'Stunning' record hit for Centaurus

Drilling by Centaurus Metals at the Jaguar South deposit in Brazil has returned a standout hit of 56.1m at 2.05% nickel from 206m (reports MiningNews).
9th July 2021
Resources Rising Stars

The hit included 17.6m at 4.86% nickel and 6.7m at 2.09% nickel.

It is a record nickel intercept for the project.

"This is a world class result for Centaurus and reinforces the quality of the Jaguar South deposit," Argonaut Securities analyst George Ross said.

The hole was immediately beneath the limit of the planned open pit.

"It's pretty remarkable to be able to report our best intercept to date - a stunning 56.1m at 2.05% nickel including 17.6m at 4.86% nickel - even after drilling over 300 holes into the project and delivering a globally significant resource of more than 560,000 tonnes of contained nickel," Centaurus managing director Darren Gordon said.

"The key message for investors is that this is a project that is continuing to grow - and grow quickly, both from resource development drilling and step-out and regional exploration.

"The new record intercept at Jaguar South has to be one of the best nickel sulphide hits in the world this year and to have this sort of intersection immediately below our planned pit limits indicates how much upside remains in the project."

Jaguar South also returned 7.2m at 2.36% nickel 133.5m, including 3.3m at 3.46% nickel; and 12.6m at 1.25% nickel from 173.4m, including 5.8m at 2.01% nickel.

Drilling extended Jaguar Central by at least 60m to the east, while infill drilling at the Jaguar West and Central North deposits continued to highlight the consistency of mineralisation.

The company has five diamond drill rigs on site, working 24/7, with another two due to arrive this month.

A reverse circulation rig is testing the greenfields Leao prospect.

"Within the next couple of weeks, we will have eight rigs on site and this expanded capacity will allow us to work on resource growth and greenfields drilling in conjunction with the development drilling," Gordon said.

"This multi-pronged approach sets us up for what should be a big second half of project growth at Jaguar."

Centaurus remains well-funded with A$21 million in cash.

A definitive feasibility study is also advancing at Jaguar.

"Jaguar is already a standout project in terms of scale and quality amongst undeveloped nickel sulphide projects worldwide and at the planned nickel production rate of plus-20,000tpa, Centaurus will become a global top 10 nickel sulphide producer," Gordon said.

"The fact that Jaguar stands to grow a lot more can only further enhance its credentials as a potential source of clean, low-emission nickel sulphides to meet surging global demand as the world moves rapidly to embrace electrification and decarbonisation."

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