- 01825t Pampafos sales: $158,400 since 15 Sept.
- 02Summer trials target big farms; 30,000t stockpiled.
- 03Passo Feio averaged 7% P2O5; licence dispute ongoing.
Aguia Resources (ASX: AGR) has reported approximately $158,400 in sales of Pampafos organic fertiliser from its Três Estradas phosphate project in Brazil since 15 September, equating to 825 tonnes at an average sale price of $192 per tonne.
Most of these initial orders are for summer season product trials and account for less than 10% of participating customers’ seasonal requirements.
Aguia’s sales team is now pursuing Pampafos summer trials with large agricultural customers with initial trial volumes representing up to 5% of the estimated total annual requirement of 40,000t.
The company holds a 30,000t stockpile of mined ore at a processing facility leased from Dagoberto Barcelos, 110 kilometres from the Três Estradas site.
Passo Feio Drilling
Aguia was granted the Passo Feio tenement in 2021 as an additional source of feedstock at Três Estradas, with tenements 810977/2024 and 810978/2024 subsequently awarded through the Agência Nacional de Mineração regulatory agency’s eighth-round auction.
Over the past 24 months, the company has been completing a systematic auger drilling program at Passo Feio comprising 392 holes for 2,060 metres and targeting shallow saprolite, with holes averaging 6m in depth to a maximum of 25m.
The average phosphorus pentoxide grade was 7%, based on a 3.5% cut-off, with some results reaching 22%.
Ore from Passo Feio is expected to replace ore from Três Estradas once a mooted new plant is completed at the site in early 2028.
Environmental Approvals
Aguia commenced environmental due diligence in August before submitting the required information to the environmental protection and licencing agency for the state of Rio Grande do Sul.
The agency advised that a simplified environmental impact assessment (EIA) would be required as unprocessed ore is proposed to be transported to Aguia’s leased processing plant in nearby Caçapava do Sul.
Approval of the simplified EIA is expected to take approximately 90 days, with a mining licence expected to follow 120 days after.
This week, the federal court denied a request by Aguia subsidiary Águia Fertilizantes SA and the state of Rio Grande do Sul to suspend a 15 September decision declaring the environmental licence for Três Estradas invalid.
Aguia will now aim to secure a ruling that reviews the disputed findings and their impact on the project, and may reassess its strategy to include appeals to the high court or requests for provisional relief should the outcome prove unfavourable.
Local Economic Benefits
Non-profit business organisation Federasul recently hosted an event to consider the impact of legal uncertainties on investment and economic development in Rio Grande do Sul, including the Três Estradas project.
On the same day, Federasul also organised a public rally outside the Palácio do Comércio in support of Aguia’s project and its regional employment and investment benefits.
Attendees including workers, rural producers, and business representatives were addressed by more than 20 mayors, councillors, and parliamentarians.
The commencement of the Três Estradas project has already delivered significant benefits to local communities in Rio Grande do Sul, with approximately 90% of direct and indirect employment generated in the Lavras do Sul and Caçapava do Sul regions.
In addition, Aguia’s two largest operational contracts are held by Contrasapper and Dagoberto Barcelos which employ a predominantly domestic workforce and contribute significantly to the local economy.
Get the wire before the market opens.
The ASX small-cap stories that matter, filed before 9am AEST. Curated by the Small Caps desk.