Name of the Project
Três Estradas phosphate project.

Location
Rio Grande do Sul, southern Brazil.

Project Owner/s
Aguia Resources.

Project Description
Três Estradas is based on the production of an organic phosphate fertiliser through the mining and processing of the saprolite ore. 

The project has proven and probable reserves estimated at 5.02-million tonnes grading 8.8% phosphorous pentoxide (P₂O₅).

This soft, oxidised material is free-digging and is expected to enable the production of organic phosphate fertiliser with grades of 8% to 10% P₂O₅.

Aguia is planning to produce more than 300 000 t/y of Pampafos (the company’s natural phosphate fertiliser) from the site over an 18-year mine life.

The project will be an openpit and shovel operation.

Aguia has been assessing several alternative processing options that could significantly improve project economics. 

The soft nature of the saprolite ore means that a crushing circuit might not be needed; however, Aguia is assessing the introduction of a rotary kiln into the processing circuit to reduce the moisture content of the rock phosphate before producing a -2 mm product without the need for chemicals. 

A bagging facility will also be required.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated net present value, at a 10% discount rate, of A$110.8-million and an internal rate of return of 54.7%. A payback of 2.6 years is estimated.

Capital Expenditure
The potential to minimise upfront capital costs to less than 25% of the original bankable feasibility study (BFS) using pre-existing treatment facilities could significantly improve the economics of the operation and allow for a fast-tracking route to positive cash flow. This compares very favourably with the BFS estimate of A$26.2-million for a new facility.

Planned Start/End Date
The availability of pre-existing processing facilities could result in production occurring in mid-2025.

Latest Developments
Aguia reported on July 3 that it was well advanced with its review of several plants and the assessment of project economics. The company is aiming to finalise a transaction in the near term. 

Aguia aims to start production in about mid-2025.

Key Contracts, Suppliers and Consultants
None stated.

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