Resources Increase at Pedra Branca PGM Project

RNS Number : 0229O

Jangada Mines PLC

15 May 2018

 

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

15 May 2018

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

Substantial Resources Increase at Pedra Branca PGM 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 a substantial increase of the JORC compliant mineral resources at its Pedra Branca PGM project ('Pedra Branca' or 'the Project') in north-eastern Brazil, which enhances the already positive economics of the Project.

Overview

·     Independently assessed, substantial JORC resource increases across commodity basket

o  50% increase in global ore volume to 34.5 million tonnes at 1.3 g/t PGM+Au

o  53% increase in PGM resource to 1.45 million ounces

o  28% increase in nickel resource to 140 million pounds

o  11% increase in copper resource to 26 million pounds

o  4% increase in cobalt resource to 6.7 million pounds

·     Increase in resources obtained from the inclusion of the Santo Amaro prospect to inferred resources

·     Six more known targets to be evaluated across the 50,000-hectare licence, providing the potential for additional major upside in future resource figures

·     Metallurgical test work results expected soon closely followed by the publication of further technical assessment

·     Scale, polymetallic nature and jurisdiction, increase wider industry importance of Pedra Branca

Brian McMaster, Executive Chairman of Jangada, said: "The increase in the JORC resource by half a million ounces of PGMs and the strengthening of major base metal credits including nickel, copper and cobalt, all significant commodities in the electric battery economy, are expected to have a major material impact on the already positive economics of Pedra Branca.  Importantly, we have a further six known targets to explore which, with the overall district expansion potential, translates to Pedra Branca being potentially much larger and of significantly greater value than originally anticipated.

"With the increase in scale and the realisation of significant base metal credits, we have been working hard to understand the Project's true potential and its optimal development path.  Metallurgical test work including flow sheets will be published imminently, which will be closely followed by the publication of further technical assessment.

"We believe this is an industry important project given that it's not located in the increasingly expensive, and geopolitical turbulent, historical areas of PGM exploitation; and it has scale, grade and credits.  We are therefore excited about its development path and look forward to quantifying further value, which has already been transformed since listing." 

Further information on the Project and resource upgrade

Pedra Branca is the largest and most advanced PGM project in South America, located 280 km from the port city of Fortaleza in the northeast of Brazil and holding three mining licences and 43 exploration licences over an area of 50,000 hectares.  Following the evaluation of the Santo Amaro prospect, the JORC (2012) compliant resource has been increased to approximately 1.45 million ounces of PGM+Au at a grade of 1.3g/t PGM+Au (2.5 g/t Pd Eq), 140 million pounds of nickel, 26 million pounds of copper and 6.7 million pounds of cobalt.  Importantly, the Company has six more known targets across the licence providing the potential for additional major upside in future resource figures. 

Please see the below table, prepared by independent consultants, GE21 Consultoria Mineral Ltda ("GE21"), for a breakdown of the resources by prospect and category at the Project.

Grade Tonnage Table - Pedra Branca Deposit - Mineral Resources

Block Model: 20m X 20m X 2m (5m X 5m X 0.5m)

Equivalent Gold Cut-Off Grade: 0.30 g/t

Cedro Tonnes (kt) PGM (g/t) Pd (g/t) Pt (g/t) Au (g/t) Cu (%) Ni (%) Cr2O3(%) Co (g/t) PGM (koz) Pd (koz) Pt (koz) Au (koz) Indicated 3 798 1.066 0.665 0.383 0.018 0.043 0.196 0.789 118.73 130.2 81.2 46.8 2.2 Inferred 2 003 1.522 0.934 0.569 0.019 0.032 0.179 0.812 109.40 98.0 60.2 36.6 1.2 Curiu Measured 1 061 2.091 1.043 0.957 0.091 0.038 0.218 1.156 130.123 71.3 35.6 32.6 3.1 Indicated 382 2.046 1.035 0.893 0.119 0.037 0.199 2.382 122.121 25.1 12.7 11.0 1.5 Inferred 37 2.967 1.550 1.294 0.123 0.056 0.206 2.099 109.791 3.5 1.8 1.5 0.1 Esbarro Measured 2 985 1.316 0.863 0.428 0.025 0.047 0.249 1.145 139.677 126.3 82.8 41.1 2.4 Indicated 7 126 1.206 0.771 0.405 0.031 0.047 0.227 0.600 128.516 276.3 176.6 92.8 7.1 Inferred 495 0.996 0.549 0.424 0.023 0.056 0.178 0.276 109.553 15.9 8.7 6.7 0.4 Trapia Indicated 2 529 1.113 0.639 0.422 0.052 0.055 0.216 0.910 133.035 90.5 52.0 34.3 4.2 Inferred 2 717 1.320 0.605 0.616 0.099 0.045 0.202 1.184 122.955 115.3 52.9 53.8 8.6 Santo Amaro Inferred 11 380 1.360 0.650 0.690 0.020 0.010 0.120 0.710 105.870 497.0 237.0 252.0 7.0 Total Meas+Ind 17 881 1.252 0.767 0.450 0.036 0.047 0.221 0.846 128.898 719.7 440.9 258.6 20.5 Inferred 16 632 1.366 0.676 0.657 0.033 0.020 0.142 0.790 109.205 729.7 360.6 350.7 17.4

Competent Person Statement

The information in this statement which relates to the Mineral Resource is based on information compiled by Mr Porfirio Cabaleiros Rodriquez who is a mining engineer and full-time director and owner of GE21 and is registered as a Competent Person with the MAIG. Mr Rodriquez has sufficient relevant experience to the style of mineralisation to qualify as a Competent Person as defined in the JORC Code (2012). Mr Rodriquez 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.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

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 / Jack Botros	T: [phone]
Brandon Hill (Broker) Jonathan Evans/Oliver Stansfield	T: [phone]
St Brides Partners Ltd (Financial PR) Isabel de Salis/Gaby Jenner	T: [phone]

 

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