Centaurus Metals (ASX: CTM) has taken another step towards becoming an iron ore producer after receiving the key Preliminary Licence (LP) for its flagship Jambreiro Iron Ore Project in Brazil.
The LP allows on site construction to begin and provides the company with the ability to operate at a production rate of 3 million tonnes per annum of final saleable product though it plans to start operations at an initial rate of 2Mtpa.
It also allows Centaurus to start the next stage of the environmental approval process, starting with the lodgement of the Installation Licence (LI) that will allow it to start on-site construction of the Jambreiro processing plant.
This is expected to be awarded in April 2013.
Centaurus expects to deliver the results of the Jambreiro Bankable Feasibility Study soon and moving ahead with the financing and development process.
Jambreiro has a combined JORC Resource of 125.2 million tonnes at 26.7% iron with the Measured Resource making up 46.7 million tonnes at 28.3% iron.
Testwork has also resulted in a high grade (66% iron) product with low impurity levels produced from the pilot plant.
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