Aguia Resources Limited · ASX:AGR
Aguia Resources — Investor Presentation (March 2011)
30 slides from Aguia Resources's investor presentation, Mar 24, 2011
Slide 1: March 2011
For personal use only MARCH | 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 ■ 100% OWNERSHIP OF POTASH AND For personal use only PHOSPHATE PROJECTS PROJECTS, BRAZIL ■ Three potentially large-scale projects located close to primary markets and infrastructure • Atlantic Potash Project ✔ Adjacent to Brazil’s only operating potash mine ✔ 300 drill holes and 32
Slide 4: Executives and Management
EXECUTIVES AND MANAGEMENT For personal use only Executives Management Paulo Souza - General Manager - Potash Tony Wonnacott - Non-Executive Chairman C – Securities Lawyer and M&A Consultant – Key engineer involved in the design and development of Vale’s Carnallite Project and Pilot Plant – Over 15 y
Slide 5: Capital Structure & Corporate
CAPITAL STRUCTURE & CORPORATE For personal use only March 2011 Post-Transaction Post Transaction Ordinary Shares (ASX: AGR) 60.7M 60.7M Potash Vendor Shares (12 month escrow) 20 0M 20.0M Capital Raising (???$) 25.0M Total Shares 60.7M 105.7M Market cap (undiluted @ $1.09) $66.2M $115.2M Cash (@ Comp
Slide 6: The Opportunity – Why Brazil
THE OPPORTUNITY – WHY BRAZIL For personal use only An agricultural power house ■ 4th largest cons consumer mer of fertili fertilizer er b butt acco accounts nts for onl 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 world’s
Slide 7: The Opportunity – Customers, Markets
THE OPPORTUNITY – CUSTOMERS,, MARKETS For personal use only ATLANTIC LUCENA POTASH PHOSPHATE ■ All projects are in mining friendly jurisdictions and are located close to: • Potential domestic primary customers • Major fertiliser blenders CERRADO • Infrastructure I f t t CROP BELT ■ Land position of
Slide 8: Conditional Agreement to acquire 100% of PAC
For personal use only Conditional Agreement to acquire 100% of PAC Announced Jan 25th 2011
Slide 9: Project Highlights
PROJECT HIGHLIGHTS For personal use only The Potash Atlantico Project Located in the attractive Sergipe gp p potash basin Adjacent to Brazil’s only operating potash mine Project supported by 300 drill holes and 32,000 km of existing 2D seismic data Initial target g resource ppotential of 0.7
Slide 10: 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 Sub Station Off Take Partners in Region
Slide 11: Exceptional Discovery Potential
EXCEPTIONAL DISCOVERY POTENTIAL For personal use only ALAGOAS Sergipe Potash Basin Potash associated with Low Gravity Regions PAC controls t l 44 permits it ~68,700 68 700 ha h VALE IS DEVELOPING A SOLUTION MINING OPERATION ON ADJACENT PROPERTY Alagoas Potash Basin Unexplored Basin Low G
Slide 12: Regional Gravity and Drilling Data
REGIONAL GRAVITY AND DRILLING DATA For personal use only Taquari-Vassouras Taquari Vassouras Mine - Vale ■ Historical exploration data Underground / Room and Pillar obtained from Brazilian 700,000t KCl pa Associated to Bull’s-eyes Gravity Low Geological Survey ■ Petroleum exploration and production
Slide 13: Sergipe Basin – Well Hole Analysis
SERGIPE BASIN – WELL HOLE ANALYSIS For personal use only Taquari-Vassouras Mine - Vale PAC Potash Projects
Slide 14: Area – Historical Drilling
AREA 1 – HISTORICAL DRILLING For personal use only
Slide 15: Area – Evaluated Wells
AREA 1 – EVALUATED WELLS For personal use only WELL: 1RPX0001DSE
Slide 16: Area – Evaluated Wells
AREA 1 – EVALUATED WELLS For personal use only WELL: 1CSM 0001 SE CARNALLITE DEPTH HALITE ANHYDRITE SHALE SAND LIMESTONE TACHYDRITE 25 m * Well: 1CSM 0001 SE and 1RPX 0001D SE within project area, SONIC CALIPER GAMMA RAY
Slide 17: Area – Proposed New Wells
AREA 1 – PROPOSED NEW WELLS For personal use only PROPOSED DRILL HOLES
Slide 18: Seismic and New Wells Location
SEISMIC AND NEW WELLS LOCATION For personal use only S i i Li Seismic Line 0027 0027-1800 1800 POTASH TARGET ZONE
Slide 19: Technical Review – Solution Mining Process
TECHNICAL REVIEW SOLUTION MINING PROCESS For personal use only Solution Mining Process for Carnallite KCl Plant Two wells drilled ~70m 70m apart are drilled to salt layer layer. Hot water (85°c) pumped into salt layer, to dissolve salt into brine. Brine extracted, and two caverns develop. Ca
Slide 20: Project Economics – Illustrative Analysis
PROJECT ECONOMICS ILLUSTRATIVE ANALYSIS For personal use only Assumptions – For illustrative purposes only, not based on actual project studies2, based on 1.25 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 An
Slide 21: Management Work Plan Timeline
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 ate a revision e s o w
Slide 22: Peer Comparison - Potash
PEER COMPARISON - POTASH For personal use only Global EV Diluted Grade KCl Company Code Location Status Resource ($M) (%) (mt) South Boulder Mines STB:ASX Eritrea $501 Expl/Devel 548 18.58 Potash One KCL:TSX Saskatchewan $417 Developer 3,961 27.10 Elemental ELM:ASX ROC $356 Exploration 235 23 30 23.
Slide 23: Mata da Corda Infrastructure
MATA DA CORDA INFRASTRUCTURE For personal use only ■ Located within 100km of the three largest g 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 transportation route for
Slide 24: Mata da Corda – New Discoveries
MATA DA CORDA – NEW DISCOVERIES For personal use only
Slide 25: Mata da Corda – Block
MATA DA CORDA – BLOCK 5 For personal use only BLOCK 5 Favourable mineralogy. Easy access and cost effective drill testing. Potential to host a near surface large tonnage phosphate deposit.
Slide 26: Lucena Project
LUCENA PROJECT For personal use only ■ Aguia has ~ 75,000 ha along the northern sector of the Paraiba basin within the same geological setting where the Brazilian Geological Survey (CPRM ) has discovered severall phosphate h h t d deposits it ■ Limited work since the historical government program ■
Slide 27: Lucena South Targets
LUCENA SOUTH 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 large
Slide 28: Brazilian Players Data
BRAZILIAN PLAYERS DATA For personal use only
Slide 29: Appendix: Commercial Terms of Acquisition
APPENDIX 1 COMMERCIAL TERMS OF ACQUISITION For personal use only Acquisition of projects will occur by Aguia acquiring 100% of Potassio do Atlantico Ltda. Potassio is a 100% owned subsidiary of Potash Atlantico Corp (PAC), a private company associated within the Forbes & Manhattan Group. Commerc
Slide 30: Enquiries
For personal use only Enquires: Simon Taylor – Managing Director Telephone: +61 2 9210 1332 Aaron Wolfe – Vice President President, Corporate Development Development, Forbes & Manhattan Telephone: +1 416 309 2696