Centaurus Metals : 2017-07-25 Multiple Quality IOCG Targets Identified At Salobo West | 863KB

25 July 2017

Review of regional geophysical data over the Salobo West tenements by former top Vale geophysicist opens up exciting new exploration front for Centaurus in world-renowned Carajás Mineral Province

Key Points

• The Salobo West Copper-Gold Project covers 120km2 of highly prospective ground in the Carajás Mineral Province ("CMP") - the world's premier iron oxide-copper-gold ("IOCG") address.
• Located only 12km along strike from Vale's world-class Salobo Copper-Gold Mine (Reserves of 1.2Bt at 0.63% Cu and 0.4g/t Au; production of ~176kt Cu and 317kt Au in CY2016) and positioned in the Cinzento Shear Zone that hosts four of the top five known IOCG deposits in the Carajás (all with resources of +300Mt copper-gold ore) along with multiple exploration targets.
• Centaurus is now only one of two companies that have significant tenement holdings within the main Cinzento Shear Zone - the other being leading global miner Vale.
• Mr Alan King, former Chief Geophysicist for Global Exploration at Vale and Inco, with the assistance of leading geophysical consulting group, Southern Geoscience, has completed a review of the regional data recently secured from CPRM for the Salobo West Project. The results of the work will assist in planning initial airborne geophysical surveys over Salobo West.
• The combination of intersecting regional structures and large-scale distinct magnetic anomalies hosted within the most prospective geological unit in the CMP (the Itacaiúnas Supergroup) provides for compelling IOCG targets within the Salobo West Project.
• Funds from the current $2.5M Rights Issue, partially underwritten by CPS Capital, will be in part designated for initial airborne geophysical survey work and ground-based field exploration at Salobo West, planned for Q3-4 2017.

Centaurus Metals (ASX Code: CTM) is pleased to advise that initial results from an independent review of the regional geophysical and geological data available for its Salobo West Copper-Gold Project, in the world-class Carajás Mineral Province in the north of Brazil, has identified multiple quality IOCG targets.

The review was undertaken by Mr Alan King, former Chief Geophysicist for Global Exploration at Vale and Inco, who stated: "CPRM airborne data shows that the Salobo West properties have several interesting targets with magnetic, structural and possible radiometric features that are analogous to the IOCG deposits in the Carajás as well as other IOCG camps around the world. More detailed, airborne geophysical surveys are recommended over these highly prospective areas as it is expected that these surveys will produce more detailed exploration targets for Centaurus to follow up with ground-based exploration."

Centaurus' Salobo West Copper-Gold Project is located in the Carajás Mineral Province ("CMP"), which is considered one of the world's premier mining addresses. A total of fifteen (15) world-class mineral deposits lie within an area of just 150 x 100km, including nine IOCG deposits with resources of +100 million tonnes of copper-gold ore.

The resources and reserves of these (predominantly Vale-owned) IOCG deposits - in addition to several other IOCG prospects that are under exploration - collectively contain resources of more than 4.0 billion tonnes of copper-gold ore (see Figure 1 below and Table 1 in Annexure A).

Vale's giant Salobo Copper-Gold Mine is one of these deposits, and is arguably the second-biggest IOCG in the world behind BHP's Olympic Dam Mine. Salobo has Reserves of 1.2 billion tonnes at 0.63% Cu and 0.4g/t Au and produced approximately 176kt of copper and 317koz of gold in calendar year 20161.

The CMP, located in the south-eastern part of the Amazon craton in northern Brazil, represents an Archaean block divided into two distinct tectonic domains. Salobo West is located in the northern Carajás domain within the highly prospective Cinzento Shear Zone (Figures 1 and 2).

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1 Vale Data sourced from "Vale Production in 4Q16" Report, its 20-F Annual Report for 2016 and other public reports

Four of the top five known IOCG deposits in the Carajás (all with resources +300Mt Cu-Au ore), as well as multiple exploration targets, are located along the Cinzento Shear Zone (see Figure 2). These deposits are structurally controlled by regional-scale W-NW striking, brittle-ductile shear zones hosted within the highly prospective volcanic and sedimentary rocks of the Itacaiúnas Supergroup.

IOCG deposits in the Carajás are generally massive replacement bodies, associated with the magnetite-rich rocks that are the product of intense Fe-K hydrothermal alteration at high temperatures. This style of mineralisation is highly amenable to modern geophysical exploration techniques, especially magnetic, radiometric and gravity surveys.

Figure 2 shows the Tier 1 deposits are located along regionally significant structures positioned within the Cinzento Shear Zone and coincident with large scale distinct magnetic anomalies (Analytical Signal). Certain deposits are also identifiable using the airborne radiometric data.

Centaurus engaged independent geophysical expert, Mr Alan King to assist in target generation and geophysical exploration program planning. Mr King was the former Chief Geophysicist for Global Exploration at both Inco and Vale, being based in Brazil from 2007-2011. Mr King has vast experience studying multiple IOCG camps across the globe including the Carajás and Olympic Dam IOCG Provinces.

Mr King, with the assistance of leading geophysical consulting group, Southern Geoscience, has completed the initial review of all the regional data recently secured from the Brazilian Geological Survey (CPRM), which include airborne magnetics, gravity and radiometric surveys on a variety of line spacings. The work has identified multiple outstanding exploration targets and selected initial findings on the Salobo West Project are outlined below.

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The Salobo West Copper-Gold Project consists of two tenements, SW1 and SW2, covering a combined total area of 120km2 of highly prospective ground only 12km along strike from Vale's giant Salobo Cu-Au Mine.

The recently granted Exploration License SW1 is the northernmost tenement and covers an area of 78km2. A distinct 4.5km long magnetic anomaly (the SW1-A target) is shaping up to be the primary target at this early stage (see Figure 3). Located 12km north-west of the Salobo Mine, the SW1-A magnetic anomaly is larger than the anomalies associated with the Salobo Mine (3.2km) and Salobo 4A Prospect area (2.0km), both of which lie along the same trend.

Importantly the SW1-A magnetic anomaly is coincident with a ridge that has been mapped as part of the Igarapé Salobo Group of the Itacaiúnas Supergroup, which hosts all known IOCG deposits in the Carajás.

The north-west striking ridge that hosts the SW1-A target intersects a larger mountain range that is associated with a regional scale east-west striking magnetic anomaly which is understood to be a BIF unit of the northern Igarapé Salobo Group. It is also the location of the intersection of two regional scale structures (see Figure 3 below).

SW2 is a tenement application to the south of SW1 tenement that covers an area of 42km2. The SW2 tenement area covers a mapped extension of the Itacaiúnas Supergroup 10km WNW of the Salobo Mine. This occurrence of the Itacaiúnas unit appears to be associated with a regional structure that is identifiable from airborne magnetics and radiometrics as well as the existence of a small continuous ridge.

There are a number of distinct magnetic targets that are associated with the ridge and the Itacaiúnas unit as well as some that are offset to the south. SW-2A (see Figure 3) stands out as the most interesting target at this stage. It is a distinct 2km long magnetic anomaly located on the ridge and within the mapped Itacaiúnas unit.

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The independent geophysical review by Mr King recognized that mapping of regional scale structural lineaments via both magnetics and radiometrics correlated well and highlighted a number of locations where these structural (shears or faults) intersected coincidently with large-scale magnetic anomalies.