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 2015.

Latest Developments
Centaurus has been granted three mining leases over the concession area, which comprise its flagship Jambreiro iron-ore project.

The grant of the mining leases is a key strategic step for future mining operations in the area, allowing Centaurus to complete the funding process to develop Jambreiro.

While the grant of the mining leases is not a prerequisite for construction to begin, it will ensure that Centaurus can start operations and generate a positive cash flow once the construction process has been completed.

The mining leases will assist Centaurus with its funding process, which, in turn, will clear the way for the company to start the construction of the one-million-tonne-a-year project over the coming months.

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.