PERTH (miningweekly.com) – Metals developer Centaurus Metals has reported a 33% increase in the direct shipping ore (DSO) resource at its Candonga project, in Brazil.
Following a recent drilling programme at Candonga, the project was now estimated to host a Joint Ore Reserves Committee-complaint DSO resource of 1.2-million tonnes, grading 63.2% iron, of which some one-million tonnes was classified as measured and indicated.
Centaurus told shareholders on Monday that the updated DSO resource would underpin the feasibility study for the Candonga DSO project, which was scheduled for completion by the end of September.
“We are steadily ticking the boxes in moving Candonga towards development as a simple, low-cost DSO operation,” said Centaurus MD Darren Gordon.
He noted that the company was hoping 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 some 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 would facilitate the definition of a maiden ore reserve concurrent with the delivery of the feasibility study.