that extends some 30 kilometres along strike by 5 kilometres wide.

So far three beds of black phosphorite have been mapped in the Cerro Preto Target, along strike lengths that vary from 700 metres to 5 kilometres, with thickness up to 200 metres. 

Systematic rock chip sampling, delivered assays with grades up to 20.4% P2O5.

As follow-up to initial geological mapping, two trenches were excavated and returned 17.5 metres at 10.3% P2O5 which included 5 metres at 15.52%; and 8.5 metres grading 9.83%.

This new discovery of a sediment-hosted phosphate mineralisation in the Rio Grande Project is resembling those of the Idaho Phosphate District where several important commercial phosphate deposits are clustered in a similar geological environment.

Further exploration work, including drilling, is being planned with the intention of delineating a resource.

The discoveries at Tres Estradas, Joca Tavares and now Cerro Preto reinforce Aguia's thesis that there is potential to develop a producing camp with multiple deposits, in an area where the present phosphate supply is entirely dependent upon imports.

Last month, the Company secured a Line of Credit to support its ongoing operations in Brazil. 

Under the agreement Forbes Emprendimentos Minerais will provide $500,000.

The lender is a company associated with three Aguia directors, indicating management confidence in the Brazillian phosphate strategy.

In addition, a supplementary sum of up to $500,000 can be drawn at the election of the company. The LOC is unsecured and funding drawn down attracts a 1% annual interest rate. 

Aguia is currently capitalised at around $8 million.

 

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