Centaurus Metals has completed the acquisition of Jaguar nickel sulphide project in Carajás province, Brazil from Vale after receiving financial approvals.
The Australian exploration company secured the US$7 million ($10.3 million) deal from Vale in September 2019 in exchange for upfront cash payment of $US250,000 and the transfer of Centaurus’ greenfield Salobo West tenure.
The acquisition provided Centaurus with the opportunity to pursue the development of an advanced and well-located nickel sulphide project in northern Brazil, with high-grade open pit development potential.
The company recently received approval for the Brazilian National Bank of Economic and Social Development (BNDES) for the assignment of BNDES’ royalty interest in the Jaguar project, allowing Centaurus and Vale to finalise the remaining steps to close the transaction.
Centaurus managing director Darren Gordon said the completion of the Jaguar transaction marked a milestone in the company’s plan to become a substantial nickel sulphide developer.
“Given the scale of the project, the vast amount of historical data which is available and the impressive results which have been generated by our drilling program so far, we are very optimistic about the potential of the Jaguar project,” he said.
Following the commencement of a drilling program in November 2019, Centaurus has already completed 8,500 metres of in-fill and extensional resource drilling.
Jaguar contains a non-joint ore reserves committee (JORC) global foreign resource of 40.4 tonnes at 0.78 per cent nickel for a total of 315,000 tonnes of contained nickel. This historical resource was completed by Vale in 2010 based on more than 55,000 metres of diamond drilling.
Centaurus now plans to engage an independent resource specialist to review and update the resource to JORC 2012 compliance during the initial phase of planned work programs. The delivery of the resource remains on track for the middle of the year.