Aguia Resources Santa Barbara Gold Project Hits Record Output With 57% Cost Reduction

Aguia Resources Delivers Best-Ever Santa Barbara Mine Performance as Project Costs Fall 57%

Aguia Resources Limited (ASX: AGR) has reported its strongest operating result to date at the 100%-owned Santa Barbara Gold Project in Colombia, with June 2026 production reaching 851.9 grams of unrefined gold, or about 27 ounces, from 100 tonnes processed. According to the revised ASX announcement, the result was accompanied by a sharp improvement in project economics, with total expenses down 57% in the first half of 2026 compared with the final six months of 2025.

The update matters because it combines three points investors typically watch closely in an early-stage gold operation: grade performance, processing recovery, and operating cost control. Aguia stated that plant and mine performance improved materially after six months of restructuring, optimisation and planning under new management, whilst Phase 3 mining commenced one month ahead of schedule and nine mine faces were readied.

"We ended June well ahead of schedule following six months of restructuring, optimisation and planning with gold grades and recoveries improving considerably. The mine and plant delivered their best performance to date, whilst CAPEX and OPEX are significantly below last year and total operating costs have been reduced by more than half," said Timothy Hoskings, Managing Director and CEO.

Cost Reductions Are the Clearest Feature of the Update

According to the project economics update in the ASX announcement, Santa Barbara recorded lower capital, operating and overhead costs in January to June 2026 than in June to December 2025. This was achieved whilst repairs, upgrades and mechanised operating elements were being installed and commissioned.

How Do the Numbers Compare?

For investors, this comparison is important because it suggests the operation is being run on a more disciplined basis than in the prior period. Furthermore, Aguia confirmed that during the same period it completed all plant and mine equipment repairs and upgrades, purchased the annual explosives allowance, and installed the elements required for a fully mechanised operation.

The workforce in Colombia remains at 45 people across office administration and site operations. The company also noted that gold sales are beginning to offset overhead costs, although it clearly stated that the operation remains at an early developmental stage.

June Production Result Shows Stronger Grade and Recovery Performance

The June 2026 operating result represented the best monthly production performance reported so far from Santa Barbara. In the announcement, Aguia said the plant processed a 100-tonne batch of high-grade material exceeding 10 g/t gold, using breast mining methods, and produced 851.9 grams of unrefined gold.

Key June Operating Highlights

Key June operating highlights included:

• Consistent +10 g/t Au run-of-mine feed from selected high-grade zones
• Threefold increase in gold production compared with the prior month
• Gold recoveries reported to have improved to four times the comparable prior-period level
• June production target achieved one month ahead of schedule
• Phase 3 mining commenced early
• Nine mine faces prepared for production

Aguia attributed the improved outcome to activity focused on the highest-grade sections of Vein #1 beneath Shaft 2, where assay results indicate stronger grades and more consistent vein thickness. Development of Vein #2 also advanced, with three mine faces in production during June.

However, the revised announcement also included an explicit caution. Results to date are based on small batch processing volumes of less than 100 tonnes, and the company stated there is variability and uncertainty associated with early-stage or selective mining. It also clarified that the reported grades were achieved from selected high-grade zones.

What Run-of-Mine Grade Means and Why Investors Follow It

For readers less familiar with mining terminology, run-of-mine (ROM) refers to ore as it comes directly from the mine before it goes through further processing. The ROM grade tells investors how much gold is contained in that mined material, typically expressed as grams per tonne (g/t Au).

Why Does This Matter?

• Higher ROM grades can improve economics because more gold is fed into the plant for each tonne processed.
• Consistent ROM grade helps plant planning because operators can better predict recoveries and output.
• In a smaller operation, grade control is especially important because processing lower-grade material can quickly reduce margins.

At Santa Barbara, Aguia reported ROM head grades above 10 g/t Au in producing areas during June. In practical terms, that indicates the company has been mining from selected higher-grade sections successfully enough to lift both output and recoveries in the latest batch.

Key Mining Terms Explained

A few other terms in the announcement are also useful to understand:

This context helps explain why the June batch result is relevant. For a vein-hosted underground gold project, selective mining and consistent grade control can have a direct impact on production efficiency.

Underground Development Is Expanding the Production Base

The revised ASX announcement was not limited to one month of gold output. It also outlined continued underground mine development intended to support a broader production ramp-up.

At Vein #1, Shaft 2, lower-level development beneath the shaft now extends 20 metres in each direction. According to the announcement, the next step is breast mining of 30-metre stopes to mine these areas more systematically. Aguia also said diamond drilling supports continuity of the vein at depth.

Progress at Vein #2

At Vein #2, development remains active:

• Three sublevels have been established above the main drift
• Four active mine faces are currently in place
• Development is continuing

Additional access points are also being prepared. Shaft 3 has been cleared for the first blast to begin sinking, whilst Shaft 4 has been opened in the southern section of the mine, with initial split-set ground support installed across a wide section of the vein.

For investors, this matters because a larger number of working faces can improve operational flexibility. Rather than relying on a single limited area, the mine can potentially maintain feed quality and continuity from multiple sections, subject to development progress and geological conditions.

Plant Upgrades Are Nearing Completion With 250+ Tonnes Per Month Capacity

On the processing side, Aguia reported that civil works in the Primary Crushing section are 90% complete. The company stated that the coarse ore bin for ROM reception has been assembled, crusher foundations are complete, and the conveyor belt has been placed to automate material movement from crushing to milling.

Final assembly of the primary crushing section is expected by the end of July 2026, according to the announcement.

Additional Plant Details

Other plant details disclosed included:

• 10 agitators operational
• One multi-use backup precipitator/agitator tank
• Plant capacity secured at more than 250 tonnes per month
• Additional capacity may be possible with further agitation tanks

This is a relevant detail in the context of the current production scale. June's result came from a 100-tonne batch, whilst the stated plant capacity is now at 250+ tonnes per month. That does not mean throughput will automatically reach that level, but it indicates the physical processing infrastructure is being prepared for higher volumes if mine development and ore supply support it.

Near-Term Activities Outlined in the Update

The announcement set out several immediate operational priorities for Santa Barbara. These focused mainly on underground development and staffing rather than broad project-level claims.

Near-term work includes:

1. Around six weeks of mine development to establish more working faces under the approved mine plan
2. A phased increase in mine personnel, with recruitment and candidate selection commencing immediately
3. Ongoing support from drill results, channel sampling and control sampling
4. Completion of the Primary Crushing section assembly by end July 2026
5. Continued advancement of Shaft 3 and Shaft 4
6. Closure of Stope 1, which has been permanently shut due to narrow vein widths and proximity to surface

This detail is important because it frames Santa Barbara as an operation still moving through a development and optimisation phase. The company is improving performance metrics, but it is also still building the mine layout and operating base needed for more regular production.

Why the Santa Barbara Update Matters for ASX Gold Investors

For investors following ASX gold stocks, the Santa Barbara update stands out because it links cost discipline with operating improvement. In the revised announcement, Aguia reported lower costs, better recoveries, stronger grades from selected high-grade zones, early commencement of Phase 3 mining, and confirmed plant capacity above 250 tonnes per month.

There are, however, still clear limitations. The company emphasised that results are based on small sample sizes and selective mining, and that operations remain in an early developmental stage. That means the June production outcome should be viewed as an operational data point rather than a long-term production profile.

Three Questions Investors Are Asking

Even so, the shift in operating performance is meaningful. Investors assessing early-stage gold developers often ask three practical questions:

• Is the mine accessing grade that supports production?
• Is the plant recovering gold effectively?
• Are costs moving in the right direction?

According to Aguia's latest ASX update, Santa Barbara has shown improvement across all three measures over the first half of 2026.

The broader company context may also be relevant. Aguia Resources is a multi-commodity ASX-listed company with pre-production phosphate projects in Brazil and gold projects in Colombia, with additional gold, silver and copper exposure added through the acquisition of Andean Mining. Santa Barbara, however, remains the project at the centre of this latest operational update.

The announcement also stated that the property is 100% owned through Aguia's Colombian subsidiary and holds a valid Mining, Environmental and Social License. Technical information was reviewed and approved by Raul Sanabria, M.Sc., P.Geo., EurGeol., identified in the release as a Competent Person under JORC 2012 guidelines.

In summary, according to the revised ASX announcement, Santa Barbara delivered its best mine and plant performance to date in June 2026, whilst first-half costs were materially lower than the prior comparable period. If those operating improvements are sustained through further mine development and higher throughput, the project is likely to remain a closely watched part of Aguia Resources' investment case.

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