JOHANNESBURG (miningweekly.com) – Based on a positive resource update reaffirming the potential value of its flagship Três Estradas phosphate deposit, in southern Brazil, ASX-listed fertiliser developer Aguia Resources has confirmed its intention to commence with a bankable feasibility study (BFS) once additional project development and exploration works are completed in the near term.

Aguia plans to undertake an infill drilling programme to convert the current inferred mineral resource to measured and indicated mineral resources, which will be used as the basis for economic and production forecasts in the BFS.

To date, the conversion of the resource from inferred to indicated has been high, reflecting the continuity of the carbonatite deposit.

The company says it will continue to analyse the mining and processing plan to identify further optimisations with the potential to reduce costs. Aguia will also examine logistics options to deliver the phosrock to the single superphosphate producers at the port.

“We have an active project development works schedule under way and we are aggressively moving forward with the development of the deposit to further de-risk and delineate the project’s economic value,” said Aguia MD Justin Reid.

Aguia also plans to submit it environmental-impact assessment (EIA) to the government next month, which it sees as a major project development milestone. The EIA was compiled in the last few months.

Aguia confirms that discussions are continuing with the regional government, which has indicated its support for the Três Estradas project. The company further notes that discussions are under way with a number of potential offtake partners and debt providers who have expressed interest in the project.

“[These] are at an early stage but they illustrate the growing interest in the project and the realisation that Aguia will be the only phosphate miner in southern Brazil, a region that is entirely dependent on imports,” said Reid.

Meanwhile, Aguia adds that, while the Três Estradas deposit remains its main focus, it will also continue exploration activities at the surrounding Terra Santa and Santa Clara projects – two recently optioned adjacent properties with geological similarities to Três Estradas.