Aguia Resources Limited · ASX:AGR
Aguia Resources — Investor Presentation (March 2012)
22 slides from Aguia Resources's investor presentation, Mar 5, 2012
Slide 1: An Emerging Potash and Phosphate Company in Brazil
AN EMERGING POTASH AND PHOSPHATE COMPANY IN BRAZIL March 2012 AGUIA Resources Limited ASX Code: AGR
Slide 2: Disclaimer
DISCLAIMER 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. This document should
Slide 3: Company Overview
COMPANY OVERVIEW ■ PHOSPHATE AND POTASH 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 Project – World class p
Slide 4: The Opportunity – Why Brazil?
THE OPPORTUNITY – WHY BRAZIL? IMPORT DEPENDENT, CUSTOMERS AN AGRICULTURAL POWERHOUSE ■ 4th largest consumer of fertilizer but only 4% LUCENA PHOSPHATE of global fertilizer production. ■ In 2011, accounted for 9.3% (3.6Mt) of world’s phosphate (P2O5) and 13.4% (7.7Mt) of world’s potash (KCl) consumpt
Slide 5: The Team & Capital Structure
THE TEAM & CAPITAL STRUCTURE Directors Potash & Phosphate Experts Graham Ascough - Non-Executive Chairman Paulo Souza - General Manager - Potash – Over 21 years management and exploration experience – Key engineer involved in the design and development of evaluating resource projects globally, inclu
Slide 6: Peer Comparison Potash & Phosphate
PEER COMPARISON POTASH & PHOSPHATE Global Potash Phosphate Market Cap Company Code Location Status Resource Grade KCl Grade P₂O₅ Diluted (A$M)* (mt) (%) (%) Potash One** KCL:TSX Saskatchewan $409 Developer 3,961 27.10 Elemental ELM:ASX ROC $299 Developer 804 31.00 Verde Potash NPK:TSX Brazil $287 Ex
Slide 7: Atlantic Potash Project Highlights
ATLANTIC POTASH PROJECT HIGHLIGHTS 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 carnallite solution mine ✔env
Slide 8: Infrastructure in Place
INFRASTRUCTURE IN PLACE 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 9: Exceptional Discovery Potential
EXCEPTIONAL DISCOVERY POTENTIAL ■ Large land holding, ~ 200,000 hectares Taquari-Vassouras Mine - Vale Underground / Room and Pillar ■ Added Lara Ground ~ 21,000 hectares 700,000t KCl p.a. ■ Historical exploration data obtained from Associated to Bull’s-eyes Gravity Brazilian Geological Survey Low ■
Slide 10: Drillhole PAC-02 Underway
DRILLHOLE PAC-02 UNDERWAY ■ Drill hole PAC-02 underway ■ Targeting Potash bearing Ibura Member ~ 1,250 metres depth ■ Adjacent to significant Rio Verde Intersection – returned combined thickness of 79 metres potash ■ Includes sylvinite intersection 16.73 metres @ 25.01% KCl grades up to 54.02% KCl P
Slide 11: Drillhole PAC-03 Exceptional Discovery Potential
DRILLHOLE PAC-03 EXCEPTIONAL DISCOVERY POTENTIAL ■ PAC–03 located 120m east of historical hole BRSA-645 that intersected 55metres potash. ■ Target Depth ~ 1,300m PROPOSED PAC-03
Slide 12: Solution Mining Process
SOLUTION MINING PROCESS Solution Mining Process for Carnallite KCl Plant Two wells ~ 70metres 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 cavern. Overburden Caver
Slide 13: Project Economics Illustrative Analysis
PROJECT ECONOMICS ILLUSTRATIVE ANALYSIS Assumptions – For illustrative purposes only, not based on actual project studies2, assumes 1.25 Bt resource = 25 year mine life Investment (US$ million) 900 Brine Field OPEX (US$ / t) 35.0 Beneficiation Plant OPEX (US$ / t) 93.0 Annual Production (t) 1,000,00
Slide 14: Phosphate Projects: Right Location, Right Market
PHOSPHATE PROJECTS RIGHT LOCATION, RIGHT MARKET ■ Key parameters ✔ Location ✔ Infrastructure ✔ Markets ✔ Mineralogy = beneficiation ■ Initial resource targets¹ of 30-80Mt ■ Average grade of Brazilian producing mines = 9% P2O5 ■ Scoping to produce 500 ktpa of concentrated rock. ■ Ball-Park numbers ✔
Slide 15: Rio Grande do Sul Projects: New Phosphate Province
RIO GRANDE DO SUL PROJECTS NEW PHOSPHATE PROVINCE THE PROJECTS Early stage signs similar to carbonatite style phosphate deposits mined by Vale in Brazil, examples including Araxá (Reserve: 88.7 Mt @ 11.12% P2O5) and Cajati (Reserve: 85.1 Mt @ 5.45% P2O5) Two projects under evaluation: Três Est
Slide 16: Tres Estradas Drilling Program and Results
TRES ESTRADAS DRILLING PROGRAM AND RESULTS New Discovery - Nov 2011, diamond drilling returned excellent results. Drilling is spaced over 1 kilometre and up to 200 metres across strike, open in all directions. Initial results from surface include: 27.00 metres @ 17.75% P2O5 Includes. 12.30 m
Slide 17: Tres Estradas Upside: Large Resource Potential
TRES ESTRADAS UPSIDE LARGE RESOURCE POTENTIAL Application lodged over southern extension for potential 2.4 kilometre strike length. DRILLING DISCOVERY 1 KM NEW APPLICATION UNTESTED EXTENSION TOTAL POTENTIAL 2.4 km
Slide 18: Rio Grande do Sul, Logistical Advantages, Markets and Pricing
RIO GRANDE DO SUL, LOGISTICAL ADVANTAGES, MARKETS AND PRICING The three southern States of Rio Relationship between fob Morocco and cfr Brazil for Grande do Sul, Santa Catarina and Phosphate Rock Prices ($/t) Paraná consume ~1.0 mt P2O5¹ or around 30% of Brazilian consumption, $/t Average fob Moro
Slide 19: Brazilian Phosphate Players Data
BRAZILIAN PHOSPHATE PLAYERS DATA 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/ Ouvidor Operating Carbonatite 256.7 7.63 38 1,300 Anglo Vale Araxá Operating Carb
Slide 20: Lucena South Project
LUCENA SOUTH PROJECT DRILLING TARGETS RESOURCE POTENTIAL ■CPRM discovered shallow phosphate mineralisation up to 22% P2O5 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 outl
Slide 21: Mata da Corda Option Agreement
MATA DA CORDA OPTION AGREEMENT INFRASTRUCTURE & NEW DISCOVERIES ■ Located within 100km of the three largest phosphate mines in Brazil and near 32 major bulk blenders ■ Option to Vicenza to acquire 70% of the MCPP over a three year period through a combination of; cash totalling R$1 million (A$0.56
Slide 22: Enquiries
ENQUIRIES: SIMON TAYLOR – Managing Director & CEO Telephone: +61 2 9210 1332 staylor@aguiaresources.com.au www.aguiaresources.com.au ASX Code: AGR AGUIA RESOURCES LIMITED 22