Junior explorer Eagle Star Minerals (CVE:EGE) has changed its focus from iron ore after seeing opportunistic trends in the agro-minerals space.
company was initially focused on developing an iron ore project in
Brazil but it took note of a significant lack of domestic supply of
fertilizer commodities in the nation and opted to reposition itself.
came to realize that we weren't in the most effective commodity for a
junior company like ourselves," Eagle Star's Senior Corporate
Development Manager Patrick Brandreth told Proactive Investors.
there, agricultural commodities are the absolute gold rush. All the
major Brazilian companies are looking for agro-minerals," Brandreth
Brazil is the world's fourth-largest fertilizer market and the biggest importer of fertilizer.
"It became clear that the opportunity was there," Brandreth added.
by senior advisors and a local geological team, the company identified
and staked areas with significant potential to host large phosphate
deposits. Phosphates are a key ingredient for inorganic fertilizer.
Star was drawn to a property in the region of Piauí state covered by
the Pimenteiras Formation (Parnaiba Basin). Three sub areas of the
Parnaiba Basin were identified with rock types carrying phosphate
mineralization, leading the company to acquire the Ruth Project.
is located in the center of Piauí state, near the cities of Picos and
Eliseu Martins. Within Ruth’s claims boundaries lay widespread phosphate
bearing rock types, which are believed to host a large phosphate
The project is in the vicinity of a large agricultural center while also surrounded by favorable infrastructure.
"Much of the reasons for leaving iron ore were very simple," Eagle Star's Brandreth said.
and specifically phosphate in our case, require significantly less
capital and time to develop and put into production as compared to iron
ore. It’s also any junior company’s dream to be able to prove up a
resource and sell it in their backyard at international prices,"
Brandreth commented, referring to both Eagle Star’s close vicinity to
two very large agricultural districts and their short supply of
Eagle Star's other phosphate project, Samba, is also
believed to host a large phosphate deposit and is located within the
central western portion of Piaui state along the Longá Formation near
the cities of Valença and São José do Peixe.
In addition to
being close to two large agricultural centers Samba is also situated
right beside the East-West Transnordestina railroad.
Brandreth said that as soon as the company gets the official exploration
permits from the Brazilian National Mining Agency, it would continue a
much more intrusive sampling program to assist with drill targeting and
eventually outline the resource by drilling before filing paperwork
towards an NI 43-101 estimate by the end of the summer.
we know we have a 3.5 meter package averaging 6% phosphate - we need to
now find out if this package is repetitive, which we believe it is, by
what we have seen on different topographic levels. It’s also important
for us to determine how deep, and how wide it extends laterally by
"We have identified seven potential areas on the
property. Our goal is to move one of those into a 43-101 measured and
indicated category by the end of summer."
"We like to think that
our strong local geological team has put us one step ahead of our
competition, but on the other hand there is so much of a need for
agro-minerals in Brazil we really don’t look at other companies so much
in a competitive way." Brandreth said.