TIDMJAN
RNS Number : 6544K
Jangada Mines PLC
11 July 2017
Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector:
Mining
11 July 2017
Jangada Mines plc ('Jangada' or the 'Company')
High Value JORC Compliant Nickel & Copper Resource
Confirmed
For the Pedra Branca Platinum Group Metals Project
Jangada Mines plc, a natural resources company developing South
America's largest and most advanced platinum group metals ('PGM')
project, is pleased to announce an updated JORC (2012) compliant
Resource estimate, which now includes copper and nickel by-product
credits, at the Company's Pedra Branca PGM project ('the Project')
in Ceará State, north-eastern Brazil following ongoing work over
the last few months.
Overview
-- The updated resource estimate includes nickel ('Ni') and copper ('Cu') credits
o 109 million pounds of Ni and 23 million pounds of Cu contained
metal in the resource model grading 0.214% Ni and 0.045% Cu
o Builds on existing JORC (2012) Compliant Resource of 23Mt at
1.3 g/t (PGMs) containing 1Moz PGM + Au mineralisation from
surface
-- Copper and nickel grades throughout all deposits, including
within shallow high-grade oxide zones, which are the focus of the
initial low capex, low opex, mine development plan
-- South African nickel and copper by-products typically receive 75%-85% payability
-- 28% overall grade improvement from 2.8 g/t PGMs (2.9 g/t Pd
Eq) to 3.7 g/t Pd Eq at the Curiu oxide deposit, one of the
resources ear-marked for near-term, surface production
-- 83% increase in grades, from 1.2 g/t (1.3g/t Pd Eq) to 2.2
g/t Pd Eq, for the oxide surface resources at the Esbarro
deposit
-- 61% improvement in global PGM grade from 1.28 g/t (1.33 g/t Pd Eq) to 2.14 g/t Pd Eq
-- Curiu and Esbarro oxide surface resources represent easily
accessible, ultra-low-cost mining targets, which the Company plans
to bring into trial production during 2018
-- Results confirm historically reported resources as estimated
by the previous operator, Anglo American Platinum, and demonstrate
the additional value of multi element deposits
-- Compiled by GE21 Consultoria Mineral ('GE21'), the estimate,
based on sampling results from diamond drill cores, quantifies the
Ni and Cu contents of the Project's main deposits, Cedro, Curiu,
Esbarro and Trapia, which can be mined and processed at no
additional cost
-- At current spot prices, the Ni (US$4.21/lbs) and Cu
(US$2.68/lbs) credits add an additional US$521 million to the
in-situ value of the currently declared PGM+Au resources at the
Project or approximately US$22.6 per tonne
Brian McMaster, Executive Chairman of Jangada said, "When we
listed on AIM two weeks ago, I said that we were going to hit the
ground running; as this announcement highlights, we are doing just
that. These results, which add nickel and copper credits to the
JORC resource, not only confirm the historically reported PGM
resources that were estimated by the previous operator, Anglo
American Platinum, but they also underscore management's belief
that Pedra Branca hosts a high value, multi-commodity resource.
With this in mind, we also continue our efforts in fully
quantifying the known occurrence of cobalt, chrome and rhodium in
the mineralised package.
"The updated mineral resource now includes 23.138 Mt of ore in
the Measured, Indicated and Inferred categories, containing 109
million pounds of nickel and 23 million pounds of copper grading at
0.214% Ni and 0.045% Cu. At today's spot prices, we estimate the
nickel (US$4.21/lb) and copper (US$2.68/lb) credits add an
additional US$521 million to the in-situ value of the currently
declared PGM+Au resources at the Project. The significance of the
additional nickel and copper credit within the Pedra Branca ore
zone is that the incremental value of these elements will off-set
the costs of producing PGM and will accrue material profitability
upside at no additional cost. With circa US$35 million having
previously been invested in the Project, we always believed Pedra
Branca represented a unique opportunity to build a profitable mine,
and today's results only strengthen our confidence."
Further Information
Background
The Pedra Branca Project is the largest and most advanced PGM
project in South America and currently has a JORC compliant
resource of approximately 1 million ounces of PGM+Au. The Project
is located 280 km from the port city of Fortaleza in the northeast
of Brazil and holds three mining licenses and 44 exploration
licenses over an area of 55,000 ha.
Previous operators have spent more than US$35 million on
exploration and development activities, which include 30,000 metres
of diamond core drilling, geophysical surveys and metallurgical
tests. The current resources are at surface and are amenable to
shallow, open pit mining and conventional processing methods.
Mineral Resource
Block models were developed for each ore zone and the resource
was estimated using Ordinary Kriging with the results validated
with a comparative Nearest Neighbour estimation. A 0.3 g/t PGM+Au
cut-off grade was applied to the resource estimate, resulting in a
global Measured, Indicated and Inferred resource of 23.138 Mt
containing 952 koz of PGM+Au at 1.28g/t, 109 Mlbs of Ni at 0.214%
and 23 Mlbs of Cu at 0.045% (Table 1).
Table 1: Update Resource Estimate for the Pedra Branca PGM
Project.
Total
-----------------------------------------------------------------------------------------------------------------------
Zone Classification Tonnes PGM Pd Pt Au Cu Ni PGM Pd Pt Au
(kt) (g/t) (g/t) (g/t) (g/t) (%) (%) (koz) (koz) (koz) (koz)
------------ ---------------- ------- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Measured 1339 1.230 0.802 0.398 0.030 0.043 0.250 52.9 34.5 17.1 1.3
----------------------------- ------- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Indicated 3836 1.555 0.932 0.584 0.040 0.043 0.227 191.8 114.9 72.0 4.9
----------------------------- ------- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Oxide Inferred 3636 1.920 1.133 0.767 0.019 0.040 0.200 224.4 132.5 89.7 2.3
------------ ---------------- ------- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Sub Total 8811 1.656 0.995 0.631 0.030 0.042 0.219 469.1 281.8 178.8 8.5
------------------------------ ------- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Measured 698 1.255 0.831 0.404 0.020 0.052 0.224 28.2 18.6 9.1 0.4
----------------------------- ------- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Indicated 1536 1.307 0.833 0.440 0.033 0.052 0.218 64.5 41.2 21.7 1.6
----------------------------- ------- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Transition Inferred 2182 1.095 0.699 0.371 0.025 0.032 0.189 76.8 49.0 26.0 1.7
------------ ---------------- ------- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Sub Total 4416 1.195 0.767 0.400 0.027 0.042 0.205 169.6 108.9 56.8 3.9
------------------------------ ------- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Measured 949 1.482 0.973 0.487 0.022 0.049 0.266 45.2 29.7 14.9 0.7
----------------------------- ------- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Indicated 2586 1.005 0.570 0.396 0.040 0.045 0.223 83.6 47.4 32.9 3.3
----------------------------- ------- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Sulphide Inferred 6376 0.903 0.471 0.360 0.071 0.051 0.203 185.1 96.6 73.9 14.6
------------ ---------------- ------- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Sub Total 9911 0.985 0.545 0.382 0.058 0.049 0.214 313.9 173.8 121.6 18.5
------------------------------ ------- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Grand Total 23138 1.280 0.759 0.480 0.041 0.045 0.214 952.5 564.5 357.3 30.7
------------------------------ ------- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Competent Person Statement
The information in this statement which relates to the Mineral
Resource is based on information compiled by Mr Bernardo H C Viana
who is a geologist and full-time director and owner of GE21 and is
registered as a Competent Person with the Australian Institute of
Geoscientists. Mr Viana has sufficient relevant experience to the
style of mineralisation to qualify as a Competent Person as defined
in the JORC Code (2012). Mr Viana also meets the requirements of a
qualified person under the AIM Note for Mining, Oil and Gas
Companies.
Cautionary Statements
The reader is cautioned that a Mineral Resource is an estimate
only and not a precise and completely accurate calculation, being
dependent on the interpretation of the limited information on the
location, shape, and the continuity of the occurrence and the
available sampling results. Actual mineralisation can be more or
less than estimated depending upon the actual geological
conditions. Mineral Resources are not Mineral Reserves and do not
have demonstrated economic viability. No Mineral Reserves are being
stated.
* ENDS *
For further information, please visit www.jangadamines.com or
contact:
Jangada Mines plc E: info@jangadamines.com
Strand Hanson Limited (Financial T: +44 (0)20 7409
& Nominated Adviser) 3494
James Spinney / Ritchie Balmer
/ Jack Botros
Beaufort Securities (Broker) T: +44 (0)20 7382
Jon Belliss 8300
St Brides Partners LTD (Financial T: +44 (0)20 7236
PR) 1177
Isabel de Salis / Olivia Vita
This information is provided by RNS
The company news service from the London Stock Exchange
END
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