Name of the Project
Três Estradas phosphate project.

Location
Rio Grande do Sul, southern Brazil.

Client
Aguia Resources.

Project Description
The project has total measured and indicated resources of 83.2-million tonnes, grading 4.11% phosphorous pentoxide (P₂O₅) and 32.53% calcium oxide (CaO). Total inferred resources have been estimated at 21.85-million tonnes grading 3.67% P₂O₅ and 33.62% CaO.

Total estimated proven and probable reserves are estimated at 43.56-million tonnes grading 4.31% P₂O₅.

The updated mining plan forecasts a total of 43.5-million tonnes of run-of-mine (RoM) ore mined at a strip ratio of 1.61.

The project includes an openpit, truck-and-shovel operation over a life-of-mine (LoM) of 16 years, plus another 20 years of aglime production, which will be reclaimed from the tailings dam.

The project will be completed in phases.

Phase 1 (saprolite) takes advantage of the high head-grade, low strip-ratio and relatively low processing costs to produce a high-value phosrock concentrate. Openpit mining will comprise 1.3-million tonnes of RoM saprolitic ore a year delivered to the processing plant, which will produce an average of 307 000 t/y of phosrock.

Phase 2 (carbonatite) proposes that the plant be expanded to handle the carbonatite ore types as saprolite is depleted, and the production of an aglime by-product. Mining will average 3.3-million tonnes of RoM lower-grade carbonatite ore, with expansion of the processing plant to maintain production of 300 000 t/y of phosphate concentrate, as well as 2.8-million tonnes of aglime a year. An estimated one-million tonnes of aglime a year will be sold; the remainder will be stored in a tailings dam. Phase 3 (aglime) will reclaim and deplete the remaining stockpile of stored aglime. Following mining operations, one-million tonnes of the remaining aglime a year will be recovered from the tailings dam. With an average capacity of 300 000 t/y of phosrock, the average feed to the processing plant will be 1.3-million tonnes a year of the oxide ore in Phase 1. Phase 2 will result in 3.3-million tonnes a year of the fresh carbonatite ore being processed. This will result in an LoM production of 4.7-million tonnes of phosphate concentrate and another 32.9-million tonnes of aglime, averaging about 300 000 t/y of phosrock over 16 years and one-million tonnes of aglime by-product a year over 33 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5% discount rate, of $300-million and an internal rate of return of 21%, with a payback of 5.9 years.

Value
The phased approach to the project has reduced the initial capital and maximised the economics of the project.

Initial capital expenditure has been estimated at $83.9-million, including contingency.

Duration
Not stated.

Latest Developments
The company has completed a detailed survey of the project site area and has filed the environmental-impact assessment with the local environmental agency.

Formal official hearings with the State authorities and the local community are expected to occur in the next three to four months, after which Aguia expects to be granted the preliminary licence for the project. 

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

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