Monday 29 June 2009

Centaraus Resources sees low cost iron ore production centre in Brazil's Iron Quadrangle

Brazil focussed Centaurus Resources (ASX: CUR) has reported further exploration success at the 100% owned Passabem Iron Ore Project, located near Belo Horizonte in Brazil’s Iron Quadrangle.

The results show that the iron mineralisation is continuous and open at depth with the deepest intersection occurring at a downhole depth of 120 metres.

Best results from trenching included:

- PBP-TR-0002: 73 metres at 40.4% Fe
- PBP-TR-0004: 73 metres at 39.3% Fe
- PBP-TR-0005: 77 metres at 40.8% Fe

Iron mineralisation was intersected in all 9 RC drill holes across the 500 metre drill zone. Better results included:

- PBP – RC – 0004: 23 metres at 31.43% Fe
- PBP – RC – 0005: 21 metres at 33.07% Fe

Trenching indicates significant zones of itabirite boulders at surface, providing potential for low-cost, early extraction.

Centaurus’ Managing Director, Mark Papendieck, said "Passabem is continuing to emerge as an attractive development opportunity for Centaurus as part of our strategy to develop multiple low capex, low opex production centres within a 150km radius of Belo Horizonte."

Centaurus will now fast track the project to the next stage through a resource drill-out and scoping study, as part of the first production opportunities in the region.

Beneficiation testwork confirms that lower grade mineralisation (28% Fe) is amenable to cost effective beneficiation to produce a high grade 65.8% Fe product.


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