Aguia Resources Limited: Initial Scout Drilling at Big Ranch Identifies Pervasive System of Sulphide Mineralisation

Highlights:

• First pass scout drilling at Big Ranch defines a large system of sulphide mineralisation
   
• High-grade samples intersected over thin intervals
   
• Next stage of exploration being developed to continue vectoring program using data gathered to date
   
• Três Estradas permitting process in final stages with community consultation in Lavras do Sul set for March 20, 2019

TORONTO, March 06, 2019 (GLOBE NEWSWIRE) -- Aguia Resources Limited (ASX: AGR, TSXV: AGRL) (“Aguia” or the “Company”) is pleased to report on results from its recent 2,224 metre diamond drilling program at the Big Ranch copper prospect in southern Brazil.

As previously announced, the Company discovered a new zone of copper mineralisation on 23 tenements across 34,000 hectares on ground staked within the Rio Grande Copper Belt, in the State of Rio Grande do Sul, Brazil (Figure 1). 

The Big Ranch target is located along the northern edge of the Caçapava Granite and consists of a 6 km-long zone that hosts significant copper and gold in soils anomalies.  Anomalous trends of zinc and lead have also been mapped. These soil anomalies were followed-up using a combination of ground geophysical exploration methods, including Induced Polarization (IP) with gradient and dipole-dipole arrays, magnetics and radiometric surveys. By analyzing the data gathered from the ground geophysics, in combination with mapping, rock chip sampling and trench results, Aguia’s technical team identified a number of promising locations for exploratory drill holes.

"Figure 1. Geological map of the Rio Grande Copper Belt. The Big Ranch target inset is detailed in Figure 2." is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/f0481818-6617-43bd-a315-3a3c8c870478

The drilling program commenced in October 2018. The main purpose of this campaign was to acquire additional data on the geology and nature of the hydrothermally altered rocks at depth, to provide the necessary information for a more accurate interpretation of the copper and base metals showings identified to that point.

This first pass of exploration drilling, which focused on the broadly spaced surface base metal showings, structural controls and associated geophysical anomalies, has successfully identified a 6 km by 2 km zone of mineralisation including zinc, copper and precious metals. The data gathered in this drill program will be used to vector towards zones that exhibit high discovery potential for future drilling.   

Assay results have been received for 11 holes with mineralisation encountered in 7 holes.  The assays from the drilling program confirm Aguia has identified a major hydrothermal system and provides greater understanding of the distribution and nature of the various geophysical and geochemical anomalies mapped at surface and also at depth. Intense hydrothermal alteration including chlorite, carbonate and K-feldspar halos host the sulfide minerals. Pyrrhotite and pyrite are the most abundant sulfide species and explain the bulk of the geophysical anomalies that were mapped. Zinc and copper sulfide minerals occur in association with the iron-sulfides. High-grade samples were intersected over thin intervals. The next stage of the exploration program is being developed to continue the vectoring program using the data gathered. The key objective moving forward will be to identify and rank structural and chemical trap zones that can potentially favor the concentration of economic sulfide mineralisation. The table below summarizes the assay results received to date: 

Table 1. Assay results from Big Ranch drill campaign

"Figure 2. Map of the Big Ranch Target highlighting the four Target Areas and drill hole locations" is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/49a0d6c2-19f9-4bcf-b780-321dd61a463d

The surrounding geological environment is highly prospective and includes the past producing Camaqua copper mine, a new Zn-Pb project currently being licensed by Nexa Resources (Votorantim Group), and the Andrade copper occurrence owned by Brazilian-based Referencial.

Exploration activity continues in the Rio Grande Copper belt and further results are expected later in the first quarter.

Três Estradas Project

Meanwhile, Aguia is very focused on preparations for its upcoming community consultation due to take place in Lavras do Sul on March 20, 2019.  The community consultation is a major event that occurs in the environmental permitting for a Brazilian mining project.  The consultation is open to the public and provides a forum for all stakeholders to learn more about the project, ask questions and share their point of view.  The event is planned to last four hours and be attended by up to 800 people.  Aguia’s team in Lavras do Sul is fully engaged in preparations for the public hearings and has been engaged in an outreach campaign that has included workshops, seminars, community events and participation in local agriculture fairs.  Support for the project locally has been very positive.

Commentary

Technical Director Fernando Tallarico commented: “This initial scout drilling program across a very large area of the Big Ranch Target has allowed us to gain a better understanding of the subsurface information on the geophysical and geochemical anomalies we mapped earlier in 2018. The drill program provided us with valuable information of the nature of what is clearly a very large hydrothermal system we are targeting, and more importantly, of the zoning and associated sulfide minerals. The next step will be to vector towards potential trap zones: areas where structural and/or chemical barriers can favor the formation of mineral deposits.”

Managing Director Justin Reid added: “Our objective with the Big Ranch drill program has been to learn as much as we can about this very large target on our first pass. Big Ranch now marks the northern border of our holdings in the Rio Grande Copper Belt with Canhada at the southern end and the recently optioned Primavera Project sandwiched in the middle.  We plan to continue to test targets along the belt with a particular focus on Andrade which has delivered compelling drill results in the last couple of months and look forward to delivering additional results as they become available.”

“Meanwhile, we are fully engaged with the local authorities in Rio Grande do Sul to complete the final steps of the environmental permitting for Três Estradas. The community consultation coming up in late March is a major milestone event for Aguia and our team has been engaged in a polished and professional outreach campaign for months to develop a positive message and image in advance of the public event.”

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 Limited, (“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, a prime farming area which is 100% dependent on phosphate imports.  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.  Aguia’s experienced management team has a proven track record of advancing high quality mining assets to production in Brazil.

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.

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 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.

Figure 1

Geological map of the Rio Grande Copper Belt. The Big Ranch target inset is detailed in Figure 2.

Figure 2

Map of the Big Ranch Target highlighting the four Target Areas and drill hole locations