Centaurus Metals Confirms Potential For High-Purity Product From Jambreiro Iron Ore

Centaurus Metals Ltd (ASX: CTM) has reported highly encouraging results from recent bench-scale metallurgical test work on its Jambreiro Iron Ore Project in Brazil.

The test work has confirmed the potential for the project to produce a Direct Reduction Pellet Feed (DRPF) product across its entire projected mine life.

Premium DR quality achieved

Centaurus’ test program yielded a product with an average iron grade of 67.8% Fe.

Importantly, the combined silica (1.08%) and alumina (0.64%) content sits well below the crucial 2% threshold for Direct Reduction (DR) quality.

Additionally, the low Phosphorus content of 0.011% further enhances the product’s value.

Sustainable steel production

DRPF products are crucial for DR furnaces and Electric Arc Furnace (EAF) steelmaking.

These technologies significantly reduce carbon emissions compared to traditional blast furnace processes.

This aligns with the global push for sustainable steel production.

Strong market potential

Over the past two years, DRPF has commanded a 15-30% premium over the benchmark iron ore price, with this premium expected to grow as demand for low-emission steel rises.

Originally aiming for a coarser product for the Brazilian domestic market, Centaurus now plans to leverage the inherent properties of Jambreiro ore.

Its friable nature allows for a finer, high-grade product perfectly suited for the growing demand for low-emission iron ore.

Early industry interest

Centaurus Managing Director Darren Gordon highlights the changing landscape: “The company has already seen a marked change in the way steel producers and iron ore majors are looking at the iron ore sector and low-emission iron products, with strong interest already being shown in the ability of the Jambreiro Project to produce a DR quality pellet feed product.”

In light of the highly encouraging results received from the test work, the company is now:

  • Assessing the impact of the changes to the proposed process flowsheet from a capital and operating cost perspective; and
  • engaging further with potential off-takers for a direct reduction pellet feed product from Jambreiro.

Centaurus had a cash balance of A$34.6 million at the end of 2023.

 

 

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