International iron ore company Centaurus Metals Limited report an updated resource of 10.0 million tonne grading 36.6% Fe for its 100% owned Itambé Iron Ore Project in Brazil following in fill drilling completed earlier this year which has resulted in conversion of approximately half of the resource to the Indicated category.
While the overall tonnage has been reduced (the previously reported Inferred Resource was 15.5 million tonne @ 37.2% Fe), the drilling has enabled the Company to more accurately define the geological model. The revised resource estimate will now underpin the development of conceptual pit designs and allow the Company to update the high-level economic studies on the Project ahead of Pre-Feasibility Study work.
The updated Itambé JORC Mineral Resource estimate is set out in Table below
Itambé Iron Ore Project December 2010 Resource Estimate - Resource Category
| Resource Category | Million Tonnes | Fe % | SiO2 % | Al2O3 % | P% | LOI% |
| Indicated | 4.69 | 37.1 | 37 | 4.52 | 0.06 | 2.67 |
| Inferred | 5.33 | 36.2 | 40.9 | 3.51 | 0.04 | 2.13 |
| TOTAL | 10.02 | 36.6 | 39.1 | 3.98 | 0.05 | 2.38 |
25% Fe Cut-off
The Itambé Resource comprises three mineralization types, namely Friable and Compact Itabirite mineralization plus a newly identified zone of Itabirite Scree material.
The breakdown of the total resources between these material types is set out in Table below:
Itambé Iron Ore Project December 2010 Resource Estimate - Mineralization Type
| Mineralization Type | Million Tonnes | Fe % | SiO2 % | Al2O3 % | P% | LOI% |
| Friable | 4.16 | 40 | 34.1 | 4.46 | 0.06 | 2.42 |
| Compact | 4.68 | 33.7 | 47.1 | 1.52 | 0.03 | 0.89 |
| Scree | 1.18 | 36.1 | 25 | 12.1 | 0.1 | 8.23 |
| TOTAL | 10.02 | 36.6 | 39.1 | 3.98 | 0.05 | 2.38 |
25% Fe Cut-off
Previous beneficiation testwork at Itambéin 2009 on the friable mineralization indicated that a 67% Fehematite product with low impurities could be produced using a magnetic separation process.
Following the most recent in-fill drilling program at Itambé, a number of samples of each mineralization type have been sent off for beneficiation test work. Results from this test work are anticipated early in the 2011. A feature of the newly identified scree, however, is some high grade surface zones. Beneficiation test work on samples from these surface exposures indicate that a high grade (66% Fe) hematite sinter product can be produced with low impurities, particularly the silica and phosphorus levels, using a Wet High Intensity Magnetic Separation process. These results were achieved with a 67% mass recovery.
Table below summarizes the recent beneficiation results on the Itabirite Scree surface material from Itambé:
Summary of the Beneficiation Test Work on Itambé Mineralization
| | Fe% | SiO2% | Al2O3% | P% | Mn% | Mass Recovery % | Metal Recovery % |
| Itabirite Scree Sample 2010 | | ||||||
| Head Grade | 53.3 | 12.7 | 5.33 | 0.05 | 0.03 | | |
| Beneficiated Product | 66 | 1.7 | 2.23 | 0.03 | 0.04 | 67.2 | 83.1 |
The Itambé Projecthas good accessto existing local infrastructure and is well located about 40km from a number of key regional steel mills such as Arcelor Mittal's João Monlevade blast furnace.
The JORC compliant Mineral Resource Estimation is based on 42 drill holes for a total of 1,800metres of vertical diamond drilling. Technical details for the resource estimation can be found in Appendix A.
The Itambé Iron Ore Project consists of flat lying near surface zones of itabirite hosted mineralization of varying thicknesses up to 25metres.The resource estimate comprises both friable and compact mineralization as well as an enriched itabirite scree material weathered from the in situ Itabirite. The outcropping Itabirite mineralization is coarse-grained and of a friable nature.
It is anticipated that the nature of the ore and its favorable orientation will make for a low strip ratio, low cost mining operation. Conceptual mining and pit optimization studies will now be prepared to assess the project's high level economics ahead of a Pre Feasibility Study.
Mr Darren Gordon MD of Centaurus said that "The tightening of the Itambé geological model following the most recent round of in-fill drilling has resulted in a large portion of the resource base being classified as Indicated. This is the first time we have been able to classify any of the Itambé ore in the Indicated category and importantly much of the Indicated material is of a friable nature which will lend itself to low cost mining and beneficiation procedures.
"We have previously had our Final Report for the Itambé tenement approved by the DNPM in Brazil and we are now it a position to commence conceptual pit designs in advance of pre-feasibility study work.”
