Centaurus Metals (ASX: CTM) has received further strong drilling results at its Jambreiro Iron Ore Project in Brazil that pave the way for a resource upgrade and advancement of a future mining operation.
Resource estimation work has commenced with an upgrade of the current JORC Resource estimate (combined Measured, Indicated and Inferred) of 70.6 million tonnes at an average grade 28.0% iron (Fe) on track to be completed by the end of September 2011.
Results provide support for the quality and consistency of mineralisation and highlights of the recent results from the Tigre Deposit include the following continuous intervals:
- 45.5 metres at 27.9% Fe, 1.6% Aluminium oxide (Al2O3) and 0.05% phosphorous (P) from 89.1 metres;
- 53.8 metres at 29.1% Fe, 1.4% Al2O3 and 0.04% P from 78.6 metres; and
- 54.1 metres at 26.2% Fe, 2.3% Al2O3 and 0.06% P from 121.2 metres.
These results will allow some of the existing resource, currently classified as Inferred but within the current pit design, to be upgraded to the Indicated category ahead of the completion of Pre-Feasibility Study work which is due in November.
Darren Gordon, Centaurus’ managing director, said “all of the prospects at Jambreiro host a large proportion of friable mineralisation, which will provide the Project with significant operational benefits at the start of future mining activities due to low operating costs”.
New results at the South East Extension Zone further confirm the friable nature of the mineralisation in the South East Extension Zone and clearly demonstrate the extension of the Tigre Resource into this Zone.
The results also provide further support for the South East Extension Zone Exploration Target1 of 20-30 million tonnes at a grade of 28-33% Fe, which is expected to be converted to resource and added to the existing Tigre Resource estimate (Measured, Indicated and Inferred Resource of 61.2Mt grading 27.7% Fe) by the end of September 2011.
Drilling of the Cruzeiro, Galo and Coelho Prospects at Jambreiro is also now complete.
New results continue to confirm the continuity of friable mineralisation at the Cruzeiro Prospect with consistent widths of 30-35 metres in the main zone of the Prospect.
The Galo Prospect returned an exciting intersection with one of the final drill holes delivering 37 metres at a grade of 29.5% Fe.
The mineralisation of both the Cruzeiro and Galo Prospects dip sub-parallel to the natural surface and is friable from surface, which allows both prospects to be considered as shallow open pit options in a future mining operation.