Aguia Resources (ASX:AGR) is finalising field work at the Tres Estradas Phosphate Mine in Brazil in preparation for the lodgement and granting of an operational licence.
Executive Chairman Warwick Grigor tells this news service this work will be done by the end of December and involves the setting up of a site office, sanitation, power, and access roads and some planning scheduled.
“That typically takes one to two months to be processed and the operation licence will then be granted, hopefully in time to start delivering ore to the processing plant by March-April 2026,” Grigor tells Mining.com.au.
Aguia recently executed an agreement with the Regional Development Bank of the Far South opening a credit line for R$7.2 million ($2 million) with R$6 million intended for refurbishment of the DB processing plant and opening of the Tres Estradas Phosphate Mine.
The project capex is now 85% funded, prior to working capital requirements with a total project capex estimated at $2 million, as reported.
Plant capacity to grow
Plant capacity is expected to double in years two to three with the installation of a second processing circuit at the leased site, which may cost in the order of $4 million.
Refurbishing the DB processing plant involved repairs and maintenance, with minor modifications, to make it suitable for phosphate rather than gypsum. Grigor says a dedicated access road was established, a laydown yard was expanded. General site works and independent power supply.
“It made much better economic sense to lease the DB plant due to the reduction of costs from $25 million (2023 dollars) to only $5 million,” the Executive Chairman tells Mining.com.au.
“Also, its location 6km from the town of Cacaparva is much better than being out in some distant greenfield site is much better, with access to neighbouring tradesmen etc. Much better than a remote greenfield site.”
Aguia has also executed three letters of intent with customers to purchase a total of 15,000 tonnes of P2O5 in 2026, and is negotiating bulk offtake agreements with potential customers.
It’s expected the company will firm up the letters of intent early in Q1 2026.
There scope for other prospective customers to lodge their interest in the hope of securing supply, with Grigor adding Aguia has received many enquiries.
“Some of the big guys will want to do their own testing, while others are happy with our published results,” he adds.
With Q4 2025 halfway through and 2026 around the corner, Grigor will not overpromise and underdeliver, but the message from the mine manager is Aguia should start seeing the benefits of the work done over recent months to upgrade the management and workforce as early as this month.
“That means the treatment plant is working much more efficiently. We have been building up the ROM stockpiles while we have been optimising the plant,” he continues.
“Before the end of the month we should be seeing a substantial improvement in mine and mill productivity with the key milestone being some significant gold production.”
That is what Aguia is expecting but it is not forecasting any numbers yet. As Grigor explains, the next six months should show an improving trend as Aguia ramps up throughput.
Aguia Resources is a phosphate and gold explorer focused on developing its assets in Brazil and Colombia. Its phosphate project is located in the rich agricultural heartland of Rio Grande do Sul in southernmost Brazil about three hours from the capital Port Alegre.
Aguia has a resource of 105 million tonnes of phosphate of which the current project will only consume 5Mt. It has the ability and the opportunity to build a substantial agricultural business with a potentially diverse range of products given its geographic location.
Write to Adam Orlando at Mining.com.au
Images: Aguia
