Jaguar Nickel Sulphide Project

The Jaguar Nickel Sulphide Project is located in the western portion of the world-class Carajás Mineral Province of Brazil, including multiple nickel sulphide deposits and exploration targets within a 30km2 land package.  The Jaguar Project was officially acquired from global mining giant, Vale S.A., in September 2019.

The Project hosts an historical (non-JORC) Mineral Resource estimate comprising 40.4Mt at 0.78% Ni for a total of 315kt of contained nickel metal (at a 0.5% Ni cut-off)*. This historical Resource was completed by Vale in 2010 based on more than 55,000m of diamond drilling.

*CTM cautions that the mineral resources for the Jaguar Project are not reported in accordance with the JORC Code. A Competent Person has not yet done sufficient work to classify the resources as mineral resources in accordance with the JORC code. It is uncertain that, following evaluation or further work, the foreign estimate will be able to be reported as Mineral Resources in accordance with the JORC Code.

Centaurus will engage an independent resource specialist to review and update the resource to JORC 2012 compliance during the initial phase of planned work programs.

The average depth of drilling at Jaguar is 335m with the deepest drill holes reaching 535m.  In all cases the deposits remain open at depth and, in some cases, along strike.

The key deposits are:

  • Jaguar South: +2.1km strike with continuous mineralised zones up to 50m wide (within broader discontinuous zones up to 240m), open at depth and along strike to the east and hosted in porphyritic felsic sub-volcanics.
  • Jaguar North: +2.0km strike with continuous mineralised zones up to 35m wide (within broader discontinuous zones up to 200m), open at depth and along strike to the east.
  • Jaguar West: +1.2km strike with continuous mineralised zones up to 60m wide, open at depth and potentially to the west.
  • Onça-Preta: 300m long sub-vertical lens hosted in gneissic rocks, open at depth and soil anomalies suggest that it could be open along strike.

Nickel sulphide mineralisation occurs as two types at Jaguar. The bulk low-medium grade mineralisation occurs as veins and veinlets to stringer sulphides associated with, and generally concordant to, the W-NW trending large scale hydrothermal alteration zones. This was the type of mineralisation targeted in the historical drilling.

The high-grade mineralisation forms as zones of massive and semi-massive sulphides comprising bodies up to 30m thick, parallel or oblique to the large hydrothermal alteration zones. Centaurus will focus its in-fill and extensional drilling efforts on these near-surface high-grade targets.

High-Grade Open Pit Potential – The Short Term Focus

Historical drilling was focused on bulk tonnage low-medium grade mineralisation.  Generally, Vale did not follow-up any high-grade massive and semi-massive sulphide intersections because its exploration approach was based on the assumption that these structures were not going to deliver the size of deposit required by Vale to meet its minimum hurdles for a mine development.

The deposits host multiple thick zones of primary high-grade massive and semi-massive nickel sulphide intersections that occur close to surface with outstanding nickel grade, including:

  • 34.0m at 3.31% Ni from 56m in PKS-JAGU-DH00065
  • 42.4m at 2.20% Ni from 76m in PKS-JAGU-DH00132
  • 31.4m at 2.47% Ni from 15.3m in PKS-JAGU-DH00030
  • 26.0m at 2.13% Ni from 66.0m in PKS-JAGU-DH00033

The high-grade zones often appear oblique to drilling, suggesting that the historical drill orientation was not particularly favourable to identifying and defining the high-grade zones. Re-logging and re-interpretation of historical drill core is underway with a focus on understanding the structural controls and plunge of the high-grade zones to allow Centaurus to focus on the development of an initial high-grade open pit project before moving underground on the high-grade lodes.

The close association of magnetite with the high-grade massive to semi-massive sulphide mineralisation lends itself very well to ground Magnetic and Electro-magnetic (EM) surveys, both of which will be undertaken in the near-term.

Project Development Advantages

  • Process Metallurgy - Preliminary metallurgical testwork completed by Vale indicates that the sulphide mineralisation is recoverable by conventional flotation, producing a high-grade +23% nickel concentrate at 64% recovery, a good Fe:MgO ratio of 8.6, very low arsenic (25 ppm) and low talc.
  • Mining Lease Application - A valid Mining Lease Application, which envisaged a large bulk-tonnage open pit mine and processing plant, has been lodged with the Brazilian Mines Department (ANM) and is currently pending approval. Centaurus expects to update the Mining Lease application once a better understanding of the high-grade open pit opportunity is understood.
  • Environmental Licensing - The Project area is predominantly located on pastoral land or previously disturbed vegetated areas and there are no national forests within 40km of the project. Water is readily available all year round.

Exploration Targets

The Jaguar Project is ideally located at the intersection of two major fault zones of the Carajás, the Canaan and McCandless faults. The majority of the first-priority geochemical anomalies have been tested, however there are multiple structures and coincident Ni/Cr anomalies (a geochemical indicator of nickel sulphides) and geophysical targets that remain untested.

Key initial targets include:

  • Onça-Preta: Strong 400m-long EM conductor that correlates very well with existing nickel sulphide intersections from multiple drill holes within the deposit.
  • Onça-Rosa: +1.5km strike of Ni/Cr in soil anomalies coincident with Ground Magnetics and IP anomalies. Three drill holes including 7.9m at 5.27% Ni from 247m in PKS-JAGU-DH00158, which is located more than 250m from the next nearest drill hole.  This drill hole correlates very well with a well-defined 600m-long EM plate and is one of the only two drill holes testing the EM Plate to date – the other drill hole is also mineralised;
  • Leão: +3.5km long Ni/Cr and Cu in soil anomalies coincident with Ground Magnetics and IP anomalies. Only one drill hole tested more than 3.5km of anomalies;
  • Tigre: Large scale Ni/Cr and Cu in soil anomalies coincident with Ground Mag and IP anomalies, no drilling;
  • Filhote: +2.0km PGE’s soil anomaly with coincident geophysical target (IP). Two drill holes with intersections up to 1.1g/t PGEs.