Centaurus Metals (ASX: CTM) has intersected up to 80.2 metres at 32.8% iron (Fe) from in-fill drilling at its 100%-owned Jambreiro Iron Ore Project in south-east Brazil.
The strong results are ahead of a JORC resource update due end of May 2011 and confirm the mineralisation widths and grade continuity of the main Tigre Prospect.
Highlights include:
- 80.2 metres at 32.8% Fe, 4.0% aluminium oxide (Al2O3) and 0.03% phosphate (P) from 14.1 metres;
- 55.4 metres at 32.6% Fe, 3.2% Al2O3 and 0.02% P from 2.4 metres.
Significantly, these initial results are consistent with existing drilling and current interpretations of the Tigre Prospect mineralisation.
Centaurus has completed 3,050 metres of drilling (1,450m Diamond and 1,600m reverse circulation (RC)) of the planned 5,000m program.
The drilling is designed to upgrade the current Inferred Resource of 77 million tonnes (Mt) grading 29.5% Fe to JORC Indicated category and to enhance confidence in the various prospect areas within the wider Jambreiro Project.
The drilling has been initially focussed on the existing Tigre Prospect resource area, but the ongoing program will also test a number of new target areas generated from the ground magnetic survey and trenching program completed in the first Quarter of 2011.
The Jambreiro project is a central part to Centaurus' plans to produce 3 million tonnes per annum (Mtpa) of high grade hematite for the Brazilian domestic steel industry by the end of 2013.
Importantly, recent beneficiation test work on both compact and friable ore from Jambreiro shows that a high-grade hematite product can be produced using simple processing flow sheets.
Drilling continues with four rigs on site (three diamond and one RC) working 24 hours. The next phase of drilling will target the Galo and Cruzeiro Prospects as well as testing new targets identified from the ground magnetic survey and trenching program.
A third phase of drilling will test the south-east extension of the Tigre Prospect, where the prospect remains open along strike.
Centaurus said it is well on the way to undertaking a Pre-Feasibility Study on the Project to confirm its financial robustness.