Centaurus Metals (ASX: CTM | OTCQX: CTTZF) has reported highly encouraging results from recent bench scale metallurgical test work on the company’s 100%-owned Jambreiro Iron Ore Project in south-east Brazil, confirming the potential for the project to produce a Direct Reduction Pellet Feed (DRPF) product across its entire projected mine life.
Centaurus’ managing director, Mr Darren Gordon, said the company was pleased with the ongoing metallurgical testwork programme, which continued to demonstrate the potential for Jambreiro to deliver a high-grade, low impurity DR quality pellet feed product with strong metal and mass recoveries.
The average product specification achieved from the company’s recent test work programme delivered an iron grade of 67.8% Fe, 1.08% Silica, and 0.64% Alumina, with this specification well within the 2% threshold required to achieve a Direct Reduction (DR) quality product. The average phosphorus grade in the concentrate product was very low at 0.011%.
DR quality product is achieved when the combined silica and alumina levels in the pellet feed product are under 2%. The product can be converted to direct reduction (DR) pellets and used as a primary ingredient in direct reduction furnaces and electric arc furnace steelmaking, technology that produces steel at considerably lower carbon emissions when compared to traditional blast furnace processes. Over the past 24 months, the average premium for the DRPF product has been 15-30% over the benchmark 62% Fe CFR China Index (Platts) price with premiums increasing and decreasing with corresponding movements in the iron ore price. The company expects the demand for DRPF to increase over time as more steelmakers look to source iron ore that can deliver lower overall emissions to their business.
“When the project was first studied in 2012/2013, we were looking to maximize the coarseness of the product to meet the then prevailing market conditions and produce a sinter feed product for consumption in the Brazilian domestic steel industry. However, the inherent physical properties of Jambreiro ore – being very friable – lends itself perfectly to the production of a finer, high-grade product with low impurities, especially at a time when the steel industry is aggressively pursuing decarbonization and demanding higher-grade, low-impurity products to lower their overall carbon footprint,”
“The company has already seen a marked change in the way steel producers and iron ore majors are looking at the iron ore sector and low-emission iron products, with strong interest already being shown in the ability of the Jambreiro Project to produce a DR quality pellet feed product.” Added Darren.
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