Centaurus Metals (ASX: CTM) is laying the foundations for the delivery of a maiden JORC Resource for its Canavial Iron Ore Project in Brazil in May with more positive drilling results.
Canavial is located just 10 kilometres from Centaurus’ flagship Jambreiro Iron Ore Project, providing synergies between the two projects.
The latest results add further weight to the emerging potential of the Canavial Project as an additional source of friable itabirite feed for the Jambreiro Project, where development is scheduled to begin later this year.
Highlights of the recent reverse circulation drilling include:
- 37 metres at 41.9% Fe, 7.2% Al2O3 and 0.05% P from surface;
- 23 metres at 42% Fe, 10.2% Al2O3 and 0.07% P from surface;
- 12 metres at 40.3% Fe, 5.5% Al2O3 and 0.06% P from 17 metres; and
- 19 metres at 29% Fe, 4.6% Al2O3 and 0.07% P from 69 metres.
The nature of the mineralisation identified at surface and in reverse circulation chips at the Canavial Project is, for the most part, the same as that at Jambreiro.
As a result, Centaurus expects that the Canavial mineralisation will be amenable to beneficiation to produce a high grade, low impurity product in a similar way to Jambreiro.
Beneficiation test work using the Jambreiro flowsheet design is underway.
The current reverse circulation drilling campaign at Canavial comprised about 2,000 metres of drilling.
Samples from the final 16 holes of the program are currently being processed and results from this last batch of holes are due in March.
Robust Jambreiro metrics
Centaurus delivered a positive Bankable Feasibility Study on the Jambreiro Project in November 2012, outlining a robust 2 million tonne per annum project capable of generating revenues of A$836 million and EBITDA of A$545 million over an initial nine year life.
The company has since begun initial development activities and is progressing the statutory licensing process in line with its schedule to enable site works to begin in the June quarter of 2013.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.