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.

The mining schedule is based on an average of 400 000 t/y of ore being mined to deliver the 300 000 t of saleable product.

Net Present Value/Internal Rate of Return
Not stated.

Value
The total preproduction capital costs for the project have been estimated at A$3.6-million.

The capital expenditure pertains to the acquisition of a new dry crushing and screening plant, some limited mine development works and other infrastructure requirements.

Duration
Production at Candonga will start in the second quarter of 2015 at a rate of 300 000 t/y under a trial mining licence, which was lodged in April 2014.

Latest Developments
Centaurus Metals has appointed resource financier RMB Resources to arrange a A$6-million working capital facility to underpin the development of the Candonga project.

Funds will also be used to support ongoing exploration programmes in Brazil, including at the Candonga West project.

Subject to the completion of a due diligence in January, an approved offer of finance is expected by the end of February.
The licensing process is well advanced, and final approval of the trial mining licence is expected in the first quarter of 2015.

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.