Pitombeiras Project Update

RNS Number : 3235W

Jangada Mines PLC

21 December 2021

 

Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector: Mining

21 December 2021

Jangada Mines plc ('Jangada' or 'the Company')

Pitombeiras Project Update

Jangada Mines plc, a natural resources company, is pleased to provide an update on the preparation of the Feasibility Study ('FS') of the Pitombeiras Ferrovanadium Project located in the state of Ceará, Brazil ('Pitombeiras' or 'the Project').

As previously announced, the scope for the FS was to evaluate the opportunities to construct a low CAPEX direct shipping ore ("DSO") mining operation focused on the extraction of iron ore with high vanadium content. GE21, the company contracted to conduct the FS, has completed all aspects of the FS scope except for the chapter relating to project economics.  Results of the study by GE21 have identified an opportunity for Jangada to potentially benefit from extracting additional value from the titanium dioxide present at the Project.   Considering the current National Instrument 43-101 compliant resource estimate for Pitombeiras is 5.70 million tonnes ('Mt') at an average grade of 0.51% vanadium pentoxide ('V2O5'), 10.09% titanium dioxide ('TiO2') and 50.42% of ferric oxide ('Fe2O3'), the Board, following recommendation from GE21, believe the ability to extract the TiO2 could increase the positive impact on the long-term value of the Project.

With this background and given the rising demand for TiO2 due to its increasing use in renewable energy technologies including electric batteries, as well as the decline in the iron ore price since the publication of the Pre-Feasibility Study, the Board believes that it is prudent to invest further in the evaluation of the TiO2 component; accordingly, the publication of the FS is now anticipated to be in Q1 2022.  All other aspects of the FS have concluded that the Project is technical and geologically capable of proceeding as anticipated.

The Company recognises the importance of commodities focussed on the renewable energy sector and to that end, its existing vanadium pentoxide and titanium dioxide resources are highly sought in the rapidly emerging "battery metals" space.  Given the global importance of this sector for the future, in addition to progressing Pitombeiras, the Company, as previously announced, has also invested in innovative metallurgical processing company, Fodere Titanium Group. Additionally, the Company maintains an active watching brief for other synergistic opportunities that may supplement the existing asset suite.

Brian McMaster, Executive Chairman of Jangada, said : "As the FS reaches finalisation, it is very encouraging to confirm we have no technical or geological impediments to proceeding.  The economics of the Project are, as expected, dependant on the commodity process and the extraction of the right commodity basket. On the advice of GE21, we are assessing the potential of the titanium component of the Project to positively impact its economics.  This, together with the pricing variabilities in the iron ore and vanadium prices, has pushed back the completion date of the FS to Q1 2022.  

"We are becoming increasingly linked to the positive battery metal market dynamics: we are invested in Fodere Titanium Group, which has developed innovative commercial processes to extract titanium dioxide, vanadium pentoxide and other valuable products from low-grade ores and waste stockpiles; and we are coming across other development opportunities in the sector that have the potential to be synergistic and value accretive.  With a strong balance sheet, we are in a position to progress our existing assets and take advantage of opportunities that arise."  

"We would like to wish all our shareholders a very happy Christmas and prosperous New Year."

**ENDS**

For further information please visit www.jangadamines.com or contact:

Jangada Mines plc	Brian McMaster (Chairman)	Tel: [phone]
Strand Hanson Limited (Nominated & Financial Adviser)	James Spinney Ritchie Balmer	Tel: [phone]
Brandon Hill Capital (Broker)	Jonathan Evans Oliver Stansfield	Tel: [phone]
St Brides Partners Ltd (Financial PR)	Isabel de Salis Oonagh Reidy	E: [e-mail]

 

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