Name and Location
Candonga direct shipping ore (DSO) project, Brazil.

Client
Centaurus Metals.

Project Description
Centaurus Metals has reported a 33% increase in the DSO resource at its Candonga project.

Following a recent drilling programme at Candonga, the project is now estimated to host a Joint Ore Reserves Committee-compliant DSO resource of 1.2-million tonnes, grading 63.2% iron, of which about one-million tonnes are classified as measured and indicated.

The plan is to develop a small-scale DSO mining operation that can supply a high-grade lump and coarse sinter product to the Brazilian domestic market to meet the high levels of demand for and the current undersupply of these product types.

Net Present Value/Internal Rate of Return
Not stated.

Value
Not stated.

Duration
The updated DSO resource will underpin the feasibility study for the Candonga DSO project, which is scheduled for completion by the end of September.

Latest Developments
Centaurus Metals is advancing its Candonga DSO project, with the Department of Mines approving the final exploration report for the tenement.

The approval supports the quality of the exploration work and development work undertaken by Centaurus and paves the way for the company to lodge the full mining licence application for the project.

Production at Candonga will start in the second quarter of next year at a rate of 300 000 t/y under a trial mining licence, which was lodged in April this year.

Centaurus says that the licensing process is well advanced, and final approval of the trial mining licence is expected in the first quarter of 2015.

With the approval of the final exploration report, Centaurus now has up to 12 months to deliver the economic feasibility study for the project, which is required for the full mining licence application.

This document is well advanced based on feasibility work already completed, and will be lodged with the Department of Mines during December.

The company also lodged a combined preliminary installation environmental licence application for the Candonga project in May this year, which is also awaiting approval.

It is hoped that the relevant approvals will be secured before the second quarter of next year.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Centaurus Metals, tel +61 8 9420 4000, fax +61 8 9420 4040 or email office@centaurus.com.au.