Name of the Project
Jaguar nickel sulphide project.

Location
Carajás, Brazil.

Project Owner/s
Aliança Mineração, a wholly owned Brazilian subsidiary of Centaurus Metals.

Project Description
A value-add scoping study has been undertaken to evaluate the potential development of the project.

The project is expected to have a low-carbon emission footprint and generate strong financial returns while delivering significant long-term social and economic benefits for the local communities around it.

The scoping study envisages the development of openpit and underground mines supplying a 2.7-million-tonne-a-year nickel sulphate plant over an initial 13-year mine life.

The mine is expected to produce more than 20 000 t/y of recovered nickel in sulphate and more than 9 600 t/y of mixed sulphide precipitate.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated pretax net present value, at an 8% discount rate, of $1.03-billion and an internal rate of return of 60%, with an after-tax payback period of 1.8 years.

Capital Expenditure
The project will require preproduction development capital of $288-million.

Planned Start/End Date
First production from Jaguar is currently targeted for 2025.

Latest Developments
Centaurus has reached an agreement with Vale Base Metals to acquire all the offtake rights for the nickel products from the Jaguar project in exchange for an increase in Vale’s net operating royalty over the project.

The offtake rights stem from the 2019 sale and purchase agreement when Centaurus acquired the Jaguar project from Vale.

With Vale now agreeing to extinguish the offtake right, the company’s royalty will be increased by 1.2% for nickel sulphate product and 1.25% for nickel concentrate and other products produced from Jaguar; therefore, a 1.75% royalty for nickel sulphate and a 2% royalty for nickel concentrate and other products will apply.

The agreement gives Centaurus full control and optionality over the sale and marketing of Jaguar’s nickel sulphate product.

The company can now actively explore a much wider variety of funding options at corporate and project level.

Key Contracts, Suppliers and Consultants
Entech; Re-Metallica; and DRA Global (value-add scoping study).

Contact Details for Project Information
Centaurus Metals, tel +61 8 6424 8420 or email office@centaurus.com.au.