Tres Estradas Phosphate Project: Initial Inferred Resource Estimate of 21Mt Significant Potential to Expand

SYDNEY, June 14, 2012 /PRNewswire-Asia/ --

Summary

• Initial JORC compliant in-pit inferred resource of 21Mt @ 4.6% P2O5 (Note 1) including higher grade oxide zone from surface of 1.8Mt @ 10.9% P2O5
• Tres Estradas initial inferred resource estimate is derived from shallow auger holes and  19 core holes drilled to 100 metres depth over a length of 1,160 metres
• Significant potential to expand resource with additional drilling below 100 metres and along the carbonatite zone which extends for an additional length of 1,400 metres
• Overall grade and preliminary metallurgical results are similar to carbonatite hosted open-cut operating mines in Brazil and globally that are presently mined to depths of 220 metres (Siilinjarvi, Finland) and 375 metres (Cajati, Brazil)
• Project scoping exercise to commence shortly to produce a concentrated rock phosphate product

Emerging phosphate and potash exploration and development company Aguia Resources Limited (ASX: AGR) ("Aguia" or "Company") is pleased to announce its initial JORC compliant in-pit inferred resource estimate from the Tres Estradas ("TE") phosphate project in southern Brazil.

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The Company commissioned leading independent global consulting company SRK Consulting to prepare the initial Mineral Resource Statement. The summary report including competent person's statement is attached to this release.

Aguia's Managing Director, Simon Taylor, said: "This initial resource estimate represents a significant new phosphate discovery with characteristics similar to existing producers in Brazil. It represents the initial results based on limited drilling of the Tres Estradas phosphate project to date. Importantly, the grade and mineralogy is similar to that of other operating mines globally including Yara's Siilinjarvi mine in Finland and Vale's Cajati mine in Brazil, both of which produce a high quality concentrate from phosphate within carbonatite host rocks."

"Furthermore, first pass beneficiation test work from the higher grade oxide zone has already confirmed commercial concentrate grades up to 34% P2O5 (refer ASX Release 22nd May 2012) supporting future project development opportunities including early start up," added Mr Taylor.

Aguia's Brazilian based Technical Director, Dr Fernando Tallarico, added: "We have only drilled nineteen holes so far on the Tres Estradas project and we will look to materially expand the resource over the next 6-12 months. When considered with the positive results of the initial metallurgical test work, which is comparable to the above mentioned deposits, we believe that the TE project has the potential to develop into a robust operation."

Near Term Focus

Following the release of today's positive initial JORC compliant resource, the Company will be accelerating its efforts to commercialise the Tres Estradas phosphate project.

Aguia has commenced further phosphate beneficiation optimisation test work. A combination of step-out drilling to expand the resource and in-fill drilling to reclassify the resource to an indicated and measured category will commence as soon as approvals are received for the southern tenement application.

On confirmation of further positive results, Aguia intends on commencing a project scoping exercise.

Notes:

1. SRK Consulting: cut-off grade of 3.0% of P2O5
2. JSA Consultoria e Assessoria Tecnica, Company data
3. Inferred resource calculated from 40% of potential target length and to 100 metres depth
4. Based on preliminary beneficiation test work, optimisation test work underway

About Aguia

Aguia is focused on the exploration and development of phosphate and potash projects in Brazil. Brazil is Latin America's biggest economy and is heavily reliant on imports of up to 50 per cent of its phosphate and 90 per cent of its potash needs. Aguia is well positioned to capitalise on the growing demand for phosphorus and potash based fertilisers in the expanding agriculture sector in Brazil and controls three large projects, located close to existing infrastructure. The Company is committed to its existing projects whilst continuing to pursue other opportunities within the fertiliser sector.

JORC Code Competent Person Statements

The Tres Estradas Phosphate Project has a current JORC compliant inferred mineral resource of 21.33Mt @ 4.63% P2O5 (total initial contained phosphate of 0.99Mt P2O5).

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Dr Fernando Tallarico, who is a member of the Association of Professional Geoscientists of Ontario. Dr Tallarico is a full-time employee of Aguia Resources Limited. Dr Tallarico has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves ("JORC Code"). Dr Tallarico consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

SOURCE Aguia Resources Limited