Aguia Resources (ASX:AGR) has provided updates on progress across its phosphate portfolio in southern Brazil, with the flagship Três Estradas Phosphate Mine nearing production and exploration continuing at nearby targets.
Site works are complete and awaiting final mining ordinance and operating licences. Environmental inspections have been cleared, and approvals are expected between March and April 2026.
On the processing plant, infrastructure is largely finished, with equipment deliveries and installations scheduled through February and March 2026. Electrical systems and gas scrubber upgrades are ongoing, alongside revegetation works for slope stability.
At the Passo Feio Project, auger drilling from 283 completed holes has returned grades up to 18.49% phosphorus pentoxide averaging 5.03%. Early estimates suggest at least 3 million tonnes at 5.7% phosphorus pentoxide, with mineralisation open along strike.
The total estimated potential is approximately 6 million tonnes of saprolite ore, comparable to Três Estradas’ JORC resource of 83 million tonnes at 4.11% phosphorus pentoxide (measured and indicated), plus 21.8Mt @ 3.6% phosphorus pentoxide (inferred).
Managing Director Timothy Hosking says that the current strong market conditions are positive for the development of the project as they near production.
“Exploration efforts have concentrated on two tenements within 15km of the leased processing plant, with drilling underway since mid-2024,” Hosking says.
“This approach will reduce logistical costs by more than 60% and facilitate the construction of a second greenfield facility at the Três Estradas mine site by 2028.”
The Mato Grande target hosts a resource 2.8 million tonnes at 4.02% phosphorus pentoxide, with agronomic trials showing performance comparable to Moroccan phosphate. The company says that resource potential could extend to 5 million tonnes.
Phosphate demand remains resilient amid record sulphur prices and Chinese export restrictions. Brazil continues to favour SSP and TSP for cost efficiency, while India’s large DAP inventories are expected to dampen near-term demand.
Aguia’s Pampafos product 12% phosphorus pentoxide is priced at 220 per tonne, around 25% below estimated import costs, positioning the company competitively against Moroccan and Peruvian supply.
Aguia Resources is a multi-commodity company, with pre-production phosphate projects in Rio Grande do Sul, Brazil and gold projects in Bolivar, Colombia.
Write to Amy Rotman at Mining.com.au
Images: Aguia Resources
