TIDMJAN
RNS Number : 0613D
Jangada Mines PLC
14 February 2020
Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector:
Mining
14 February 2020
Jangada Mines plc ('Jangada' or the 'Company')
Shareholder Q&A
Jangada Mines plc, a natural resources company, is pleased to
publish a Q&A document addressing recently received questions
from shareholders in line with its commitment to maintaining an
open dialogue with shareholders. The questions and answers can be
viewed below.
Question: Following confirmation of the works schedule start, is
it possible to share more details on the anticipated timelines of
drill results utilising the XRF equipment?
Answer: As part of the process of preparing the drill core for
sending to the independent laboratory for assaying, our team are
sampling the core with a handheld XRF machine. The results of this
analysis are used to guide decisions regarding the drilling
programme. Jangada does not intend (or is required) to release the
XRF results because they are generally not as accurate as the
laboratory results. We are regularly sending core to the laboratory
and we will release results as they come back from the
laboratory.
Question: In the recent interview with Sarah Lowther of TMS,
there was a reference to two potential forward plans, one was to go
into production and the other was to progress with an industry
partner, have either of these options developed any further?
Answer: Many of the decisions regarding future development will
be determined by the results of the drilling programme. Our first
and foremost priority is that we identify the size and quality of
the resource to a JORC standard (which will be done through the
drilling programme). From there, the alternative courses of action
can be considered in detail, and the best one selected.
Question: The importance of the Logistics Study commented on in
the November RNS may have been overlooked by investors. With this
in mind, can you provide advice on the following points. In Brazil
trial mining permits are often granted, is this the case for
vanadium, titanium and iron? Can all three be extracted with such a
single licence? And, is there a standard amount of ore such a trial
licence would allow? What would the stages of a trial mining
application be? And, any guidance on timeframes?
Answer: As noted in the question, Trial Mining licences are a
normal process in Brazil. The specifics of the licence will be
determined by the authorities on an application by application
basis, and we are unfortunately not able to comment any further in
this regard as we are not in possession of the necessary
information. Brazil is renowned for being a country that sponsors
mining development and as such the process to obtain a Trial Mining
licence is well defined and generally takes 3-6 months.
Question: China are the largest producers of vanadium, titanium
dioxide and steel. The reference to transport costs to China
suggest the company are considering monetising some of the assets
early without large CAPEX costs by simply digging up ore and
transporting it to China for processing. Is this being
considered?
Answer: The logistics study covered a number of parameters,
including the option to sell unprocessed ore, regardless of whether
it will be transported offshore pre-processing or sold
domestically. The Company continues to assess all potential
development options in order to best realise value for
shareholders.
Question: The area in which Jangada's deposit really stands out
on a peer comparison, is on the titanium dioxide grade. Largo are
carrying out studies on TI0(2) production with results due. At
least 2 Australian projects (TNG Ltd and King River Resources) have
tested methods that produce pigment grade titanium dioxide which
sells for over $2000 per tonne, in light of this what are the
company's thoughts on how important the TI0(2) could be? Are tests
and talks going on around this specific aspect of the deposit?
Answer: Jangada has only been focussing in earnest on this
project for a short period and at this stage our efforts are
dedicated to exploration. Following the completion of the drilling
programme we will be able to assess with more detail the
opportunities going forward.
Question: During the recent interview with Sarah Lowther from
TMS, it was noted that the port infrastructure could be utilised by
Jangada, could this involve any form of ore processing and if so,
is the infrastructure already in place for Jangada to use? and are
discussions on-going with the Port authority?
Answer: Jangada has held preliminary discussions with Pecem
Port, which is located 352km away from site and accessible via a
federal paved highway. If Jangada elected to utilise the Port's
facilities for processing, Jangada would be required to construct
the processing facility. The feasibility of this will be considered
as part of a Preliminary Economic Assessment due to be completed
following the conclusion of the current drilling programme.
Question: Would it be feasible to consider starting a low capex
ore extraction process this year and for the ore to be processed
off site with the support of a third party?
Answer: In theory this is feasible. We are committed to
maximising value from the project and will accordingly consider all
potential development options in order to best achieve this.
Question: Can you clarify if there are any plans to increase
shareholder and investment community engagement, to raise project
awareness? As it has been noted that the boards engagement has been
at times very subdued and also Jangada's social media activity has
also been very subdued.
Answer: As highlighted through this Q&A document and
announcements released by the company to-date, the board is
committed to maintaining transparent communications and providing
timely updates in line with its regulatory responsibilities. We
look forward to continuing to provide updates on activity at
Pitombeiras as soon as we are in a position to do so, and once we
have a more defined development path for the project, look forward
to increasing our public relations programme accordingly. Our
shareholding in ValOre Metals is a relatively passive investment
and we consider it the jurisdiction of ValOre to be responsible for
public engagement. We will continue to review our public relations
strategy on a regular basis and invite shareholders to submit any
questions they may have by emailing:
info@jangadamines.com
Question: The ValOre Metals team are also very active in regards
to the development of Pedra Branca, is it the boards intention to
continue to be supportive of ValOre and to retain the shareholding
in ValOre as their development plans progress?
Answer: Jangada is delighted to be a major shareholder of ValOre
and we remain very supportive of their efforts and the Pedra Branca
project generally.
Question: The region is clearly very rich in elements and have
the board been made aware of any other adjacent tenements that
would be of interest to expand the scope of the Pitombeiras and
Goela project?
Answer: We agree that the surrounding area is incredibly
prospective. Following our decision to increase Pitombeiras' land
holding in November 2019 to include Goela, we are delighted to have
significantly increased our land holding even further through the
granting of an additional 864 hectares worth of tenements, known as
Mocidade, in February 2020 (see RNS dated 13 February 2020). This
increase takes our total land holding to 1,958 hectares, marking a
80% increase. We now look forward to improving our understanding of
the project's resource potential through the drill programme
currently underway, the results from which will help shape future
development plans.
**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 Charlotte Page Tel: +44 (0)20 7236
Ltd Beth Melluish 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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