Aguia Resources (ASX:AGR) produced a record 37 ounces of gold from 105 tonnes of ore mined in September at its Santa Barbara Gold Project in Colombia, up from 32 ounces in August.
According to the company, September mining generated 105 dry tonnes of material at an average head grade of 10.88 grams per tonne gold (Au). The production generated $218,000 in gross revenue based on a gold price of US$4,135 ($5,934) per troy ounce.
Managing Director Timothy Hosking says the September results have enabled the company to cover its Colombian operating and overhead costs for the first time.
“Although volumes are still modest at approximately 37 ounces of gold produced, the grade and recoveries achieved clearly demonstrate the potential value that can be realised from a scaled up operation,” Hosking says.
Aguia confirms that run-of-mine grade remains above 10g/t Au, with the recent batch assessed at 12.75g/t Au.
All September production was sent to the Quintana processing plant in Remedios, Antioquia, operated by Colombia Mint. The processing facility recovered 1,143.07g of Au and 2,124g of payable silver.
Under the agreement, Aguia receives 90% of the gold produced, less processing costs of US$65 per tonne.
The company reduced its mine workforce by 15% in September to lower operating costs while purchasing extraction fans to improve post-blast ventilation.
According to Aguia, the equipment supports the short-term plan to develop three shafts below the main levels of veins one and two at the underground operation.
“This is what we are actively working towards, with immediate operations focused on the accelerated expansion of our underground operations to extract 200 tonnes of ore per month, up from the current approximately 100 tonnes per month,” Hosking says.
He notes that the company aims to accomplish this before Q1 2027.
Aguia says that Santa Barbara’s performance is ‘continuously improving’, with small-scale mining operations showing the project’s ‘high-grade’ characteristics and potential to become a larger-scale mining operation.
The company expects to update shareholders on its Brazilian phosphate assets within the next week, with sales materialising from stockpiled material and operations continuing.
Aguia Resources is a multi-commodity explorer and developer focused on gold projects in Colombia and phosphate assets in Brazil.
Write to Paula Fabe at Mining.com.au
Main image: Aguia Resources
