CENTAURUS METALS LIMITED 
By 19 January 2012
CENTAURUS TO DRILL CANDONGA PROJECT AFTER TRENCHING RESULTS HIGHLIGHT IRON POTENTIAL CLOSE TO JAMBREIRO
NEW DRILLING PLANNED TARGETING POTENTIAL 1.6km STRIKE OF HIGH-GRADE ITABIRITE MINERALISATION
International iron ore company Centaurus Metals Limited (ASX
Code: CTM) is pleased to report that it has confirmed the
presence of high-grade itabirite mineralisation at surface in
various locations over a strike length of approximately 1.6km
from trenching at its Candonga Iron Ore Project, located 40km
from its flagship Jambreiro Project in Minas Gerais,
south-east Brazil.
The results have enhanced the potential of the Candonga
Project as a future source of ore feed for Centaurus' planned
iron ore operation at Jambreiro, where it completed a
positive Pre-Feasibility Study on an initial 2Mtpa mine in
November last year and is currently undertaking a Bankable
Feasibility Study.
This potential remains subject to further metallurgical test
work to be undertaken as part of the ongoing beneficiation
test work program for Jambreiro, as the mineralogy of the
Candonga mineralisation appears to be different to that of
Jambreiro, being of considerably higher in-situ Fe grade and
mineral species.
The trenching work has significantly enhanced the definition
of drill targets for the next round of exploration and
drilling at Candonga. The RC rig which is currently
completing in-fill drilling at Jambreiro will be moved to the
Candonga Project once the drilling program is complete.
The friable itabirite mineralisation at surface identified in
the trenches, which varies in width between 15 and 88 metres,
contains hematite, magnetite and goethite.
The trenching program comprised a total of six trenches for
256 metres (see Figure 1 for location of trenches), with
highlights of the trenching assay results including (see
Table 1 for complete results):
