Source : THE AGE NEWS
By James Pearson
A 25-hole, 2500-meter program designed to uncover a potentially huge breakthrough in the state’s rich mesothermal spirit network has been fired up the gemstone rigs at Aguia Resources ‘ high-grade Santa Barbara platinum project in Colombia.
The company may even pepper the existing stockwork to prepare for an additional year of JORC tool development and to clear the way for expanded underwater production.
The drill rig is now in operation at Aguia Resources ‘ Santa Barbara metal project in Colombia in order to get ready for the first hole to be drilled.
Definition drilling did follow up on well-known mineralized areas at the Mariana and Santa Barbara workings, some of which have deep underground access now. The company claims the holes will usually be less than 100 meters deep and will follow the Santa Barbara primary spirit and an associated Vein 2 structure.
Deeper openings will then evaluate the state’s ability for downdip.
The likelihood that we could be sitting on a sizable high-grade gold tool is what really makes fanciful elegance.
Warwick Grigor, professional president of Aguia Resources,
Aguia claims the second object on its wish list, which will support its source modeling and development plans, is assurance of both quality and consistency at depth and along strike.
The equipment will then enter finding setting, shifting the focus to a larger exploration blitz across a 7-kilometer stretch of plotted surface veins.
The search is on to find repeats and extensions of Santa Barbara’s major mineralized structures, and Aguia may be facing a geographical jackpot if the film succeeds.
An internal 3D structural design, which has already suggested a northwest trending domino-style fault system, is guiding the program, which is likely to offset and repeat the high-grade veins. The concept has proved its worth, with handmade work beginning to appear exactly as the geologists had anticipated and launching a promising new south system extension.
Aguia’s Santa Barbara spirit system, which is reportedly emerging as a possible star in Colombia’s gold field, shares striking resemblance with well-known payments like Segovia and Buriticá, showing striking similarities to big-name deposits. Santa Barbara is now akin to the other two in terms of spirit architecture and gold-silver level possible, and all three of these mesothermal systems are renowned for high-grade gold and silver.
When Canadian-based Continental Gold announced its resource at Buriticá in 2011, it had just 14 veins of 3.1 million ounces of gold and 11 million ounces of silver on hand. The veins were sometimes less than 50 meters apart and as thin as 3 centimeters thick.
Aguia claims that Santa Barbara’s density and footprint are already on par with that scale. A similar approach to Aguia today allowed Continental to operate a low-tonnage pilot plant during initial exploration of Buriticá, giving a sense of what Santa Barbara might hold.
According to the company, road access to the old-fashioned mining sites has already been reopened and drill pads have already been prepared. When the results start pouring in, more rigs are scheduled to start mobilizing.
Management believes that the Santa Barbara play has the potential to transform from a humble start-up operation into a multi-million-dollar prize if the outcomes are positive.
A geological assessment released in March by the company predicted a game-changing exploration target of 2M tonnes to 4Mt, with a grade of 20 to 30 grams per tonne ( g/t ).
Warwick Grigor, professional president of Aguia Resources, said: “We have always been confident in developing a small but highly profitable underground gold mine which is happening now following several months of recommissioning. The real speculative appeal comes from the possibility that we could be sitting on a large high-grade gold resource. The next two months promises to be very exciting.”
After Aguia officially re-opened the mine with a first gold pour, the past two months have been a busy time for the company at Santa Barbara.
Head grades of up to 24g/t gold were found in the previous owners ‘ trial mining, and Aguia is seeing comparable results from its current operations.
A new ventilation system, upgraded electrical systems, and an electrical locomotive have now been installed in the underground workings.
Additionally, the processing plant has undergone renovations. With the addition of a new primary crusher, it is capable of treating 30 tonnes per day (tpd ) of ore and on its way to a 50tpd uplift by July.
The company jumped a crucial bureaucratic hurdle by locking in a full government nod to flog its gold domestically and internationally two weeks ago, adding to the momentum.
The timing was not what was anticipated, despite the expected approval. Aguia has been able to continue selling gold and setting new records for the price of ounces, which are currently near record highs of$ 5000 per ounce.
Aguia has been quietly laying the groundwork for a second revenue stream from southern Brazil’s production of organic phosphate, despite having had a lot of fun reinvigorating the Santa Barbara gold project in early-stage cash flow.
Just 100 kilometers from its Três Estradas deposit, the company recently locked in a 10-year lease on a fully operational Dagoberto Barcelos plant. Aguia is anticipating its first production by July with a meager monthly fee and a one-time$ 1.3 million payment.
The plant, which is currently rated at 100, 000 tonnes per year, is in line for some strategic upgrades that could triple its capacity and help the company reach its original$ 22M annual EBITDA target.
Initial feed will come from the Pampafos deposit, but drilling is already underway at nearby Mato Grande and Passo Feio to lower haulage costs and increase profit margins.
Aguia’s phosphate ambitions could soon match those of Santa Barbara, with a second plant on the horizon and booming Brazilian demand for organic fertilizers.
The next few months could be crucial for Aguia if everything goes according to plan. The prospect of two operating revenue streams and an exciting exploration drilling program chasing a sizable gold windfall while yellow metal prices are on the rise is likely to keep punters on the news.
It might also be the beginning of a young explorer’s quest to develop into a mid-tier miner.
Is your ASX-listed business engaged in any interesting endeavors? Contact: mattbirney@bullsnbears.com. . AU
