It had already been a busy week for Centaurus, with the company reporting a 27% jump in the resource estimate for its Jaguar nickel project in Brazil on Monday.

The resource now stands at 138.2 million tonnes at 0.87% nickel for 1.2Mt of contained nickel, including 112.6Mt at 0.87% nickel for 978,900t of nickel in the measured and indicated category.

The resource includes a high-grade component of 36.1Mt at 1.49% nickel for 537,900t contained.

Speaking to delegates, Gordon said contained nickel of 1.2Mt should not be underestimated.

“In terms of nickel sulphide deposits, we think that’s in pretty rarified air,” he said.

Argonaut analyst George Ross agrees.

“With the 1Mt of contained nickel threshold now surpassed, we expect the project will become more attractive to potential suitors and development partners,” he said.

It makes Jaguar the highest-grade undeveloped nickel sulphide project in the world and the 10th largest overall.

There is still further scope to grow the resource, with the deposit remaining open at depth and along plunge, while multiple down-hole electromagnetic plates remain untested outside the resource boundary.

Argonaut has a A75c price target for Centaurus, representing 100% upside from recent trading levels.

Optimising Jaguar

Last month, Centaurus released a feasibility study for Jaguar, which outlined capital costs of US$371 million for an 18-year open pit operation to produce 18,700t per annum of nickel at all-in sustaining costs of US$3.57 per pound.

“It’s a very competitive capital cost position,” Gordon said.

The study returned a post-tax net present value of A$997 million and internal rate of return of 31%.

The updated resource will feed into an optimised mining schedule to potentially improve grades in the early years of the mine life.

Around 8.3Mt at 1.52% nickel sits within 100m of surface, providing the opportunity to bring higher grade material into the mine plan early.

“We’ve got all the attributes here for what will be a very significant project,” Gordon said.

Centaurus will also undertake a scoping study on the high-grade underground resource of 21.5Mt at 1.46% nickel for 313,000t of contained nickel that sit immediately below the pit designs.

Cost advantages

Gordon was keen to convey in his presentation that Jaguar would sit in the lowest quartile on costs and capital intensity.

The project will have access to low-cost grid power at an estimated cost of just US3.5c per kilowatt hour.

Gordon said the low energy costs were an advantage Australian producers didn’t have and would allow Centaurus to compete with low-cost production coming out of Indonesia.

“If we can compete on costs, we can shoot the lights out,” he said.

Given the Brazilian national grid is powered by renewables, it means Jaguar’s production will be low emission at just 7.27t of carbon dioxide per tonne of nickel.

That would make the project lower emission than 94% of global nickel production.

Funding talks

Centaurus, which had around A$25 million cash and no debt at June 30, is aiming to make a final investment decision for Jaguar in the June quarter of 2025, which would have the company on track for first production in the second half of 2027.

Gordon expects the nickel price to rise progressively over that period.

The company has been in early talks with potential strategic partners, including global electric vehicle industry participants.

The completion of the feasibility study allows the company to kick off a formal partnering process with financial advisor Standard Chartered.

Gordon said Centaurus was receiving strong early partnering and offtake interest.

“At least among the groups I talk to, the general perception is that they’re short of nickel units,” he said.

The offtake is completely unencumbered.

Debt funding talks will also continue, led by debt advisor Orimco.

“Formal progression of project development financing and/or partnership discussions could be a catalyst for value recognition,” Ross said this week.

Gordon said the company was making “massive inroads” towards the development of Jaguar.

“We’re on the cusp of a serious operation,” he said.