Centaurus Metals (ASX: CTM) has delivered more high grade iron ore results from the latest drilling program at the wholly-owned Candonga Iron Ore Project in Brazil.
The new discoveries are near surface, and another benefit is that Candonga is showing the potential to provide a source of high‐grade coarse grained friable itabirite to the Jambreiro Project.
The Jambreiro Project is the main focus of Centaurus, with Candonga now adding scale to the company's iron ore exposure in the area.
Highlights from the latest reverse circulation drilling at Candonga include:
- 32.0 metres at 48.5% iron, 1.4% Al2O3 and 0.08% P from surface;
- 27.0 metres at 38.6% iron, 1.3% Al2O3 and 0.05% P from surface;
- 23.0 metres at 39.4% iron, 4.9% Al2O3 and 0.09% P from surface; and
- 18.0 metres at 46.9% iron, 0.8% Al2O3 and 0.05% P from 7.0 metres, including 5.0 metres at 59.1% iron, 0.6% Al2O3 and 0.07% P from 17.0 metres.
The next step for Centaurus at Candonga will be diamond drilling to provide the samples necessary to
undertake detailed beneficiation testwork.
Centaurus noted that it is expected that the Candonga mineralisation will be able to be upgraded to a high grade, low impurity product using a similar process flowsheet to the one that will be utilised at Jambreiro.
Centaurus is well-funded with around $18 million in cash at the end of March 2013.
Jambreiro
An initial 2Mtpa operation on track to commence at Jambreiro. The November 2012 BFS delivered life-of-mine revenue of A$847 million, EBITDA of A$556 million, NPV of A$140 million. Initial Development work has commenced.
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