Can Aguia Overcome Early Challenges to Deliver Profitable Gold Production?
Aguia Resources reports steady underground mining at 15 tonnes per day at its Santa Barbara Gold Project, with plans to boost processing capacity to 50 tonnes per day by July 2025 and imminent gold sales.
- Consistent underground mining delivering 15 tonnes per day
- Processing capacity targeted to increase to 30 tpd in May and 50 tpd by July
- Commissioning of 5.5 km water pipeline and new extraction equipment underway
- Exploration drilling to start mid-May aiming for maiden JORC resource in late 2025
- Gold sales licensing completed, revenue expected imminently
Steady Progress at Santa Barbara
Aguia Resources Limited (ASX: AGR) has provided a comprehensive update on its Santa Barbara Gold Project in Rio Grande Sul, Brazil, highlighting significant operational milestones and a clear pathway to increased production. The company reports that underground mining is now consistently delivering 15 tonnes per day (tpd) of ore, a solid foundation for scaling up its processing capabilities.
The current processing plant, operating at 15 tpd, is set to ramp up to 30 tpd in the second half of May, with a further increase to 50 tpd targeted by July 2025. These expansions are supported by the commissioning of a new 5.5-kilometre water pipeline, which will ensure a reliable water supply essential for processing, and the installation of additional underground extraction equipment, including a scraper and pumping systems.
Exploration and Resource Development
Complementing operational progress, Aguia is preparing to commence a diamond drilling program around mid-May. This program marks the first drilling campaign at Santa Barbara and aims to define the continuity and grade of the gold veins currently being mined. The drilling will focus on step-out holes along strike and below existing workings, with the potential to intersect previously unidentified veins. The company anticipates this exploration will provide the data necessary to calculate a maiden JORC-compliant resource by late 2025, a critical milestone for formalising production plans and attracting further investment.
Regulatory Clearance and Commercial Sales
Aguia has successfully navigated the rigorous government licensing process required to sell gold both domestically and internationally. This achievement clears a significant hurdle, allowing the company to commence gold sales imminently and record revenue from its production. The company emphasizes that while initial production rates are modest, the groundwork is laid for scaling operations and generating meaningful cash flow.
Outlook and Challenges
Chairman Warwick Grigor acknowledged the challenges inherent in starting a gold mine, noting the company’s efficient capital use and operational resilience. With CEO William Howe on-site in Brazil, Aguia is positioned to manage the complexities of ramping up production and exploration simultaneously. However, the company cautions that production increases beyond the current 15 tpd remain aspirational until a JORC resource is established, and some commissioning timelines may shift.
Overall, Aguia’s update signals a pivotal phase for the Santa Barbara Gold Project, transitioning from trial mining to a more robust production and exploration cycle. Investors will be watching closely for drilling results and the pace of production scale-up, which will be key indicators of the project’s commercial viability and growth potential.
Bottom Line?
Aguia’s Santa Barbara project is entering a critical growth phase, with production scale-up and resource definition poised to unlock value.
Questions in the middle?
- Will Aguia meet its target to increase processing capacity to 50 tpd by July 2025?
- What will the maiden JORC resource reveal about the scale and grade of Santa Barbara’s gold veins?
- How quickly can Aguia convert gold production into consistent revenue streams?
