Centaurus Metals (ASX: CTM) is closing in on the development of its Jambreiro Iron Ore Project in south-eastern Brazil with the approval of the Economic Development Plan by the Federal Department of Mineral Production.
This effectively represents the penultimate approval required before the issue of the Installation Licence, which allows onsite development to begin and is on track for approval next month.
Centaurus is targeting production by the end of the year and continues to deliver against its timetable.
The Economic Development Plan is the primary technical document in the Mining Lease Application process and demonstrates both the commercial viability of the Jambreiro Project as well as the company’s capacity to implement it.
The grant of the Mining Lease for the Jambreiro Project by the DNPM can occur at any time following the receipt of the Installation Licence in April 2013 through to completion of the construction process and the receipt of the Operating Licence by the environmental agency, expected around December 2013.
A previously completed Bankable Feasibility Study on the Jambreiro Project outlined a robust, low-cost 2 million tonne per annum project capable of generating revenues of A$836 million and EBITDA of A$545 million over its initial nine year life.
The company recently awarded the project management contract as well as the detailed engineering and procurement contract.
Centaurus had a cash balance of $23.4 million at the end of December 2012 against a market cap. of $48.9 million at a share price of $0.25.
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