Aguia Resources Limited · ASX:AGR
Aguia Resources — Investor Presentation (March 2020)
30 slides from Aguia Resources's investor presentation, Mar 12, 2020
Slide 1: Aguia Resources Limited Investor Presentation – March 2020
Aguia Resources Limited Investor Presentation – March 2020
Slide 2: Disclaimer
Disclaimer • This document has been prepared as a summary only and does not contain all information about Aguia Resources Limited (the “Company”) assets and liabilities, financial position and performance, profits and losses, prospects and the rights and liabilities attaching to the Company’s securi
Slide 3: Repositioned for Early Cash Flow
Repositioned for Early Cash Flow Significant progress made by new MD Dr Fernando Tallarico – experienced team in place, operations centred in Brazil, cost base slashed, corporate offices closed and delisted from TSX. Replaced previous cumbersome and unfunded BFS project (>US$76m CAPEX) with a low CA
Slide 4: Corporate Overview
Corporate Overview Corporate snapshot Board & Management ASX code AGR Non-Executive Chair Christine McGrath Shares on issue 211.7m Managing Director Fernando Tallarico Options on issue 35.11m Non-Executive Director Martin McConnell Market capitalisation (@ $0.09/share) $19.1m Non-Executive Director
Slide 5: Direct Application Natural Fertilizer (DANF)
Direct Application Natural Fertilizer (DANF) Rio Grande do Sul (RS) - one of the Location largest agricultural producers in Brazil Manaus Fortaleza Preliminary License (LP) granted1. Environmental Brasília Installation License (LI) work Belo Licence Horizonte underway Rio de Janeiro São Paulo Minera
Slide 6: Three-phase Expansion Strategy
Three-phase Expansion Strategy Phase 1– Year 1 to 18 Phase 2 – Year 19 to 37 Phase 3 – Year 38 to 64 Saprolite Fresh Carbonatite Aglime Mining and transport to Mining and transport to Recovery of aglime the ROM pad area the ROM pad area deposited in the dam Homogenization, Homogenization, Limestone
Slide 7: Right Commodity and Large Domestic Market
Right Commodity and Large Domestic Market • Demand > 2x since 2000 Brazil is pro agriculture and mining • Due to increased: Harvested land area The world’s largest agribusiness Fertilizer application exporter, set to double by 2024 rates Rio Grande do Sul currently imports 100% of its phos
Slide 8: Phase 1 – Compelling Project Economics
Phase 1 – Compelling Project Economics Phase 1 - DANF 1 Run of Mine (ROM) 5.1 million tonnes Strip Ratio 0.49 (tonnes waste to tonnes phosphate) Production rate 300,000 tonnes of ROM after 3 years of ramp up Life of Mine (LOM) 18 years CAPEX A$9.72million (A$10.57million with contingency) OPEX A$11.
Slide 9: Phase 1 – New DANF v Historical Concentrate Model
Phase 1 – New DANF v Historical Concentrate Model Phase 1 DANF 1 Phase 1 Phosphate Concentrate 2 Directly affected area 93 ha 412 ha Tailing dam No Yes Water dam No Yes Operational life 18 years 3.5 years ROM 5.1 Mt 5.0 Mt Total Production 4.9 Mt 1.0 Mt Waste 2.5 Mt 7.0 Mt A$9.72 million and A$10.57
Slide 10: Phase 1 Overview
Phase 1 Overview Phase 1 will focus on the mining of the high-grade oxidized ore to produce a Direct Application Natural Fertilizer (DANF) 1 Open pit operation with very low strip 2 ratio of 0.49:1 for an 18-year LOM 6 Simple processing, including only crushing 1 3 and milling 7 Low operatio
Slide 11: Potential Phosphate Market in RS State
Potential Phosphate Market in RS State Soybean Rice Wheat Maize Tobacco Apple Grape TRÊS ESTRADAS Olive Planted area in RS 300km radius from TE Area P2O5 P2O5 Crop (ha) kg nutrient/ha tons of nutrient Soybean 3,041,393 58 176,401 1t of TE DANF @10% P2O5 Rice 870,077 37 32,193 = Wheat 331,138 49 16,2
Slide 12: Sustainability
Sustainability SOCIAL ENVIRONMENTAL ECONOMIC • Local product - produced • A natural source of P, Ca • Alternative to replace near the consumption area; and Mg; chemical and imported fertilizers; • Competitive price with • No use of water resources in conventional imported beneficiation; • Reduction
Slide 13: Timeline and Key Milestones
Timeline and Key Milestones Três Estradas Project 2015 2016 2017 2018 2019 2020 2021 2022 Resource Exploration & Development Drilling to Complete JORC Resource Final Exploration to ANM Q3 2017 Economic Feasibility Study to ANM Enviromental Permiting EIA‐RIMA for Industrial Project Q3 2017 Q3 2019 LP
Slide 14: Rio Grande Copper Provides Optionality
Rio Grande Copper Provides Optionality 270 km from Porto Alegre, capital Location Manaus Fortaleza of Rio Grande do Sul State Brasília Belo 861 km2 of tenements permitted + Horizonte Project Area 400 km2 under application Rio de Janeiro São Paulo Porto Alegre Inside the Sul Riograndense Shield Geolo
Slide 15: District Scale Position
District Scale Position Andrade Carlota Primavera Passo Feio Tenements permitted = 861 km2 Application = 400 km2 Seival Canhada 15 Note: See ASX releases 27th February 2018, 19th April 2018, 1st August 2018, 12th September 2018, 27th February 2019, 18th March 2019 and 18th September 2019
Slide 16: Andrade Copper Deposit
Andrade Copper Deposit 30m @ 0.77% Cu, 12.12 g/t Ag (Including 14m @ 1.17% Cu, 15.99 g/t Ag) Inferred Mineral Resource of 10.8 million tonnes with average grade of 0.56% Cu and 2.56 g/t Ag1 Expansion potential and upgrade with additional drilling High Grade 1 - ASX release 18th March 2019 16
Slide 17: Copper Sulphate – Crystallisation Process
Copper Sulphate – Crystallisation Process Mining and transport Crushing Screening Heap Leaching Solvent Extraction Crystallisation Low CAPEX Copper Sulphate Plant with fast track to production Simplified environmental licensing Copper Risk reduction Sulphate Attractive product with a high sa
Slide 18: Timeline and Key Milestones
Timeline and Key Milestones Andrade Copper Project 2017 2018 2019 2020 2021 2022 2023 2024 Resource Exploration & Development Drilling to Complete JORC Resource Final Exploration to ANM Q1 2018 Economic Feasibility Study to ANM Q2 2018 Enviromental Permiting EIA‐RIMA for Industrial Project Prelimina
Slide 19: Thank You
Thank You Brazil AGUIA Resources Limited Rua Dr. Vale 555 – Sala 406 Moinhos de Vento, Porto Alegre - RS 90.560-010 +55 51 3519 5166 www.aguiaresources.com.au info@aguiaresources.com.au
Slide 20: APPENDIX
APPENDIX
Slide 21: Board and Management Team
Board and Management Team Name Role Experience Ph D. 30-years geologist in South America. Vale, Falconbridge, BHP. Assembled Fernando Tallarico Managing Director portfolio in Brazil. Commercial lawyer, Company Secretary, Executive Manager with 30 years Christine McGrath Non Executive Chairman experi
Slide 22: DANF v Conventional Phosphate Fertilizer
DANF v Conventional Phosphate Fertilizer • DANF Main Advantages Conventional DANF • Competitive market price Main conditions Phosphate Phosphate • Extremally low strip ratio SSP, STP (total P2O5 grade) • No tailings generation Micronutrients (trace elements) X Optimal nutrient ratio (availlab
Slide 23: Comparative
Comparative PHASE I - BFS PHASE I - DANF Increase Reduction Duration 4 years 18 years 350.0% Mine movement 11 Mt 7.4 Mt 32.7% Sterile to the waste dumps 7 Mt 2.5 Mt 88.5% Ore fed into the crusher 4 Mt 5.1 Mt 27.5% Final product 1 Mt 4.9 Mt 390.0% Tailings deposition into the dam 3 Mt 0 Mt
Slide 24: Phosphate Regional Targets
Phosphate Regional Targets Mato Grande Joca Taveres Santa Clara Note: See ASX release 9th December 2015, ASX release 8th June 2016, ASX release 16th January 2018 24
Slide 25: Três Estradas Phosphate Project – Resource Statements
Três Estradas Phosphate Project – Resource Statements Audited Mineral Resource Estimate Table* - Três Estradas Phosphate Project Effective Date 8th September 2017 - Block Model: 12 m x 6 m x 10 m Resource Tonnage P2O5 P2O5 as CaO as Domain CaO (%) Classification (t x 1000) (%) Apatite (%) Calcite (%
Slide 26: Joca Tavares Phosphate Project
Joca Tavares Phosphate Project JORC Resource of 2.75mt (oxide plus hard rock)1 Located 35km from TEPP Containing 430,000t of soft ore to be trucked to TEPP for blending and life extension Hard ore of 2.32mt may be mined in more favourable phosphate environment Joca Tavares Project - Oxide In
Slide 27: Mato Grande Phosphate Project
Mato Grande Phosphate Project Mato Grande drill testing shows a deposit of significant scale and grade1 Exploration Work Performed Drilling on Mato Grande • Aguia conducted an auger drilling program over Mato Grande carbonatite • 28/35 auger holes encountered mineralization • Historical data indicat
Slide 28: Andrade Copper Project – Resource Statements
Andrade Copper Project – Resource Statements 1 - ASX release 19th March 2019 28
Slide 29: Primavera Target
Primavera Target Ready target for follow up with drilling TRPR13 11m @ 1.16% Cu 25.13 g/t Ag TRPR14 4.6m @ 0.80% Cu 8.50 g/t Ag TRPR15 TRPR07 13m @ 0.91% Cu 9.4m @ 0.84% Cu 8.13 g/t Ag 1.30 g/t Ag TRPR09 TRPR08 26m @ 0.39% Cu 4m @ 0.41% Cu 6.89 g/t Ag 8.02 g/t Ag TRPR10 5.5m @ 0.61% Cu TRPR11 2.33
Slide 30: Competent Persons Statement
COMPETENT PERSONS STATEMENT The Três Estradas Phosphate Project has a current JORC/43-101 compliant mineral resource which includes Measured Resources of 36 Mt grading 4.01% P2O5. Indicated Resources of 47 Mt at 4.18% P2O5 and Inferred Resources of 21.8 Mt at 3.67% P2O5 Information in this presentat