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Jangada Mines PLC   -  JAN   

117% increase in JORC Resource at Pedra Branca

Released 07:00 28-Jan-2019

RNS Number : 2027O
Jangada Mines PLC
28 January 2019
 

Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector: Mining

28 January 2019

 Jangada Mines plc ('Jangada' or the 'Company')

117% increase in JORC Resource at Pedra Branca Project

 

Jangada Mines plc, a natural resources company developing South America's largest and most advanced platinum group metals ('PGM') and nickel project, is pleased to announce a significant JORC (2012) compliant resource upgrade resulting in substantial increases in the size and categorisation of the resource at its Pedra Branca PGM project ('Pedra Branca' or 'the Project') in north-eastern Brazil.

 

Highlights

·     117% increase in JORC classified ore to 74.84 million tonnes:

64% increase in the Indicated category resources to 29.34 million tonnes

174% increase in Inferred category resources to 37.09 million tonnes

·     103% increase in palladium equivalent ('Pd Eq') resource to 3.05 million ounces, derived from the following increases:

·     48% increase in PGM+gold ('Au') resource to 2.17 million ounces

·     104% increase in base metal content to 362.5 million pounds ('Mlbs') attributed to newly discovered nickel sulphide resource including:

298 Mlbs nickel ('Ni')

49.5 Mlbs copper ('Cu')

15 Mlbs cobalt ('Co')

·     Overall resource grade is 1.31 g/t Pd Eq

·     Verification phase of the fully funded Bankable Feasibility Study ('BFS') on track for completion by end Q1 2019

 

Brian McMaster, Executive Chairman of Jangada said, "Clearly today's announcement is a significant step forward for Jangada.  We have been working with a highly skilled team on the BFS work, which has identified significant increases in grade and classification that will help form extremely exciting inputs to the BFS model.  Investors can now see that labelling this a 'PGM project' doesn't do it justice; it is clearly much more than that.  The key economic drivers of the Project are palladium and nickel, two of the most in favour minerals of today and for the foreseeable future.  Additionally, the increase in resource size will potentially drive a longer mine life and higher annual tonnage, all of which are positive developments.  The work being done to finalise the BFS and prepare the Project for development is exceptional and the results are coming through better than expected."

 

 

 

 

 

 

Further Information

 

Resource Update

As part of the BFS at Pedra Branca, the Company retained Minxcon Projects ('Minxcon') to review and update the Project database and JORC (2012) resource for PGM and base metals.  This review excluded any impact from the vanadium anomaly announced on 23 October 2017. 

 

Minxcon's review included a complete rebuild of the resource geological, structural and estimation models.  This updated resource estimate and resource classification are the inputs that will form the foundation for the BFS.  Given the reclassification of much of the ore body to Measured and Indicated and the substantial increase in resources size, coupled with the expected significant decrease in capital expenditure requirements (as announced 12 November 2018), the Company anticipates that the economic viability of the Project will be further amplified beyond that disclosed in the Preliminary Economic Assessment ('PEA') announced 18 June 2018.

 

 The new Pedra Branca JORC (2012) resource is summarised in the table below and includes:

 

Pedra Branca

Tonnes

Grade

Metal Content

Resource Classification


Pd Eq

Pd Eq

PGM+Au



Mt

g/t

Moz

Moz

Indicated


29.34

1.36

1.240

     0.875

Inferred


45.50

1.28

1.809

     1.293

Indicated and Inferred

74.84

1.31

3.050

     2.168

 

A detailed element and contained metal table is contained in Annexure A at the end of this announcement.

 

Background

The Pedra Branca Project is the largest and most advanced PGM and nickel project in South America and currently has a JORC compliant resource of approximately 2.17 million ounces of PGM+Au at a grade of 1.3 g/t Pd Eq, 298 Mlbs of Ni, 49.5 Mlbs of Cu and 15 Mlbs of Co. The Project is located 280 km from the port city of Fortaleza in the northeast of Brazil and holds three mining licenses and 43 exploration licenses over an area of 48 000 ha.

 

Previous operators have spent more than US$35 million on exploration and development activities, which include 30,000 meters of diamond core drilling, geophysical surveys and metallurgical tests. The current resources are at surface and are amenable to open pit mining and conventional processing methods.

 

Minxcon

Minxcon Projects forms part of the Minxcon group of companies and is a South Africa based company specialising in the design and building of mining and metallurgical projects.  It works across various jurisdictions to deliver scoping-level, pre-feasibility, feasibility studies and EPC functions for a wide spectrum of clients, including major and mid-tier PGM producers Anglo American Platinum, Royal Bafokeng Platinum, Lonmin, Sibanye, Platinum Group Metals, African Rainbow Minerals and Eastplats.

 

Minxcon is qualified to conduct Resource Estimations on most commodities including: PGMs, precious metals, base metals, industrial minerals and coal. Minxcon's reports comply with local and international reporting standards and have been globally accepted in all the reporting jurisdictions including the JSE, ASX, AIM, TSE, NYSE and others.

 

Competent Person

The information in this statement which relates to the Mineral Resource is based on information compiled by Mr Uwe Engelmann who is a geologist and full-time director of Minxcon. Mr Engelmann has sufficient relevant experience to the style of mineralisation to qualify as a Competent Person as defined in the JORC Code (2012). Mr Engelmann also meets the requirements of a qualified person under the AIM Note for Mining, Oil and Gas Companies.

 

Annexure A - Additional Notes

 

1. Resource Cut-off of 0.6 g/t Pd Equivalent

2. PdEq = Pd+(Pt*0.965)+(Au*0.714)+(Ni*1.834)+(Cu*2.033)+(Cr*0.063)+(Co*1.183)

3. Only resources falling with in the resource pit declared (RPEEE)

4. Geological losses of 10% for Indicated and 15% for Inferred were applied

5. RPEEE resource prices used: Pt = USD1,224/oz, Pd = USD1,250/oz, Au = USD1,500/oz, Ni = USD19,270/t, Cu = USD7,216/t, Cr = USD258/t & Co = USD46,171/t

6. Mineral resources are stated as inclusive of ore reserves (no ore reserves declared at this stage).

7. Mineral resources are reported as total mineral resources and are not attributed.

8. Numbers may not add exactly due to rounding

 

The updated JORC (2012) resource as represented above has integrated the PGM-Ni-Cu resource and the recently announced (17 December 2018) maiden nickel sulphide resource. The newly included base metal sulphide ore has previously been excluded from historic metallurgy test programs due to its recent discovery. Further metallurgical test work is required to confirm the modifying factors, including recoverability and cut-off grade as it pertains to the newly included nickel dominated ore.

 

The following table contains the detailed element and contained metals summary.

 

Pedra Branca

Grades








Resource Classification

2E+Au

Pt

Pd

Au

Ni

Cu

Cr

Co



g/t

g/t

g/t

g/t

%

%

%

%

Indicated


0.90

0.30

0.58

0.03

0.20

0.03

0.40

0.009

Inferred


0.90

0.33

0.55

0.03

0.17

0.03

0.40

0.009

Indicated and Inferred

0.90

0.32

0.56

0.03

0.18

0.03

0.40

0.009


Metal Content








Resource Classification


Pt

Pd

Au

Ni

Cu

Co

Cr




oz

Oz

Oz

Mlb

Mlb

Mlb

t

Indicated



274,413

527,235

23,240

126.6

22.46

5.78

116,390

Inferred



461,154

773,416

37,984

168.4

27.03

9.21

298,169

Indicated and Inferred


760,334

1,344,445

63,286

298.0

49.5

15.0

303,206

 

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").

 

* ENDS *

 

For further information, please visit www.jangadamines.com or contact:

 

Jangada Mines plc

Brian McMaster (Chairman)

Tel: +44 (0) 20 7317 6629




Strand Hanson Limited

(Nominated & Financial Adviser)

James Spinney

Ritchie Balmer

Jack Botros

Tel: +44 (0)20 7409 3494







Brandon Hill Capital

(Broker)

Jonathan Evans

Oliver Stansfield

Tel: +44 (0)20 3463 5000




St Brides Partners Ltd

(Financial PR)

Isabel de Salis

Gaby Jenner

Tel: +44 (0)20 7236 1177

 

 


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117% increase in JORC Resource at Pedra Branca - RNS