Centaurus commences new drilling program
THE DRILL SERGEANT: Centaurus Metals has commenced a round of Reverse Circulation (RC) drilling its Jambreiro iron ore project in south-east Brazil.
The new drilling program is part of a Bankable Feasibility Study work program.
RC Rig drilling at Jambreiro project. Source: Company announcement
“The RC in-fill program, which is one of several programs to be undertaken as part of the BFS, is planned to convert the first 2-3 years of friable ore production into Proven Reserves, which will assist with securing the debt funding component of the overall project funding package for Jambreiro,” Centaurus Metals explained in its ASX announcement.
“The drilling will also enable the company to collect a bulk sample and use it in pilot plant testwork, which will greatly assist in securing product off-take arrangements with the Brazilian domestic steel mills.”
The new phase of drilling follows the release of a Pre-Feasibility Study on the Jambreiro project, which outlined a two million tonnes per annum project capable of generating revenues of $1.4 billion and EBITDA of $948 million over an initial 8.5 year life.
The overall RC drill program to be carried out at Jambreiro will comprise 2,250 metres of drilling with 1,750 metres of shallow drilling being undertaken to intersect the ore from surface to the bottom of the anticipated year-three pit.
A further 500m of drilling will also be carried out to test for pit extensions between the Tigre and Cruzeiro deposits in an area of the Jambreiro project that was not previously drilled.
Once Centaurus has completed drilling completed at Jambreiro, it said it will move the RC rig to undertake exploration drilling on the surrounding tenements in the Guanhães Region.
Centaurus has 18 tenements (including Jambreiro and Candonga) in the Guanhães Region covering a total area of 25,000 hectares.
The company has used surface mapping to identify itabirite mineralisation on 13 of the 18 tenements.
Centaurus said it has planned 2,500m of RC drilling to test some of the targets on these tenements.