Name and Location
Jambreiro iron-ore project, Brazil.

Client
Centaurus Metals.

Project Description
A revised development plan for the Jambreiro project released in December 2013 envisions a staged development approach starting with production at one-million tonnes a year, with the ability to subsequently increase to two- to three-million tonnes a year.

The revised proposed one-million-tonne-a-year operation for the project is based on the Joint Ore Reserves Committee 2004 proven and probable friable ore reserve estimate of 48.5-million tonnes at an average grade of 28.1% iron. The ore reserve estimate was completed as part of the bankable feasibility study (BFS) for Jambreiro that was announced to the market in November 2012.

The ore reserve is expected to produce total concentrate production of 18-million tonnes at 65% iron. The openpit deposits will be mined using conventional excavator and truck mining methods.

The original BFS was planned for an initial mine life of nine years at a production rate of two-million tonnes a year. The revised planned production rate of one-million tonnes a year will extend the life of the friable reserves to an initial 18-year project life.

Processing will comprise a conventional beneficiation circuit using jig separators, spiral concentrator units and magnetic separators to upgrade the run-of-mine material to a 65% iron concentrate product. As a result of the Jambreiro ore being highly friable and naturally liberated, the plant requires only limited comminution to break up the small amount of loosely agglomerated material. A low-ball charge grinding mill is used to control product silica levels to suit various customer requirements.

Value
As a result of the revised development strategy, the project’s preproduction capital is estimated at A$53-million. The project was originally valued at A$136-million.

Duration
Subject to finalisation of an appropriate funding package, development is planned to start early in the second quarter of 2014, with first production targeted for the first quarter of 2015.

Latest Developments
Centaurus Metals has launched a share placement to raise A$5-million to advance its Brazilian iron-ore projects.

The ASX-listed company will place about 40-million shares, at A$0.125 each, to new and existing investors. Shareholders Atlas Iron and Liberty Metals & Mining Holdings have each subscribed for shares.

Centaurus will also launch a share purchase plan, with shares to be issued at the same price to raise a further A$2-million.

The capital raising will enable Centaurus to maintain its development momentum at Jambreiro, while the company completes the main funding package for the full development of the project, ensuring that initial site development activity continues, enabling Centaurus to start procurement activities.

Once the funding package is finalised, Centaurus will be able to swiftly start construction at Jambreiro, which is fully permitted.

A revised production plan will incorporate the staged development of Jambreiro, which will result in production subsequently increasing to two- to three-million tonnes a year.

Centaurus is progressing with discussions with financiers, which are expected to contribute to the development funding package and due diligence activities currently under way.

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.