While several Brazilian iron ore producers are cutting off jobs thanks to China’s slow economic growth and in response to low prices for the commodity, Australia-based Centaurus Metals is looking at a new project in Brazil.
The company said it has secured the tenure over what it defines as “an exciting new multi-commodity exploration target with potential for both high-grade gold and iron ore mineralization” in the State of Minas Gerais.
Initial exploration has begun at the new Mombuca project, which covers an extensive regional-scale magnetic anomaly. Centaurus said it has been trying to secure the project for five years.
According to Centaurus, the Mombuca and Itambé tenements will now be collectively known as the Mombuca project.
“The Mombuca tenement has always been of considerable interest to Centaurus. However, it has until recently been tied up in administrative processes in the Brazilian Department of Mines. The tenement has now been granted as a 3-year Exploration Lease,” the company said.
Centaurus’ Managing Director, Darren Gordon, said the Mombuca tenement covers “high-quality … iron ore targets of considerable scale and regional importance located immediately adjacent to our Itambé tenement.”
“This new area is largely under-explored and we believe that, with detailed geological mapping, stream and soils geochemical programs and ground magnetics, we can cost effectively generate some exciting targets for future drilling,” he said.