THE BOURSE WHISPERER: Iron ore-focused company Centaurus Metals has increased the JORC compliant resource estimate for its flagship Jambreiro iron ore project in the State of Minas Gerais, Brazil by 65 per cent.
The company’s new estimate stands at 116.5 million tonnes grading 26.8 per cent iron.
The updated JORC Resource estimate (combined Measured, Indicated and Inferred) comprises 67 million tonnes of friable mineralisation and 49.5 million tonnes of compact mineralisation.
Centaurus said the new resource provides a platform for the current Pre-Feasibility Study (PFS) on the Jambreiro project.
The PFS is on schedule for completion in November based on an initial two million tonnes per annum operation producing a plus-65 per cent iron final product for sale into the domestic steel industry in south-eastern Brazil.
Beneficiation test work Centaurus has carried out on resource grade mineralisation has so far demonstrated both the friable and compact mineralisation types can be beneficiated to a high quality hematite product to suit the various customers and markets.
The company also expects the beneficiated product from Jambreiro to have very low phosphorus grades and low alumina grades.
Centaurus’ intends to design the plant at Jambreiro to tailor the iron and silica grades for individual customer requirements.
A six-tonne sample of friable mineralisation is currently being tested in the planned process flowsheet.
Centaurus said the results from these tests will assist in confirming the product specifications for the domestic steel industry.
A total of 72.1 million tonnes grading 27.6% iron of the overall Jambreiro resource base is now classified in the Measured and Indicated categories.
This represents 62% of the total Resource providing the company a solid base for its upcoming Jambreiro JORC Ore Reserve estimate.
This Measured and Indicated Resource represents 25Mt to 28Mt of high grade (+65% iron) product at a mass recovery of 35% to 40%.
“We are very pleased to be able to deliver such a significant increase in the overall resource base for the Jambreiro project, including a major uplift in the quantity of friable mineralisation, following successful drilling programs this year – in particular at the South East Extension Zone and satellite prospects,” Centaurus Metals managing director Darren Gordon said in the company’s announcement to the Australian Securities Exchange.
“When combined with the strong increase in the overall level of Measured and Indicated Resources, we are confident that the revised resource base will form the foundation of a long-life mining operation at Jambreiro.
“We look forward to completing the Pre-Feasibility study on the project, which we expect will confirm our expectation of a financially robust project that will become the cornerstone of our domestic iron ore business in Brazil.”