Centaurus Metals (ASX: CTM) has reported that it has received further positive assay results from the last two holes drilled in its recently completed diamond drilling program at the Passabem Iron Ore Project in south-eastern Brazil, and expects a resource upgrade before the end of September, 2010.
The last two holes delivered intersections of 16.7 metres @ 34.3% Fe, 0.22% Al2O3 and 0.017% P from 31.2 metres in hole PSB-DD-0012, and 13.4 metres @ 30.4% Fe, 0.98% Al2O3 and 0.070% P from 65.0 metres in hole PSB-DD-0013.
As reported previously on 8 July 2010, the 13-hole diamond drilling program intersected itabirite mineralisation over the entire 5 kilometre strike length of the mapped iron formation at Passabem, providing confidence that the initial Inferred Resource at Passabem of 2.6 Mt @ 31.3% Fe can be significantly extended.
Importantly, the grade and width of the intersections is consistent over the entire strike length of the mineralisation, with drill hole PSB-DD-0013 providing further evidence of the depth continuity of the ore body.
Bulk samples are now being collected from the drill core and assay residues to facilitate a full suite of metallurgical testing, and resource modelling has commenced with this work expected to be completed before the end of September 2010.
The Passabem Iron Ore Project forms part of the company’s domestic iron ore business in Brazil, where it is planning to establish an initial 3Mtpa production base by the end of 2013.
The Project is located 25 kilometres from Vale’s 40Mtpa Itabira operations and is well located in relation to the existing steel-making regions of Ipatinga and João Monlevade, where Brazilian steel makers Usiminas and Arcelor Mittal are respectively located.