Centaurus on track for Candonga Resource update

THE DRILL SERGEANT: Centaurus Metals (ASX: CTM) has reported further high-grade results from the second batch of assays received from recent diamond drilling at the company’s 100 per cent-owned Candonga iron ore project in south-east Brazil.

Centaurus said the results are to be incorporated into the impending JORC 2012-compliant Mineral Resource update for the project.

The second batch of assays relate to eight drill holes from a recent resource drill-out program targeting the limits of the mineralisation to close off sections.

Highlights of the results include:

CDG-DD-14-00016
15.1 metres at 62.1 per cent iron, 9.6 Silica, 0.9 per cent aluminium oxide and 0.02 per cent phosphorous from 3.3m;

CDG-DD-14-00014
14.6m at 61.4 per cent iron, 11.1 Silica, 0.6 per cent aluminium oxide and 0.03 per cent phosphorous from 3.0m;

CDG-DD-14-00017
9.1m at 66.8 per cent iron, 1.9 Silica, 1.3 per cent aluminium oxide and 0.01 per cent phosphorous from 2.0m;

CDG-DD-14-00013
8m at 63.8 per cent iron, 6.0 Silica, 0.9 per cent aluminium oxide and 0.03 per cent phosphorous from 7.2m;

CDG-DD-14-00018
6m at 61.5 per cent iron, 5.1 Silica, 4.0 per cent aluminium oxide and 0.03 per cent phosphorous from surface;

CDG-DD-14-00011
4.8m at 63.1 per cent iron, 4.1 Silica, 2.3 per cent aluminium oxide and 0.04 per cent phosphorous from 6.9m; and

CDG-DD-14-00015
4.1m at 67.4 per cent iron, 1.5 Silica, 0.8 per cent aluminium oxide and 0.01 per cent phosphorous from 4.8m.

Centaurus said the diamond drill program at Candonga has confirmed the presence of a near-surface, generally flat lying lens of high-grade itabirite within a broader zone of friable Itabirite mineralisation that extends up to 30m from surface.

The high-grade mineralisation sits immediately below a zone of mineralised colluvium that varies between a depth of 1m and 6m.

 

Candonga iron ore project – Schematic Cross Section 3. Source: Company announcement

 

“Once we have finalised the new resource on the high grade Candonga mineralisation, we will start work immediately on mine planning and calculation of an Ore Reserve estimate,” Centaurus Resources managing director Darren Gordon said in the company’s announcement to the Australian Securities Exchange.

“We have already had five mining contractors on site and we expect to tie down the estimated mining costs over the next couple of weeks.

“All going well, the Feasibility Study will be delivered by the end of September allowing a Final Investment decision to be made in Q4 2014 once the requisite approvals and licences have been secured.

“We still have a rig on site and we have taken advantage of this to test some interesting high priority targets located directly along strike from the current resource base.

“If this drilling is successful, we may be able to expand the DSO resource base and therefore extend the life of the Candonga operation.”

Email: office@centaurus.com.au

Website: www.centaurus.com.au