TIDMJAN
RNS Number : 8282Q
Jangada Mines PLC
11 June 2018
Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector:
Mining
11 June 2018
Jangada Mines plc ('Jangada' or the 'Company')
Positive Metallurgical Tests Highlight Potential of South
America's Largest PGM Project
Jangada Mines plc, a natural resources company developing South
America's largest and most advanced platinum group metals ('PGM')
project, Pedra Branca, is pleased to announce positive results from
its recent metallurgical test work initiated to establish the
optimal process flow sheet for the recovery of precious and base
metals including chrome.
Overview
-- Results of metallurgical test work demonstrate that the
inclusion of magnetic separation could materially positively impact
the economics of the Pedra Branca PGM project in north-eastern
Brazil
-- Initial conventional test work yielded strong results in line
with open pit PGM projects in South Africa, the world's largest
regional PGM producer
-- Addition of magnetic separation increased recoveries of PGM
and yielded unexpectedly high gold and chrome grades in
pre-concentrate with samples demonstrating:
o Pre-concentrate PGM grades up to 8.1 g/t
o Average gold grades of 15 g/t, with the highest being 75.5
g/t
o Pre-concentrate chrome ('Cr(2) O(3) ') grades of 42%
-- Magnetic pre-concentration will now be incorporated into an
optimised flow sheet, expected to result in further significant
efficiencies than originally anticipated including reduced plant
size, CAPEX and OPEX
-- Economic studies expected to be completed imminently and
anticipated to positively reflect the recent 53% increase in PGM
resource to 1.45 million ounces (as announced on 15 May 2018) and
results from metallurgical tests
Brian McMaster, Chairman of Jangada Mines, said: "The potential
of this project keeps improving. These metallurgical tests not only
underline the current potential but highlight that, with the
inclusion of magnetic separation in a processing circuit, we can
significantly improve the economics of Pedra Branca. On
conventional processing, the PGM recoveries are already in line
with the world's low-cost producers' recoveries, with metal credits
including nickel, copper and cobalt adding further value. With
magnetic separation, we can raise general recovery rates and reduce
the feedstock requirements for recovery/production targets, which
in turn lowers the CAPEX and OPEX numbers. The unexpected recovery
rates from gold were a further bonus. We are now looking to include
these findings into future studies, which when finalised will
demonstrate the true potential of South America's largest PGM
project."
To view a version of the announcement which includes graphics,
please click here:
http://www.rns-pdf.londonstockexchange.com/rns/8282Q_1-2018-6-8.pdf
.
Further Information
The initial metallurgical testing, conducted in conjunction with
independent consultants, SGS Geosol Laboratorios Ltda, in Brazil,
was based on a conventional circuit, including crushing, milling
and froth flotation, which is the traditional processing route for
PGM-Nickel-Copper deposits such as Pedra Branca. Mineral samples
submitted for the flotation circuit produced recoveries for the
PGMs in line with Company's expectations and were comparative to
existing open pit PGM operations globally.
With deposits that contain elevated levels of chrome, as is the
case with Pedra Branca, an additional processing separation step is
required. Accordingly, and keeping in mind the published improved
non-PGM metal credits, the Company investigated options for
pre-concentration by magnetic separation, which yielded extremely
positive results. These results confirmed the process to be a
highly effective method for the extraction of chrome with recovery
grades of pre-concentrate chrome ('Cr(2) O(3) ') as high as 42%.
PGM grades in the magnetically separated ore also demonstrated the
potential for pre-concentration of ore before being processed by
the flotation plant with pre-concentrate PGM grades as high as 8.1
g/t, while gold recovery was similarly surprisingly high with
grades of c.15 g/t, the highest being 75.5 g/t. Notably, these
magnetic separation successes have been achieved on the low-grade
chrome intervals of the deposit; results from the higher-grade
areas are anticipated to be even more significant.
The implication of successful pre-concentration is a
significantly higher plant feed grade, which translates into
several benefits including a material reduction in potential plant
size. This in turn reduces operating cost per ounce produced as
well as a lower plant capital cost requirement. Additionally,
magnetic separation is a waterless process allowing for reduced
consumption and dependence on an important and periodically scarce
natural resource.
The initial recovery rates are highlighted in the table
below:
Final Grade Concentrates - SGS Geosol test work results and
metallurgical simulation, 2017/2018
Cleaner/Recleaner Flotation
----------------------------------------------------------------
Mass Recovery(1) Metallurgical Recovery Concentrate grade
Metal % %
------------------ ----------------------- -------------------
Platinum 1% 67% 54.4 g/t
------------------ ----------------------- -------------------
Palladium 1% 68% 105.4 g/t
------------------ ----------------------- -------------------
Gold 1% 40% 2.02 g/t
------------------ ----------------------- -------------------
Nickel 1% 26% 7.91%
------------------ ----------------------- -------------------
Copper 1% 77% 6.11%
------------------ ----------------------- -------------------
Cobalt 1% 7% 0.14%
------------------ ----------------------- -------------------
The current flowsheet design will produce a saleable chrome
concentrate (42% Cr(2) O(3) ) and a sulphide flotation concentrate
containing palladium, platinum, gold, nickel, copper and cobalt.
The current anticipated concentrate grade is 162 g/t PGM+Au, 7.91%
nickel, 6.11% copper and 0.14% cobalt. The results for the magnetic
pre-concentration will now be incorporated into the current
flowsheet, which is expected to result in further efficiencies and
material economic improvements.
The Board is working on further economic studies following the
recent resource upgrade; it hopes to publish these imminently.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
**ENDS**
For further information, please visit www.jangadamines.com or
contact:
Jangada Mines plc E: info@jangadamines.com
Strand Hanson Limited (Financial & Nominated T: +44 (0)20 7409 3494
Adviser)
James Spinney / Ritchie Balmer / Jack Botros
Brandon Hill (Broker) T: +44 (0)20 3463 5000
Jonathan Evans/Oliver Stansfield
St Brides Partners Ltd (Financial PR) T: +44 (0)20 7236 1177
Isabel de Salis/Gaby Jenner
Further Information
The Pedra Branca Project is the largest and most advanced PGM
project in South America and currently has a JORC (2012) compliant
resource of approximately 1.45 million ounces of PGM resource at a
grade of 2.37 g/t Pd Eq, 140 Mlbs of Ni 26 Mlbs of Cu and 6.7 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 licences over an area of 50,000 ha.
Previous operators have spent more than $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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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