TIDMJAN
RNS Number : 6114P
Jangada Mines PLC
04 September 2017
Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector:
Mining
4 September 2017
Jangada Mines plc ('Jangada' or the 'Company')
Positive Progress Update and Cost Savings
Jangada Mines plc, a natural resources company developing South
America's largest and most advanced platinum group metals ('PGM')
project, is pleased to provide an update on its activities at the
Pedra Branca Project (the 'Project'), located in north-eastern
Brazil, since successfully being admitted to trading on AIM (the
'IPO') in June 2017.
During the approximate eight weeks since the IPO, Jangada has
substantially progressed a number of work streams. An update on the
progress of these various work streams follows:
Resource Upgrades
As announced on 11 July and 16 August, Jangada has recorded
substantial and important increases to its JORC (2012) compliant
resource estimate. Jangada now records, in addition to the PGM +
Au, an attractive suite of by-product credits, including nickel,
copper, cobalt and chrome. It is envisaged these by-products will
contribute considerably to both the in-situ value of the resource
and the expected revenue from metal sales.
Scoping Study and Pre-Feasibility Study (PFS)
Jangada has recently engaged GE21 Consultoria Mineral ('GE21')
based in Belo Horizonte, Minas Gerais, Brazil to prepare an interim
Scoping Study followed by a Pre-Feasibility Study ('PFS'). The
parameters of the Scoping Study are to address the following to a
tolerance level of +/-25%:
-- Pit Optimisation;
-- Mine Scheduling;
-- Intermediate End-of-Period designs;
-- Economic Analysis, including discounted cash flow, sensitivities, CAPEX and OPEX
The Scoping Study is currently on schedule and is expected to be
available for release in mid Q4 2017. Following the Scoping Study,
GE21 will finalise a PFS which will include those matters addressed
above but to a tolerance level of +/-15%. The PFS is expected to be
completed by late Q4 2017.
Process Metallurgy Tests
SGS Laboratories in Vespasiana, Minas Gerais, Brazil has been
commissioned to perform the process metallurgical test work.
Representative drill core samples (250kg) from the Project's
current mining targets have recently been submitted to SGS for
analysis and interpretation. The purpose of the metallurgical test
work is to optimise the milling and flotation conditions and
develop an ore-type specific processing regime which will inform
plant design and input parameters.
The Company expects to receive the first results from this test
work in early Q4 2017.
Departamento Nacional de Produção Mineral ('DNPM') Visit
Personnel from the DNPM, the Brazilian mining regulator,
attended the Project site over 26-27 July 2017. The purpose of the
scheduled visit was for the Company to present its proposed work
programme and for the DNPM officials to be informed directly about
current and expected progress. The Company can confirm that the
visit was a success and the Company maintains a supportive working
relationship with the DNPM.
Licensing
The Company has identified that it is now likely to undertake a
period of trial mining in early 2018, which is significantly ahead
of the schedule outlined in the Company's AIM Admission Document
dated 23 June 2017. In anticipation of this, the Company has
commenced the application process for a trial mining permit and
associated environmental permit. The Company expects to lodge these
applications during Q4 2017 and will update the market
accordingly.
Other Studies
In addition to the Scoping Study and PFS, the Company has also
commenced additional studies. A hydrogeology study has commenced
with the intention of understanding and quantifying the known
regional groundwater sources at Pedra Branca. The study will be a
key input into the PFS and the environmental permit application
process. This study is expected to be competed in mid Q4 2017.
Additionally, a geotechnical study has been initiated to
determine the geotechnical parameters of the proposed pit
environment. The outcomes of this study will feed into the PFS and
will inform the pit designs and assist pit and waste stripping
optimisation.
Drilling Programme
The Company identified in its Admission Document that it
estimated a total of US$470,000 would be required to "Undertake
infill drilling exploration programme". It was envisaged that this
programme would be required to provide drilling data for the
Scoping Study and PFS. Subsequently, in conjunction with GE21, the
Company has identified that the quantity and quality of the
historical drilling is sufficient for the purposes of both the
Scoping Study and the PFS and accordingly, the costs associated
with this drilling programme will not be expended at this time.
Brian McMaster, Executive Chairman of Jangada said, "It has been
only eight weeks since Jangada's successful IPO and oversubscribed
fund raising. Given the depth and quality of the data set owned by
Jangada as a result of the circa $30 million of historical
expenditure, the team have been able to progress critical work
streams at a significant pace as well as realising substantial cost
savings of $470,000. We expect this work to culminate in a PFS
sometime around year end and from that platform we expect to move
into trial mining and mine development during early 2018 which is
well ahead of schedule. There is a lot of work to be done and we
have set aggressive schedules but we are confident in progressing
as planned. We look forward to updating shareholders as we
progress."
*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
Beaufort Securities (Broker) T: +44 (0)20 7382
Jon Belliss 8300
St Brides Partners LTD (Financial T: +44 (0)20 7236
PR) 1177
Hugo de Salis / Olivia Vita
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 million ounces of PGM+Au at a grade of
2.14 g/t Pd Eq, 109Mlbs of Ni and 23Mlbs of Cu. The project is
located 280km from the port city of Fortaleza in the northeast of
Brazil and holds three mining licenses and 44 exploration licences
over an area of 55 000ha.
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 company news service from the London Stock Exchange
END
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