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Centaurus identifies more resource in Brazil

9th August 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Iron-ore developer Centaurus Metals has reported a maiden resource of 11.9-million tonnes, grading 43% iron at its Candonga project, in Brazil.

The company noted that the new resource comprised a 9.1-million-tonne friable itabirite mineralisation, grading 43.8% iron, which was similar to the material underpinning the flagship Jambreiro project, which was 33 km to the north.

The new deposit could be a potential source of coarse-grained high-grade direct shipping material, which could blend well with Jambreiro sinter concentrate, Centaurus MD Darren Gordon said.

The new resource estimate boosted Centaurus’ company-wide resource in south-eastern Brazil to over 216-million tonnes, and followed the recent resource update at Jambreiro, which was now estimated to host some 128-million tonnes of ore at 27.2% iron, and a maiden resource estimate of 27.6-million tonnes, at 30.5% iron, at the Canavial project.

“This represents a tremendous return on the funds invested in exploration drilling at these two prospects over the past six months, and demonstrates the significant upside of the region,” said Gordon.

He added that with Jambreiro moving rapidly towards development, Centaurus had now clearly demonstrated that the company could add significantly to either the mine life or the potential future production profile at Jambreiro.

“While there is a lot more work to do, including metallurgical testwork and feasibility studies, we are confident, based on what we already know, that Candonga and Canavial will become part of our future growth plans at Jambreiro, further strengthening our footprint in the Guanhaes region.”

Centaurus has started detailed engineering works on the Jambreiro project and recently received the installation licence for the project, allowing on-site construction to start.

First production has been targeted for mid-2014.

Edited by Creamer Media Reporter

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