Investing News NetworkAUSTRALIA
Centaurus Metals (ASX:CTM) focuses on the near-term production of a nickel sulfide project in Brazil. The Company’s goal is to have a nickel sulfide-producing mine by the end of 2024 to answer the increasing demand for the mineral in the production of lithium-ion batteries.
The Jaguar Nickel Sulphide Project is the company’s flagship project and is located in a world-class mining region in Brazil known as Carajás Mineral Province. Centaurus Metals formally completed the acquisition of the asset in 2020 and delivered its maiden Mineral Resource Estimate later that year. Two Mineral Resource updates were delivered in 2021 with the most recent being a massive 80.6Mt at 0.91 percent Ni for 730,700 tonnes of contained nickel metal. The strong presence of high-grade nickel sulfide means that Centaurus Metals has the potential to become a Class-1 nickel producer.
Company Highlights
- The Jaguar Nickel Sulphide Project is the company’s flagship asset and historical and new survey results indicate the presence of high-grade nickel sulfide
- Its JORC Mineral Resource Estimate indicates that the project contains 80.6Mt at 0.91 percent Ni for 730,700 tonnes of contained nickel metal.
- Scoping Study work completed in May 2021 demonstrates the potential to become a Class-1 nickel producer.
- At conservative nickel price of US$7.50/lb and sulphate premium of only US$0.50/lb, the Scoping Study showed that by producing +20,000 tonnes of nickel in sulphate over an initial mine life of 13 years, the project could generate cash flows in the order of US$200m per annum and had a post-tax NPV of A$1.1 billion and IRR of 52%.
- These NPV increases to over A$1.6 billion with an IRR of 70% at a nickel price of US$9.00/lb.
- The company also operates the Jambreiro Iron Ore Project in Brazil, which helped establish a foothold in the country.
- An updated Pre-Feasibility Study on Jambreiro outlined a 1Mtpa start-up project capable of generating life-of-mine revenues of A$1.08 billion and EBITDA of A$647 million over its initial 18-year life.
- A strong management team with applicable experience in developing mining assets in Brazil and nickel means they have the potential to create a highly productive asset at Jaguar.
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