REPLACEMENT: Cobalt & Chrome By-Product Credits

RNS Number : 2033O

Jangada Mines PLC

16 August 2017

 

A number of amendments have been made to the 'High Value JORC Compliant Cobalt and Chrome Resources Confirmed For the Pedra Branca Platinum Group Metals Project' announcement released on 16 August 2017 at 7.00am under RNS No 1264O.

The in-situ values "of approximately USD700 million or USD33 a tonne" included in the original announcement were not based on the requirements of the JORC (2012) Code but were based on management estimates and as such, to avoid confusion, have been removed.  In addition, the JORC compliant resource has been amended to "670kt" Cr from "600kt" Cr.

The full amended text is shown below.

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

16 August 2017

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

High Value JORC Compliant Cobalt and Chrome Resources Confirmed

For the Pedra Branca Platinum Group Metals Project

Jangada Mines plc, a natural resources company developing South America's largest and most advanced platinum group metals ('PGM') project, is pleased to announce an updated JORC (2012) compliant resource estimate at the Company's Pedra Branca PGM project ('the Project') in Ceará State, north-eastern Brazil, which now includes cobalt and chrome by-product credits.

Overview

·     Global resources now include 1 million ounces of PGM+Au, 109 Mlbs of nickel, 23 Mlbs of copper, 6.4 Mlbs of cobalt and 670kt of chrome

·     Global resource grade increased by 93% to 2.5 g/t from 1.3 g/t palladium equivalent ('PdEq')

·     Contributions from by-product credits, including cobalt, chrome, nickel, and copper, add an additional in-situ value

·     Subject to metallurgy, credits may significantly offset the cost of production leading to enhanced profitability

Brian McMaster, Executive Chairman of Jangada said, "The additional cobalt and chrome credits follow on the heels of the extra nickel and copper credits and translate into significant additional potential value to be unlocked at Pedra Branca.  Our current global resources now include 1 million ounces of PGM+Au, 109 Mlbs of nickel, 23 Mlbs of copper, 6.4 Mlbs of cobalt and 670kt of chrome.  We have now commenced metallurgical test work to understand the optimum extraction process for these metals as part of the PFS, which we expect will demonstrate the strong economics of the Project.

"We have what we believe to be a highly valuable asset.  Our plan remains to work towards the commencement of trial mining and then commercial production at an initial rate of 30,000 ounces PGMs per annum within 12-18 months."

Further Information

The Pedra Branca Project is the largest and most advanced PGM project in South America and currently has a JORC compliant resource of approximately 1 million ounces of PGM+Au at a grade of 2.46 g/t Pd Eq, 109 Mlbs of Ni and 23 Mlbs of Cu, 6.4 million pounds of Co and 670k tonnes of Cr.  The Project is located 280 km from the port city of Fortaleza in the northeast of Brazil and consists of three mining licenses and 44 exploration licenses over an area of 55,000 ha.

Previous operators have spent more than USD35 million on exploration and development activities, which include more than 30,000 metres of diamond core drilling, geophysical surveys and metallurgical tests. The current resources are at surface and Jangada is currently preparing a pre-feasibility study assuming shallow open pit mining and conventional processing methods.

As a continuation of the resource estimation work already conducted, GE21 Consultoria Mineral ("GE21") has considered the potential for further by-product credits relating to additional minerals.  This work has resulted in a substantial increase in the resource estimation as follows.

Cobalt

The resource upgrade identifies substantial cobalt credits.  Based on drilling to date, which includes more than 30,000 metres of diamond drilling, the identified cobalt resource is approximately 6.4 million pounds at a grade of 0.013% Co.  At current cobalt prices, this represents a potential in-situ increase to the ore value, subject to, inter alia, recovery rates. The addition of the cobalt by-product credits represents a substantial increase in the PdEq for the Project as summarised below:

·     Global resource grade increased by 93% to 2.5 g/t from 1.3 g/t PdEq

o  Curiú oxide deposit grade increased by 77% to 3.9 g/t from 2.2 g/t PdEq

o  Esbarro deposit grade increased by 83% to 2.2 g/t from 1.2 g/t PdEq

Chrome

GE21 has also upgraded the resource estimate to account for chrome by-products, which includes the confirmation of localised higher-grade ('Type 2') chrome horizons within the PGM ore zones.   Based on the drilling to date, which includes more than 30,000 metres of diamond drilling, the identified Type 2 chrome resource is approximately 670kt at an average 8% Cr₂O₃ plus an additional JORC (2012) compliant exploration target of between 600kt and 1.2mt grading 5% to 10% Cr₂O₃.

Overall Potential

The Project currently has a JORC (2012) compliant resource of approximately 1 million ounces of PGM+Au with additional by-product credits totalling 109 Mlbs of Ni, 23 Mlbs of Cu, 6.4 million pounds of cobalt and 670k tonnes of chrome.  These offer significant additional upside opportunity to the already existing PGM+Au.

Jangada's ability to access the value from these by-products will depend on the recovery rates identified from the metallurgy test work.  Previous bench scale flotation work has demonstrated that the ore is amenable to milling and floating.  Current test work will produce an optimised processing flow sheet to extract maximum value from the ore.  The Company will further investigate the option to extract chrome by conventional physical separation such as gravity, dense media or magnetic separation.

Pedra Branca Project - Grade Tonnage Table Pedra Branca Deposit: Total Aggregated Mineral Resource Considered Equivalent Gold Cut-Off Grade: 0.30 g/t
	Resource	Cr2O3 Level	Tonnes (kt)	PGM (g/t)	Pd (g/t)	Pt (g/t)	Au (g/t)	Cu (%)	Ni (%)	Cr2O3 (%)	Co (ppm)	PGM (koz)	Pd  (koz)	Pt  (koz)	Au  (koz)
Oxide	Measured	Type 2	27	1.008	0.636	0.361	0.011	0.051	0.225	6.238	131.3	0.89	0.56	0.32	0.01
		Type 1	1 311	1.235	0.806	0.399	0.030	0.043	0.251	0.635	137.9	52.04	33.96	16.81	1.26
	Indicated	Type 2	204	2.498	1.547	0.901	0.050	0.038	0.204	7.886	123.4	16.40	10.16	5.92	0.33
		Type 1	3 630	1.479	0.887	0.554	0.038	0.044	0.228	0.608	130.1	172.62	103.5	64.60	4.49
	Inferred	Type 2	208	1.940	1.069	0.836	0.036	0.033	0.220	7.527	121.9	13.00	7.16	5.60	0.24
		Type 1	3 427	1.919	1.137	0.763	0.019	0.041	0.199	0.875	124.7	211.42	125.2	84.08	2.05
Sub			8 808	1.647	0.991	0.626	0.030	0.042	0.219	1.066	128.3	466.38	280.6	177.3	8.38
Transition	Measured	Type 2	53	1.854	1.061	0.763	0.030	0.049	0.220	19.4	149.6	3.14	1.80	1.29	0.05
		Type 1	645	1.207	0.812	0.375	0.020	0.053	0.225	0.560	136.2	25.02	16.83	7.77	0.41
	Indicated	Type 2	21	1.650	0.807	0.813	0.030	0.043	0.213	10.2	125.4	1.13	0.55	0.56	0.02
		Type 1	1 513	1.303	0.834	0.435	0.033	0.052	0.218	0.538	126.7	63.39	40.59	21.18	1.62
	Inferred	Type 2	74	1.114	0.655	0.404	0.055	0.029	0.193	5.671	124.1	2.64	1.55	0.96	0.13
		Type 1	2 107	1.096	0.701	0.370	0.024	0.031	0.189	0.416	114.4	74.23	47.52	25.09	1.62
Sub			4 414	1.195	0.767	0.401	0.027	0.042	0.205	0.842	122.4	169.56	108.8	56.85	3.86
Sulphide	Measured	Type 2	14	1.170	0.708	0.439	0.023	0.040	0.242	11.74	142.2	0.54	0.33	0.20	0.01
		Type 1	935	1.486	0.977	0.487	0.022	0.049	0.267	0.916	144.2	44.66	29.36	14.64	0.66
	Indicated	Type 2	2	0.805	0.597	0.199	0.009	0.046	0.243	8.061	142.4	0.04	0.03	0.01	0.00
		Type 1	2 567	0.999	0.566	0.394	0.039	0.045	0.223	0.494	128.2	82.48	46.6	32.55	3.25
	Inferred	Type 2	61	1.582	0.805	0.665	0.111	0.061	0.221	5.092	137.8	3.13	1.59	1.31	0.22
		Type 1	6 314	0.896	0.468	0.357	0.071	0.051	0.203	0.635	125.9	181.86	95.05	72.49	14.31
Sub			9 893	0.983	0.544	0.381	0.058	0.049	0.214	0.670	128.3	312.70	173.5	121.2	18.45
Grand Total			23 114	1.28	0.76	0.48	0.04	0.05	0.21	0.85	127.1	948.64	562.5	355.3	30.70

Competent Person Statement

The information in this statement which relates to the Mineral Resource is based on information compiled by Mr Bernardo H C Viana who is a geologist and full-time director and owner of GE21 and is registered as a Competent Person with the Australian Institute of Geoscientists. Mr Viana has sufficient relevant experience to the style of mineralization to qualify as a Competent Person as defined in the JORC Code (2012). Mr Viana also meets the requirements of a qualified person under the AIM Note for Mining, Oil and Gas Companies.

Cautionary Statements

The reader is cautioned that a Mineral Resource is an estimate only and not a precise and completely accurate calculation, being dependent on the interpretation of the limited information on the location, shape, and the continuity of the occurrence and the available sampling results. Actual mineralisation can be more or less than estimated depending upon the actual geological conditions. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.  No Mineral Reserves are being stated.

* ENDS *

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

Jangada Mines plc	E: [e-mail]
Strand Hanson Limited (Financial & Nominated Adviser) James Spinney / Ritchie Balmer	T: [phone]
Beaufort Securities (Broker) Jon Belliss	T: [phone]
St Brides Partners LTD (Financial PR) Hugo de Salis / Charlotte Heap	T: [phone]

This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No 596/2014.

 

END

 

 

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