Centaurus Metals (ASX: CTM) has increased its Brazilian based iron ore resources following a maiden 27.6 million tonnes at 30.5% iron resource for the Canavial Project.
Canavial is a key satellite deposit located 10 kilometres to the south-west of the company's flagship Jambreiro project, with the new resource lifting Centaurus' Guanhães Region located inventory to +150 million tonnes, and company-wide to +200 million tonnes.
A plus for the Canavial Resource is that it includes 15.8 million tonnes at 33.2% iron of friable itabirite mineralisation, of which 6.1 million tonnes at 34.1% iron has already been converted to the higher confidence Indicated category.
With the addition of this friable itabirite Resource at Canavial to that of the Jambreiro Project, the friable component of the company’s Guanhães regional footprint now stands at 81.5 million tonnes at 28.8% iron, with over 70% of this resource base falling into the Measured and Indicated categories.
Centaurus held around $18 million in cash at the end of March 2013.
Geology
Canavial is located within the Guanhães Group of the Mantiqueira Complex, with the region structurally complex with duplex fault systems and complex folding ranging from micro folding in outcrop to large scale regional deformation.
The Itabirite unit is part of an iron formation including ferruginous quartzites and quartzites hosted within a metasedimentry sequence. This sequence is emplaced in regional gneissic basement.
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