TIDMJAN
RNS Number : 6034K
Jangada Mines PLC
17 December 2018
Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector:
Mining
17 December 2018
Jangada Mines plc ('Jangada' or the 'Company')
Nickel Sulphide Discovery
Maiden Nickel JORC Compliant Resource
Jangada Mines plc, a natural resources company developing the
advanced Pedra Branca project ('the Project') in Brazil, is pleased
to announce a significant increase to its project economics through
the addition of a JORC (2012) compliant nickel and copper sulphide
resource.
To view this announcement with illustrative images, please use
the following link:
http://www.rns-pdf.londonstockexchange.com/rns/6034K_1-2018-12-16.pdf
Highlights
-- Current mine plan provides for an open pit operation
processing PGM+Au and associated by-product metals including
nickel, chrome, copper and cobalt as outlined in the recent
Preliminary Economic Assessment ('PEA')
-- High-grade economic nickel and copper sulphide mineralisation
identified immediately below the existing PGM resource, potentially
extending the scale and life of the open pit operation
-- The new resource adds 8 million tonnes of mineral at 0.22%
nickel; 0.04% copper; 135 g/t cobalt; 0.21 g/t of PGM+Au at a
nickel equivalent grade of 0.39%
-- The new resource could add circa US$110 million, at today's
spot price, to current estimated project revenue - a 10% increase
in revenue
-- Strong potential to increase resource as it remains open at depth and along strike
-- Minimal additional capex expected to facilitate processing of nickel and copper
-- The new nickel and copper resource will be included in the
Bankable Feasibility Study ('BFS'), anticipated to be delivered in
H1 2019, and is expected to substantially improve already
favourable economics
Brian McMaster, Chairman of Jangada, said: "Our ongoing work has
enabled us to further understand the dynamics, scale and potential
of the ore-body; the Project's main economic drivers are palladium,
platinum and nickel and the associated by-products are essentially
cream on the top.
"The planned processing route allows us to process and recover
all metals in one concentrate from the one plant, meaning that the
economics of Pedra Branca have improved substantially. We expect to
demonstrate this in the upcoming BFS. Clearly, the current NPV of
US$192 million against the Company's current circa GBP6 million
market cap demonstrates a disparity between asset and valuation; we
expect this gap to close substantially as we continue to de-risk
the Project."
Background
The Pedra Branca Project is an advanced palladium, platinum and
nickel project in the northeast of Brazil, holding three mining
licenses and 42 exploration licenses over an area of 48,000
hectares. Significant work has been undertaken at the Project,
resulting in the release of a PEA in June 2018, which confirmed its
potential to become a robust, low CAPEX and OPEX, shallow, open pit
operation demonstrating an NPV of US$192 million, an IRR of 67% and
1.6-year payback. Since the release of the PEA, the Company has
announced a significant reduction in CAPEX associated with
development of the Project.
Nickel Sulphide Discovery
The Company recently commissioned a JORC (2012) compliant
resource estimate resulting in additional Inferred resources of 8.3
million tonnes of ore at 0.22% nickel, 0.04% copper, 135 g/t cobalt
and 0.21 g/t PGM+Au. Co-products contribute to a nickel equivalent
grade of 0.39%.
Pedra Branca Deposit - Mineral Resource Update - Nickel intersections
Effective Date: 21st November 2018. Block Model: 20m 10m X 2m
(5m X 2.5m X 0.5m)
Inferred Resource
----------------------------------------------------------------------------------------------------------
Target Classification Tones Ni (%) PGM Pd Pt Au Cu Cr2O3 Co (ppm)
(kt) (g/t) (g/t) (g/t) (g/t) (%) (%)
---------------- ------ ------- ------- ------- ------- ------- ----- ------ ---------
Cedro Inferred 1,886 0.260 0.18 0.10 0.07 0.005 0.04 0.28 150
---------------- ------ ------- ------- ------- ------- ------- ----- ------ ---------
Curiu Inferred 191 0.240 1.00 0.63 0.32 0.057 0.05 0.51 134
---------------- ------ ------- ------- ------- ------- ------- ----- ------ ---------
Esbarro Inferred 5,770 0.200 0.18 0.10 0.08 0.003 0.03 0.13 130
---------------- ------ ------- ------- ------- ------- ------- ----- ------ ---------
Trapia Inferred 421 0.220 0.40 0.26 0.11 0.036 0.08 0.20 135
---------------- ------ ------- ------- ------- ------- ------- ----- ------ ---------
Grand Total 8,268 0.216 0.21 0.12 0.08 0.007 0.04 0.18 135
------ ------- ------- ------- ------- ------- ----- ------ ---------
Geological Setting
The nickel and copper anomalies identified at the Project to
date, are located in the region of the Cedro, Esbarro and Curiu
deposits. The resource is hosted by a tabular-shaped ultramafic
body known as the Troia Unit. The nickel is hosted by the same
geological unit as the PGM resource. Most of the world's high-grade
nickel deposits occur in this geological context. Our exploration
work demonstrates that the high-grade nickel intersections indicate
sulphide ore targets, all of which are associated with geophysical
magnetic anomalies.
Figure 2: This cross-section through the Esbarro target shows
the nickel grades in boreholes and the location of the new nickel
sulphide ore (green) immediately beneath the PGM resource
(black).
Economic Impact
As illustrated in figure 2 above, the nickel resource sits
immediately below the current planned open pit PGM mine. Occurring
in the same geological unit, with similar mineralogical and
chemical compositon as the PGM-Ni-Cu resource, the processing
routes outlined in the PEA released in June 2018, indicate that the
new nickel resource can be processed and recovered using the same
plant as the PGMs. This means that there will be minimal additional
CAPEX required and, as such, the addition of the new nickel
resource is expected to substantially improve the already robust
economics.
The Company has modelled the potential economic impact of
including the nickel resource assuming metallurgical recovery rates
as outlined in the PEA, it is expected the addition of the new
nickel resource will enhance the Project's revenue by circa US$110
million at today's spot price. This represents an increase of
overall expected revenue from the Project of 10%.
The geological modelling and resource estimate relies on data
collected from the 30,000m of diamond core drilling completed at
Pedra Branca.
Competent Person Statement
The technical information in this statement is based on
information compiled by Mr. Bernardo Horta Cerqueira Viana who is a
geologist and full-time director and owner of GE21 and is
registered as a Competent Person with the MAIG. Mr Viana has
sufficient relevant experience to the style of mineralisation 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.
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 Gaby Jenner 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
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