Aguia Resources Limited · ASX:AGR
Aguia Resources — Investor Presentation (August 2011)
22 slides from Aguia Resources's investor presentation, Aug 15, 2011
Slide 1: August 2011
For personal use only AUGUST | 2011
Slide 2: Disclaimer
DISCLAIMER For personal use only This document has been prepared as a summary only, and does not contain all information about the Company‟s assets and liabilities, financial position and performance, profits and losses, prospects and the rights and liabilities attaching to the Company‟s securities.
Slide 3: Company Overview
COMPANY OVERVIEW For personal use only ■ POTASH AND PHOSPHATE PROJECTS IN BRAZIL ■ BUSINESS MODEL = Explore, Develop and sell into Brazilian Domestic Market ■ BRAZIL IS AN AGRICULTURAL POWERHOUSE ✔ Excellent infrastructure ✔ Primary fertiliser markets ✔ Heavily reliant on imports ■ Atlantic Potash P
Slide 4: Key Company Information
KEY COMPANY INFORMATION For personal use only Executives Potash & Phosphate Experience Tony Wonnacott - Non-Executive Chairman -Lawyer Paulo Souza - General Manager - Potash – Securities Lawyer, +15 years experience as a consultant or – Key engineer involved in the design and development of officer
Slide 5: The Opportunity – Why Brazil?
THE OPPORTUNITY – WHY BRAZIL? IMPORT DEPENDENT, CUSTOMERS For personal use only AN AGRICULTURAL POWERHOUSE ■ 4th largest consumer of fertilizer but LUCENA PHOSPHATE accounts for only 4% of global fertilizer production. In 2008 country accounted for 8.5% (3.2Mt) of world‟s P2O5 and 12.9% (6.5Mt) of w
Slide 6: Atlantic Potash Project Highlights
ATLANTIC POTASH PROJECT HIGHLIGHTS For personal use only ATLANTIC POTASH PROJECT Adjacent to Brazil‟s only operating potash mine Taquari-Vassouras Mine (Vale) produces <10% of country‟s consumption, with reserves in place until 2019. Concurrently Vale is developing a 1.2Mt KCl per year carnall
Slide 7: Infrastructure in Place
INFRASTRUCTURE IN PLACE For personal use only Aracaju Aerial View Taquari-Vassouras Mine-Vale Carnallite Pilot Plant-Vale Carnallite Pilot Plant - Vale Aracaju Port PROJECTS Power Station Jardim - CHESF Power Sub-Station Off Take Partners in Region
Slide 8: Exceptional Discovery Potential
EXCEPTIONAL DISCOVERY POTENTIAL For personal use only Taquari-Vassouras Mine - Vale Underground / Room and Pillar ■ Large land holding, 178,200 ha 700,000t KCl pa Associated to Bull‟s-eyes Gravity Low ■ Historical exploration data obtained from Brazilian Geological Survey ■ Petroleum exploration and
Slide 9: Atlantic Potash Project Well Hole Analysis
ATLANTIC POTASH PROJECT WELL HOLE ANALYSIS For personal use only Taquari-Vassouras Mine - Vale AGUIA Potash Projects
Slide 10: Area – Drill Targets: Historical Potash Intersections
AREA 1 – DRILL TARGETS HISTORICAL POTASH INTERSECTIONS For personal use only WELL: 1RPX0001DSE DEPTH 19 metres carnallite 25metres carnallite CARNALLITE HALITE ■ KNOWN POTASH INTERSECTIONS GAMMA RAY CALIPER SONIC ANHYDRITE FROM PETROBRAS DRILLING SHALE SAND LIMESTONE TACHYDRITE WELL: 1CSM 0001 SE
Slide 11: Area – Proposed Drill Holes
AREA 1 – PROPOSED DRILL HOLES PERMITS IN PLACE For personal use only WELL: 1RPX0001DSE DEPTH 19 metres carnallite 25metres carnallite GAMMA RAY CALIPER SONIC PROPOSED DRILL HOLES WELL: 1CSM 0001 SE
Slide 12: Seismic Interpretation & Proposed New Well Locations
SEISMIC INTERPRETATION & PROPOSED NEW WELL LOCATIONS For personal use only Seismic Line 0027-1800 POTASH TARGET ZONE
Slide 13: Solution Mining Process
SOLUTION MINING PROCESS For personal use only Solution Mining Process for Carnallite KCl Plant Two wells drilled ~70m apart are drilled to salt layer. Hot water (85°c) pumped into salt layer, to dissolve salt into brine. Brine extracted, and two caverns develop. Caverns merge into one large
Slide 14: Project Economics
PROJECT ECONOMICS ILLUSTRATIVE ANALYSIS For personal use only Assumptions – For illustrative purposes only, not based on actual project studies2, based on 1.25 Bt resource = 25 year mine life Investment (US$ million) 850 Brine Field OPEX (US$ / t) 35.0 Beneficiation Plant OPEX (US$ / t) 93.0 Annual
Slide 15: Phosphate Projects: Right Location, Right Market
PHOSPHATE PROJECTS RIGHT LOCATION, RIGHT MARKET For personal use only ■ Key parameters, location, infrastructure, markets, mineralogy ■ Business model = Explore, develop and sell into Brazilian domestic market ■ Initial resource targets² of 50 mt @ 10% P2O5 ■ Scoping to produce 500 ktpa of concentra
Slide 16: Lucena South Drilling Targets
LUCENA SOUTH DRILLING TARGETS For personal use only ■CPRM discovered shallow phosphate mineralisation up to 22% P205 in several deposits to the west ■Phosphate mineralisation is hosted by a limestone unit (Gramame Formation) that extends through project towards the east. ■Desktop modelling outlines
Slide 17: Rio Grande Project Drilling Targets
RIO GRANDE PROJECT DRILLING TARGETS For personal use only ■ Early stage signs similar to the carbonatite style hosted phosphate deposits mined by Vale within Brazil, examples including the Araxa (Reserve: 88.7 Mt @ 11.12% P2O5) and Cajati (Reserve: 85.1 Mt @ 5.45% P2O5) Untested Drill Target ■ Untes
Slide 18: Mata da Corda Infrastructure
MATA DA CORDA INFRASTRUCTURE NEW DISCOVERIES For personal use only ■ Located within 100km of the three largest phosphate mines in Brazil and near 32 major bulk blenders ■ Excellent infrastructure, roads, power, water ■ 250km west of Belo Horizonte, State capital and Aguia office ■ On main transporta
Slide 19: Peer Comparison: Potash & Phosphate
PEER COMPARISON POTASH & PHOSPHATE For personal use only Global Potash Phosphate Company Code Location EV Diluted Status Resource Grade KCl Grade P₂O₅ ($M) (mt) (%) (%) Potash One KCL:TSX Saskatchewan $417 Developer 3,961 27.10 Elemental ELM:ASX ROC $321 Exploration 804 31.00 Allana Potash AAA:TSX E
Slide 20: Enquiries
For personal use only Enquiries: Simon Taylor – Managing Director Telephone: +61 2 9210 1332 Aaron Wolfe – Vice President, Corporate Development, Forbes & Manhattan Telephone: +1 416 309 2696
Slide 21: Appendix 1. Management Work Plan Timeline
APPENDIX 1. MANAGEMENT WORK PLAN TIMELINE For personal use only Management has prepared the timeline below for purposes of planning work around the Brazilian exploration opportunity. This timeline is not based on a detailed assessment of the project requirements and is subject to material revision w
Slide 22: Appendix 2. Brazilian Players Data
APPENDIX 2. BRAZILIAN PLAYERS DATA For personal use only Company Project Status Type Reserve Av. Grade Conc. Grade Prod. (Mt) P2O5(%) P2O5(%) Capacity (ktpa) (A) (B) (C) (D) Vale Tapira Operating Carbonatite 1,309.20 7.69 35.5 2,030 Copebrás/ Anglo Ouvidor Operating Carbonatite 256.7 7.63 38 1,300 V
Aguia Resources — Investor Presentation (August 2011) on 6ix