What Andean Mining brought to Aguia: A post-acquisition breakdown of value, assets, and risk

Aguia Resources Limited (ASX: AGR) has undergone a strategic transformation over the past year, shifting from a phosphate-focused junior into a diversified, multi-commodity explorer with a growing footprint in Latin America’s emerging gold and copper corridors. Central to this evolution was its acquisition of Andean Mining Limited, a privately held company with 100%-owned precious and base metal projects in Colombia. Now that the transaction has closed and drilling has begun at the Santa Barbara gold project, the question for investors and analysts is whether Andean’s portfolio offers genuine asset value—or speculative dilution.

The deal, originally announced in December 2023 and completed in June 2024, gave Aguia full access to Andean’s three principal Colombian projects: Santa Barbara (gold), Atocha (silver/gold), and El Dovio (copper/gold VMS). This acquisition not only diversified Aguia’s commodity base but placed it in the heart of one of South America’s most underexplored but geologically promising jurisdictions.

How did Aguia Resources’ acquisition of Andean Mining reshape its commodity and geographic exposure?

Prior to the acquisition, Aguia Resources was best known for its pre-production phosphate asset in Rio Grande do Sul, Brazil. Its pivot into Colombia through Andean was both commodity- and geography-driven. It brought in high-grade, metallic assets in gold, copper, and silver—signaling a break from fertilizer-focused exploration—and repositioned the explorer within one of Latin America’s most investor-attracting mineral belts.

Geographically, the move gives Aguia exposure to Colombia’s improving mining regime, which has seen new entrants due to regulatory advances and security improvements in traditional gold-rich zones such as Tolima and Antioquia. Andean’s Colombian assets, notably in Quindío and Cauca, are already permitted at various levels, reducing the timeline to commercialisation and giving Aguia a rare operational foothold in the region.

The acquisition’s most immediate value proposition comes from the Santa Barbara gold project, which is now the focus of active drilling. Meanwhile, Atocha and El Dovio offer mid-stage and early-stage upside, respectively, with documented historical grades and intercepts. Together, they reframe Aguia as a multi-asset play—no longer tied to single-commodity cycles.

What are the technical and financial highlights of the Santa Barbara gold project under Aguia’s ownership?

Santa Barbara is now Aguia’s flagship project in Colombia. The asset is permitted, hosts underground workings, and includes a 30-tonne-per-day pilot plant that previously processed 500 tonnes of ore at an average recovery of 20 g/t gold. It represents both a near-term production opportunity and an exploration play with longer-term upside.

Drilling resumed in early June 2025, with the first two diamond drill holes—SB-25-01 and SB-25-02—successfully intersecting mineralised quartz veins. Initial visuals show pyrite, sphalerite, and galena within mesothermal and epithermal zones. Though assays are pending, Aguia’s geologists believe this confirms the existing model that the vein system is a structurally offset continuation of the broader Mariana fault zone.

Importantly, Aguia Resources has committed to a 25-hole drill program to define geometry, grade continuity, and resource potential across multiple veins. Subject to financing, a second rig will be deployed, indicating that Santa Barbara may soon graduate from speculative interest to a JORC-classified resource project.

What exploration upside does the Atocha silver-gold project offer for Aguia’s portfolio?

While not as advanced as Santa Barbara, the Atocha project holds potential as a high-grade, high-margin silver-gold deposit. Drill results reported by previous operator Baroyeca Gold & Silver Inc. include intercepts such as 20.14 g/t gold and 723 g/t silver (29.0 g/t AuEq) over 0.8 meters in hole AT-21-02.

Located within the historically productive Mariquita fault zone, Atocha shows promise for vein-hosted mineralisation over a considerable strike length. While the property is still in the exploration phase, prior channel sampling, trenching, and geophysical work point to repeat structures with consistent mineralisation.

Aguia Resources has indicated that trenching and detailed mapping are underway to further refine drill targets at Atocha. This asset is expected to serve as a mid-priority follow-up project once Santa Barbara’s drilling nears completion or shifts toward deeper zones.

How does the El Dovio VMS copper-gold project fit into Aguia’s strategic roadmap?

The El Dovio project is the most speculative but potentially the most scalable asset within the Andean portfolio. It hosts VMS-style mineralisation, a deposit type known for polymetallic yield and high tonnage potential. Historical drilling includes 34 intercepts such as 8.14 g/t gold, 6.92% copper, 39.41 g/t silver, and 1.46% zinc over 5.80 meters (hole D13-05).

An exploration adit has already been completed, and existing data suggests good vertical continuity. However, the asset remains underexplored and would require a focused and capital-intensive program to establish economic viability. For now, El Dovio provides a long-term growth option that could be monetised or JV’d at a later stage.

What institutional sentiment is forming around Aguia Resources after the Andean acquisition?

Since announcing the Andean deal, Aguia Resources’ share price has risen by nearly 86 percent over 12 months, suggesting that the market sees merit in the strategy. At its current market capitalisation of A$56.99 million, Aguia trades at a valuation below many of its ASX-listed Colombia-focused peers, which offers potential re-rating room if it can deliver credible assay data and initiate a maiden resource.

Investor forums and microcap trackers have shown increased engagement with AGR following the restart of drilling at Santa Barbara. Meanwhile, institutional sentiment appears to be cautiously optimistic. Analysts familiar with junior exploration suggest that Aguia is now entering the “discovery validation” phase of the Lassonde Curve—a period typically marked by rising shareholder interest and speculative inflows.

That said, the absence of current JORC resources or feasibility-level data means that institutional capital will likely remain sidelined until confirmed grades and volumes are reported.

What risks remain, and what are Aguia’s next strategic moves in Colombia?

While the Andean portfolio brings considerable upside, it also introduces new risk dimensions for Aguia Resources. Operating in Colombia, while increasingly attractive for mining, still entails regulatory, infrastructure, and security challenges. The successful integration of Andean’s in-country technical team is critical for managing these dynamics and maintaining social license.

Another risk is dilution: continued exploration and development will likely require capital raises, especially if Aguia proceeds with deeper drilling or initiates a scoping study at Santa Barbara. Balancing capital efficiency with technical ambition will be essential in maintaining investor trust.

Looking forward, the immediate focus remains on assay results from the first Santa Barbara drill holes. Further trenching at Atocha and structural work at El Dovio will likely follow later in 2025. If successful, Aguia Resources may emerge as one of the few ASX-listed juniors to gain credible traction in Colombia’s multi-metal frontier.