Centaurus Metals

December 2021Quarterly Activities Report

Jaguar Mineral Resource soars 30% to 730,700t of contained nickel, paving the way for a potential increase in the scoped nickel sulphate production rate; Eleven diamond rigs to be on-site from February 2022 targeting further growth; $75M institutional share placement completed subsequent to Quarter-end

Centaurus Metals (ASX:CTM) has released its December 2021 quarterly report.


JAGUAR NICKEL SULPHIDE PROJECT

  • Updated JORC 2012 Mineral Resource Estimate (MRE) confirms Jaguar as the world’s premier near-surfacenickel sulphide development project, with the Jaguar Global MRE increasing by 30% to:
    • GLOBAL: 80.6Mt @ 0.91% Ni for 730,700t of contained nickel
  • Importantly, the Indicated component of the Global MRE has increased to:
    • INDICATED: 43.4Mt @ 0.92% Ni for 397,000t of contained nickel
  • Step-out and extensional drilling has expanded the Resource beyond the May 2021 Scoping Study open pit andunderground designs limits, highlighting the opportunity to increase the currently scoped production rate.
  • Updated Mining Lease Application lodged, meaning that all key statutory reports required for the developmentof the Jaguar Project have now been submitted.
  • Nickel Sulphate Definitive Feasibility Study (DFS) advancing on multiple fronts:
    • Updated MRE to underpin an update of the open-pit and underground optimisations and a suite ofproduction profile trade-off studies scheduled to commence in January 2022.
    • Flotation testwork on 21 Jaguar composites (representative of +95% of the known mineralisation) hasconfirmed the 95% nickel sulphide recovery established for the May 2021 Nickel Sulphate Scoping Study.
    • Power supply route from the Tucumã sub-station defined and discussions with land-owners underway.
    • All 2021 road upgrade work under the Public Private Partnership with the São Felix do Xingu Municipalityhas been completed, delivering a significantly upgraded road for the benefit of the local community.
  • Eight diamond rigs currently drilling double-shift and a further three new diamond rigs to arrive on site inFebruary 2022, with a dual focus on project development (including in-fill and geotechnical drilling) and Resource growth.

CORPORATE

  • $75 million institutional placement completed subsequent to Quarter-end to drive continued growth anddevelopment of the Jaguar Project.
  • Centaurus shares commenced trading in the US on the OTCQX platform under the ticker OTCQX: CTTZF on 30December 2021.
  • Third key property secured at Jaguar, providing further security of land possession. Centaurus now haspossession rights and access to over 2,000 hectares of land at Jaguar. Cash at 31 December 2021 of $8.3 million.

JAGUAR NICKEL PROJECT

The Jaguar Nickel Sulphide Project, located in the world-class Carajás Mineral Province of northern Brazil (Figure 1), was acquired from global mining giant, Vale S.A. (“Vale”) in April 2020.

The Company delivered a positive Value-Added Scoping Study in May 2021 confirming strong technical parameters and outstanding financial returns from the production of nickel sulphate from a 13-year open pit and underground mining operation. The production of nickel sulphate is proposed to be delivered by a conventional nickel flotation plant, followed by a Pressure Oxidation circuit to further value-add the nickel concentrate produced in the flotation plant to produce +20,000 tonne of nickel per annum1 over the initial 13-year mine life.

Following the robust and compelling economics seen in the Jaguar Value-Add Scoping Study, the Company has elected to move straight to a Definitive Feasibility Study (DFS) on the Project focused on the production of a nickel sulphate product.

Centaurus is already well advanced on many of the key components of the proposed project development, positioning the Company to complete the DFS by Q4 2022.

At the end of 2021, Centaurus updated its Mineral Resource Estimate (MRE) for the Jaguar Project to 80.6Mt @ 0.91% Ni for 730,700t of contained nickel, with 54 per cent of the MRE in the higher-confidence Indicated Resource category (43.4Mt grading 0.92% Ni for 397,000 tonnes of contained nickel). A further MRE update is planned for mid-2022 which will be the Resource used for completion of the DFS and the conversion of Resource to Reserve.

Through the development of the Jaguar Project, Centaurus’ goal is to become a new-generation nickel sulphide mining company in Brazil, capable of delivering more than 20,000 tonne per annum of Class-1 nickel to global markets over the long term, and to do so in a sustainable and responsible manner that ensures the Company meets the highest possible ESG (Environmental, Social and Governance) standards.

Click here for the full ASX Release

This article includes content from Impact Minerals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

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