Name and Location
Três Tres Estradas phosphate project, Brazil.

Client
Aguia Resources.

Project Description
A preliminary economic assessment (PEA) on the Três Tres Estradas project has confirmed the technical and economic viability of the project as a low-cost producer of single superphosphate (SSP), in southern Brazil.

The PEA results are based on the 70.1-million-tonne Joint Ore Reserves Committee-compliant mineral resource, comprising indicated resources of 15.2-million tonnes and inferred resources of 59.2-million tonnes, with an average grade of 4.20% phosphorous pentoxide (P₂O₅) previously announced in April.

The PEA proposes an openpit, truck-and-excavator operation.

Phosphate mineralisation extraction will involve drilling and blasting, with phosphate-bearing rock and waste rock hauled to an on-site concentrator and waste dump respectively.

The produced phosphate rock concentrate will be transported by truck from the Três Tres Estradas site to the port city of Rio Grande.

It is planned that the concentrate will be upgraded to granulated SSP at a plant in Rio Grande.

It is expected that the final SSP product will be sold and distributed to a local market in southern Brazil.

The project will involve transporting about 138-million tonnes of material, of which 40-million tonnes will be processed at the concentrator and subsequently at the SSP plant.

The concentrator is planned for a feed capacity of 7 500 t/d, with an estimated average P₂O₅ feed grade of 4.3%.

Based on current metallurgical testwork, an average P2O5 process recovery of 67% yielding phosphate rock concentrate grading at 28% P₂O₅ is assumed.

The conversion of phosrock to SSP is assumed at an average ratio of 1.55.

The planned capacity of the SSP plant is 500 000 t/y.

The proposed tailings management facility will be located about 3.2 km south-west of the proposed plant site.

About 41-million tonnes of low-solid content (about 3%) tailings will be hydraulically deposited at this site.

It is expected that about 1.04-million tonnes of tailings will be produced during the first year of the mine operation.

An earth-fill starter dam will be built from saprolite borrowed from nearby sources to retain the mentioned quantity of first-year tailings.

Thereafter, the tailings dam will be raised in stages throughout the life of the dam using saprolite fill material.

Net Present Value/Internal Rate of Return
The project has an estimated net present value, at a 5% disocount rate, of $273-million and an internal rate of return of 25%, with a payback of 3.2 years based on long term SSP price of $280/t.

Value
The initial capital expenditure requirement is estimated at $209-million, including contingencies.

Duration
Not stated.

Latest Developments
Aguia plans to initiate the environmental base-line study and a bankable feasibility study of the Três Tres Estradas project. Concurrently, the company will aggressively drill targets – Joca Tavares and Cerro Preto – in the Rio Grande region.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Aguia Resources, tel +61 2 9299 9690, fax +61 2 9299 9629 or email info@aguiaresources.com.au.