Slide 1: Emerging Brazilian Phosphate and Potash Developer
EMERGING BRAZILIAN PHOSPHATE AND POTASH For personal use only DEVELOPER July 2012 AGUIA Resources Limited ASXRESOURCES AGUIA Code: AGR LIMITED 1
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: Aguia Resources: Building a new Latin American fertilizer company
Aguia Resources: Building a new Latin American fertilizer company For personal use only Utilize world-class discoveries to build a new fertilizer company in Brazil, producing phosphate and potash fertilizers for the Brazilian and neighbouring markets, and securing a 10% stake in both sectors. Local
Slide 4: The Projects: World-class Assets
THE PROJECTS World-class Assets ■ BUILDING PHOSPHATE AND POTASH ASSETS For personal use only Phosphate Projects – Near Term Focus ✔ Rio Grande, new discovery, Flag ship Project ✔ Initial 21M t JORC Inferred resource ✔ Drilling commenced to increase resource size ✔ Beneficiation concentrate up to 34
Slide 5: Brazil – The Opportunity
BRAZIL – THE OPPORTUNITY Import Dependent Market For personal use only Third largest global agricultural exporter PHOSPHATE 4th largest consumer of fertilizer but only 4% of global fertilizer production. In 2011, accounted for 9.3% (3.6Mt) of world’s phosphate Imports Domestic (P2O5) and 13.4%
Slide 6: The Team & Capital Structure
THE TEAM & CAPITAL STRUCTURE For personal use only Directors Potash & Phosphate Experts Graham Ascough - Non-Executive Chairman Alfredo Nunes - Exploration Manager - Phosphate – Over 21 years management and exploration experience evaluating – 20 years exploration and resources evaluation in Brazil a
Slide 7: Phosphate Projects: Right Location, Right Market
PHOSPHATE PROJECTS RIGHT LOCATION, RIGHT MARKET For personal use only ■ Key parameters: ✔ Location LUCENA ✔ Infrastructure ✔ Mineralogy = beneficiation ✔ Markets MATA da ■ Near term focus for next 6-12 months CORDA Rio Grande Carbonatite Projects ✔ Rio Grande similar in style to major producing phos
Slide 8: Brazil - Phosphate Carbonatite Mines
BRAZIL - PHOSPHATE CARBONATITE MINES For personal use only Company Mine Reserve Grade Concentrate Grade Prod. (Mt) P2O5 (%) P2O5 (%) Capacity (ktpa) (A) (B) (C) (D) Vale Tapira 1,309 7.69 35.5 2,030 Copebrás/ Anglo Ouvidor 257 7.63 38 1,300 Vale Araxá 89 11.12 35/33 910 Vale Catalao 224 8.96 36/34 1
Slide 9: Rio Grande do Sul Projects
RIO GRANDE DO SUL PROJECTS NEW PHOSPHATE PROVINCE For personal use only Três Estradas (TE) – new discovery – JORC Inferred resource on 1.2km of total target size of 2.6km TRES ESTRADAS Joca Tavares (JT) – under evaluation NEW DISCOVERY – rock chips up to 11% P2O5 8 additional targets around TE
Slide 10: Tres Estradas – Drill Section
TRES ESTRADAS – DRILL SECTION For personal use only Drilling spaced over 1 kilometre on 200 metre line spacing. Initial oxide results from surface include: 27.00 metres @ 17.75% P2O5 includes 12.30 metres @ 24.60% P2O5 34.00 metres @ 10.91% P2O5 includes 18.85 metres @ 15.58% P2O5 Excellen
Slide 11: Tres Estradas JORC Inferred Resource
TRES ESTRADAS JORC INFERRED RESOURCE For personal use only Initial JORC compliant inferred resource of 21Mt @ 4.6% P2O51 including higher grade oxide zone from surface of 1.8Mt @ 10.9% P2O5 1 SRK Consulting: cut-off grade of 3.0% P2O5)
Slide 12: Tres Estradas Conceptual Pit Model
TRES ESTRADAS CONCEPTUAL PIT MODEL For personal use only Key: Percent P2O5 0.0 – 3.0 % 3.0 – 5.0 % 5.0 – 10.0 % > 10.0 %
Slide 13: Tres Estradas Preliminary Beneficiation Results
TRES ESTRADAS PRELIMINARY BENEFICIATION RESULTS For personal use only Initial metallurgical recoveries up to 83.4% and concentrate grades up to 33.9% P2O5 Results indicate the potential to produce a commercial concentrate using standard methods and reagents available in the market Further opti
Slide 14: Tres Estradas - Upside
TRES ESTRADAS - UPSIDE LARGE RESOURCE POTENTIAL For personal use only Application lodged over southern extension for potential total 2.6 kilometre strike length. Significant potential to expand resource with additional drilling below 100 metres and along the carbonatite zone which extends for an
Slide 15: Phosphate Demand in Brazil and Outlook
PHOSPHATE DEMAND IN BRAZIL AND OUTLOOK For personal use only Phosphate Demand by ‘000 t P2O5 State in Brazil, 2010 < 25 (‘000 tonnes P2O5) Average forecast demand for P2O5 25 – 49 is growing at 4% p.a. 50 – 99 100 - 149 This takes rock demand from 6.3Mt 150- 199 to 10.7Mt by 2020. 200 - 249 Th
Slide 16: Key Phosphate Markets for Rio Grande
KEY PHOSPHATE MARKETS FOR RIO GRANDE For personal use only Phase 1: Build mine and SSP SSP Capacity in Brazil, Uruguay production. and Argentina Current capacity for SSP in southern Total Capacity = 9.0 M t Brazil, Uruguay and Argentina is 2.79M Paranaguá t, which requires 1.79M t rock. - Hering
Slide 17: Excellent Infrastructure Access to Markets
EXCELLENT INFRASTRUCTURE ACCESS TO MARKETS For personal use only • Well developed local infrastructure with good road, rail, power, port and services • Railway within the project that goes north and south to SSP plants in Brazil and southwest to Argentina and Uruguay. RIO GRANDE • Franchise owner is
Slide 18: Cost Advantage for Domestic Producers
COST ADVANTAGE FOR DOMESTIC PRODUCERS For personal use only Suppliers of Phosphate Rock to Brazil Most imported rock to Brazil is from North Africa with typical logistics costs of between $40 - $50/t The Bayovar mine in Peru (Vale) has higher logistics costs, but low mining costs Sustained logis
Slide 19: Provisional Timeline for Phosphate Projects
PROVISIONAL TIMELINE FOR PHOSPHATE PROJECTS For personal use only Projected Market Cap. $ Construction Três - Feasibility Estradas - Infill drilling Study - M,I & I resource - Begin prefeasibility statement study - Scoping study - Drilling northern section (TE) - Expanded JORC mineral resource Com
Slide 20: Peer Comparison: Phosphate
PEER COMPARISON: PHOSPHATE For personal use only Global Phosphate Market Cap Company Code Location Status Resource Grade P₂O₅ Diluted (A$M)* (mt) (%) MBAC Fertiliser Corp MBC:TSX Brazil $288 Developer 220 7.30 Stonegate Agricom Ltd ST:TSX Peru $83 Developer 446 10.51 Arianne Resources DAN:TSX Canada
Slide 21: 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 its Carnallita Potash Projec
Slide 22: Exceptional Discovery Potential
EXCEPTIONAL DISCOVERY POTENTIAL For personal use only ■ Large land holding, ~ 200,000 hectares Taquari-Vassouras Mine - Vale Underground / Room and Pillar ■ Historical exploration data obtained from 700,000t KCl pa Brazilian Geological Survey Associated to Bull’s-eyes Gravity Low ■ Petroleum explora
Slide 23: Lara Option – Historical Potash Intersections
LARA OPTION – HISTORICAL POTASH INTERSECTIONS For personal use only ■ Exceptional discovery potential based on results of historical intersections ■ Lara Option - adjacent ground ~ 21,000 hectares
Slide 24: Enquiries
For personal use only ENQUIRIES: SIMON TAYLOR – Managing Director & CEO Telephone: +61 2 9210 1332 staylor@aguiaresources.com.au www.aguiaresources.com.au ASX Code: AGR
Slide 25: Appendix 1: Brazilian Border Zone
APPENDIX 1: BRAZILIAN BORDER ZONE RIO GRANDE TE AND JT PROJECTS For personal use only The Option: Aguia has an option to acquire the Rio Grande Projects TE and JT 100% for 5 million shares. The Issue: An historical throw-back to defence issues that concerned the former military government (1964 – ’8
Slide 26: Appendix 2: Lucena South Project
APPENDIX 2: LUCENA SOUTH PROJECT DRILLING TARGETS RESOURCE POTENTIAL For personal use only ■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
Slide 27: Appendix 3: Mata da Corda Option
APPENDIX 3: MATA DA CORDA OPTION INFRASTRUCTURE & NEW DISCOVERIES For personal use only ■ 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 total
Slide 28: Appendix 4: Igneous vs. Sedimentary Host Rocks
APPENDIX 4: IGNEOUS VS. SEDIMENTARY HOST ROCKS, KEY CONSIDERATIONS For personal use only Igneous Rock Sedimentary Rock Grade of Rock Mined Typically 4-15% P₂O₅ Typically 10-30% P₂O₅ Beneficiation Higher recovery: typically 80 % - 85% Lower recovery: Typically 70% to (and can be > 90%) 80% Concentrat