How Aguia’s New Gold Discovery Could Transform Its Colombian Mine

Phosphate Project Momentum in Brazil

Aguia Resources has made significant strides at its Tres Estradas phosphate project in Brazil, initiating site works and securing a R$6 million (A$1.7 million) bank loan from the Regional Development Bank of the Far South (BRDE). This financing is earmarked for upgrading the processing plant to treat the Tres Estradas PAMPAFOS product, with equipment purchases and civil works planned over the coming months. The loan terms include a 10-year maturity with a 24-month grace period, supported by land assets at the mine site.

Engineering reviews have revealed that the processing plant's dryer capacity can be increased from 18 to 24 tonnes per hour, enabling a projected annual treatment rate exceeding 160,000 tonnes; 60% above previous estimates. This capacity boost, combined with escalating phosphate prices now exceeding A$200 per tonne, positions the project for robust economics, with potential gross profit margins estimated at A$21.6 million annually based on a 100,000 tonnes per annum treatment rate.

Transforming Gold Operations in Colombia

Meanwhile, in Colombia, Aguia's Santa Barbara gold mine has undergone a comprehensive management and operational overhaul. The company replaced local unskilled labor with experienced in-country personnel specializing in narrow vein mining and gold processing. This strategic shift has led to improved underground development, with metres developed increasing by 33% and mineralised tonnes extracted rising by 23% compared to the previous quarter.

Despite negligible gold production during the quarter due to plant reconfiguration and operational reassessment, the mine has started producing doré bars, which are being sent for refining and analysis. The processing plant flowsheet and underground mining methods are being optimized, with further upgrades planned to increase milling capacity and gold recovery rates, targeting metallurgical recoveries above 90%.

Significant Geological Discovery at Santa Barbara

Exploration drilling and underground channel sampling have unveiled a significant new geological discovery at Santa Barbara, indicating that the mineralised gold vein system is more extensive than previously understood. Cross-cutting vein sets connecting the Mariana and Santa Barbara veins suggest a larger stockwork system, opening new exploration avenues parallel to the main veins.

High-grade assay results from underground sampling confirmed continuous gold zones with grades up to 33.52 grams per tonne over substantial strike lengths. Diamond drilling returned notable intersections, including 25.43 g/t Au and 78.3 g/t Ag over 0.6 metres, and a remarkable 44.2 g/t Au over 0.15 metres within broader mineralised intervals. These findings underscore the potential for expanding the resource base significantly.

Financial and Regulatory Updates

Operating expenditure for the quarter rose to A$2.03 million, reflecting increased activity and investment in exploration and plant upgrades. Aguia closed an entitlement offer raising approximately A$2.23 million, with firm commitments for a shortfall placement bringing total proceeds to around A$4 million. Cash on hand stood at A$1.58 million at quarter-end.

On the regulatory front, Aguia is preparing to submit its Operating License application for Tres Estradas by late December 2025, aiming to commence processing by March or April 2026. Environmental monitoring is underway in compliance with local authorities, and the company is appealing denied extensions on certain exploration tenements in Brazil, maintaining a focus on securing its land tenure.

Looking Ahead

Executive Chairman Warwick Grigor highlighted the ongoing ramp-up at Santa Barbara, noting that underground mines require time to optimize production rates. The company anticipates a six-month expansion period before fully utilising the mill capacity. Meanwhile, the Tres Estradas project is poised for a strong start, supported by favourable market conditions and enhanced processing capabilities.