Centaurus increases Cadonga Resource

THE DRILL SERGEANT: Centaurus Metals (ASX: CTM) has reported an increase in the DSO Mineral Resource for the company’s 100 per cent-owned Candonga iron ore project in south-east Brazil.

The updated JORC 2012 Mineral Resource estimate for the DSO (Direct Shipping Ore) component of the Candonga project now stands at 1.2 million tonnes (Mt) grading 63.2 per cent iron, of which one million tonnes grading 63.3 per cent iron is in the Measured and Indicated categories.

The company explained the updated DSO Mineral Resource will underpin the Candonga DSO Feasibility Study, which is scheduled for completion by the end of September 2014.

According to Centaurus the latest DSO Resource estimate represents a 33 per cent uplift in DSO Resource tonnes and a 7.5 per cent increase in the DSO Resource iron grade compared with the previous Mineral Resource estimate of August 2013.

The DSO Resource is part of the global Candonga Mineral Resource estimate, which now stands at 9.4Mt grading 43.7 per cent iron.

 

Candonga project JORC 2012 Mineral Resource Estimate by Resource Category, August 2014. Source: Company announcement

 

As part of the Feasibility Study for the project, the company indicated it has already commenced mine planning and pit optimization work.

The application for a Trial Mining Licence (Guia deUtilização – “GU”), which allows for mining of 300,000 tonnes per annum of ore per licence, was lodged in early April 2014.

“We are steadily ticking the boxes in moving Candonga towards development as a simple, low-cost DSO operation,” Centaurus Metals managing director Darren Gordon said in the company’s announcement to the Australian Securities Exchange.

“We are very pleased with the results of the recent drilling, which have enabled us to report a significant uplift in both the tonnage and grade of the DSO component of the resource.

“The new JORC 2012 compliant resource forms the foundation of our Feasibility Study, which is already well advanced and on track for completion by the end of the month.

“I’m pleased to say that all aspects of the project are progressing extremely well and we expect to be in a position to push the button on financing and development, subject to receipt of approvals, in Q4 2014.”

 

 

Email: office@centaurus.com.au

Website: www.centaurus.com.au