for the supply of 20,000 dry metric tonnes per annum of high-grade nickel concentrate to Glencore, with the base destination of Canada for treatment at Glencore’s Sudbury smelting operations and representing approximately one-third of Jaguar’s forecast production capacity of 65,000tpa of nickel concentrate Subsequent to year end, the Company received a non-binding Letter of Intent (LOI) from Banco Nacional de Desenvolvimento Econômico e Social (BNDES) for up to R$1 billion (~US$190 million) in long-term debt funding for its 100%- owned Jaguar Nickel Project in Pará State, Brazil. The LOI follows BNDES’ preliminary assessment of the Project and contemplates potential financing under its Financiamento a Empreendimentos (FINEM) long-term project finance facility, which supports large-scale, capital-intensive developments in Brazil. The LOI reflects BNDES’ preliminary intention to progress the Project through its formal credit approval process, which includes comprehensive technical, financial, legal and environmental due diligence. The provision of any funding is subject to completion of this process, approval by the BNDES Board, and the negotiation and execution of definitive financing documentation. Accordingly, there can be no assurance that the proposed funding will be approved or ultimately provided. Centaurus further strengthened its growth pipeline in Brazil during the year with the acquisition of the highly prospective Rio Novo Copper-Gold Project, located adjacent to its Boi Novo Project, which has previously returned numerous significant copper-gold and iron ore intercepts. The expanded project now covers ~75sqkm of contiguous tenure within the Carajás province, one of the world’s most prospective copper-gold and iron ore belts. The Company established a substantial JORC compliant iron ore exploration target at Boi Novo of 520-780Mt grading 30- 35% Fe, demonstrating the multi-commodity potential of the project. Centaurus also completed a successful $23.1 million capital raise (before fees), published its 2024 sustainability report, and achieved an important milestone of four years without a lost time injury. 4.4 Jaguar Nickel Sulphide Project The Jaguar Nickel Sulphide Project is located in the world-class Carajás mineral province of northern Brazil. The Project is approximately 250km from the regional city of Parauapebas (population ~267,000) in the northern Brazilian state of Pará and sits within a 30km2 tenement package in the São Félix do Xingu municipality. The Carajás mineral province is Brazil’s premier mining hub, containing one of the world’s largest known concentrations of bulk tonnage iron oxide-copper-gold and iron ore deposits. The Jaguar Project represents one of the few potential new sources of nickel supply outside of Indonesia. Jaguar’s anticipated first quartile cost positioning enables it to compete with Indonesian nickel projects and generate strong margins through the nickel price cycle. Significant activities undertaken during the reporting period focused on the development of the Jaguar Nickel Sulphide Project are summarised below. 4.4.1 Project Development Basic engineering work commenced with CPC Engineering in Australia to prepare the necessary project definition and engineering design information required to allow the detailed engineering phase to be undertaken in Brazil. As part of this process, the project layout was further refined in order to reduce the overall project footprint. The infrastructure layout, site clearing and planning for initial mining activities also commenced, along with planning works for the project execution phase. Design approval for the construction of a water storage dam was received from the State Secretariat of the Environment and Sustainability (SEMAS). 4.4.2 Jaguar Value Engineering Process (JVEP) The Company released the outcomes of the JVEP, undertaken with a view to delivering enhanced feasibility study economics. Key outcomes of the JVEP included: • Updated JORC proved and probable open pit ore reserve estimate of 52.0Mt @ 0.78% Ni for 406,100t of contained nickel1. • Average annual nickel production of 22,600tpa over first seven years of full production, delivering free operating cash-flows over this period of US$169 million pa (A$264 million pa). • Forecast production averaging 18,700tpa of nickel over an initial 15-year open pit mine life via a conventional 3.5Mtpa nickel flotation circuit. 1 ASX Announcement 8 May 2025 31 CENTAURUS METALS LIMITED ANNUAL REPORT
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