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Centaurus Metals (ASX Code: CTM, OTCQX: CTTZF) is pleased to advise that greenfields exploration drilling at its 100%-owned Jaguar Nickel Sulphide Project (JNP) in the Carajás Mineral Province of northern Brazil has delivered a new nickel sulphide discovery at the Twister Prospect.
- Recent Reverse Circulation (RC) drilling has confirmed a new nickel discovery at the Twister Prospect, with multiple high-grade nickel sulphide intersections received over an initial strike length of 900m, including:
- 14.0m at 1.03% Ni from 163.0m in JAG-RC-23-190
- 11.0m at 1.06% Ni from 107.0m; including 5.0m at 1.70% Ni from 113.0m in JAG-RC-23-191
- 8.0m at 1.20% Ni, from 63.0m, including 3.0m at 2.67% Ni from 68.0m in JAG-RC-22-186
- 14.0m at 0.45% Ni from 85.0m in JAG-RC-23-196
- 4.0m at 1.57% Ni from 184.0m in JAG-RC-22-181
- 7.0m at 0.62% Ni from 173.0m in JAG-RC-23-189
- 8.0m at 0.46% Ni from 184.0m in JAG-RC-23-192
- The mineralisation outcrops at surface and remains open both at depth and along strike in both directions.
- Recently completed diamond drilling at Twister has confirmed +10m zones of stringer and net-textured nickel sulphides (millerite and pentlandite) in visual estimates from the first diamond holes drilled1.
- The new discovery at Twister is located only 5km from the proposed ROM pad for the Jaguar Nickel Project, presenting a new opportunity to build on the current Mineral Resource Estimate (MRE) of 109.2Mt at 0.87% Ni for 948,9002 tonnes of contained nickel metal.
- Near-surface nickel sulphide mineralisation has also been intersected at the Fliperama Prospect (12.0m at 0.92% Ni from 52.0m) and the Puma Contact Prospect (6.0m at 0.65% Ni from 81.0m) with further exploration planned.
- The RC rig is continuing to test greenfields targets at Twister, Dente de Sabre and Filhote. Diamond drilling is focused exclusively on step-out, extensional and greenfields drilling targeting resource growth, including the exciting Jaguar Deeps drilling – which is also set to commence this month.
- The Company remains well-funded, with $23 million in cash at the end of the March Quarter.
The shallow zone of nickel sulphide mineralisation – which has so far been delineated over a strike length of 900 metres – is located just 5km from the proposed mining and processing infrastructure at Jaguar and has the potential to grow the JNP’s Resource base and potentially extend mine life.
Centaurus’ Managing Director, Mr Darren Gordon, said the discovery of shallow nickel sulphide mineralisation at Twister represents the second greenfields discovery to be made on the property since it was acquired from Vale and shows the nickel prospectivity across the entire tenement.
“Our 2023 regional exploration focus has paid immediate dividends, with significant nickel sulphide intercepts returned in multiple holes over a significant strike extent at Twister. Over the past 18 months, the RC rig has been focused on project development and sterilisation drilling but has now been freed up this year to drill out the exciting greenfield targets on the tenement, and we are starting to see the results of this work.
“Drilling at Twister has intersected high-grade nickel sulphide mineralisation over 900m of strike which remains open in both directions and at depth. The mineralisation at Twister outcrops and, with initial RC results such as 8.0m at 1.20% Ni from 63.0m, we believe there is a good chance that, with some additional drilling, the Twister Prospect mineralisation will make it into the Resource base as part of the next MRE upgrade.
“Importantly, Twister is located less than 5km from the proposed ROM pad site and, as such, could be a future open pit satellite operation for the Jaguar Nickel Project.
“The continued delivery of outstanding results both from resource growth drilling and greenfields exploration drilling is consistent with the Company’s two-pronged strategy of continuing to grow and upgrade the Jaguar MRE, in parallel with key de-risking steps associated with Project permitting and the completion of the ongoing Definitive Feasibility Study.
“Jaguar is already a standout project in terms of scale and quality amongst undeveloped nickel sulphide projects worldwide and the Project’s extremely low emission footprint will be a key distinguishing feature in the market as OEM’s have to start reporting Scope 3 emissions and the location of where their nickel has been sourced.”
Figure 1 – Net-textured to semi-massive nickel sulphide mineralisation and magnetite alteration in JAG-DD-23-603 from 207.7m, intersected 100m down-dip from JAG-RC-23-191 which returned 11.0m at 1.06% Ni from 163.0m on cross-sections 478940mE.
Twister Prospect
The Twister Prospect is located in the north-eastern corner of the Jaguar tenement and is interpreted to be a secondary splay of the Canaã Fault. Situated immediately south of the Puma Layered Mafic-Ultramafic Complex, the Prospect hosts multiple zones of magnetite alteration and nickel sulphide mineralisation within mafic- ultramafic rocks that have intruded into basement gneiss, suggesting that the mineralisation was emplaced during a stage of dilation similar to that seen at Onça Preta and Onça Rosa.
Twister has around 900m of prospective strike length identified by electromagnetic and ground magnetic anomalies, with Ni-Cr-As-V-Co and PGE soil geochemical support. A FLEM survey has identified a 500m long conductor plate, coincident with the soil anomaly.
Field mapping has identified multiple outcropping magnetite bodies coincident with the geophysical and soil anomalies along the structure (see Figure 2 below). There are no historical drill holes at the Twister Prospect.
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This article includes content from Centaurus Metals, 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.
CTM:AU
Nickel Price 2024 Year-End Review
Nickel price in Q4
Nickel reached its 2024 peak of US$21,615 per metric ton on May 20, but was back below the US$16,000 mark by the end of July. Following some volatility in August and September, the price of nickel gained momentum at the end of Q3, reaching US$18,221 on October 2.
However, the increased prices were not to last, and nickel spent much of the final quarter in a downward trend.
By the end of October, the price had fallen to US$15,732 before climbing back to US$16,607 on November 7.
Since then, the nickel market has seen some volatility but has continued its downward trend. On December 19, it slumped to its 2024 low of US$15,090. However, it saw some small gains, ending the year at US$15,300 on December 31.
Nickel price, Q4 2024.
Chart via Trading Economics.
Nickel’s weak prices are largely due to high output from Indonesia and low demand, particularly from Asian markets, as China’s recovery has failed to gain traction.
As a result, on December 19, it was reported that Indonesia is considering implementing cuts to mining quotas to boost prices. The move would see the country cut output by nearly half, from 272 million metric tons of ore produced in 2024 to 150 million metric tons in 2025.
Additionally, Indonesia is looking to tighten environmental regulation compliance for miners in the new year and could introduce increased volatility into metals markets, including nickel. The move comes not long after it signed several new agreements in November with Chinese companies that would see billions invested in nickel operations in Indonesia.
Indonesia had previously worked to distance itself from China’s partnerships as it sought to improve relations with the United States and be included under the US Inflation Reduction Act (IRA).
The new agreements emerged shortly after Donald Trump won the US presidential election on November 7. Trump’s return to the Oval Office is unlikely to bode well for Indonesian officials seeking to secure a trade deal with the United States. However, a loosening of rules in the IRA might create new inroads for Indonesian nickel producers.
How did nickel perform for the rest of the year?
Nickel price in Q1
The story since the start of the year has been high output from Indonesian operations.
Low prices saw some nickel producers, including First Quantum Minerals (TSX:FM,OTC Pink:FQVLF) and Australia’s Wyloo Metals, cut production. However, New Caledonia was most affected. The country is more dependent on the nickel sector, with industry giants like Glencore (LSE:GLEN,OTC Pink:GLCNF), Eramet (EPA:ERA) and raw materials trader Trafigura owning significant stakes in nickel producers in the country.
Ultimately, cuts there led to a 200 million euro bailout package from the French government, which exacerbated tensions over New Caledonia's independence from France. Opponents of the agreement argued it risks the territory's sovereignty and that the mining companies aren’t contributing enough to bail out the mines, which employ thousands.
Nickel price in Q2
The second quarter was defined by a surge in nickel prices.
Positive momentum began to work its way into the market at the end of Q1, as Indonesia experienced delays in approving mining output quotas and speculation grew that Russian nickel could be sanctioned by the US and UK.
On April 12, news broke that Washington and London had banned US and UK metal exchanges from admitting new aluminum, copper and nickel from Russia. Taking immediate effect, the prohibitions also halted the import of those metals causing the price to soar to a year-to-date high of US$21,615 on May 20.
At the time Joe Mazumdar, editor of Exploration Insights, suggested this move would have little impact on the sector.
“That nickel is still going to make it into the market, it’s just going to go to a different exchange, probably Shanghai … So I could still see that nickel moving and getting consumed in the global market — it’s just not coming to the west,” he explained to the Investing News Network in an interview.
Ultimately, by the end of the quarter, the price was trending toward US$17,000.
Nickel price in Q3
Nickel saw a strong end to the third quarter with the price rising above the US$18,000 mark.
Nickel found pricing support in September as the Chinese government introduced a raft of stimulus measures intended to boost economic growth in the country. Among the measures were a 0.5 percent interest rate cut on existing mortgages and a reduction in the downpayment required to purchase a home to 15 percent from 25 percent.
The announcement came alongside cuts at Chinese smelters as they were forced to deal with a shortage in feeder supply due to more delays to Indonesia’s permitting and quota system.
Investor takeaway
The nickel market is expected to remain oversupplied for some time.
With China’s economy on a slow path to recovery, demand will remain weak. Meanwhile, supply will likely hinge on if Indonesia chooses to make significant cuts to supply output.
While demand for nickel in electric vehicle batteries is expected to be up 27 percent year-on-year in 2024, producers have also been looking to alternatives that don’t require as much nickel. Additionally, more consumers are looking to plug-in hybrid vehicles with smaller batteries that require less nickel.
Even with the increased demand from the battery sector, nickel is primarily used in stainless steel products, which are still dominated by the Chinese manufacturing and real estate sectors.
Perhaps the most significant factors to consider are political. A new administration in the United States and a shift in the IRA's approach to sourcing critical metals like nickel could alter the landscape for nickel producers in 2025.
Don’t forget to follow us @INN_Resource for real-time news updates.
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Accelerated Non-Renounceable Entitlement Offer Results
Under the Entitlement Offer, eligible shareholders were invited to subscribe for one (1) New Share for every four (4) existing Shares held at an offer price of $0.03 per share.
The Company has now closed the retail component of the Entitlement Offer with applications totalling 2,767,788 shares including additional acceptances to be issued at $0.03 on top of the 18,650,023 shares issued under the institutional component of the Entitlement Offer on 15 November 2024. In accordance with the timetable, the New Shares will be issued on or before 4 December 2024.
The retail component of the Entitlement Offer is partially underwritten by Nanjia Capital Limited “(Nanjia”) for the amount of approximately $1.09m. Accordingly, Nanjia will now subscribe for 36,349,900 New Shares in accordance with the underwriting arrangements summarised in section 7.4(b) of the Prospectus and the Company expects to finalise this process within the next week.
Shortfall Share Placement
A total of 74,946,591 New Shares were not taken up under the Entitlement Offer by eligible securityholders or issued to Nanjia as underwriter (“Shortfall Shares’”) The directors will work with the lead manager to the Entitlement Offer and the major shareholders to place the shortfall within three (3) months of the closing date, subject to requirements of the ASX Listing Rules and Corporations Act 20021 (Cth) continuing to be met. Please refer to the Prospectus dated 4 November 2024 for further details on the issue of the shortfall.
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This article includes content from Blackstone 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.
