Centaurus Metals Limited · ASX:CTM
Centaurus Metals — Diggers & Dealers 2019
33 slides from Centaurus Metals's conference presentation, Aug 6, 2019
Slide 1: Transformational acquisition of the Jaguar Nickel Project
BRAZIL Pará For personal use only Minas Gerais ASX : CTM Transformational acquisition of the Jaguar Nickel Project Jaguar Nickel Sulphide Project Outstanding high-grade open pit potential Jambreiro Iron Ore Project PFS shows low costs, strong economics A$114.9M post-tax NPV8 & 32% IRR – 18yr LOM Dig
Slide 2: Disclaimer
Disclaimer ▪ This presentation does not constitute investment advice. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This For personal use only presentat
Slide 3: Delivering Value from a Diversified Asset Base in Brazil
Delivering Value from a Diversified Asset Base in Brazil For personal use only Transformational acquisition of Vale’s Jaguar Nickel Capital Structure – Post AGM Resolutions Project to propel Centaurus into the sought-after nickel Shares on Issue 2,717m sulphide development space Listed Options (EP $
Slide 4: Board and Key Management
Board and Key Management BOARD OF DIRECTORS For personal use only DIDIER MARK CHRIS DARREN BRUNO ROGER PAUL MURCIA HANCOCK BANASIK GORDON SCARPELLI FITZHARDINGE BRIDSON AM, B.Juris, LL.B B.Bus, CA, FFin MSc Mineral Economics, B.Bus, FCA, AGIA, MAICD B.Comm, CA, AGIA M.Sc, PMP B.Sc (Geology), MAusIMM
Slide 5: Brazil – A Mining-Friendly Destination
Brazil – A Mining-Friendly Destination For personal use only Latin America’s largest economy Growing population (currently ~208 million) Low interest rates (by historical standards), low inflation and rising economic growth New Pro-mining President encouraging foreign investment in mining and infras
Slide 6: Jaguar Nickel-Sulphide Project
BRAZIL Pará For personal use only ASX : CTM Jaguar Nickel- Sulphide Project
Slide 7: The Carajás Mineral Province – Land of the Giants
The Carajás Mineral Province – Land of the Giants For personal use only 10 IOCG deposits with resources of +100Mt Cu-Au, including six >300Mt for +4.0Bt of Cu-Au resources Includes Vale’s giant Salobo Mine: ‒ Reserves of 1.2Bt @ 0.61% Cu, 0.3g/t Au Produced ~195kt Cu and ~346koz Au in 2017 Also host
Slide 8: Jaguar – Large Tonnage Resources at Surface
Jaguar – Large Tonnage Resources at Surface For personal use only Historical resources of 40.4Mt at 0.78% Nickel - 315,000 tonnes of contained Nickel Metal Grade Metal Resource2 estimate completed in 2010 based on more than 55,000m of diamond drilling; Classification1 Mt Ni % Cu % Co ppm Ni Cu Co Al
Slide 9: Jaguar - Multiple Deposits, Brownfields and Greenfield Targets
Jaguar - Multiple Deposits, Brownfields and Greenfield Targets For personal use only Multiple Multiple Deposits Greenfields Targets and Brownfields Targets Onça-Rosa Target: Onça-Preta Deposit • 7.9m at 5.27% Ni from 247m • 12.2m at 1.80% Ni from 84.9m Nearest drill hole + 250m away • 7.3m at 3.58%
Slide 10: Jaguar - The Jaguar Deposits
Jaguar - The Jaguar Deposits For personal use only The Jaguar deposit has +3.2km of strike length and remains open in both directions and at depth The Jaguar deposit mineralisation is hosted by porphyritic felsic sub- volcanics and mafic rocks located along multiple sub-vertical ductile- brittle hyd
Slide 11: Jaguar - The Onça-Preta Deposit
Jaguar - The Onça-Preta Deposit For personal use only The Onça-Preta deposit The Onça-Preta deposit is a 300m long sub- vertical lens hosted in granite, open at depth and soil and ground magnetics anomalies suggest that it is open along strike. Nickel sulphide mineralisation is strongly associated w
Slide 12: Jaguar – High-Grade Open Pit Potential – Immediate Focus
Jaguar – High-Grade Open Pit Potential – Immediate Focus For personal use only Outstanding High-Grade Open Pit Potential Nickel sulphide mineralisation at Jaguar occurs as two types: High-grade: late stage zones of massive and semi-massive sulphides comprising bodies up to 30m thick parallel or obli
Slide 13: Jaguar - A Metallurgical Head Start
Jaguar - A Metallurgical Head Start For personal use only Preliminary Metallurgical Testwork Nickel sulphide mineralisation is recoverable by conventional flotation process Preliminary lock-cycle flotation tests indicate a high-grade +23% nickel concentrate at 64% recovery; Good Fe:MgO ratio of 8.6,
Slide 14: Jaguar - Outstanding Infrastructure and Logistics
Jaguar - Outstanding Infrastructure and Logistics For personal use only 35km north of regional mining centres of Tucumã and Ourilândia do Norte (population 50,000) with access via all weather roads; Tucumã and Ourilândia do Norte are mining towns with multiple local service providers and strong skil
Slide 15: Jaguar - Outstanding Deal Terms
Jaguar - Outstanding Deal Terms For personal use only 100% acquisition of the Jaguar Nickel Sulphide Project ▪ US$250,000 in up-front consideration Up-Front ▪ Transferal of all Salobo West Exploration Licences and Exploration Licence Applications to Vale ▪ US$1.75 million on the commencement of a Ba
Slide 16: Jaguar - Rare, Beautiful and Big
Jaguar - Rare, Beautiful and Big For personal use only ▪ More than 55,000m of diamond drilling Near Surface, World-Class ▪ Bulk-tonnage, near surface nickel sulphide resources: 40.4Mt at 0.78% Nickel (0.5% Ni cut-off) for a total of 315Kt of contained nickel metal Nickel Sulphide Resource ▪ Primary
Slide 17: Jambreiro
For personal use only Jambreiro Excellent Opportunities • 2019 PFS complete • A$114.9M post-tax NPV8 and 32% IRR • Pre-production capital estimate - A$59.8M • 22-month payback. • Licensed for 3Mtpa of product • Extensive project design and engineering in place • Well located relative to Brazilian st
Slide 18: Jambreiro – Well Located for Domestic and Global Markets
Jambreiro – Well Located for Domestic and Global Markets For personal use only • 110km from Ipatinga steel-making region • JORC Resource of 127.2Mt, including 350km JORC Reserves of 43.1Mt 110km • +18,500 metres of diamond and RC drilling to support JORC resource and 140km reserve • Over US$25M spen
Slide 19: Jambreiro – JORC Ore Reserve Up-date
Jambreiro – JORC Ore Reserve Up-date Proven and Probable Ore Reserve of 43.3Mt at an average grade of For personal use only 29.1% Fe from the near-surface friable component only; Ore Reserves deliver 17.9Mt of high-grade (65% Fe), low-impurity sinter feed over the 18 year life of the initial friable
Slide 20: Jambreiro – New Process Flowsheet - No Tailings
Jambreiro – New Process Flowsheet - No Tailings For personal use only Dry Stacking • New process options considers tailings dewatering via centrifuge and dry stacking of all tailings; • Facilitating future expansion pathways (no tails dam capacity constraints) and minimising potential intervention a
Slide 21: Jambreiro – High-quality Product – In demand
Jambreiro – High-quality Product – In demand For personal use only Sinter Feed Fe (%) 65.9% SiO2 (%) 4.3% Chemical Analysis Al2O3 (%) 0.8% (from Pilot plant – 30t) P (%) 0.01% Mn (%) 0.04% LOI (%) 0.42% Mass Recovery 41% Multiple campaigns of bench scale testwork and over 40 tonnes of pilot plant te
Slide 22: Jambreiro – Project Permitting – In front of the game
Jambreiro – Project Permitting – In front of the game Environmental Approvals (3.0Mtpa project) For personal use only Environmental Impact Assessment (EIA/RIMA) – Approved Key Environmental Approvals in place Installation licence (LI) – issued and currently suspended on request by Centaurus (to be l
Slide 23: Jambreiro – Head start on Engineering
Jambreiro – Head start on Engineering For personal use only Engineering Activities Extensive detailed engineering was completed up to 2014; In 2019 a turn-key modularised plant solution was designed, costed and delivered by CDE Global – this accounts for +60% of capital cost; 10t bulk sample being p
Slide 24: Jambreiro – 2019 PFS – Competitive Capital and Operating Costs
Jambreiro – 2019 PFS – Competitive Capital and Operating Costs Capital Equipment* Total (A$ M) For personal use only DIRECT COSTS Mine Access & Civil Earthworks 5.9 Processing Plant 37.7 Site Infrastructure 2.1 Water Dam and Water Supply 3.7 TOTAL DIRECT CAPEX 49.4 INDIRECT COSTS Detailed Engineerin
Slide 25: Jambreiro – 2019 PFS - Strong Project Economics
Jambreiro – 2019 PFS - Strong Project Economics Key Assumptions Total A$ For personal use only A$114.9M post-tax NPV8 and 32% IRR at LOM Sales Price (Mine Gate) US$41/dmt life-of-mine average mine gate domestic International Reference Sales Price (62% Fe) US$75/dmt iron ore price of US$41/tonne (A$5
Slide 26: Jambreiro – Project and Mine Life Upside
Jambreiro – Project and Mine Life Upside Test work on compact ore has delivered beneficiated For personal use only Mass product grading 66.2% Fe; Fe% SiO2% Al2O3% P% Recovery% Compact Itabirite Total Mineral Resource base at Jambreiro stands at 25.0 55.9 2.2 0.07 - Head Grade 127.2 Mt grading 28.0%
Slide 27: Jambreiro – First mover - Future Processing Hub
Jambreiro – First mover - Future Processing Hub For personal use only The Canavial Project is only 10km to the south-west of the Jambreiro Project. JORC Resource of 27.6Mt at 30.5% Fe, including 16Mt of friable material at grades higher than Jambreiro, Centaurus will look to convert to Reserves once
Slide 28: Itapitanga Nickel - Cobalt Project
BRAZIL Pará For personal use only Minas Gerais Itapitanga Nickel - Cobalt Project 28
Slide 29: Itapitanga Nickel-Cobalt Project – Alligator by the Tail?
Itapitanga Nickel-Cobalt Project – Alligator by the Tail? For personal use only The Itapitanga Ni-Co Project is located at the southern extent of Anglo American’s world-class Jacaré Nickel-Cobalt Project Resources: 307Mt at 1.3% Ni and 0.13% Co, including a high-grade cobalt resource of 185Mt at 1.2
Slide 30: First-Mover Advantage in High-grade Nickel Province
First-Mover Advantage in High-grade Nickel Province 90.0m @ 1.00 % Ni and 0.27% Co ~240-hole Auger program completed for 1,200m For personal use only in trench ITAP-BS00001 155-hole maiden RC program completed for 4,309m High-grade nickel-cobalt results include: – 10.0m @ 1.03% nickel and 0.21% coba
Slide 31: Fast-Track Development Pathway – Simulus JV
Fast-Track Development Pathway – Simulus JV The Simulus Group – Australia’s premier hydrometallurgy and mineral processing service group and For personal use only ideal JV partner for Centaurus to fast-track development of the Itapitanga Project Simulus has the right to earn up to 80%, in stages, by
Slide 32: Centaurus – Key Investment Takeaways
Centaurus – Key Investment Takeaways For personal use only Outstanding package of Nickel sulphide, Iron Ore and, Nickel-Cobalt development and exploration projects Transformational acquisition of the advanced Jaguar Nickel Project Jaguar hosts a non-JORC global foreign resource of 40.4Mt at 0.78% Ni
Slide 33: Transformational acquisition of the Jaguar Nickel Project
BRAZIL Pará For personal use only Minas Gerais ASX : CTM Transformational acquisition of the Jaguar Nickel Project Jaguar Nickel Sulphide Project Outstanding high-grade open pit potential Jambreiro Iron Ore Project PFS shows low costs, strong economics A$114.9M post-tax NPV8 & 32% IRR – 18yr LOM Dig