TIDMJAN
RNS Number : 0679X
Jangada Mines PLC
18 December 2023
Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector:
Mining
18 December 2023
Jangada Mines plc ('Jangada' or 'the Company')
Investee Company Update: Fodere Titanium
Commercialising technology that extracts critical minerals from
mine tailings & primary feedstocks
Jangada Mines plc, a natural resources development company with
interests in Brazil and elsewhere, is pleased to announce an update
on critical mineral extraction technology company, Fodere Titanium
Limited ('Fodere'), in which it holds a 7.7% interest.
Highlights on the Fodere developments:
-- Groundbreaking extractive technology proven at pilot level in Zambia.
-- Technology enables the recovery of 99% of minerals from
various tailings feedstocks in a single process, significantly
reducing operational costs and benefitting the environment.
-- Engineering design of a pre-commercial 7 tonne per day
('tpd') plant in South Africa to confirm scalability of the
technology has commenced, with commissioning targeted for
mid-2024.
-- Plans for full commercial plant in place and support from an
African focused development bank, which is intending to finance the
initial commercial plant with an investment exceeding US$70
million.
-- Excellent economic potential for a plant to be constructed at Jangada's Pitombeiras vanadium titanomagnetite project in Brazil ('Pitombeiras').
-- Early testing of Pitombeiras ore delivered high recovery
levels including 86.73% TiO2, 91.19% Fe2O3, and 95.88% V2O5 (see
RNS dated 13 April 2023).
-- 25 tonnes of material from Pitombeiras awaiting shipment to South Africa to be tested in the pre-commercial plant.
-- Jangada maintains the exclusive rights for the technology in South America.
Brian McMaster, Executive Chairman of Jangada said, "Fodere
continues to make excellent progress as it looks to advance its
groundbreaking technology that extracts critical minerals from
mining waste dumps and primary materials, specifically vanadium and
titanium. It has the potential to extract high-grade titanium
dioxide and vanadium pentoxide from our own Pitombeiras vanadium
titanomagnetite project in Brazil and greatly improve the already
robust economics of the Project. With the exclusive rights to South
America, it also provides us with potential for additional revenue
through other opportunities, particularly waste dumps. We have an
excellent network in South America which we aim to utilise to enact
this process.
"I look forward to updating investors regularly on all our
projects and acquisition strategy as we look to build long term
value for shareholders."
Operational Overview from John Omitogun, Director of Fodere:
"We are pleased to provide you with an update on the progress
Fodere is making as we look to execute our strategy. Our focus
remains to delivering our first commercial critical minerals
processing plant utilising our groundbreaking proven technology,
which, as you know, extracts critical minerals, such as titanium
& vanadium from primary ores, along with tailings stockpiles.
This, in essence, turns environmental liabilities into revenue
generating assets.
"Over the past months, we have been working to implement
technical enhancements to ensure the technology is commercially
scalable. Ahead of the next investment tranche and in conjunction
with our engineering team, we have analysed the design
specifications and identified areas to optimise the process and
improve the economics. While these modifications necessitated extra
time and resources, we are confident that they will prove to be a
worthwhile investment.
"Our previous small-scale pilot plant operations have
demonstrated the success of our technology. In light of recent
optimisations and the need to thoroughly examine technical
intricacies associated with scaling, we've made the strategic
decision to construct an intermediate-sized pre-commercial facility
in South Africa, strategically located near the 12 million tonnes
of feedstock which we currently control. The establishment of this
facility is essential for gaining a comprehensive understanding of
all intricacies through the operation of a pre-commercial plant
before progressing to a larger industrial-scale commercial
facility.
"The pre-commercial plant serves a dual purpose. Firstly, it
will provide valuable insights that significantly reduce
uncertainties related to scaling up, paving the way for the
construction of a much larger commercial plant than initially
planned. Secondly, it will serve as a testing ground for a diverse
range of feedstocks, offering opportunities for training large
plant operators and potential future licensees. It is important to
emphasise that we maintain unwavering support from an African
focused development bank, which is intending to finance the initial
commercial plant in South Africa with an investment exceeding US$70
million.
"We are also pleased to announce that detailed engineering is
underway for the pre-commercial plant. This facility will have a
fully integrated semi-continuous design, capable of handling 7 tons
per day of feedstock. Costing US$2.5 million, this
pre-commercial-sized plant is on track to be commissioned and fully
operational in 2024. It marks a pivotal milestone in our journey
towards realising our objectives of achieving commercial viability
and profitability.
"We would like to emphasise the effectiveness of our technology
in today's world. As a disruptive sustainable solution, it enables
the extraction of 99% of minerals from various feedstocks through a
single process, all while adhering to a zero-waste policy. This
aligns well with the preferences of potential end users. The
growing emphasis on Environmental, Social, and Governance (ESG)
considerations, coupled with the increasing demand for
environmental solutions to manage tailings and process primary
materials, especially with regard to minimising water and power
consumption, has led to a heightened interest in our
technology.
"As we progress with our initiatives, it is essential to
initiate a capital raising effort to address the financial
shortfall for the pre-commercial plant. The board is proactively
involved in discussions with potential investors to secure the
necessary capital."
Further Information:
Jangada's original investment in Fodere was made as part of the
Board's strategy to utilise its strong treasury and expand its
exposure to commodities and technologies focussed on net zero
strategies in the natural resources arena. The Company also has a
10% interest in Blencowe Resources, which provides exposure to
graphite, the largest commodity within an EV battery.
Fodere has spent seven years developing its technology and
invested in excess of US$9.2m; with the latest funding round
implying a valuation post money of US$30m. Its 11-strong technical
team, led by co-inventors Dr Yotamu Hara and Dr Stephen
Parirenyatwa, have years of collective experience in engineering,
design, metals processing, project management, and operations
providing them with the capability to refine and commercialise this
groundbreaking technology.
Fodere's pilot-plant proven technology can extract critical
minerals, including titanium and vanadium, from a variety of
mineral and industrial waste feedstocks to turn environmental
liabilities into revenue generating assets. This unique, zero-waste
solution recycles 80% of all water and operates at under 850
degrees centigrade, which is significantly lower than traditional
processing plants that are typically at 1,100 degrees centigrade.
With a less complex flowsheet, the process can deliver increased
energy efficiencies and provide lower capital and operating
expenditure compared to other conventional processing methods.
The goal of the pre-commercial plant is to provide scaled up
engineering data that will facilitate the final design and costing
for the first full-scale commercial treatment plant. In the future,
it will become Fodere's main R&D facility allowing it to
evaluate a wide variety of feedstocks while also providing training
capabilities for large plant operators and any potential future
licensees.
On expected success of the pre-commercial plant, Fodere aims to
commence the engineering of Phase 1 of its full-scale 720,000 tonne
per annum ("tpa") plant in Q4 2024 located in the Witbank region of
South Africa. Witbank's Environmental Impact Assessment was
approved in 2022 and +25 years of titanium and vanadium rich
feedstock has been secured. Letters of Interest have also been
received from two major pigment producers for offtake
agreements.
The plant at Witbank will be constructed in two phases. Phase 1
will have a 120,000 tpa processing capacity . The 12 million tonnes
of feedstock already secured is estimated to garner annual
production of 36,000 tonnes of titanium dioxide, 1,000 tonnes of
vanadium pentoxide, 14,000 tonnes of alumina and 12,000 tonnes of
magnesium. Ratios of product to input slag are very favourable with
breakeven at 40% of forecast capacity translating into a low-cost,
economically viable operation with a rapid payback.
Phase 2 will have a targeted processing capacity of 600,000 tpa,
five times more feedstock per annum than Phase 1. Depending on
market demand, annual production is estimated to be 192,000 tonnes
of Titanium Dioxide, 5,000 tonnes Vanadium Pentoxide, 52,000 tonnes
of Magnesium and 61,000 tonnes of Alumina. Preliminary funding
discussions have commenced with export credit agencies that
understand the environmental and financial benefits of the
technology, as well as the abovementioned African focused
development bank. Funding discussions on the commercial plant are
subject to, inter alia, definitive documentation being agreed.
Jangada aims to utilise Fodere's technology to improve the
economic potential of Pitombeiras. Encouragingly and as reported,
initial test work on five samples delivered high recovery levels
including 86.73% TiO2, 91.19% Fe2O3, and 95.88% V2O5 (see RNS dated
13 April 2023).
Material totalling 25 tonnes from Pitombeiras is awaiting
shipment to be tested in the pre-commercial plant. This will enable
the team to finalise a commercial flowsheet and provide in-depth
economics for a Preliminary Economic Assessment focussed on the
extraction of TiO2, V2O5 and iron. The material is awaiting permits
for it to be shipped from Brazil to South Africa; Fodere is
currently finalising the relevant permits.
Beyond the potential transformative benefits to Pitombeiras,
Jangada has the rights to the technology in South America where it
envisages it can be applied to waste dumps returning to Fodere's
initial strategy to turn mining liabilities into assets. The
Jangada team has wider experience of operating in South America and
identifying assets that can be developed. Board member Luis Azevedo
identified both the Pitombeiras asset as well as the Luanga
PGM+Au+Ni Project for Bravo Mining Corp (TSX:BRVO).
**ENDS**
For further information please visit www.jangadamines.com or
contact:
Jangada Mines plc Brian McMaster Tel: +44 (0) 20 7317
6629
Strand Hanson Limited Ritchie Balmer Tel: +44 (0)20 7409 3494
(Nominated & Financial James Spinney
Adviser)
Tavira Securities Jonathan Evans Tel: +44 (0)20 7100 5100
Limited
(Broker)
St Brides Partners Ana Ribeiro jangada@stbridespartners.co.uk
Ltd Isabel de Salis
(Financial PR)
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END
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