Centaurus Metals finished the acquisition of 100% interest in Jambreiro Iron Ore project in the Brazilian state of Minas Gerais. This new investment in south eastern Brazil is expected to be crucial for the company’s iron ore business in Brazil. Centaurus will acquire the investment from a Brazilian cellulose and forestry company, Celulose Nipo-Brasiliero SA (Cenibra).
With this acquisition, Centaurus expects to meet its exploration target of 40 to 60 Mt Itabirite iron ore at 30 to 40% Fe, with mineralization mapped on more than 7km strike extent. Cenibra had an initial 7-hole diamond drilling program that it had accomplished and subsequently intersected the Itabirite mineralization to a vertical depth of 90 meters. With a high friability, mineralization is expected to allow low cost beneficiation to a high grade (+63%Fe) product. A great relationship exists with regard to mapped iron mineralization and ground magnetic signature that indicates a vital depth potential of mineralization.
According to reports from the company, its 3,500 metre Diamond and RC resource definition drill campaign will start within this month, June. Its managing director, Darren Gordon, said the company had bought 100% acquisition of the Jambreiro investment way ahead of its intended time.
The company now, according to him, targets faster advancement of drilling work needed to identify a resource on the project that can make a vital contribution towards its strategic objective of becoming a top iron ore producer in Brazil by end of 2013, he added. Further more, the company is tied down the path of winning a number of rigs to drill out what it believes has the capability to become its largest domestic iron ore production investment in its history.
However, there is still ongoing review work over other Cenibra tenure located in the Guanhaes Group of tenements. This investment in the Brazilian pulp company, Cenibra, is part of Centaurus quest to become a three million ton per annum producer in the Brazil.
Centaurus is an emerging iron-ore company that has been seeking record growth in recent months through acquisitions such as this. Darren Gordon, its MD, conceded that he was very pleased with the results of the initial review work over the investment and the fact that the company had been able to exercise the option of the Jambreiro project ahead of time. Centaurus Metals Limited is focused on the ‘Iron Quadrangle’ region of south-eastern Brazil.
June 14, 2010.