Jaguar Project Pilot Plant Delivers 34% Nickel Concentrate, Cutting Freight Costs by US$275M
Centaurus Metals has achieved a breakthrough with a 34% nickel concentrate from its Jaguar Project pilot plant, promising substantial cost savings and enhanced market appeal. This development is set to reshape the project's economics and strategic partnerships.
- Pilot plant produces 34% nickel concentrate, highest grade globally
- Life-of-mine concentrate volume cut by over 60%, reducing freight costs by US$275 million
- Improved concentrate quality expected to increase payabilities for off-takers
- Jaguar Value Engineering Process (JVEP) to complete by end of Q1 2025
- Mine plan optimizations target early high nickel production and reduced capital costs
A New Benchmark in Nickel Concentrate Quality
Centaurus Metals Limited (ASX: CTM) has announced a significant milestone in the development of its flagship Jaguar Nickel Project in Brazil. The company’s pilot plant has successfully produced a nickel concentrate grading an exceptional 34%, a figure that stands out as one of the highest globally and approaches the quality of Mixed Sulphide Precipitate (MSP) products prized in the market.
This breakthrough is largely attributed to the millerite-rich nature of the Jaguar ore, which is among the highest tenor nickel sulphides known. The concentrate’s superior grade and low impurity profile mark a substantial upgrade from the 12.3% nickel concentrate outlined in the July 2024 Feasibility Study (FS).
Transforming Project Economics and Market Position
The implications for project economics are profound. By producing a higher-grade concentrate, Centaurus can reduce the total volume of concentrate shipped over the life of the mine from approximately 2.7 million tonnes to just under 1 million tonnes. This translates into an estimated freight cost saving of around US$275 million, a material reduction that enhances the project’s cost competitiveness.
In addition, the improved concentrate quality is expected to command higher payabilities from smelters and refiners, given its similarity to MSP products which typically attract premium pricing. The concentrate’s reduced zinc and fluorine content, deleterious elements that have been cut by over 70% in volume, further boosts its marketability and appeal to potential off-takers.
Optimised Process Flowsheet and Strategic Advancements
The Jaguar Value Engineering Process (JVEP) has been pivotal in achieving these results. By redesigning the process flowsheet to include additional cleaner flotation circuits and the use of sodium cyanide to suppress impurities, Centaurus has enhanced nickel recovery to approximately 70% while maintaining a low mass pull to product. The pilot plant successfully processed ore samples with higher impurity levels, demonstrating robustness and consistency in concentrate quality.
Alongside metallurgical improvements, ongoing mine optimisation work aims to front-load nickel concentrate production, reducing the strip ratio and accelerating payback periods. The project layout is also being revised to reduce the site footprint and earthworks capital costs, leveraging natural topography to lower establishment expenses.
Looking Ahead: Completion and Market Engagement
Centaurus targets completion of the JVEP by the end of Q1 2025, with further updates expected on capital and operating cost impacts, environmental approvals, and mine scheduling. The company has prepared concentrate samples to support strategic partnering and off-take discussions, which are advancing in parallel with the engineering work.
Managing Director Darren Gordon highlighted the strategic value of the high-grade concentrate, noting its rarity and competitive advantage in global nickel markets. The enhanced product quality and reduced logistics footprint position Jaguar as a compelling project for investors and customers alike.
Bottom Line?
Centaurus’ high-grade concentrate breakthrough sets the stage for a leaner, more profitable Jaguar Project with strong market appeal.
Questions in the middle?
- How will the revised capital and operating costs impact the overall project NPV and IRR?
- What are the timelines and prospects for securing binding off-take agreements based on the new concentrate quality?
- Could environmental or regulatory approvals be affected by the revised process flowsheet and reduced site footprint?
