The Jambreiro Iron Ore Project is located in the State of Minas Gerais, Brazil, approximately 130km from the key steel-making region of Ipatinga. Jambreiro is the flagship project in Centaurus’ emerging iron ore portfolio in south-eastern Brazil and is the cornerstone of its Domestic Iron Ore Business.
The Project is very well located with access to existing infrastructure. The city of Ipatinga is home to Usiminas’ existing 4.5Mtpa steel mill. Arcelor Mittal also has a major steel operation, within the same general radius, at the João Monlevade blast furnace.
Centaurus completed a Pre-Feasibility Study (PFS) for the Jambreiro Project in November 2011, which confirmed a financially and technically robust project with outstanding key fundamentals including:
Based on the strong economics of the proposed development, Centaurus immediately commenced a Bankable Feasibility Study (“BFS”), which is scheduled to be completed by Q3 of 2012, paving the way for financing, construction and development of Jambreiro.
Environmental approval and permitting processes are underway with the Company’s objective to commence construction by the start of Q2 2013 and achieve first production by Q4 of 2013.
Resources & Reserves
Total Measured, Indicated and Inferred Resources at Jambreiro currently stand at 116.5Mt grading 26.8% Fe, including both near surface friable mineralisation (67Mt) and underlying compact (49.5Mt) mineralisation.
Based on the friable component of the resource base, Centaurus has established a Proven & Probable Ore Reserve for the Jambreiro Project of 49Mt grading 28.2% Fe.
The extensive beneficiation test work already completed on the project demonstrates that the in situ friable Ore Reserve will provide the Company with approximately 17Mt of high quality hematite product with a high iron grade of 66.6% and low impurities, underpinning the initial 8.5 year mine life at Jambreiro.
Bankable Feasibility Study
Centaurus commenced a new program of Reverse Circulation (RC) drilling at Jambreiro in December 2011 as part of the BFS work program.
The RC in-fill program, which is one of several programs to be undertaken as part of the BFS, is planned to convert the first 3 -4 years of friable ore production into Proven Reserves, which will assist with securing the debt funding component of the overall project funding package for Jambreiro.
The drilling will also enable the Company to collect a bulk sample and use it in pilot plant testwork, which will greatly assist in securing product off-take arrangements with the Brazilian domestic steel mills.
The BFS is scheduled to be completed by the end of the third Quarter of calendar year 2012.