Centaurus Metals confirms growing nickel and cobalt potential at Itapitanga

Centaurus Metals ASX CTM drilling nickel cobalt Itapitanga Brazil
RC drilling taking place at Centaurus Metals' Itapitanga project in northern Brazil.

Centaurus Metals (ASX: CTM) has recovered more high-grade nickel and cobalt mineralisation during the maiden drill campaign at its Itapitanga project in northern Brazil.

The company today reported that reverse circulation (RC) drilling at the project’s Northern target has outlined a consistent mineralised zone up to 30m thick and extending over a strike length of 3.5km, with sections as wide as 650m.

Returned nickel grades were consistently above 0.90%, with drilling highlights including a 30m intersection grading at 0.92% nickel and 0.02% cobalt from a 10m depth, as well as a 10m intersection grading at 1.03% nickel and 0.21% cobalt from the surface.

The results are in line with previous results announced at the end of May, which included multiple near-surface intersections containing nickel grading up to 1.73% and cobalt as high as 0.23%.

Centaurus also noted that the highest cobalt grades (0.20% cobalt and higher) were consistently encountered at or near the surface, which according to the company, “bodes well for a low-strip mining case”.

Centaurus managing director Darren Gordon said the project had the potential to move rapidly towards the definition of a JORC-compliant mineral resource.

“The standout features so far include the consistency and grade of the wide zones of nickel-cobalt mineralisation which have been encountered over a strike length of more than 3.5 kilometres at the Northern target,” he said.

Gordon said most of the zones that returned the thickest intersections and highest cobalt grades were not fully tested by the auger drilling carried out earlier this year due to high levels of surface water during the wet season.

“We expect that we will be able to better drill test these areas towards the end of the program once the wetlands have dried out.”

He said drilling was continuing at the Southern target and would progress to the newly-identified Western target, which should give the company a “clearer picture of the broader scale and potential of the project”.

The Southern target is a zone that extends over 2km long and up to 400m wide, where previous auger drilling has intersected nickel-cobalt mineralisation.

The Western target is a newly-discovered area identified from soil sampling. It is an untested area measuring over 1km long and up to 200m wide.

In addition, initial metallurgical test work currently underway at Simulus Engineers in Perth, Western Australia, is expected to provide important insights into the future processing options and commercial potential of the Itapitanga discovery.

Centaurus shares were sitting 10% higher at A$0.011 on the news by midday trade.

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