TIDMJAN
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:
o 64% increase in the Indicated category resources to 29.34
million tonnes
o 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:
o 298 Mlbs nickel ('Ni')
o 49.5 Mlbs copper ('Cu')
o 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").
*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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