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Centaurus Metals Limited
 
Company Announcement: Maiden Ore Reserve for Jambreiro
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14th November 2011
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Centaurus Metals  is pleased to announce a maiden Ore Reserve estimate for its flagship Jambreiro Iron Ore Project following completion of pit designs as part of the Pre-Feasibility Study (“PFS”) on the Project. The Jambreiro JORC Resource comprises 116.5Mt at an average grade of 26.8% Fe including both near surface friable, and underlying compact, mineralised components. In establishing the maiden Ore Reserve, only the Measured and Indicated components of the friable resource estimate (52.1 Mt at 28.0% Fe) were considered.

The Proven and Probable Ore Reserve has been estimated at 49.0Mt at an average grade of 28.2% Fe from within the friable Measured and Indicated Resource referred to above, representing a 94% conversion rate. The final pit design includes 46.0Mt of waste movement for a total Life of Mine material movement of 95.0Mt at a strip ratio of 0.94:1. The complete mine schedule is provided in Appendix B to this Announcement.

Extensive bench scale metallurgical test work has confirmed that a high grade hematite product can be produced from the friable Jambreiro ore. The PFS Ore Reserve is forecast to produce hematite concentrate production of 17.1 million tonnes grading 66.6% Fe and 2.8% SiO2 which will provide an initial mine life of 8.5 years at the planned production rate of 2Mtpa. The high quality iron product, with its very low level of impurities, will be highly sought after in the domestic steel industry in Brazil, and initial discussions with potential customers have indicated that a long term consistent supply of high quality iron ore would be well received in the domestic market.

Further RC drilling is planned to commence in November 2011 to upgrade reserves for the first four years of planned mine life into the Proven category, with this drilling designed to provide samples for a pilot plant testwork program and to assist with securing debt funding on a timely basis. Measured, Indicated and Inferred Resources of 64.6 million tonnes at an average grade of 25.8% Fe remain outside the maiden Reserve initial pit design. It is expected that this material can be upgraded to Reserves and higher categories of Resources with additional drilling. This additional drilling is likely to be undertaken only after production commences.

 

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