THE BOURSE WHISPERER: Centaurus Metals has acquired a new iron ore exploration project in the State of Paraiba, north-eastern Brazil, by way of a tenement swap agreement.
In consideration for acquiring the Curral Velho iron ore project, Centaurus will transfer its interests in its non-core Caçapava copper/gold project in southern Brazil to a group company of the project vendor.
Centaurus said the acquisition will enable it to realise value from its non-core copper/gold tenement package while further strengthening its Brazilian iron ore portfolio.
The Curral Velho iron ore project comprises six tenements covering an area of 83 square kilometres.
Curral Velho project location map. Source: Company announcement
The project is located approximately 350km from the major Brazilian export port of Suape in the neighbouring State of Pernambuco and only 60km from the new Transnordestina rail system, which is currently under construction and due for completion in late 2014, connecting to the Suape port complex.
“The Curral Velho Project ticks all the boxes in terms of our criteria for new projects in Brazil, offering strong prospectivity and the opportunity to delineate a sizeable resource combined with an attractive location near to open access rail and port infrastructure,” Centaurus Metals managing director Darren Gordon said in the company’s announcement to the Australian Securities Exchange.
“We are looking forward to commencing exploration activities at Curral Velho in due course.”
Iron mineralisation at Curral Velho has initially been observed over a strike length of some six kilometres, of a total prospective strike length of some 20km, with rock chip sampling by the project vendor, showing average grades of itabirite iron mineralisation at surface between 30 per cent and 40 per cent iron.
Detailed field mapping, regional aeromagnetics and ground magnetic work still needs to be undertaken.
Based on previous rock chip sampling work and recent initial field mapping it has carried out, Centaurus has established an Exploration Target for the Curral Velho project of 30 to 40 million tonnes grading 30 to 40 per cent iron.