Centaurus Metals increases operational chances for Candonga project

THE DRILL SERGEANT: Centaurus Metals (ASX: CTM) has received results from a recent trenching program carried out at its 100 per cent-owned Candonga iron ore project, a satellite deposit of the company’s Jambreiro iron ore project in south‐east Brazil.

The company claims the results have strengthened the project’s potential to become a small‐scale direct shipping iron ore operation.

Centaurus released a maiden JORC 2004-compliant Resource estimate last year for the Candonga project of 11.9 million tonnes at 43 per cent iron.

The company drew attention to the fact the resource comprises 9.1 million tonnes of friable itabirite mineralisation at 43.8 per cent iron, including 0.9 million tonnes of high‐grade itabirite mineralisation at 58.6 per cent with low impurities.

The trenching targeted a zone of high‐grade itabirite mineralisation in preparation for a planned diamond drill program scheduled for later in Q1 2014.

The program also collected a bulk in situ sample for sieve (sizing) analysis and other metallurgical test work.

Highlights of the recent trenching program from Candonga include:

86 metres at 62 per cent iron, 6.4 per cent silcon dioxide (SiO2), 3 per cent aluminium oxide (Al2O3) and 0.03 per cent potassium in trench CDG‐TR‐13‐00008;

70m at 64 per cent iron, 5.1 per cent SiO2, 1.9 per cent Al2O3 and 0.02 per cent potassium in trench CDG‐TR‐13‐00007, including 52m at 65.6 per cent Fe, 3.6 per cent SiO2, 1.3 per cent Al2O3 and 0.02 per cent potassium; and

26m at 57.6 per cent Fe, 8.7 per cent SiO2, 4.7 per cent Al2O3 and 0.05 per cent potassium in trench CDG‐TR‐13‐00009, including 12m at 60.2 per cent Fe, 4.5 per cent SiO2, 5.1 per cent Al2O3 and 0.04 per cent potassium.

 

Candonga project map – Analytical signal image with trench and drill results – January 2014. Source: Company announcement

 

The results have provided Centaurus with the impetus to now accelerate the development of the Candonga project.

“We are very happy with the way the Candonga project is developing,” Centaurus Metals managing director Darren Gordon said in the company’s announcement to the Australian Securities Exchange.

“The RC drilling completed in 2013 identified some significant intersections of high‐grade itabirite material close to surface and follow‐up trenching work has now confirmed the high‐grade nature of this mineralisation.

“We are now well positioned to start a small diamond drilling program to drill out the high‐grade itabirite material and we expect to convert most of the 900,000 tonnes of high‐grade material to the Measured and Indicated categories.

“The sieve analysis undertaken to date on the Candonga mineralisation demonstrates a significant portion (40‐ 50 per cent) of lump material which will be beneficial in marketing any future production from the project.

“The company is looking forward to the delivery of the final metallurgical test work data over the next couple of weeks to confirm the high-grade nature of this lump material but visual inspection of the sieve analysis samples is very encouraging.

“The work completed to date, combined with the fact that the mineralisation is located on pastoral land and requires no native vegetation clearing, indicates that Candonga may be fast tracked to a small‐scale production opportunity for the company.”

Email: office@centaurus.com.au

Website: www.centaurus.com.au