ATLANTIC POTASH PROJECT UPDATE LETTER OF INTENT SIGNED ON ADJOINING GROUND WITH SIGNIFICANT HISTORICAL POTASH INTERSECTIONS

Transcription

1 ANNOUNCEMENT TO THE AUSTRALIAN SECURITIES EXCHANGE: 23 rd JANUARY 2012 ATLANTIC POTASH PROJECT UPDATE LETTER OF INTENT SIGNED ON ADJOINING GROUND WITH SIGNIFICANT HISTORICAL POTASH INTERSECTIONS DRILLING UPDATE HOLES PAC-01 AND PAC-02 Ptash and phsphate explratin and develpment cmpany Aguia Resurces Limited ( Aguia r Cmpany ) is pleased t annunce that the Cmpany has signed a Letter f Intent ( LOI r Agreement ) with Lara Explratin Ltd ( Lara ) ver Lara s Ptash Prjects ( LPP ) lcated adjacent and adjining t Aguia s Atlantic Ptash Prject in the Sergipe Basin Brazil. Highlights: The prperties cmprise f 21,483 hectares and are adjacent t and cver the extensins f the ptash-bearing sedimentary basins that hst the Taquari-Vassuras mine (wned by Vale S.A.) which prduces apprximately 650,000 tns f ptash annually and will hst Vale s prpsed Carnalita prject. Aguia hlds apprximately 68,700 hectares in the Sergipe Basin including licenses that are adjacent and cntiguus with the Lara prperties. The LPP hsts significant histrical ptash intersectins interpreted frm il and gas wells drilled by Petrbras. These include: 55 metres f ptash (carnallite) frm Well 1-BRSA metres and 12 metres f ptash (carnallite) frm Well 1-PR-1-SE 3 metres f ptash (carnallite) frm Well 1-FCO-1-SE Under the terms f the LOI, Aguia can earn up t a 100% interest thrugh a staged issue f shares and the cmpletin f at least ne drillhle t test knwn ptash hrizns within the LPP. (see Cmmercial Terms sectin fr further details). Aguia has a drilling rig in the area and wrk is underway t cmplete permitting apprvals t enable the minimum requirement f ne hle t be cmpleted as part f the current drilling prgram. Drilling Update Aguia is currently cmpleting an initial fur hle drilling prgram at its Atlantic Ptash prject lcated apprximately 30 kilmetres t the suth f Brazil s nly perating ptash mine, Vale s Taquari-Vassuras undergrund sylvinite mine. The first hle PAC ( PAC-01 ) is nw cmpleted. As annunced n 29 th Nvember 2011 lgging f the pen hle shwed a sequence f shale and sandstnes with sme indicatins f pssible salt hrizns at the tp f the interpreted Ibura Member. The prpsed wedge t deviate the hle t cre the tp f the Ibura Member has been cmpleted and n significant ptash mineralisatin was reprted. Aguia Resurces Limited ABN Suite 4, Level 9, 341 Gerge Street Sydney NSW 2000 Telephne Facsimile

2 The rig is nw mbilising t the secnd hle, PAC ( PAC-02 ) lcated fur kilmetres t the east-nrth-east f the significant ptash intersectin recently annunced by Ri Verde Minerals (TSX:RVD). In an annuncement dated 16 th Nvember 2011, Ri Verde reprted a significant ptash intersectin that cmprised tw sylvinite-bearing znes with thicknesses f metres and 5.05 metres and ne carnallitite-bearing zne with a thickness f 61 metres fr a ttal thickness f apprximately 79 metres f ptash mineralisatin. (Refer- Ri Verde Press Release 16 th Nvember 2011). At PAC-02 the pre-cllar is cmplete, drilled by a smaller pilt rig in December Mbilisatin is expected t be cmpleted by late next week with a pssible start date f 27 th January We are pleased t have increased ur grund psitin in the Sergipe Ptash Basin cmmented Managing Directr Simn Taylr The ptin grund is highly attractive due t the knwn wide histrical ptash intersectins. Althugh disappinted with results frm ur first hle, PAC-01, we have a number f very cmpelling targets t test including the Lara grund which will nw be drill tested as part f this current campaign. The Cmpany will prvide further updates n bth its Atlantic Ptash and Brazilian based Phsphate Prjects as results becme available. Figure 2: Drill hle lcatin plan f histrical Petrbras drilling relative t lcatin f Aguia s Atlantic Ptash Prject, the Vale Taquari-Vassuras Mine and the new areas under the Lara Optin Agreement. Enquires: Simn Taylr Managing Directr Telephne:

3 Atlantic Ptash Prject Lara Optin Agreement Aguia has signed a Letter f Intent ( LOI ) with Lara Explratin Ltd ( Lara ) fr an exclusive ptin t acquire up t a 100% interest in Lara s Ptash Prjects ( LPP ) lcated adjacent and adjining t Aguia s Atlantic Ptash Prject (Figure 2). The prperties cver an area f 21,483 hectares, brder the nrthern edge f Vale s prject area that hsts the nly perating Brazilian ptash mine and adjin prtins f Aguia s large landhlding f abut 68,700 hectares in the highly prspective Sergipe Basin. The LPP hsts significant histrical ptash intersectins interpreted frm il and gas wells drilled by Petrbras. These include: 55 metres f ptash (carnallite) frm Well 1-BRSA metres and 12 metres f ptash (carnallite) frm Well 1-PR-1-SE 3 metres f ptash (carnallite) frm Well 1-FCO-1-SE The cnslidatin f Aguia and Lara s prjects and the lcatin f the histrical wells are shwn in Figure 3. Figure 3: Lcatin f Lara prjects, histrical il and gas explratin wells and significant histric ptash intersectins Cmmercial Terms The cmmercial terms f the LOI between Aguia and Lara ver Lara s whlly wned Sergipe Prperty (the Prperty ) are as fllws. Aguia has the exclusive ptin t acquire 100% f the Prperty within a 24 mnth perid thrugh the acquisitin f Enigma BVI, a whlly wned subsidiary f Lara and hlder f the Prperty. 3

4 The transactin cnsists f: (a) the grant by Lara t Aguia f an ptin (the Optin ) t acquire the Prperty by way f the acquisitin f an initial 75% interest in Enigma BVI (the First Optin ) and, if the First Optin is exercised, the remaining 25% interest (the Secnd Optin ); and (b) the frmatin by Lara and Aguia, upn n the exercise f the First Optin but nt the Secnd Optin, f a jint venture (the Jint Venture ) fr the further explratin and, if warranted, develpment f the Prperty. The principle terms f the Optin require Aguia t: Issue Lara 4 millin shares n signing (escrwed fr 12 mnths) Minimum wrk cmmitment f $1.5 millin including at least ne drill hle t test knwn ptash hrizns within the prperty (t a depth targeting the Ibura Member). Such explratin shall be a firm cmmitment and nt ptinal unless Aguia pays t Lara the sum f $1,500,000. Aguia may issue Lara a further 6 millin shares n r befre the first anniversary t exercise the First Optin (75% interest in Enigma BVI). If Aguia exercises the First Optin, it may issue a further 5 millin shares t Lara n r befre the secnd anniversary t exercise the Secnd Optin (100% interest in Enigma BVI). If Aguia exercises the First Optin but elects nt t, r fails t, exercise the Secnd Optin, Aguia and Lara shall enter int a Jint Venture and which pint bth Party s will cntribute r dilute. Shuld ne f the Party s interests be diluted t less than 10% then that Party s interest shall revert t a 1% ryalty. Abut Lara Lara is an explratin cmpany fllwing the Prspect Generatr business mdel, which aims t minimize sharehlder dilutin and financial risk by generating prspects and then explring them in jint ventures funded by partners. The Cmpany currently hlds a diverse prtfli f prspects and depsits primarily in Brazil and Peru where it has signed agreements fr fifteen jint ventures. Lara s cmmn shares trade n the TSX Venture Exchange under the symbl "LRA". Drilling Update The current drilling by Aguia is targeting a large carnallite resurce hsted within the Ibura Member an imprtant evapratic sequence f the Muribeca Frmatin. The prgram is fcusing n the discvery and delineatin f a Mineral Resurce that can be reprted in accrdance with the JORC Cde. The first hle PAC ( PAC-01 ) is nw cmplete. As annunced n 29 th Nvember 2011 lgging f the pen hle shwed a sequence f shale and sandstnes with sme indicatins f pssible salt hrizns at the tp f the interpreted Ibura Member. The prpsal t wedge and deviate the hle t cre the tp f the Ibura Member has been cmpleted, n significant ptash mineralisatin was intersected. The hle was cllared sme 850 metres t the suth east f histrical well 1RPX0001DSE drilled by Petrbras that returned a 19 metre thick zne f carnallite (ptash) mineralisatin. 4

5 Cnclusins frm the dwnhle lgging and re-interpretatin f limited 2D Seismic indicate that PAC-01 intersected an ersinal channel that has remved the upper prtin f the targeted Ibura Member that is present in the histrical Petrbras hle. The Cmpany still cnsiders that the area in clser prximity t 1 RPX0001DSE and t the nrth west is highly prspective fr ptash mineralisatin and interpretatin fr further fllw up drilling is underway. The rig is nw mbilising t the secnd hle, PAC ( PAC-02 ) lcated fur kilmetres t the east-nrth-east f thick (79m) ptash intersectin annunced by Ri Verde Minerals (TSX:RVD) n 16th Nvember In drillhle SED , Ri Verde reprted a significant ptash intersectin cmprised f tw sylvinite-bearing znes with thicknesses f meters and 5.05 metres and ne carnallitite-bearing zne with a thickness f 61 metres fr a ttal thickness f apprximately 79 metres f ptash mineralisatin. (Refer- Ri Verde Press Release 16th Nvember 2011). At PAC-02 the pre-cllar has already been cmpleted by the smaller pilt rig. Mbilisatin is expected t be cmpleted by late next week with a pssible start date f 27 th January Abut Aguia Figure 4: Lcatin f PAC-02 drill hle and Ri Verde Drilling Aguia is fcused n the explratin and develpment f large scale ptash and phsphate prjects in Brazil. Brazil is Latin America s biggest ecnmy and is heavily reliant n imprts f up t 50 per cent f its phsphate and 90 per cent f its ptash needs. Aguia is well psitined t capitalize n the grwing demand fr phsphrus and ptash based fertilisers in the expanding agriculture sectr in Brazil. Thrugh its 100 per cent wned subsidiaries Aguia Metais Ltda and Ptassi d Atlantic Ltda it has an established and highly experienced in-cuntry management team based in Bel Hriznte, Brazil. The Cmpany is cmmitted t its existing prjects whilst cntinuing t pursue ther pprtunities within the fertiliser sectr. The infrmatin in this reprt that relates t Explratin Results, Mineral Resurces r Ore Reserves is based n infrmatin cmpiled by Dr Fernand Tallaric, wh is a member f the Assciatin f Prfessinal Gescientists f Ontari. Dr Tallaric is a full-time emplyee f Aguia Resurces Limited. Dr Tallaric has sufficient experience which is relevant t the style f mineralisatin and type f depsit under cnsideratin and t the activity which he is undertaking t qualify as a Cmpetent Persn as defined in the 2004 Editin f the Australasian Cde fr Reprting f Explratin Results, Mineral Resurces and Ore Reserves ( JORC Cde ). Dr Tallaric cnsents t the inclusin in this reprt f the matters based n his infrmatin in the frm and cntext in which it appears. 5