Jangada Mines PLC Study Identifies Export Routes, Vanadium Project (1777T)
November 13 2019 - 1:00AM
UK Regulatory
TIDMJAN
RNS Number : 1777T
Jangada Mines PLC
13 November 2019
Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector:
Mining
13 November 2019
Jangada Mines plc ('Jangada' or the 'Company')
Logistic Study Identifies Export Routes for Pitombeiras Vanadium
Project
Jangada Mines plc, a natural resources company, is pleased to
announce the positive conclusions from a logistic study
commissioned by the Company to assess possible routes to market for
the products extracted from its Pitombeiras Vanadium Project ('the
Project') located in the state of Ceará, Brazil. To view the
announcement with illustrative maps and diagrams please follow this
link -
http://www.rns-pdf.londonstockexchange.com/rns/1777T_1-2019-11-12.pdf
Overview
-- Three potential routes for ore identified;
o Two to Main Chinese Ports (MCP) - Fortaleza seaport as
embarkation point being the most cost effective with estimated at
US$84.64/wet metric ton (wmt); and
o One to the Brazil-based Companhia Siderurgica de Pecém (CSP)
refinery with an estimated cost at US$36.00/wmt.
-- Study considered an estimated initial production of 300kt of
V(2) O(5) concentrate increasing to 600kt of V(2) O(5)
concentrate.
-- The costs/wmt underlines the competitive nature of high-grade vanadium deposit.
-- The study will form part of a Preliminary Economic Assessment
("PEA"), which the Company is currently in the process of
preparing.
Brian McMaster, Chairman of Jangada, said: "The logistic
analysis has demonstrated that Pitombeiras is well located to reach
overseas markets through both the Pecém and Fortaleza seaports in
Ceará state, which are within the Ceará Free Trade Zone, an
industrial free trade area for exporting companies' facilities.
Importantly, they provide tax and exchange benefits, and simplified
administrative procedures, which positively impact the product's
selling margins and bring additional competitive advantages to
Jangada."
Details
C. Steinweg Handelsveem Latin America S.A. was commissioned by
Jangada to prepare an initial analysis of the most favourable
logistical routes for the vanadium product from the Pitombeiras
Project on the basis of an estimated production of 300kt of V(2)
O(5) concentrate in 2020, increasing to 600kt of V(2) O(5)
concentrate in 2022. The objective of the initial analysis was to
identify competitive logistic alternatives and provide indicative
costs for the logistics Ex- Works ('EXW') from the Project to the
ports of destination ('POD').
The analysis indicated three potential routes for the
Pitombeiras ore, two of them considering the Main Chinese Ports
('MCP') as a final destination and the other the Brazil-based
Companhia Siderurgica de Pecém ('CSP') refinery as a final
destination.
The total indicative costs (ground and ocean costs) to transport
the Pitombeiras ore from the Project to the MCP using the Fortaleza
seaport have been estimated at US$ 84.64/wet metric tonne (wmt).
Using the Pecem seaport as an alternative route, the total
indicative costs have been estimated at US$ 90.02/wmt. The study
demonstrated that the route using the Fortaleza seaport is the
cheapest option, considering the MCP as a final destination.
In addition, the total indicative costs considering the CSP as a
final destination have been estimated at US$ 36.00/wmt, which only
involves ground transportation using trucks.
The map and tables below illustrate the path and distance
utilising federal highways from the Project to the major seaports
in Ceará State, including Pecém and Fortaleza, as well as the
option to transport the ore directly to CPS - located nearby to
Pecém. CPS is a steel company owned by the South Korean companies
Dongkuk Steel, Posco (NYSE: PKX) and Brazilian mining company Vale
(NYSE: VALE).
Figure 1: Pitombeiras Project location in relation to main
seaports at Ceará State. - see PDF
Table 1: Ground transportation distances considered in the
initial analysis.
Route Origin Destination Distance Transport
Mode
----------
A Pitombeiras Pecém 352 km Truck
Project
------ ------------ ------------ --------- ----------
B Pitombeiras Fortaleza 333 km Truck
Project
------ ------------ ------------ --------- ----------
C Pitombeiras CSP 349 km Truck
Project
------ ------------ ------------ --------- ----------
Table 2: Three potential routes for the Pitombeiras vanadium
ore.
Option Potential Routes Truck Transport Details
Pitombeiras Project
-------------------------------
A Pitombeiras Project Bulk Truck to Pecém ->
-> Pecém Storage at the Port ->
Loading into Vessels
-> Ocean Transport to
MCP
------- --------------------- ---------------- -------------------------------
B Pitombeiras Project Bulk Truck to Fortaleza ->
-> Fortaleza Storage at the Port ->
Loading into Vessels
-> Ocean Transport to
MCP
------- --------------------- ---------------- -------------------------------
C Pitombeiras Project Bulk Truck to Companhia Siderurgica
-> CSP de Pecém (CSP)
------- --------------------- ---------------- -------------------------------
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.
ENDS
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 David Penson 1177
(Financial PR)
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
UPDBRBDBDGBBGCD
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