Name and Location
Jambreiro iron-ore project, Brazil.

Client
Centaurus Metals.

Project Description
The project is based on a Joint Ore Reserves Committee-compliant resource of 125-million tons, grading 26.7% iron.

The ore reserve will provide 18-million tons of high-grade, low-impurity sinter blend concentrate – enough to underpin nine years of production at an initial two-million-tons-a-year production rate.

Value
The project has a preproduction capital estimate of A$136-million.

Duration
The project has been postponed to mid-2014.

Latest Developments
Centaurus Metals has deferred the maiden production date from its flagship Jambreiro project from the middle of next year to the first quarter of 2015. In May, Centaurus postponed the development schedule of Jambreiro by six months, from the end of 2013 to mid-2014, as it worked to secure offtake agreements.

The miner has delayed production to align iron-ore supply with the delivery requirements of a potential offtake customer.

The miner says that offtake discussions have advanced significantly over the past two months, adding that it is close to finalising terms with a leading Brazilian iron-ore and steel group for the long-term supply of iron-ore concentrate.

The negotiations are expected to pave the way for a life-of-mine, take-or-pay offtake agreement.

“After several months of discussions and negotiations, we are now very close to completing a long-term take-or-pay arrangement for the supply of iron-ore to the Brazilian domestic steel sector, which will underpin the future of the Jambreiro project and the company,” says MD Darren Gordon.

He notes that with several key terms and principles of the offtake arrangement in place, Centaurus is now working through the final details.

“While this work has effectively resulted in a further change to our delivery timetable, we believe the benefits of securing a quality, long-term offtake partner far outweigh what is in the scheme of things, a relatively minor adjustment to our schedule,” Gordon adds.

With the offtake terms expected to be completed in October, Centaurus is working towards the start of construction by March next year. In the meantime, the company will continue to advance its detailed engineering and design work and will lock down any further savings in the capital cost estimate for the project.

Key Contracts and Suppliers
MCA Auditoria e Gerenciamento (MSC) and Tetra Tech (EP).

On Budget and on Time?
Centaurus MD Darren Gordon says the team in Brazil continues to deliver according to the company’s timetable and is working its way towards starting production by the end of the year, “systematically ticking all of the boxes required to allow the Jambreiro development to move ahead on time.”

Contact Details for Project Information
Centaurus Metals, tel +61 8 9420 4000, fax +61 8 9420 4040 or email office@centaurus.com.au.
MCA Auditoria e Gerenciamento, tel +55 31 2127 6800 or email comunicacao@mca.srv.br.
Tetra Tech, tel +1 626 351 4664, fax +1 626 351 5291 or email info@tetratech.com.