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Aguia Acquires Andrade Copper Project & Drills 1.83% Cu Over 28.8m Including 2.55% Cu Over 19.4m and 5.4% Cu Over 2.25m

27.02.2019  |  GlobeNewswire
HIGHLIGHTS:
  • Option agreement signed to acquire the Primavera Project claims, including the Andrade copper occurrence from Referencial Geologia, forming the cornerstone to Aguia’s Rio Grande copper strategy

  • Drilling undertaken by Aguia as part of due diligence has uncovered high grade and thick copper intersections

  • Hole AND-19-003 returned a thick interval of 28.77 metres grading 1.83% copper from 63.63 metres which includes a higher-grade zone of 19.39 metres grading 2.55% copper from 63.63 metres

  • High-grade zones within AND-19-003 include:
    • 4.35 metres grading 3.57% copper from 65.80 metres
    • 2.25 metres grading 5.40% copper from 76.50 metres

  • Hole AND-19-001 returned 24.34 metres grading 0.91% copper from 86.00 metres which includes a higher-grade zone of 12.55 metres grading 1.35% copper from 88.90 metres depth

  • Acquisition increases Aguia’s holdings in the Rio Grande Copper Belt by 9,282 hectares for total area of 43,282 hectares

  • Exhaustive legal and technical due diligence undertaken over last two months including 382 metres of drilling within the Andrade-Primavera trend

  • Multiple opportunities to expand the high-grade zone along the 3.8 km core strike and down-plunge of identified mineralisation


TORONTO, Feb. 27, 2019 - Aguia Resources Ltd. (ASX: AGR, TSXV: AGRL) (“Aguia” or “Company”) announces that having encountered significant copper intersections during a 60 day due diligence period, it has executed an Option Agreement (the “Option Agreement”) to acquire the Primavera Project which includes the Andrade copper occurrence (“Andrade”) from Referencial Geologia Ltda. (“Referencial”). Andrade is located some 5 km southeast of the city of Caçapava do Sul, Rio Grande do Sul State, approximately 17 km to the southwest of Aguia’s Big Ranch target and 65 km north of the Canhada target which were discovered and staked by Aguia last year (see Figure 1).

The Primavera Project claims became of interest to Aguia following the staking of the Big Ranch and Canhada targets in 2018. Aguia negotiated an option to acquire the properties from Referencial contingent on a 60-day due diligence which commenced at the beginning of January 2019. Due diligence has included an exhaustive legal, financial and technical review of existing data and corporate records.

As part of the technical review Aguia undertook 382 metres of drilling at Andrade and assay results have returned thick and high-grade zones of mineralisation. Hole AND-19-003 intersected a zone with 28.77 metres grading 1.83% Cu and 3.84 gpt Ag and includes a higher-grade zone of 19.39 metres grading 2.55% Cu and 4.54 gpt Ag, with individual samples of up to 7.53% Cu within this intercept. Results of the drilling conducted at Andrade are shown in Tables 1 to 3 below.

Three photos accompanying this announcement are available at:

Figure 1: http://www.globenewswire.com/NewsRoom/AttachmentNg/ac291aa3-804c-422d-ac8b-ef0a74b347e5

Figure 2: http://www.globenewswire.com/NewsRoom/AttachmentNg/bff32ec9-809a-41d2-9e4c-305a810f0a28

Figures 3 & 4: http://www.globenewswire.com/NewsRoom/AttachmentNg/c2f72bd4-ee35-473c-b15d-0a07235a38f1

Table 1. Collar information of the test diamond drilling program at Andrade
Hole_ID UTM_E UTM_N Elevation (m) Length (m) Datum Azimuth Dip
AND-19-001 256994 6620025 235 120.30 SAD-69 Z22S 90 -60
AND-19-002 256994 6620025 235 151.50 SAD-69 Z22S 90 -75
AND-19-003 257041 6620426 285 110.60 SAD-69 Z22S 90 -60


Table 2. Summary of mineralized intercepts at Andrade
Hole_ID From (m) To (m) Length (m) Cu% Ag gpt
AND-19-001 86.00 110.34 24.34 0.91 7.69
Including 88.90 101.45 12.55 1.35 10.53
including 91.35 95.00 3.65 2.30 17.79
AND-19-002 103.65 116.40 12.75 0.36 4.19
Including 112.70 114.25 1.55 0.98 11.84
AND-19-003 63.63 92.40 28.77 1.83 3.84
Including 63.63 83.02 19.39 2.55 4.54
including 65.80 70.15 4.35 3.57 5.44
including 76.50 78.75 2.25 5.40 9.33

Copper occurrences at Andrade were first reported in the late 19th century in government surveys. The first drilling program was undertaken by DNPM (the Brazilian mining agency) in the 1940s where the scout program revealed the first mineral intercepts. Between 2009 and 2010, Mining Ventures, a private Swiss exploration company, conducted an exploration program which included mapping, soil geochemistry, trenching, IP and 10,300 metres of diamond drilling (49 holes) at Andrade. Aguia has engaged its own independent technical consultant, RPA Inc. a Toronto based consulting firm, to complete a preliminary JORC/NI 43-101 compliant mineral resource estimate for the Andrade deposit and the technical report will be lodged with the ASX and filed on SEDAR in the next few weeks.

Mineralization at Andrade sits along the contact between volcanic rocks at the footwall and sediments at the hanging wall. The Primavera Target is located 3.8 km south from Andrade in a similar context, where mineralization is located primarily along the contact between sedimentary and volcanic rocks (see Figure 5). Historical trenching in Primavera has returned up to 52 metres grading 1.03% Cu and 6.20 gpt Ag (TRPR11) and 11 metres grading 1.16% Cu and 25.16 gpt Ag (TRPR13).

A photo accompanying this announcement is available at:

Figure 5: http://www.globenewswire.com/NewsRoom/AttachmentNg/7abedfe5-7fa9-40f5-a690-99f4ffc9eb96

Technical Director Dr. Fernando Tallarico commented, “We are very excited about this opportunity to substantially increase our footprint in the Rio Grande Copper Belt through the acquisition of a property with an extensive drilling database. By analysing the existing historical data and drilling new holes, we have been able to quickly gather compelling results about the mineralisation at Andrade which will be used to define a NI 43-101/JORC compliant mineral resource. Our plan is to explore the oxidized copper mineralization from surface at Andrade that has the potential for a quick-start and low capital cost operation. The Primavera target to the south of Andrade also exhibits promising attributes and presents future optionality.

Managing Director Justin Reid added, “The acquisition of Andrade provides us with a low cost, low risk path to create a significant new copper prospect in Rio Grande do Sul. The addition of the Primavera Project increases our land base to 43,282 hectare and nicely fills in our holdings in the region with Big Ranch to the north and Canhada to the south.

We have completed an exhaustive 60-day due diligence, the results of which lead us to believe that the Project Primavera claims and Andrade in particular, have the potential to create significant value for shareholders. Our due diligence has not only expanded known mineralisation, but we have developed a structural and stratigraphic model that we believe can be applied successfully to the property and to the entire belt. Confirmation of high-grade, thick intercepts along trend points to the potential fertility of the entire western belt and provides us with exciting opportunities for expansion and discovery.

My congratulations to Fernando and our team for delivering some of the best copper results identified in Brazil in a long time. These, coupled with Trȇs Estradas and our pending community consultations which will launch our phosphate project to the next stage of development, have made for a very promising start to 2019 for Aguia.

The Option Agreement includes eight claims covering 9,282 hectares for an overall cost to Aguia of CAD 5,000,000 to be paid over time and as milestones are met as follows:

  • First Payment: CAD 150,000 to be paid on signing of the Option Agreement;
  • Second Payment: CAD 350,000 to be paid within 10 days of Aguia providing Notice to Referencial (the “Notice”) of its intention to proceed with the Agreement following completion of a 60-day due diligence which commenced on January 7, 2019. Payment will only be made if Aguia is satisfied with the results of the due diligence and chooses to proceed with the Option Agreement;
  • Third Payment: CAD 300,000 six months after First Payment;
  • Fourth Payment: CAD 300,000 twelve months after the First Payment;
  • Fifth Payment: CAD 400,000 twenty-four months after the First Payment;
  • Sixth Payment: CAD 1,500,000 within five business days following the publication of a Bankable Feasibility Study (“BFS”) for Andrade. Should the BFS not be published within three years from the Fifth Payment, Aguia will make an advance payment to Referencial of CAD350,000.00 within 30 days of the third anniversary of the Fifth Payment. If the BFS is not completed one year later, Aguia will make another advance payment of CAD500,000.00 within 30 days from the fourth anniversary of the Fifth Payment. The balance of the CAD 1,500,000 owing for the Sixth Payment will be paid within 30 days from the BFS publication;
  • Seventh Payment: CAD 2,000,000 within five business days of the issuance of the Installation License (LI) by the environmental agency which includes any, some or all of the eight mineral rights acquired from Referencial. If the LI is not issued within three years of the Sixth Payment, an advance payment of CAD350,000.00 will be made by Aguia within 30 days of the third anniversary of the Sixth Payment. If the LI is not issued one year later, Aguia will make another advance payment of CAD500,000.00 within 30 days from the fourth anniversary of the Sixth Payment. The balance of the CAD 2,000,000 for the Seventh Payment will be paid within 30 days of the LI publication.

A request to transfer the Primavera Project mineral rights from Referencial to Aguia will be filed with the Brazilian Federal Mining Agency within 20 days of Aguia completing its due diligence and filing Notice of its intention to complete the Option Agreement. Upon the payment of all the instalments above, the option will be automatically exercised and Aguia will become the 100% titleholder of the Primavera Project. Subsequent to exercising the Option Agreement, the following payments will also become due:

  1. CAD 7,000,000.00, payable in ten annual, fixed and non-adjustable instalments of CAD 700,000.00, conditional on Project Primavera demonstrating positive net profit in its statement of profits and loss. Aguia has the right to buy back this payable in full prior to the start of mining operations for CAD 5,350,000.00
  2. Royalty of 1% of Net Smelter Return. Aguia has the right to buyback this payable in full prior to the start of mining operations for CAD 2,000,000.00
Table 3. Full assay report from the mineralized intercepts at Andrade.
Hole_ID From (m) To (m) Length (m) Sample_ID Cu% Ag gpt
AND-19-001 85.00 86.00 1.00 105033 0.12 1.00
AND-19-001 86.00 86.78 0.78 105034 0.18 2.20
AND-19-001 86.78 87.50 0.72 105035 0.99 2.70
AND-19-001 87.50 88.25 0.75 105036 0.94 2.30
AND-19-001 88.25 88.90 0.65 105037 0.43 4.70
AND-19-001 88.90 89.55 0.65 105038 3.23 47.10
AND-19-001 89.55 90.15 0.60 105039 0.18 1.00
AND-19-001 90.15 90.75 0.60 105042 0.10 0.70
AND-19-001 90.75 91.35 0.60 105043 0.19 0.60
AND-19-001 91.35 92.00 0.65 105044 3.28 10.20
AND-19-001 92.00 93.00 1.00 105045 2.00 13.00
AND-19-001 93.00 94.00 1.00 105046 1.17 9.90
AND-19-001 94.00 95.00 1.00 105047 3.11 35.40
AND-19-001 95.00 96.00 1.00 105048 0.62 5.20
AND-19-001 96.00 97.00 1.00 105049 0.80 7.10
AND-19-001 97.00 98.00 1.00 105050 1.29 9.50
AND-19-001 98.00 99.00 1.00 105051 0.50 2.90
AND-19-001 99.00 100.00 1.00 105052 0.99 4.20
AND-19-001 100.00 100.70 0.70 105053 0.82 2.70
AND-19-001 100.70 101.45 0.75 105054 1.94 5.90
AND-19-001 101.45 102.00 0.55 105057 0.22 1.00
AND-19-001 102.00 103.00 1.00 105059 0.11 1.10
AND-19-001 103.00 104.00 1.00 105060 0.14 1.60
AND-19-001 104.00 105.00 1.00 105061 0.47 6.40
AND-19-001 105.00 105.70 0.70 105062 0.19 2.70
AND-19-001 105.70 106.30 0.60 105063 0.92 12.40
AND-19-001 106.30 106.85 0.55 105064 1.13 13.60
AND-19-001 106.85 107.40 0.55 105065 0.56 6.10
AND-19-001 107.40 108.00 0.60 105066 0.22 3.40
AND-19-001 108.00 109.00 1.00 105067 0.09 1.40
AND-19-001 109.00 109.70 0.70 105068 0.16 4.60
AND-19-001 109.70 110.34 0.64 105069 0.70 15.80
AND-19-001 110.34 110.95 0.61 105070 0.13 1.60
AND-19-002 103.65 104.35 0.70 105215 0.39 3.70
AND-19-002 104.35 105.00 0.65 105216 0.11 0.70
AND-19-002 105.00 106.00 1.00 105217 0.11 0.90
AND-19-002 106.00 106.65 0.65 105218 0.98 9.70
AND-19-002 106.65 107.25 0.60 105219 0.06 1.00
AND-19-002 107.25 108.00 0.75 105220 0.27 3.40
AND-19-002 108.00 108.80 0.80 105221 0.14 1.50
AND-19-002 108.80 109.60 0.80 105222 0.10 1.00
AND-19-002 109.60 110.40 0.80 105223 0.08 1.00
AND-19-002 110.40 111.20 0.80 105224 0.21 1.90
AND-19-002 111.20 112.00 0.80 105225 0.49 6.40
AND-19-002 112.00 112.70 0.70 105226 0.07 1.00
AND-19-002 112.70 113.45 0.75 105229 0.97 10.50
AND-19-002 113.45 114.25 0.80 105230 0.98 13.10
AND-19-002 114.25 115.05 0.80 105231 0.44 5.00
AND-19-002 115.05 115.70 0.65 105232 0.27 3.80
AND-19-002 115.70 116.40 0.70 105233 0.47 7.20
AND-19-003 63.00 63.63 0.63 105365 0.12 0.25
AND-19-003 63.63 64.20 0.57 105366 0.94 3.10
AND-19-003 64.20 64.60 0.40 105367 2.46 8.80
AND-19-003 64.60 65.20 0.60 105368 1.22 3.60
AND-19-003 65.20 65.80 0.60 105369 1.99 4.10
AND-19-003 65.80 66.50 0.70 105370 3.78 6.20
AND-19-003 66.50 67.25 0.75 105373 1.99 3.00
AND-19-003 67.25 68.00 0.75 105375 1.71 2.80
AND-19-003 68.00 68.75 0.75 105376 3.93 5.80
AND-19-003 68.75 69.50 0.75 105377 4.55 6.80
AND-19-003 69.50 70.15 0.65 105378 5.79 8.50
AND-19-003 70.15 70.80 0.65 105379 0.47 0.90
AND-19-003 70.80 71.30 0.50 105380 0.79 1.30
AND-19-003 71.30 72.00 0.70 105381 0.84 1.80
AND-19-003 72.00 72.75 0.75 105382 1.05 1.80
AND-19-003 72.75 73.50 0.75 105383 1.87 3.00
AND-19-003 73.50 74.25 0.75 105384 4.30 6.50
AND-19-003 74.25 75.00 0.75 105385 3.18 4.40
AND-19-003 75.00 75.75 0.75 105386 0.82 1.40
AND-19-003 75.75 76.50 0.75 105387 0.28 0.50
AND-19-003 76.50 77.25 0.75 105388 4.74 8.00
AND-19-003 77.25 78.00 0.75 105389 3.93 6.90
AND-19-003 78.00 78.75 0.75 105390 7.53 13.10
AND-19-003 78.75 79.50 0.75 105393 1.33 2.20
AND-19-003 79.50 80.25 0.75 105394 1.34 2.40
AND-19-003 80.25 81.00 0.75 105395 0.91 1.40
AND-19-003 81.00 82.03 1.03 105396 0.75 1.90
AND-19-003 82.03 82.43 0.40 105397 4.76 10.80
AND-19-003 82.43 83.02 0.59 105398 5.01 11.70
AND-19-003 83.02 83.80 0.78 105399 0.69 6.20
AND-19-003 83.80 84.60 0.80 105400 0.40 4.80
AND-19-003 84.60 85.40 0.80 105401 0.02 0.25
AND-19-003 85.40 86.00 0.60 105402 0.03 0.25
AND-19-003 86.00 86.60 0.60 105403 0.25 2.80
AND-19-003 86.60 87.40 0.80 105404 1.10 5.00
AND-19-003 87.40 88.00 0.60 105405 0.01 0.25
AND-19-003 88.00 88.51 0.51 105406 0.00 0.25
AND-19-003 88.51 89.25 0.74 105407 0.77 3.80
AND-19-003 89.25 90.03 0.78 105410 0.00 0.25
AND-19-003 90.03 90.80 0.77 105412 0.21 1.70
AND-19-003 90.80 91.60 0.80 105413 0.12 1.00
AND-19-003 91.60 92.40 0.80 105414 0.52 2.90

Qualified Person

The technical information in this press release has been reviewed and approved by Dr. Fernando Tallarico, who is a member of the Association of Professional Geoscientists of Ontario, Technical Director for Aguia and a Qualified Person as defined by National Instrument 43-101. Dr. Tallarico consents to the inclusion of his name in this release. Dr. Tallarico verified the data disclosed in this press release in accordance with industry standard best practices, including sampling, analytical, and test data underlying the information or opinions contained herein.

JORC Code Competent Person Statements:
The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Dr Fernando Tallarico, who is a member of the Association of Professional Geoscientists of Ontario. Dr Tallarico is a full-time employee of the company. Dr Tallarico has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Tallarico consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

For further information, please contact:

Justin Reid, Managing Director
E: jreid@aguiaresources.com.au
T: +1 416-216-5446

Spyros Karellas, Investor Relations North America
E: spyros@pinnaclecapitalmarkets.ca
T: +1 416-433-5696

Released through: Ben Jarvis, Six Degrees Investor Relations: +61 413 150 448
Follow Aguia on Twitter: @ Aguia_Resources

About Aguia:

Aguia Resources Ltd., (“Aguia”) is an ASX and TSX Venture listed company whose primary focus is on the exploration and development of mineral resource projects in Brazil. Aguia has an established and highly experienced in-country team based in Belo Horizonte, Brazil with corporate offices in Sydney, Australia. Aguia’s key projects are located in Rio Grande do Sul. The Rio Grande phosphate deposits exhibit high quality and low- cost production characteristics, and are ideally located with proximity to road, rail, and port infrastructure. The Rio Grande Copper prospects present an early stage opportunity for a significant new copper development in South America. Aguia’s experienced management team has a proven track record of advancing high quality mining assets to production in Brazil.

Cautionary Statement on Forward Looking Information

This press release contains "forward-looking information" within the meaning of applicable Canadian and Australian securities legislation. Forward-looking information includes, without limitation, statements regarding the results of exploration activities at the Primavera, Andrade, Canhada and Big Ranch Targets, soil and assay results, plans for future drilling and exploration programs, the mineral resource estimates, production targets, the anticipated timetable, permitting, forecast financial information, bankable feasibility study and ability to finance the project, and the prospectivity and potential of the Primavera, Andrade, Canhada and Big Ranch Targets.

Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including risks inherent in the mining industry and risks described in the public disclosure of the Company which is available under the profile of the Company on SEDAR at www.sedar.com, on the ASX website at www.asx.com.au and on the Company's website at www.aguiaresouces.com.au. These risks should be considered carefully.

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Persons reading this news release are cautioned that such statements are only predictions and there can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company disclaims any intent or obligation to update or revise any forward looking statements whether as a result of new information, estimates, options, future events, results or otherwise and does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

NEITHER THE AUSTRALIAN STOCK EXCHANGE, TSX VENTURE EXCHANGE NOR THEIR REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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