Centaurus on track for Jambreiro upgrade

THE DRILL SERGEANT: Brazil-focused iron ore play Centaurus Metals has received final results from recently completed drilling at its Jambreiro iron ore project.

The company said the results support previous results, which demonstrated quality and consistency of mineralisation at the project.

Resource estimation work is currently underway with on upgrading the project’s current JORC Resource estimate (combined Measured, Indicated and Inferred) of 70.6 million tonnes at an average grade 28.0 per cent iron.

This is expected to be completed by the end of September 2011.

“With the receipt of all outstanding assay data for the project, we can now progress the finalisation of the Resource upgrade ahead of new pit optimisation and mine scheduling work for the Pre-Feasibility Study to be delivered by mid-November,” Centaurus Metals managing director Darren Gordon said in the company’s announcement to the Australian Securities Exchange.

“All of the prospects at Jambreiro host a large proportion of friable mineralisation, which will provide the project with significant operational benefits at the start of future mining activities due to low operating costs.”

Drilling was carried out across the Jambreiro iron ore project deposits.

Highlights of the recent results from the Tigre deposit include:

–    45.5 metres at 27.9 per cent iron, 1.6 per cent aluminium oxide and 0.05 per cent phosphorous from 89.1 metres;

–    53.8m at 29.1% iron, 1.4% aluminium oxide and 0.04% phosphorous from 78.6m; and

–    54.1m at 26.2% iron, 2.3% aluminium oxide and 0.06% phosphorous from 121.2m.

Centaurus said these results will allow some of the existing resource, currently classified as Inferred but within the current pit design, to be upgraded to the Indicated category.

Results from the South East Extension Zone have confirmed the friable nature of the mineralisation held there as well as demonstrating the extension of the Tigre Resource into this Zone.

Highlights from the South East Extension Zone of the Tigre deposit include:
–    43.0 metres at 30.4% iron, 0.7% aluminium oxide and 0.06% phosphorous from 37.0 metres;

–    11.2m at 41.1% iron, 3.8% aluminium oxide and 0.03% phosphorous from surface; and

–    36.0m at 29.8% iron, 2.3% aluminium oxide and 0.05% phosphorous from 44.0m.

These results have also provided support for the company’s hopes for the South East Extension Zone exploration target of 20-30 million tonnes at a grade of 28-33% iron, which it expects to convert to Resource and added to the existing Tigre Resource estimate (Measured, Indicated and Inferred Resource of 61.2Mt grading 27.7% iron) by the end of September 2011.

Drilling of the Cruzeiro, Galo and Coelho prospects at Jambreiro is also now complete with results demonstrating continuity of friable mineralisation at the Cruzeiro prospect with consistent widths of 30m to 35m.

The Galo prospect returned an intersection from one of the final drill holes of 37m at a grade of 29.5% iron.

With all final assay data received Centaurus is well-advanced with the process of data validation and geological interpretation.

The company said a JORC Resource estimate is on schedule to be completed by the end of September.

Based on the assay results from the South East Extension Zone, the company said it expects to be able to increase the overall Resource base at Jambreiro.

The new resource will be used as a platform for a Pre-Feasibility study, which is due in November.