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 postponed the development schedule of its flagship Jambreiro project from the end of 2013 to mid-2014.

The company has revised its timeline for development to accommodate ongoing negotiations for product offtake with potential customers in the Brazilian domestic steel industry.

The offtake agreements offer the opportunity to establish a life-of-mine contract for the iron-ore concentrates to be produced at Jambreiro.

Centaurus MD Darren Gordon states that the benefits of securing a strong offtake partner for the project outweighs the six-month delay in delivering first concentrate.

The extra time in the schedule will also be used proactively to enhance the detailed plan design and execution planning, which will ultimately deliver strong benefits to shareholders.

The revised schedule will allow for the completion of a full detailed engineering of the three-stage spirals circuit, a full integration into the mine plan, the completion of the tendering process for additional equipment and the incorporation of the spirals into the overall project execution plan.

The company remains in regular contact with its preferred project financiers on the progress of the offtake negotiations, as this will allow the company to move quickly through the financing process, once offtake arrangements are completed.

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

On Budget and on Time?
Centaurus MD Darren Gordon says that the team in Brazil continues to deliver according to the company’s timetable and it continues to work its way towards 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.