In October 2016, Centaurus agreed with its strategic alliance partner in Brazil, Terrativa Minerais SA (‘Terrativa’) to earn into 100% of the Pará Exploration Package (‘Pará EP’). Centaurus can earn the right to acquire the tenements that comprise the Pará EP by spending R$2.5 million (~A$1 million) on the tenements within 2 years.
Once the right is earned, Centaurus can acquire its 100% interest by issuing 30 million ordinary shares to Terrativa and granting them a 2% production royalty on any production from the tenements. Concurrently with the issue of the ordinary shares, Centaurus would issue three tranches of Performance Shares (30 million shares in each tranche) which would vest on achieving various JORC inferred resource base milestones.
The highly-prospective Pará EP comprises more than 750km2 of tenements in Brazil’s mineral-rich State of Pará.
The extensive tenement package is located between several world-class mineral deposits – the 5Moz Volta Grande Gold Project owned by TSX-listed Belo Sun Mining Corp to the north and the giant Carajás IOCG province to the south. The tenements include prospective gold targets for both Volta Grande-style gold and Carajás-style copper-gold deposits. The Pará EP includes the Serra Misteriosa Gold Project, the Salobo West Copper-Gold Project and the Serra Vermelho Gold Project.
The Serra Misteriosa Gold Project
Serra Misteriosa or “The Mysterious Hill” is located within an extensive farming district only 180km from the regional centre of Marabá, a city with a population of 180,000 people, a domestic airport and excellent access to infrastructure and services.
Serra Misteriosa is the most advanced project in the Pará EP, where Terrativa has undertaken extensive early-stage exploration work to generate numerous walk-up drill targets, none of which have yet been drill tested. The project displays a number of close geological similarities to the 5.0Moz Volta Grande Gold Project.
The Serra Misteriosa tenement package covers 30km of strike extensions of a WNW-ESE trending highly altered suite of intrusive diorites and granodiorites. The primary target is delineated by a continuous 2.4km long, high-grade anomaly (+50ppb Au) within a broader +5km long gold geochemical anomaly (+25ppb Au) that is consistently up to 500m wide.
The target zone is mostly covered by a rich red saprolite with occasional outcrops of highly silicified diorite that often display intense sericite and propylitic alteration. The diorites host disseminated sulphides (pyrite and arsenopyrite) locally that have shown to be gold-bearing.
The comparisons with the Volta Grande Project geology are important. Set in a greenstone of the same regional orientation and geological age, the Volta Grande gold mineralisation is related to a major WNW-ESE trending shear zone within a highly silicified diorite intrusive. The same intrusive rocks and alteration assemblage is seen in an identical structural setting at Serra Misteriosa.
Furthermore, the discovery of the Volta Grande deposit was made by testing a 2.5km x 300m wide geochemical signature over a rich red saprolite that coincided with the regional trends similar to that seen at Serra Misteriosa.
Centaurus will work with Terrativa’s principal geologists to review the impressive package of technical work completed to date. The extensive geochemical anomaly has already highlighted multiple potential walk-up drill targets, none of which have yet been tested. This creates a significant opportunity for Centaurus given that it can leverage off the excellent work already completed and potentially advance the project to the discovery stage where significant value can be created in a relatively short space of time.
Ground-based geophysical surveys commenced at Serra Misteriosa in late 2016 to define preferred targets for a maiden drilling campaign which is expected to commence in early 2017.
The Salobo West Copper-Gold Project
The Salobo West Project comprises a group of EL applications that cover 150km2 of highly prospective ground located in the heart of the world-class Carajás IOCG province. The project is located just 12km along strike from Vale’s massive Salobo copper-gold mine which hosts mineral resources of over 1.1 billion tonnes at 0.7% Cu and 0.4g/t Au.
One of the tenement applications, located along strike from the Salobo mine, covers a 10km extension of the Cinzento Shear Zone that hosts the world-class copper-gold deposit. The Cinzento shear zone is a well mapped zone that is highlighted by a regional magnetic anomaly as well as variations in topography. As these areas are still applications, no ground work has been completed to date. Centaurus will work with the Pará Department of Mines (DNPM) to get these tenements granted as soon as possible.
The Serra Vermelho Gold Project
The Serra Vermelho Project is in a similar setting to Serra Misteriosa where a number of diorites have intruded a greenstone unit that displays strong hydrothermal alteration. The project displays excellent regional geophysical characteristics with a potassium anomaly indicating alteration coincident with a magnetic low lineament within a magnetic high area.
Only very early stage exploration has been completed on this project to date. This work included some stream sediment sampling that has returned multiple anomalous gold readings around the project area. Centaurus plans to start work on Serra Vermelho after the initial round of drilling is complete at Serra Misteriosa.