Aguia Resources Delivers Best-Ever Performance at Santa Barbara Gold Project

Aguia Resources Delivers Best-Ever Mine Performance at Santa Barbara Gold Project

Aguia Resources Limited (ASX: AGR) has reported its strongest operational month to date at the 100%-owned Santa Barbara Gold Project in Colombia, with June 2026 production reaching 851.9 grams of gold, or about 27 ounces, from a 100-tonne batch. That result was three times higher than the prior month, while selected mining areas delivered consistent run-of-mine (ROM) feed grades above 10 g/t gold.

The update matters because it combines stronger production metrics with a sharp fall in costs. Aguia also stated that Phase 3 mining commenced one month early, with nine mine faces ready, while plant capacity has now been secured at more than 250 tonnes per month.

"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, while CAPEX and OPEX are significantly below last year and total operating costs have been reduced by more than half."

— Timothy Hoskings, Managing Director and CEO, Aguia Resources

A Standout June Result at Santa Barbara

The revised announcement outlined a month in which production, grade and recoveries all improved. June processing centred on a 100-tonne batch of high-grade material, with the ore coming from selected high-grade zones and mined using breast mining methods suited to the deposit.

Aguia reported that the June production target was achieved a month ahead of schedule. The company attributed this to work completed over the previous two months, which supported better mine selectivity and stronger plant performance.

For investors, the most important point is not just the headline gold output. It is, furthermore, the combination of factors behind it:

• Higher ROM feed grades, reported at above 10 g/t gold in producing areas
• Improved recoveries, with management stating recoveries rose to four times the comparable prior period
• Earlier-than-planned Phase 3 commencement
• Nine active mine faces prepared for the next stage of mining

That combination suggests the operation is moving from restructuring into a more stable development phase, although the company also made clear that the operation remains at an early developmental stage.

What ROM Grade Means and Why It Matters

For non-specialist investors, ROM grade is one of the most useful mining metrics to understand.

Run-of-mine (ROM) refers to ore as it comes out of the mine before processing. ROM grade measures the amount of gold in that raw material, usually stated in grams per tonne (g/t). A ROM grade of 10 g/t gold means each tonne of ore contains, on average, 10 grams of gold before processing losses.

Why does this matter at Santa Barbara? Because Aguia reported that selected mining zones delivered consistent +10 g/t Au ROM feed during June. In practical terms, that indicates the company is targeting higher-grade sections more effectively. Better ore selection can improve output without requiring large increases in material volume.

Key Mining Terms Explained

For investors following early-stage gold operations, these definitions provide useful context:

• ROM: Ore extracted from the mine before treatment
• g/t Au: Grams of gold per tonne of ore
• CAPEX: Capital spending on equipment and infrastructure
• OPEX: Day-to-day operating costs
• Stope: An underground area where ore is mined
• Vein: A narrow mineralised body that may carry gold

ROM grade is especially relevant because it helps explain why production can change quickly from month to month. If a mine accesses a better part of the deposit, output per tonne can rise significantly. However, the reverse is also true.

Costs Have Fallen Sharply Under the New Operating Approach

The strongest financial takeaway from the update is the scale of the project's cost reduction. According to the operational comparison in the announcement, the first half of 2026 showed materially lower costs than the final six months of 2025.

Table 1: Santa Barbara Comparative Cost Metrics

A 57% reduction in total expenses is a material shift for any mining operation, particularly one still in development. Aguia stated these savings were achieved while completing plant and mine repairs, commissioning elements needed for a fully mechanised operation, and purchasing the annual explosives allowance.

The workforce has remained at 45 people across administration and site operations. In addition, the company noted that gold sales are beginning to offset overhead costs, although it cautioned that operations remain at an early stage.

For investors, this cost profile matters because lower fixed and operating costs can improve project resilience as throughput increases.

Mining Development Is Advancing on Several Fronts

The revised update described a broader underground mining footprint than earlier phases of work. A larger number of available working areas can support more consistent ore delivery to the plant.

Vein #1 Under Shaft 2

Development beneath Shaft 2 now extends 20 metres in each direction along Vein #1. This area was a major focus during June because assay results reportedly indicate stronger gold grades and more consistent vein thickness within the ore shoot. The next step is breast mining of 30-metre stopes, intended to support more systematic extraction from these zones.

Vein #2 and New Mine Faces

Development of Vein #2 has also progressed. The announcement reported:

• Three sublevels established above the main drift
• Four active mine faces now in place on Vein #2

This expands the number of available working zones and gives management more flexibility in selecting feed material.

Shaft 3, Shaft 4, and Ongoing Development

Further development work is under way across additional access points:

• Shaft 3 has been cleared for the first blast to begin sinking
• Shaft 4 has been opened in the southern section of the mine
• Initial split-set ground support has been installed at Shaft 4
• Diamond drilling is being used to support interpretation of vein continuity at depth

The closure of Stope 1 is also relevant. Aguia stated that the area was permanently closed after mining the final marginal zone, citing narrow vein widths and proximity to surface. This suggests management is directing effort toward areas with stronger grade potential. To support higher production targets, the company said it would begin a phased increase in mine personnel in July 2026.

Plant Upgrades Are Close to Completion

Mining progress only matters if the processing plant can handle more ore consistently. On that front, the update pointed to a plant largely ready for the next stage.

Civil works in the Primary Crushing section are 90% complete, with final assembly expected by the end of July 2026. Work completed includes:

• Installation of the coarse ore bin for ROM reception
• Completion of foundations for the primary and secondary crushers
• Placement of the conveyor belt linking crushing to milling

The plant currently has 10 operational agitators, one multi-use backup precipitator/agitator tank, and capacity secured at more than 250 tonnes per month. According to the announcement, this capacity could be increased further with the addition of more agitation tanks.

Near-Term Milestones Investors Can Monitor

The operational update provides several practical milestones for the market to watch over the coming months.

Table 2: Near-Term Santa Barbara Milestones

These milestones give investors a clear framework for assessing whether June's operating performance can be repeated or improved as throughput increases.

Why This Update Matters for the Investment Case

The Santa Barbara update changes the discussion around Aguia's Colombian gold business in three meaningful ways.

First, the project has now shown a period of stronger operating performance backed by measurable data. Gold production increased threefold month on month, selected ore zones delivered above 10 g/t gold ROM feed, and recoveries improved materially according to management.

Second, the cost base appears materially lower than it was in late 2025. That is relevant because production gains are more meaningful when they are not being offset by a high expense structure.

Third, the company has continued to build out both mine access and plant readiness simultaneously. With nine mine faces ready, more working zones under development, and processing capacity above 250 tonnes per month, the operation appears better positioned for scaled batch processing than in prior periods.

There is also an exploration angle worth noting. The announcement stated that more than two-thirds of the property remains unexplored with modern techniques, and the company aims to recommence drilling by the end of 2026. However, investors should keep this point in context, because Aguia also states that there are no Mineral Resource Estimates on any of its Colombian projects at present.

What Investors Should Keep in Mind

The revised ASX announcement included an important caution. Results to date are based on a small sample size, typically small batch processing volumes of less than 100 tonnes. Aguia also noted that there is variability and uncertainty associated with early-stage or selective mining.

That means June's result is useful as an operating indicator, but not yet a basis for assuming long-term production consistency. Investors will likely look for evidence that grade, recovery and cost improvements can be maintained across larger processing volumes and over multiple reporting periods.

Even with that caution, the June 2026 update is one of the clearest signs yet that Santa Barbara is progressing operationally. Aguia has paired its best mine and plant performance to date with a lower cost structure, expanded underground access and near-completion of key plant works. For ASX investors tracking the Aguia Resources Santa Barbara Gold Project performance, the next few months should reveal whether those gains can be translated into steadier throughput and broader project momentum.

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