Investors flocked to Centaurus Metals yesterday on news of an extensive high-grade iron ore target at its Salobo West project in northern Brazil.

The stock (ASX:CTM) was one of the biggest movers on the ASX yesterday, closing at a high of 5c, up 67 per cent.

Centaurus identified high-grade “direct shipping ore” after an initial site visit ahead of copper-gold exploration program at the project.

Direct shipping ore (DSO) or hematite requires only a simple crushing and screening process before being exported for use in steel making, according to the Australian Mines Atlas. By comparison, magnetite ores require an additional second stage of processing.

Centaurus identified a significant outcrop of iron ore 800 metres long and up to 15 metres wide.

Sample readings recorded more that 70 per cent iron from the outcrop. Samples have since been submitted for testing. Results are expected within 20 days.

Centaurus’s managing director Darren Gordon said the discovery of an extensive DSO target demonstrated the rich mineral endowment of the area.

“We secured this ground for its copper‐gold potential, and that remains our key focus with exploration activities about to begin over the coming weeks,” he said.

“However, we were also well aware of the potential for world-class iron ore discoveries – particularly given the geological pedigree of this mineral province.”

Centaurus burned $1.3 million in the half-year to June, Leaving $588,000 in the bank.

In August the company raised $2.5 million in a rights issue.

Centaurus has a market cap of about $8 million.