PERTH (miningweekly.com) – ASX-listed Aguia Resources on Tuesday reported that a concept study into its Tres Estradas phosphate project, in Brazil, had delivered positive results.

The study estimated that Tres Estradas could produce about 350 000 t/y of single superphosphate, at an operating cost of $177/t, making it a significant low-cost producer to one of the largest fertiliser markets in the world.

The openpit operation was expected to require a capital investment of $218-million.

“The project has considerable upside value, given the deposit is open and the company has new discoveries in the area that have potential to share the processing infrastructure,” said Aguia MD Prakash Hariharan.

Aguia would work to complete the delineation of the Tres Estradas resource before completing an economic analysis, but Hariharan said that the project’s position on the cost curve indicated that it was well positioned to generate significant cash flow in the future.

“The study also highlights that Aguia is well positioned within the lowest-cost quartile of the phosphate juniors given the strength of the resource and its top-tier cost structure. Our aim is to deliver one of the finest phosphate resources in Brazil, a country that currently relies on imports to satisfy the shortfall of phosphate in the region.”

In the coming months, the company would look to expand the mineral resource at Tres Estradas and would undertake delineation drilling of the neighbouring Joca Tavares project, with the objective of outlining at least 75-million tonnes of phosphate mineral resource between the two deposits.

The junior would also undertake a pilot plant test programme to optimise the recoveries at Tres Estradas.

Meanwhile, Hariharan reported that the company was reviewing a number of funding options to ensure that the company was sufficiently capitalised through the next phase of exploration and project development.