Centrex Metals

Centrex Metals Ltd has extensive tenement holdings over iron ore resources and exploration targets on Eyre Peninsula in the southern Gawler Craton adjacent to existing rail/port facilities.
Fig. 1 :: Centrex Metals Ltd Exploration Licenses, Eyre Peninsula (Click to see image)

The resources and targets are mainly within the early Proterozoic Middleback Subgroup sequence of banded iron formations (BIF) that host the historically important and currently operating iron ore mines of the Middleback Range (Onesteel Ltd). The extensive iron formations of Eyre Peninsula contain significant inferred resources of hematite and/or magnetite banded iron formation. Both historical and recent assays and metallurgical work have confirmed their potential and furthermore, the compositions of magnetic separations are favourable with high iron and low silica, alumina, phosphorous, alkalis and manganese.
Three categories of iron ore have been considered:

 -  massive hematite ore (as traditionally mined) with Fe > 56% and low impurities (eg. phosphorous and silica);
 -  hematite-rich BIF or jaspilite (interbanded hematite, quartz and/or iron silicates) with Fe >30%; and
 -  magnetite-rich BIF (interbanded magnetite, quartz, marble and/or iron silicates) with magnetite content

    as determined by magnetic Davis Tube Separation (DTS)
    >20% by weight.

The first category has traditionally been regarded as ‘direct shipping ore’ that could be exported without the need for beneficiation while the latter two categories would require beneficiation (concentration with or without pelletizing) to produce either iron concentrates or direct reduction (DR) grade iron ore pellets suitable for the export market.

Two small inferred hematite resources (total ca. 8 Mt @ 59-61% Fe) at Wilgerup on central Eyre Peninsula were identified by WMC Ltd during the 1990’s. The southern deposit is potentially suitable for direct shipping while the northern deposit could potentially be blended to form the basis of an initial small-scale iron ore mining operation 15-20km from rail and 115-130 km from port facilities. However, additional drilling and modelling are required to establish ore reserves and evaluate the economics of the project.

Inferred resources have been estimated for the major deposits based on limited drilling combined with geological mapping and interpretation of high-resolution aeromagnetic data (Table 1). Resources are judged to have reasonable prospects for eventual economic extraction. In the case of hematite BIF this may depend on other factors such as the eventual mining of underlying magnetite BIF. Exploration targets are those parts of the BIF for which potential quantity and grade are conceptual in nature and exploration has been insufficient to infer a mineral resource; continued exploration may not result in the determination of a resource.

Metallurgical tests for most of the above magnetite resources indicate that they are technically simple in regard to ease of upgrading the ores to high specification with low impurities such as phosphorous, silica, alumina, manganese and sulphides. They are relatively coarse grained, particularly on southern Eyre Peninsula, with good magnetite liberation at coarse grinds (100% passing 75 microns (μm)).

No beneficiation tests have been undertaken on hematite BIF except for Stony Hill where jaspilitic BIFs are suitable for beneficiation with recovery of most iron oxide after grinding to 150μm. Minus 100μm DTS concentrates averaged 47.9- 49.5% iron oxide @ 64.8-69.1% Fe.

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David Klingberg (Chairman) AO, FTSE, B.Tech, FIE Aust, FAus IMM, FAICD
Mr Klingberg has 34 years experience as a professional engineer including 10 years as CEO with Kinhill Limited managing professional engineering services to resource development and other industries. Retired recently as Chancellor of the University of South Australia after 10 years. Director of ASX Listed Codan Limited and E&A Limited. Director of Snowy Hydro Limited, Chairman of Barossa Infrastructure Limited and Chairman of the Premier’s Climate Change Council.


Mr Jim White(Managing Director) B.App. Sci(Met), FIEAust, CP Eng.
Mr. White is a metallurgist who has spent his career with BHP and OneSteel, with a focus on steelmaking, exploration and major project development. His involvement in the successful OneSteel Project Magnet iron ore export development and in government and community liaison is particularly relevant to the Company’s plans for the Eyre Peninsula.


Mr Jim Hazel (Non-Executive Director)
Mr. Hazel has had an extensive career in banking and investment banking, including as chief general manager of Adelaide Bank Ltd. Until recently he was managing director of an ASX listed retirement village and aged care operation. He is a professional Public Company Director and has served on the Board of Terramin Australia Limited and is currently a Director of Bendigo and Adelaide Bank Limited, Rural Bank Limited, Impedimed Limited and the Motor Accident Commission.

Mr. Hazel will chair the Company’s Audit and Risk Committee from September 2010.


Mr Kiat Poh (Non-Executive Director) Dip C.E.
Mr Poh is a Singaporean citizen, and has over 30 years experience at senior management level in the financial, engineering, real estate development, quarrying, manufacturing and construction industries. He was the Managing Director of SGX-listed Teamsphere Limited from 1998, heading the strategic management and business development of the Company prior to Delong Steel’s successful reverse acquisition of Teamsphere Limited in 2005. Since 2005, he has managed an investment advisory company in Singapore that focuses on participating in strategic stakes in listed companies.


Mr John den dryver (Non-Executive Director) B Eng (Mining), MSc
Mr den Dryver is a Mining Engineer with extensive project development and operational management experience at a senior level in the mining industry, including taking projects in Australia and overseas from grassroots exploration through feasibility, financing and into implementation.  His role with Newmont Australia – the former Normandy Mining Group – included detailed feasibility and development implementation of underground mining operations, assessment and acquisition of mineral projects in Ghana, as well as significant operational involvement with North Flinders Mines and The Granites gold mine in the Northern Territory.

Mr den Dryver is a current Director of Gascoyne Resources Ltd, Adelaide Resources Ltd, and Helix Resources Ltd.


Mr Graham Chrisp (Non-Executive Director) B Tech (CE)
Mr Chrisp has a degree in Civil Engineering & has substantial experience in numerous aspects of business operations, including design & construction of roads & other earthworks, mineral exploration & property development. He was a founding director of Centrex Metals Limited (having previously served as its managing director) & Lincoln Minerals Ltd. He is also Managing Director of unlisted public company Energy Exploration Ltd & has numerous private interests.

Mr Chrisp is also a Director of unlisted South Cove Ltd, the largest shareholder in the Company.  Accordingly, he is not considered to be “independent” for the purposes of the Company’s corporate governance policies.


Mr Xiaopeng Yin (Non-Executive Director)
Mr Yin is General Manager of Mineral Industry Corporation and Chairman of Wugang Australian Resources Investment Pty Ltd, the Company’s second largest shareholder.  Both are wholly owned subsidiaries of Wuhan Iron & Steel (Group) Co (WISCO).  Mr Yin has many years experience working in the mining industry.

He is presently a director of Consolidated Thompson Mines Ltd (Canada) and was the General Manager of Daye Iron Ore Mine (located in Hubei province, China) which has 5,000 employees and produces 1.1Mt of iron ore concentrate per annum.

As Chairman of Wugang Australian Resources Investment Pty Ltd, an unlisted company that is the second largest shareholder in the Company, Mr Yin is not considered to be “independent” for the purposes of the Company’s corporate governance policies.