TIDMJAN
RNS Number : 4809D
Jangada Mines PLC
10 October 2018
Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector:
Mining
10 October 2018
Jangada Mines plc ('Jangada' or the 'Company')
High Grade Nickel together with Copper Sulphide and Cobalt
Mineralisation Identified
Jangada Mines plc, a natural resources company developing South
America's largest and most advanced platinum group metals ('PGM')
project, is pleased to announce that it has identified significant
nickel and copper sulphide anomalies at its Pedra Branca PGM
project ('Pedra Branca' or 'the Project') in north-eastern Brazil,
which could positively impact its already robust economics.
Overview
-- High-grade economic nickel and copper sulphide mineralisation
identified immediately beneath the existing PGM and base metal
resource
-- Grades include:
o 2.65% Ni, 0.86% Cu and 0.13% Co over 0.3m at 55m depth
o 1.65% Ni, 1.5% Cu and 0.1% Co over 1.8m at 47.2m depth
o 2.30% Ni over 1.0m at 90m depth
o 1.01% Ni over 1.0m at 84m depth
o 102 core intersections with nickel grades ranging from 0.5% to
1.0%
-- Newly identified mineralisation, in proximity to the planned
PGM open pit operation, could enhance the already strong project
economics: potential net present value ('NPV') of US$192 million,
Internal Rate of Return ('IRR') of 67% and 1.6-year payback
-- Commissioned independent nickel and copper maiden JORC
resource estimate to be published in Q4, 2018
-- Strong market fundamentals for nickel and copper due to
decreasing supply and increased demand from new battery
technologies
Brian McMaster, Chairman of Jangada, said: "The identification
of economic grade nickel and copper sulphide immediately beneath
the existing PGM resource clearly demonstrates the potential of
Pedra Branca to become a pre-eminent global polymetallic
operation.
"The nickel price has strong long-term fundamentals and has
shown resilience in the recent few months, where commodity prices
have been impacted by global politics. There is growing demand for
nickel from the stainless-steel market, and the emerging EV battery
sector, and inventories are coming under increasing pressure to
satisfy this demand.
"The initial maiden resource estimate that has been commissioned
will confirm the current project metrics and scale, in addition to
highlighting the potential to expand on the existing base metal
resources at the Project. As shown in the Preliminary Economic
Assessment ('PEA') announced in June, our PGM resource already has
very robust economics. High-grade nickel, which can be mined from
the same shallow open pits as planned for the PGM horizon, is a
potential game-changer that could further enhance these
economics."
Further Information
The occurrence of nickel at the Project has been recorded over
several years by various operators. Its PGM and nickel-copper
resources are hosted by a paleo-proterozoic, tabular-shaped
ultramafic body known as the Troia Unit; most of the world's
high-grade nickel deposits occur in such a geological context.
The distribution of anomalous nickel intersections indicate at
least five potential targets, all of which are associated with
geophysical magnetic anomalies and coincident with the known PGM
deposits at the Project. The majority of nickel anomalies currently
identified are located in the region of the Cedro, Esbarro and
Curiu deposits. The Company's independent consultants have
indicated that there is potential to increase the current nickel
resources.
A number of high-grade nickel and copper drill hole
intersections display the occurrence of massive and disseminated
mineralisation at the base of the ultramafic unit, similar to other
global nickel deposits. These intersections include the following
drill holes:
-- RW014: 2.65% Ni, 0.86% Cu and 0.13% Co over 0.3m at 55m depth;
-- CD50: 1.65% Ni, 1.5% Cu and 0.1% Co over 1.8m at 47.2m depth;
-- PBE05: 2.30% Ni over 1.0m at 90m depth; and
-- PBE11: 1.01% Ni over 1.0m at 84m depth.
Additionally, the database contains 102 other drill hole core
samples with nickel grades between 0.5%
and 1.0%.
Pedra Branca 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+Au at a grade of 1.3g/t
PGM+Au (2.5 g/t Pd Eq), 140 million pounds of nickel, 26 million
pounds of copper and 6.7 million pounds of cobalt.
The Project is located 280 km from the port city of Fortaleza in
the northeast of Brazil and holds three mining licenses and 42
exploration licenses over an area of 50,000 hectares. Previous
operators have spent more than $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 Jangada is currently preparing a
pre-feasibility study assuming shallow open pit mining and
conventional processing methods.
Grade Tonnage Table - Pedra Branca Deposit - Mineral Resources
Block Model: 20m X 20m X 2m (5m X 5m X 0.5m)
Equivalent Gold Cut-Off Grade: 0.30 g/t
Cedro Tonnes PGM Pd Pt Au Cu Ni Cr2O3(%) Co PGM Pd Pt Au
(kt) (g/t) (g/t) (g/t) (g/t) (%) (%) (g/t) (koz) (koz) (koz) (koz)
---------
Indicated 3 798 1.066 0.665 0.383 0.018 0.043 0.196 0.789 118.73 130.2 81.2 46.8 2.2
--------------------- ------- ------ ------ ------ ------ ------ ------ --------- -------- ------ ------ ------ ------
Inferred 2 003 1.522 0.934 0.569 0.019 0.032 0.179 0.812 109.40 98.0 60.2 36.6 1.2
--------------------- ------- ------ ------ ------ ------ ------ ------ --------- -------- ------ ------ ------ ------
Curiu Measured 1 061 2.091 1.043 0.957 0.091 0.038 0.218 1.156 130.123 71.3 35.6 32.6 3.1
---------
Indicated 382 2.046 1.035 0.893 0.119 0.037 0.199 2.382 122.121 25.1 12.7 11.0 1.5
------- ------ ------ ------ ------ ------ ------ --------- -------- ------ ------ ------ ------
Inferred 37 2.967 1.550 1.294 0.123 0.056 0.206 2.099 109.791 3.5 1.8 1.5 0.1
------- ------ ------ ------ ------ ------ ------ --------- -------- ------ ------ ------ ------
Esbarro Measured 2 985 1.316 0.863 0.428 0.025 0.047 0.249 1.145 139.677 126.3 82.8 41.1 2.4
---------
Indicated 7 126 1.206 0.771 0.405 0.031 0.047 0.227 0.600 128.516 276.3 176.6 92.8 7.1
------- ------ ------ ------ ------ ------ ------ --------- -------- ------ ------ ------ ------
Inferred 495 0.996 0.549 0.424 0.023 0.056 0.178 0.276 109.553 15.9 8.7 6.7 0.4
------- ------ ------ ------ ------ ------ ------ --------- -------- ------ ------ ------ ------
Trapia Indicated 2 529 1.113 0.639 0.422 0.052 0.055 0.216 0.910 133.035 90.5 52.0 34.3 4.2
---------
Inferred 2 717 1.320 0.605 0.616 0.099 0.045 0.202 1.184 122.955 115.3 52.9 53.8 8.6
--------------------- ------- ------ ------ ------ ------ ------ ------ --------- -------- ------ ------ ------ ------
Santo
Amaro Inferred 11 380 1.360 0.650 0.690 0.020 0.010 0.120 0.710 105.870 497.0 237.0 252.0 7.0
---------
Total Meas+Ind 17 881 1.252 0.767 0.450 0.036 0.047 0.221 0.846 128.898 719.7 440.9 258.6 20.5
---------
Inferred 16 632 1.366 0.676 0.657 0.033 0.020 0.142 0.790 109.205 729.7 360.6 350.7 17.4
--------------------- ------- ------ ------ ------ ------ ------ ------ --------- -------- ------ ------ ------ ------
Competent Person Statement
The technical information in this statement is based on
information compiled by Mr. Bernardo Horta Cerqueira Viana who is a
geologist and full-time director and owner of GE21 and is
registered as a Competent Person with the MAIG. Mr Viana has
sufficient relevant experience to the style of mineralization 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.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014. Upon the publication of
this announcement, this inside information is now considered to be
in the public domain.
S
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 James Spinney Tel: +44 (0)20 7409
(Nominated & Financial Ritchie Balmer 3494
Adviser) Jack Botros
Brandon Hill Capital Jonathan Evans Tel: +44 (0)20 3463
(Broker) Oliver Stansfield 5000
St Brides Partners Isabel de Salis Tel: +44 (0)20 7236
Ltd Gaby Jenner 1177
(Financial PR)
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END
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