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 MD Darren Gordon has said that the company is steadily “ticking the boxes” in moving Candonga towards development as a simple, low-cost DSO operation.

The company hopes to make an investment decision on Candonga, subject to the receipt of approvals, by the fourth quarter of this year. First production has been targeted for the first quarter of 2015.

The application for a trial mining licence, which allows for mining of about 300 000 t/y of ore, was lodged in April this year, while the environmental licensing process has also been advanced.

As part of the feasibility study work, Centaurus has also started mine planning and pit optimisation work, which will facilitate the definition of a maiden ore reserve concurrent with the delivery of the feasibility study.

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.