Aguia Resources Ltd. [AGRL-TSXV; AGR-ASX] shares were active Monday March 18 after the company released a maiden resource estimate for its Andrade copper project in Brazil.
The company said total inferred mineral resources are estimated at 10.8 million tonnes with an average grade of 0.56% copper and 2.56 grams/tonne silver.
The estimate includes an open pit-constrained inferred resource of 1.3 million tonnes of oxidize material, from surface, grading 0.43% copper, as well as 8.8 million tonnes of sulphide-bearing material grading 0.51% copper. The estimate also includes 675,000 tonnes of sulfide-bearing material, amenable for underground mining, grading 1.42% copper.
The recently acquired Andrade copper deposit is part of the Primavera Project, which is located in Rio Grande do Sul, Brazil.
Aguia said the entire dataset was subject to independent review and audit by Toronto-based consulting firm Roscoe Postle Associates Inc., which has signed off on the new resource statement.
Aguia shares advanced on the news, rising 6.25% or $0.005 to $0.085 on volume of 1.8 million. The shares trade in a 52-week range of $0.075 and 43 cents.
Aguia’s focus is on the exploration and development of mineral resources in Brazil, where it has assembled an experienced country-team that is now based in Belo-Horizonte. The company also has corporate offices in Sydney Australia.
The mineral resources statement is based on the results of 38 historical diamond drill holes completed by Referencial Geologia Ltda., between 2009 and 2010 that were compiled and integrated into the database together with a drilling campaign carried out by Aguia in January and February 2019 as part of a due diligence the company undertook before signing the option deal to acquire the Primavera Project from Referencial.
In a press release on February 27, 2019, Aguia said the Primavera Project claims, including the Andrade copper occurrence, formed the cornerstone to Aguia’s Rio Grande copper strategy. It also said the acquisition increased Aguia’s holdings in the Rio Grande copper belt by 9,282 hectares, bringing the total to 43,282 hectares.
During the due diligence period, Aguia completed three holes (382 metres). The primary goal of the drilling campaign was to confirm the presence of significant copper intersections that would suggest economic potential.
The drilling campaign was successful as assay results from all three drill holes returned thick and high-grade zones of copper mineralization, which has provided the data needed for a maiden resource that is compliant with JORC and CIM standards.
Highlights from drilling include Hole AND-19-003, which returned a 28.77-metre interval averaging 1.83% copper from 63.63 metres, including a higher grade zone of 19.39 metres, grading 2.55% copper from 63.63 metres.
Hole AND-19-001 returned 24.34 metres grading 0.91% copper from 86 metres, including a higher grade zone of 12.55 metres, grading 1.35% copper from 88.90 metres depth.