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 Bankable Feasibility Study for the Jambreiro Project in November 2012, based on a 2 million tonne per annum (Mtpa) mining operation. This study demonstrated strong returns from Jambreiro, with key highlights including:
In December 2013, Centaurus announced a revised development plan, based on the commencement of production at 1Mtpa with the ability to subsequently increase to 2-3Mtpa.
This revised development strategy will result in a substantial reduction in pre-production capital, enabling Centaurus to commence development with significantly less financing risk and in the shortest possible timeframe.
The proposed 1Mtpa operation for Jambreiro is estimated to require initial capital expenditure of A$53 million (US$47 million) with an average life-of-mine operating cost of A$22 per tonne (US$20 per tonne) of finished product, including royalties. The new project is based on an 18-year initial project life.
The Jambreiro Project is fully permitted for construction and mining, and Centaurus intends to commence construction as soon as suitable off-take and funding packages have been secured.
Resources & Reserves
Total Measured, Indicated and Inferred Resources at Jambreiro (reported to JORC 2004 guidelines) currently stand at 128Mt grading 27.2% Fe, including both near surface friable mineralisation (64.4Mt) and underlying compact (63.6Mt) mineralisation.
Based on the friable component of the resource base, Centaurus has established a Proven & Probable Ore Reserve for the Jambreiro Project of 48.5Mt grading 28.1% Fe.
The extensive beneficiation test work and flow sheet design already completed on the project demonstrates that the in situ friable Ore Reserve will provide the Company with approximately 18Mt of high quality hematite product with a high iron grade of 64.5% and low impurities.