This says it all !!! Centaurus ‘handed the keys to a Jaguar’,...

This says it all !!!


Centaurus ‘handed the keys to a Jaguar’, says Argonaut, putting it on track for a 35c share price
Centaurus Metals (ASX: CTM) has also started racking up positive broker recommendations, with Perth-based Argonaut joining North America’s Sprott Equity Research this week with initiation reports on the Brazil-focused nickel sulphide developer
15th May 2020
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Centaurus Metals (ASX: CTM) has also started racking up positive broker recommendations, with Perth-based Argonaut joining North America’s Sprott Equity Research this week with initiation reports on the Brazil-focused nickel sulphide developer.

Argonaut has maintained its Speculative Buy recommendation (see last week’s RRS Weekly Wrap) while this week adding a 35c valuation, derived from EV/Resource metrics, in a comprehensive new research note.

“CTM is a key pick for Argonaut in the ASX base metal developer sector given its scale, high grade, shallow mineralisation and location in the well-established Carajás mining province,” wrote Argonaut analyst Matthew Keane.

Centaurus’ rapid rise has been driven by its acquisition of the Jaguar Nickel Sulphide Project in Brazil from Vale, including a non-JORC resource of 40.4Mt at 0.8% Ni, mineralised from surface.

“Importantly, the deposit contains several zones of high-grade massive nickel sulphide grading up to 15.5% Ni,” Keane said.

“Argonaut sees opportunity for CTM to rapidly define a development scenario incorporating both open pit and underground mining across several deposits within the Jaguar Project.

“CTM is currently drilling with two diamond rigs targeting both resource definition/in-fill and resource expansion. A Scoping Study is due for release in Q3 2020.”

Argonaut says that the Jaguar Project’s existing non-JORC resource comprises “one of the largest nickel sulphide inventories of any ASX-listed company”, with recent drilling confirming the continuity of shallow high-grade mineralisation.

While the project has potential for a large, low-grade bulk tonnage open pit operation, Argonaut says it expects Centaurus to focus instead on a smaller higher-grade open pit and underground operation.

“Argonaut envisages a 1-1.5Mtpa concentrator plant processing ~1.5% Ni from open pit ore and up to 2.5% Ni from underground ore, producing up to 20ktpa nickel in concentrate.”

Meanwhile, Sprott Equity Research says in its initiation note that the rarity of nickel sulphides, particularly high-grade ones and with exploration upside, “make Centaurus stand out”.

“The scarcity of nickel sulphide projects should command a premium, as exemplified by the $628 million asset valuation of Legend Mining in Australia.”

To read the Argonaut research note, click here. To view the Sprott Equity Research note, click here.