Operational Challenges and License Appeals Cloud Aguia’s Growth Trajectory

Colombian Gold Project Progress

Aguia Resources Limited has continued to advance its Santa Barbara Gold Project in Colombia with notable underground exploration development during the June 2025 quarter. The company completed 150.9 meters of underground development, extracting and processing 495 tonnes of mineralised material. This effort yielded 1.82 kilograms (58 ounces) of gold, generating sales revenue of A$316,607.

Despite these encouraging production figures, Aguia acknowledged operational challenges related to workforce experience. The initial strategy to hire and train local personnel with limited mining backgrounds slowed progress and increased mining dilution. In response, Aguia has initiated management and personnel changes, including appointing Paolo Herrera as Country Manager, to bolster underground mining expertise and accelerate development.

Exploration and Development Strategy

Exploration drilling beneath existing workings confirmed strong gold grades, with assays showing consistent results above 10 grams per tonne and some intervals exceeding 20 grams per tonne. The company is focusing on developing depth extensions of the Santa Barbara and Mariana vein systems through new declines, aiming to build operational flexibility and reach a production target of 50 tonnes per day. Flotation testwork is underway to optimize gold concentrate production, potentially enabling higher mining rates with controlled costs.

Advances in Brazilian Phosphate Project

In Brazil, Aguia progressed its Tres Estrades Phosphate Project, signing a mining and logistics contract for mine development and ore hauling. The Brazilian Development Bank of the Extreme South of Brazil (BRDE) approved a loan of up to R$15 million (approximately A$4 million) to support capital costs for upgrading processing facilities at Cacapava do Sul. Aguia is currently assessing this financing offer, which could enhance the project’s operational capacity ahead of its planned ramp-up in early 2026.

Preparations at the DB Processing Plant include equipment repairs, electrical installations, and site security upgrades. Limited exploration was conducted during the quarter, focusing on prospects within trucking distance of the processing plant to support near-term mining opportunities.

Corporate and Financial Developments

Aguia raised over A$5 million through a combination of placements, a share purchase plan, and convertible loan instruments during and subsequent to the quarter. These funds are intended to support ongoing exploration, mine development, and processing upgrades. Operating expenditure for the quarter was A$1.388 million, with exploration and evaluation costs of A$738,000. The company ended the quarter with a cash balance of A$543,000, underscoring the importance of recent capital raises.

On the regulatory front, Aguia is appealing the denial of license extensions for certain Brazilian tenements, a process that introduces some uncertainty but also reflects the company’s commitment to securing its asset base.

Looking Ahead

Executive Chairman Warwick Grigor emphasized that while the plant expansion to 50 tonnes per day was achieved smoothly, the underground mine development will require several months to optimize production rates. Exploration drilling continues to deliver promising results, supporting the company’s medium-term growth ambitions in both gold and phosphate sectors.