b'CENTAURUS METALS ANNUAL REPORT 2023OPERATING COST ESTIMATIONMining Based on Feasibility Study work, the cost of power (including The Feasibility Study for the Jaguar Project is being preparedtransmission and taxes) will be approximately US$0.03 per kWh.solely on the basis of an open pit mining operation. It is expectedApproval to access the 230kV network has been granted by the that future underground operations will occur given significantMinistry of Mines and Energy with stage 2 of the approval process mineralisation has been intersected up to 800 metres below theto commence shortly, which is the approval of the Electricity Market base of Feasibility Study open pit designs.Regulator (ONS).The main operating cost for the Jaguar Project is the mining of ore andThe Company is expecting to produce on average approximately waste from the open pits. Prices for Drill & Blast and Load & Haul have140,000150,000 tonnes of dry concentrate each year.been received from a number of mining contractors with these prices being used to determine overall mining costs for the Project. ProcessingRefineryCentaurus will purchase all diesel for the project and free issue it toWork during the year on the refinery circuit for the Jaguar mining contractors. This approach will save on indirect taxes on theProject was designed to convert the Pox concentrate feed from supply of diesel. The cost of diesel fuel (net of ICMS tax exemptionsthe concentrator to a nickel sulphate product with the refinery available to the Company) has been assessed from quotes fromspecifications being to produce 20,000 tonnes of nickel in sulphate major regional suppliers at R$4.80 per litre.per annum. The refinery phase of the Project has now been deferred All pit optimisation work has been completed and a detailed pitwith the finalisation of the Feasibility Study to be based on a design and mining schedule has been prepared, which has been theconcentrate only project.basis for the estimation of mining costs. Based on the current pitThe main operating costs that would have been associated with the designs, the average LOM strip ratio (tonnage basis) for the openRefinery circuit are power, labour, limestone, ammonia, sulphuric pits, including waste movement for IWL construction (which will beacid, and other reagents. capitalised), is expected to be approximately 5.6:1. Project Execution PlanProcessingConcentrator Ausenco continued to develop the Project Execution Plan (PEP) and The concentrator circuit has been specified as a 3.5Mtpa circuitmaster implementation schedule in conjunction with Centaurus. and takes the form of a traditional nickel flotation circuit. The mainThis plan will encompass all front-end engineering, procurement operating costs associated with the concentrator circuit are power,and construction activities and schedule. Long-lead time items that labour, grinding media and reagents. may determine the execution program timeline have been identified The Company will connect to the 230kV national grid in Brazil withfrom vendor and contractor pricing submissions so that finalisation the network being 80% renewable energy. As a result, carbonof engineering and procurement contracts for these items can be emission levels associated with use of power from the grid willscheduled appropriately.be very low. Centaurus expects that by the time it has finalised aThe EPCM Contract (Engineering, Procurement and Construction contract for the supply of power with one of the many generatorsManagement) tender process for the engagement of an engineering in-country, the power supply for the project will be 100% renewablygroup experienced in concentrator and refinery design and sourced. construction in Brazil commenced during the reporting period.14 ANNUAL REPORT CENTAURUS METALS LIMITED CENTAURUS METALS LIMITED ANNUAL REPORT 15'