Centaurus Metals is commencing a Feasibility Study on a proposed Direct Shipping Ore operation at its Candonga Iron Ore Project in south east Brazil.
This follows lodgement of mining and environmental licences which allow extraction of 300,000 tonne per annum per licence.
The Feasibility Study is scheduled for completion by the end of September 2014, which will allow an investment decision to be made in the final quarter of this year. Production is targeted to commence at Candonga in Q1 2015.
The company has also received the first batch of assays from the current diamond drill program at Candonga which include a number of high grade intersections.
Highlights include 24.6 meters at 64.4% iron and 20 meters at 66% iron. These results confirm the potential for the project to host a small scale DSO operation.
Centaurus now has sufficient technical information to facilitate an update of the 2013 Indicated and Inferred Mineral Resource estimate of 11.9 MT grading 43% iron.
With drilling now finished and results for the second batch of assays pending, the JORC 2012 Resource update for Candonga is scheduled to be completed by the end of August 2014.
Source – Proactive Investors