TIDMJAN
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% Cr(2) O(3) plus an
additional JORC (2012) compliant exploration target of between
600kt and 1.2mt grading 5% to 10% Cr(2) O(3) .
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 Cr(2) Tonnes PGM Pd Pt Au Cu Ni Cr(2) Co PGM Pd Pt Au
O(3) (kt) (g/t) (g/t) (g/t) (g/t) (%) (%) O(3) (ppm) (koz) (koz) (koz) (koz)
Level (%)
------------ ----------- --------- ------- ------ ------ ------ ------ ------ ------ ------ ------ ------- ------ ------ -------
Type
Oxide Measured 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
---------------------------------- ------- ------ ------ ------ ------ ------ ------ ------ ------ ------- ------ ------ -------
Type
Indicated 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 3
1 630 1.479 0.887 0.554 0.038 0.044 0.228 0.608 130.1 172.62 103.5 64.60 4.49
---------------------------------- ------- ------ ------ ------ ------ ------ ------ ------ ------ ------- ------ ------ -------
Type
Inferred 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 3
1 427 1.919 1.137 0.763 0.019 0.041 0.199 0.875 124.7 211.42 125.2 84.08 2.05
---------------------------------- ------- ------ ------ ------ ------ ------ ------ ------ ------ ------- ------ ------ -------
8
Sub 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
------------------------------------ ------- ------ ------ ------ ------ ------ ------ ------ ------ ------- ------ ------ -------
Type
Transition Measured 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
---------------------------------- ------- ------ ------ ------ ------ ------ ------ ------ ------ ------- ------ ------ -------
Type
Indicated 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
---------------------------------- ------- ------ ------ ------ ------ ------ ------ ------ ------ ------- ------ ------ -------
Type
Inferred 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 2
1 107 1.096 0.701 0.370 0.024 0.031 0.189 0.416 114.4 74.23 47.52 25.09 1.62
---------------------------------- ------- ------ ------ ------ ------ ------ ------ ------ ------ ------- ------ ------ -------
4
Sub 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
------------------------------------ ------- ------ ------ ------ ------ ------ ------ ------ ------ ------- ------ ------ -------
Type
Sulphide Measured 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
---------------------------------- ------- ------ ------ ------ ------ ------ ------ ------ ------ ------- ------ ------ -------
Type
Indicated 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 2
1 567 0.999 0.566 0.394 0.039 0.045 0.223 0.494 128.2 82.48 46.6 32.55 3.25
---------------------------------- ------- ------ ------ ------ ------ ------ ------ ------ ------ ------- ------ ------ -------
Type
Inferred 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 6
1 314 0.896 0.468 0.357 0.071 0.051 0.203 0.635 125.9 181.86 95.05 72.49 14.31
---------------------------------- ------- ------ ------ ------ ------ ------ ------ ------ ------ ------- ------ ------ -------
9
Sub 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
------------------------------------ ------- ------ ------ ------ ------ ------ ------ ------ ------ ------- ------ ------ -------
23
Grand Total 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: 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 / Charlotte
Heap
This announcement contains inside information as defined in
Article 7 of the Market Abuse Regulation No 596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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