Santa Barbara Project Expands Processing to 50 tpd After First Gold Pour
Aguia Resources has successfully poured its first gold and silver from the Santa Barbara high-grade project in Colombia, marking a rapid operational milestone following its acquisition of Andean Mining.
- First gold and silver poured from Santa Barbara project pilot plant
- Processing capacity being expanded from 30 to 50 tonnes per day
- Underground development underway on Mariana and Santa Barbara veins
- Drilling to commence in Q1 2025 to establish JORC resource estimates
- Capital expenditure under $2 million to achieve initial production
Rapid Progress at Santa Barbara
Aguia Resources Limited (ASX: AGR) has announced a significant operational milestone with the maiden gold and silver pour from its 100%-owned Santa Barbara project in Colombia. This achievement comes just six months after the company completed its takeover of Andean Mining, underscoring an accelerated timeline from acquisition to production.
The initial pour was achieved through processing high-grade development mineralisation in the existing 30 tonnes per day (tpd) pilot plant. Executive Chairman Warwick Grigor highlighted the efficiency of this milestone, noting that capital expenditure to date has been less than $2 million, a figure that should reassure shareholders about the project's cost discipline.
Expansion and Development Plans
Following the successful pilot phase, Aguia is actively upgrading the processing plant to increase capacity to 50 tpd. This expansion will facilitate a ramp-up in gold production over the next three months, drawing from both development mineralisation and the first high-grade production stope, which is now ready for mining.
Underground development has recommenced on the Mariana and Santa Barbara vein systems after substantial rehabilitation. These veins have historically demonstrated exceptional grades, with previous channel sampling reporting gold values averaging close to one ounce per tonne, and in some instances, samples exceeding 100 grams per tonne.
Towards Resource Definition and Market Guidance
Aguia is preparing to commence drilling in the current quarter to extend the vein system and generate JORC-compliant resource estimates. This step is critical, as ASX listing rules require a formal resource before the company can refer to the operation as a 'mine' or provide production guidance. Until then, the company prudently uses terms like 'project' and 'mineralisation' to comply with regulatory standards.
The company is also finalising arrangements with Australian-based refineries to process the gold and silver doré produced at Santa Barbara, ensuring a streamlined pathway from extraction to sale.
Strategic Implications and Shareholder Confidence
The swift transition from acquisition to production, combined with the low capital outlay and high-grade mineralisation, positions Santa Barbara as a potentially rewarding asset for Aguia shareholders. The company’s experienced in-country teams in Colombia and Brazil are pivotal in advancing operations efficiently and mitigating typical risks associated with mining projects in emerging jurisdictions.
While forward-looking statements remain subject to usual industry risks and regulatory constraints, Aguia’s progress signals a promising trajectory for its gold portfolio, complementing its existing phosphate projects in Brazil.
Bottom Line?
Aguia’s rapid maiden pour and planned expansion set the stage for a pivotal growth phase, with upcoming drilling poised to unlock the project’s full potential.
Questions in the middle?
- What will the initial JORC resource estimates reveal about Santa Barbara’s scale and grade?
- How quickly can Aguia ramp up processing capacity beyond 50 tpd to meet production targets?
- What are the potential risks or delays in securing refinery agreements and regulatory approvals?
