Dave, and thanks Nick and Sharon and Paul and the crew from Resources Rising Stars for having Centaurus along again. I think this is a bit of a setup. I think they say in the entertainment industry, "Never follow children and small animals on stage." I think in our industry, it's Ken Brinsden in a fireside chat. That went really well. I actually think it's pretty appropriate that we are following Ken, obviously doing a great job with Patriot Battery Metals., but you guys, as Nick said, would really know him from his Pilbara Minerals days. I do see a lot of comparisons to where we are today with the Jaguar nickel sulphide deposit to where Pilbara Minerals were with Pilgangoora back, I feel like it was about 10 or 12 years ago. Pilgangoora is a world-class resource.
The Jaguar nickel sulphide deposit has over 1 million tons of contained nickel metal. It is a world-class resource. We're located in the Carajás, which is a world-class mining province, full of infrastructure, very similar to the Pilbara. We've got a very low All-In Sustaining Costs, which means that we can make money or the project can make money at all stages in the commodity cycle. The difference is we now need to now go off and fund it, build it, and start producing. Hopefully over the next 10 to 15 minutes, I can explain to you how we're going to do that. There will be some forward-looking statements and aspirational statements. Please read the disclaimer. What do we have at Jaguar? We have 1.2 million tons of contained nickel metal. In nickel sulphide land, that is world-class.
We have at least 15 years of open pit conventional mining, and I'll try and explain to you why I think we're going to have many more years than that. We've got really low first quartile costs, which makes us very competitive with the Indonesian nickel laterites, and that is due to our open-pit mining, conventional flotation, and Brazil's very cheap and very green hydropower. We've been de-risking this thing for the last two or three years. Even with low nickel prices, we've been working away at getting licensed, buying the land, getting the guy who's going to build it, which is very important, and getting it ready. The reason why Darren Gordon, who is usually standing up here, is not here is because we're on the cusp of funding.
We had the ITEs, which are the Independent Technical Experts, out at site doing the reports for the funding options. They're ticking all the boxes. We should have those debt proposals locked away in the next few weeks, and then the equity piece. All that gets delivered to our board in the coming weeks for them to approve the final investment decision. Hopefully, I'll have some time at the end to talk about the upside, the upside within Jaguar, the upside within the current nickel price, and also some very exciting copper-gold discoveries that we've been making in the Carajás. Since standing up here last year, I think I said that we were out at the front there in Nicholas' naughty nickel corner. I think that's changed. We're in the same spot. I'm going to give it a different name at the end of the presentation.
But we haven't been waiting around for the nickel price to kick up, which it actually did at the start of the year. We have got the mining license in October. We've got multiple offers for debt of up to $320 million, keeping in mind, the capital cost of this project is around $380 million. We've got a project director who has built mines like this before, and we've got access to the National Interconnected System, which allows us to get that very cheap $0.04 -$0.0 5 kWh power, which is about a third or a quarter of the price of what you'd pay for power in Outback W.A. And that's why this project, we think this project being in Brazil is such a great opportunity. We've been there for 20 years. We've licensed and developed and even built mines in Brazil within those last 20 years.
Through much support from the government, we've got all the licensing. We've got that tax incentive, which means when we do start making money, we're only paying 15% effective tax over the first 10 years. That's almost half of what a project similar to Jaguar would pay if it was in Outback W.A. Importantly there, the royalties which we pay around 2%, more than half of that goes back to the local municipalities. So they see that money go back into the community, into the hospitals, and into the schools, which means these communities get right behind these projects. And again, that's that renewable, low-cost, $0.05 kWh Green power. We're in Brazil. We're over in the western part of the Carajás. For those who don't know the Carajás, it's like taking the Pilbara and Mount Isa and rolling it into one.
It's got the world's biggest and richest iron ore mine in S11D, 100 clicks to our east. It's got the world's second-biggest IOCG mine in Salobo, which is about 120 km to our northeast. That's second only behind Olympic Dam. Vale has been here since the 1970s, spending billions of dollars in infrastructure, sealed roads, power, airports. So it really is a great place to build a mine. In the satellite image, you can see that Jaguar's about 30 km north of the towns of Tucumã and Ourilândia do Norte. Those towns have got about 70,000 people living in them, and they've been supporting that Onça Puma ferronickel plant since the early 2000s. So there's second and third generation, maybe not third, but there's second-generation miners living in those towns and plenty of service providers ready to support our project.
Importantly, you see the Boa Esperança project there, which is Ero Copper. That is a 4 million ton per annum copper flotation plant that was built in 2024, 2025 by a TSX-listed company called Ero Copper. And the guy that built that plant is this handsome-looking fellow in the middle of the page, Mr. Thiago Costa. Mr. Costa joined our organization in March of this year, after building that 4 million ton per annum copper plant on time and on budget, for about $350 million U.S., I believe. Now, what he has to do for us is help us build a 3.5 million ton per annum nickel sulphide plant on time and on budget, and deliver that for the Centaurus shareholders. So he's pulling together a proposal.
Darren Gordon is there working away at getting this thing funded, and they are going to present that to the board in the coming weeks so they can give the thumbs up to the final investment decision. Plenty of cash in the bank to see us through to FID in a market cap of around AUD 300 million. What do you get for that? The key asset is obviously Jaguar. It is a long life asset, first quartile cost, and it is going to produce around 22,000 tonnes of nickel in concentrate per annum for at least seven years. That would put us in the top five or six operating nickel sulphide mines in the world today. It really is a global scale asset. And it is underpinned by the amazing geology. This is a little bit of a different deposit to what we are normally used to in nickel sulphides.
It is a hydrothermal deposit, and essentially what that means is this thing can go to the center of the Earth. We stopped drilling in 2024. We had enough nickel in the open pits. We had enough nickel in the resource. We pulled up the rigs, and we did this feasibility study. The graph on your left shows you that there is really only a handful of deposits and camps with more nickel at a higher grade than Jaguar. And only one of them remains undeveloped. If you want exposure to shovel-ready nickel tons at scale, Jaguar really is the number one opportunity. The guys in Brazil did an amazing job at increasing that resource over those four or five years of drilling to get it up to that 1.2 million ton per annum target. These diagrams show you the reserve pit and what sits underneath them.
You can see there we have got resources of over 20 million tonnes at around 1.5% nickel. I am not saying that is coming into a mine plan just yet. That needs more drilling. The reason that is not in the mine plan is because of the density of drilling out there. But to put that into context, about 10 or 15 years ago, Sirius Resources sold the Nova-Bollinger resource to IGO for around AUD 2 billion, and that had a resource of around 15 million tonnes at 2.5% nickel. We think that we have a Nova-Bollinger sitting underneath our pits. During operations, we will go off, we will have exploration declines, and we will drill that out so that we can bring it into the mine plan. Here you see the processing production profiles. Excuse me.
We touch 1% in the feed grade over the first six and seven years, and that allows us to get to that 22,000 tonnes of nickel in concentrate per annum for that period. Where the grade drops off, that is the opportunity to get those underground operations with higher grade ready to bring into the mine plan. And that will allow Jaguar to produce 22,000+ tonnes of nickel in concentrate for at least that 15 years and we believe beyond to 20 years, 25 years and who knows, into the future. The margins. The reason that Jaguar is such a great project is not only because of its geology, but also where it is located.
The fact that this is not in W.A., the fact that this is in the Carajás, where we've got access to $0.04, $0.05 kWh power, allows us to produce nickel in concentrate at around $4.40 lbs , on a payable basis. Put that into context, today's price is around $7, $7.50 lbs . You are making a reasonable margin there. We ran the feasibility study at $9 lbs . That threw off economics of about $169 million over the first seven years in free cash flow. Even at today's nickel prices, this is still going to generate around $120 million - $130 million in free cash per annum. That means that we are able to pay down that initial CapEx of $380 million in less than two years and start to make shareholders a lot of money.
When I stood here last year, we were in Nick's Naughty Nickel Corner, and we were just before that little kick up, just behind me, of the nickel price in September or up to December of last year. Everyone thought, "Oh yeah, nickel's boring. It's sitting around $5.50 , $6 lbs , won't pay any attention." Something happened in Indonesia and globally. The actual cost of producing the nickel laterite in Indonesia, which is responsible for 60%-70% of the production, went up, and as it did, the price went up. We are seeing that. We believe that's a structural change, and what does that mean for the Jaguar Nickel project? That just means a larger margin. This is why we've continued to push the project forward, even in the low nickel price times.
We got the offtake away with Glencore for a third of it. We've left another 2/3 of our concentrate in the back pocket so we can do something smart for the rest of the funding. We've got debt funding options there of up to $320 million ITEs, Independent Technical Experts, have been to site and no red flags raised. We expect that to be bundled up in the coming weeks and delivered to our board so they can make that decision. The guys in Brazil do not stop. Thiago Costa is out there. He is on-site. He is getting the roads ready to site. He is getting access ready so that when we do get the go-ahead from the board, we can get straight into it. Basic engineering completed and detailed design underway.
We look forward to bringing you a solution for the funding for Jaguar in the coming weeks. Jaguar is the flagship company maker, but we also have some very interesting copper assets. Centaurus is an explorer at heart, and we've done very well over recent years in doing that very successfully. The Carajás is an amazing province and very hard to get tenure. We've managed to cobble together around 75 sq km of tenure over a project called Boi Novo. You can see there are some really interesting hits we got at the end of last year. 36 m at 1.5% copper, 11 m at almost 3% copper with a gram gold. The guys have been working up the new tenement that we acquired to the north called Rio Novo, and we are going to be back drilling this in the fourth quarter.
This is an opportunity for the exploration team to try and rinse and repeat the really good exploration that we did at Jaguar and make sure that the engineers have another project in the pipeline to move towards once Jaguar is built and making money. Five key takeaways. Jaguar is really, really big. It is shovel-ready. We have it licensed. We have the power access, and we have bought the land. First quarter costs. It is going to make money at every point in the commodity cycle. We are on the cusp of getting funding. We have got offers of up to AUD 320 million We are going to deal with the equity piece, and FID is imminent. Within Jaguar itself, we have some really great upside due to its geology. Also within nickel, there are limited amounts of ASX investable companies at the moment.
Any upside to the macro in nickel, we think we are certainly, in terms of development propositions, one of the optimal companies. We have the Boi Novo steak knives in terms of really exciting copper gold drilling and discovery. If you would like to come and see us in the newly named Nicholas' New Nickel Mine, we will be out the front. Come and see Brooke and myself. Thank you.