In addressing the potential offtake market, Aguia has noted that the local Rio Grande do Sul area is completely reliant on imported phosphate. By producing 300,000 tonnes of organic phosphate fertiliser, 15 per cent of existing demand could be supplied within a 300km radius of its mine site.

Marketed for the past three years under the name Pampafos, the organic product has won strong local support due to its solubility and proven extremely effective for plant absorption. For four years, it has been tested on five sizable grain crops globally and management says it has consistently performed as well as, or better than, its chemical counterparts because of the unique blend of macro and micronutrients.

Not wanting to sit back on its heels, the company has also started drilling out a second, 100 per cent-owned phosphate project called Mato Grande to define a JORC resource. If successful, it could extend the operation beyond the initial 18-year lifespan and increase production capacity.

Four further carbonatites remain untested and could provide further product supply.

Aguia has gone through somewhat of a recent transformation. Last month, Warwick Grigor, a veteran analyst of commodity markets and related companies, stepped up as executive chairman, while experienced mining identity William Howe, who was the founding director of Straits Resources, has taken on the role of managing director.

The company also successfully completed the acquisition of Andean Mining last month in an all-script deal giving it control over that firm’s flagship Santa Barbara gold project in Brazil. Santa Barbara is a high-grade mesothermal project with an existing 30-tonne per day throughput.

To date, the plant has processed 500 tonnes of ore, with average grades running at 20 grams per tonne gold. In-house upgrade studies have confirmed that with a small capex spend of $2 million, Aguia will be able to increase throughput initially to 50 tonnes per day for 10,000 to 12,000 ounces per annum at a cost of US$300 (AU$449) per tonne.

The company is also investigating the addition of a new, bigger-scale crushing circuit with a capacity of 200 to 330 tonnes per day, as well as a 300 per cent increase in leaching capabilities. Ultimately, the intention is to expand to a throughput of 250 tonnes per day.

With so many opportunities to quickly expand – without share dilution – to bring forward early cashflow, and a robust market for both phosphate and gold, Aguia appears set to deliver the goods in a period of solid expansion.

Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au