A study of the Jaguar Nickel Sulfide project in northern Brazil found that it could produce about 275,600 tonnes of nickel with an initial mining life of 10 years.
Centaurus Minerals, which is listed on the ASX, reported on Monday that the investigation was based on a conventional flotation process of 2.7m tonnes of nickel a year, with a base price assumption of $7.50 per pound.
The scope study estimates that the project will require capital investment of approximately $178 million, with C1 cash costs of approximately $2.41 / lb over the life of the mine.
Revenue from the project will be $2.42 billion, while average annual operating free cash flow is expected to be approximately $109 million, with an estimated after-tax net present value of $453 million and an internal rate of return of 54%.
Centaurus general manager Darren Gordon told shareholders that the completion of the survey only 18 months after the acquisition of the Jaguar project reflected the project's strong fundamentals and its ability to support the development of new long-life, low-cost nickel sulfide operations.
"Our goal is to transform Centaurus into Brazil's next generation nickel sulphide mining company, capable of delivering more than 20,000 tonnes of grade 1 nickel sulphide to global markets for many years to come.
The study clearly shows that Jaguar has all the attributes needed to achieve this goal and to do so in a sustainable and responsible way, ensuring that we meet the highest standards of environmental and social governance."
Gordon noted that the Jaguar project's development schedule will begin in the second half of 2024.
"Research from most major investment banks suggests that current demand for grade 1 nickel will significantly outpace supply, which is good for nickel producers, particularly those like Centaurus, which can continue to produce nickel from sulfide sources at very low operating costs."
"He added.
Centaurus is also confident of expanding its resource base to its current level, says Mr Gordon.
"As we move forward with the pre-feasibility study, we are still actively exploring, with four diamond RIGS working around the clock and a new reverse circulation rig coming to field in the coming weeks to increase our resource inventory and target new discoveries that will further significantly enhance the project's already strong value proposition."
