TIDMJAN
RNS Number : 4794W
Jangada Mines PLC
19 August 2020
To view the announcement with the illustrative maps and
diagrams, please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/4794W_1-2020-8-18.pdf
Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector:
Mining
19 August 2020
Jangada Mines plc
Initial Resource Estimate at Pitombeiras North and Goela
Targets
Jangada Mines plc ('Jangada' or 'the Company'), a natural
resources company, is pleased to report its initial National
Instrument 43-101 ('NI 43-101') compliant resource estimate for its
100%-owned Pitombeiras Vanadium Project ('Pitombeiras' or 'the
Project'), Ceara State, Brazil. The initial resource estimate is
derived from the 2019 and 2020 exploration and diamond drilling
programmes executed at the Pitombeiras North and Goela targets,
which are part of the eight identified ground magnetic priority
anomalies associated with vanadium titanomagnetite mineralisation
('VTM') signature.
Highlights:
-- Total Resource estimate of 5.70Mt million tonnes at an
average grade of 0.51% vanadium pentoxide (' V(2) O(5) '), 10.09%
titanium dioxide (' TiO(2) ') and 50.42% of ferric oxide (' Fe(2)
O(3) ') for a contained resource of 28,990 tonnes V(2) O(5)
o Indicated Resource estimate of 1.47 million tonnes at an
average grade of 0.50% V(2) O(5) , 9.85 % TiO(2) and 49.78% of
Fe(2) O(3) for a contained resource of 7,297 tonnes V(2) O(5)
o Inferred Resource estimate of 4.23 million tonnes at an
average of 0.51% V(2) O(5) , 10.17% TiO(2) and 50.64% of Fe(2) O(3)
for a contained resource of 21,693 tonnes V(2) O(5)
-- Mineralisation at or near surface with significant further
upside as resource remains open in all directions and to date only
two out of eight known targets have been drilled
-- Additional 2,000 metres step out and infill drilling planned
to commence in September 2020 for resource expansion and upgrade at
Pitombeiras North and Goela targets whilst also targeting
Pitombeiras South
-- Preliminary Economic Assessment to be completed following
completion of drilling extension with targeted release Q1 2021
-- Company fully funded for above two initiatives
Brian McMaster, Executive Chairman of Jangada, said: "A lot has
been accomplished in the less than two years since we identified
this vanadium, titanium, iron project. Jangada is in the midst of
unearthing an exciting opportunity and we are literally at the
beginning of this journey. Given the excellent results that have
been achieved to date and the extent of the remaining untested
targets it is clear to see that Pitombeiras offers significant
value uplift potential. With further drilling due to commence in
September to increase the size and the categorisation of the
resource, and a PEA to be completed on finalisation of this to
include these enhanced results, there is a lot still to come on
this story and we look forward to sharing it with you in the weeks
and months ahead."
The total Resource estimate has been compiled only from the
drilling done to date. As announced on 2 March 2020, Jangada was
required to suspend part of its drilling programme due to the
Covid-19 pandemic, having completed only 1,360 metres from a
planned 2,500 metre programme. Given the strength of the results of
the drilling conducted to date, Jangada now intends to conduct a
further 2,000 metre drilling programme as infill and step out
drilling for the Pitombeiras North and Goela targets, whilst also
targeting the Pitombeiras South target (see Figure 1 for target
locations).
The follow - on 2,000 metre drilling programme is planned to
increase the overall size of the resource at these targets, as well
as improve the resource categorisation of the results. The
rationale for this approach is that, given the mineralisation at
these tested targets is at or near surface and the strength and
consistency of the grades, enhancing the inputs into the economic
model contained in the Preliminary Economic Assessment ('PEA') is
prudent before announcing the results. The objective of this
drilling programme is to potentially delineate a further
approximately 10 million tonnes at these targets. Drilling is
expected to commence in September 2020 and be completed by
mid-December 2020. Assay results will be sought and announced
throughout the drilling.
Jangada notes also that the resource remains open in all
directions and to date, the drilling and assay results that are
feeding into the PEA are based on two out of eight known targets
selected based on ground magnetic survey, using N-S oriented lines
with spacing between lines ranging from 25 to 100 meters for total
of 129.79 linear kilometres, covering an area of 1,068.89
hectares.
Figure 1. Selected Targets Based on Ground Magnetic Survey - See
PDF
Preliminary Economic Assessment (PEA)
Jangada has previously announced that a PEA would follow on from
the drilling programme. This remains Jangada's intention however,
as it is detailed herein, the drilling completed to date is
approximately 55% of the originally planned programme.
Additionally, the drilling results have been very encouraging. As
such, it is premature to release a PEA based on an incomplete set
of the information. It is clear to Management that completing this
next leg of drilling and increasing both the size and the
categorisation of the resource will have a positive impact on the
PEA and hence the Company believes it is in the interest of all
shareholders that this additional step is taken. At this stage
Jangada is aiming to release the PEA in early Q1 calendar 2021. The
PEA and the drilling that feeds into it is expected to be funded
from existing resources.
Covid-19 Update
Jangada is closely monitoring the Covid-19 developments in
Brazil, particularly in the Ceara State, and is taking all
precautions to provide the safety of its workers, contractors and
the community in which it operates. At this stage, it is expected
that exploration activities will recommence in September 2020.
Further Information:
The initial Mineral Resource Estimate ('MRE') for Pitombeiras
has been prepared in accordance with the Canadian Institute of
Mining, Metallurgy and Petroleum (CIM) Standards on Mineral
Resources and Reserves: Definitions and Guidelines, May 10, 2014
(CIM, 2014), by Mauricio Prado, MSc. Geologist and Qualified
Person, as defined by NI 43-101 guidelines, with effective date of
2 August 2020.
This initial MRE includes two exploration target areas, the
Pitombeiras North and Goela targets, which are part of the eight
ground magnetic priority anomalies identified with VTM signatures
over a total area of 1,958 hectares.
A total of 24 diamond drill holes have been completed for a
total of 1,705.95 metres, including 1,232.90 metres at the
Pitombeiras North target and 301.95 metres at the Goela target.
Twenty drillholes intersected VTM mineralisation.
The maximum mineralised length was 45.83 metres (drill hole
DD20PI18) and the maximum V(2) O(5) average grade was 0.70% V(2)
O(5) on drill holes DD20PI13 and DD20PI19, which included an
intercept of 0.81% V(2) O(5) over 7.0 metres (DD20PI19).
Two individual block models were generated to estimate the
Pitombeiras mineral resource. Each block model used a parental
block size of 25m by 50m by 3m with sub-blocking to 5m by 10m by
3m. These block dimensions were selected based on the distance
between drill holes and the length selected for the composite
samples.
The modelling of the Pitombeiras North and Goela targets was
initially created based on an estimated domain of VTM
mineralisation for each one of the two targets by the implicit
modeling of the vanadium-bearing layer geology codes.
Figure 2. Basic wireframes of VTM mineralisation in Pitombeiras
North and Goela - See PDF
Figure 3. Typical Cross section of VTM domain at Pitombeiras
North - See PDF
The Mineral Resource Estimation considers a cut-off grade of
0.25% V(2) O(5) , which resulted in estimated Indicated Resources
of 1.47Mt at 0.50% V(2) O(5) , 9.85 % TiO(2) and 49.78% of Fe(2)
O(3) , and Inferred resource of 4.23Mt at 0.51% V(2) O(5) , 10.17%
TiO(2) and 50.64% of Fe(2) O(3) .
Table 1. Pitombeiras Project, 2 August 2020 MRE (0.25% V(2) O(5)
cut-off) - by VTM domain
Resource Tonnes Average Grade Metal Content t Domain Target
Classification % Area
==============
V(2) TiO(2) Fe(2) V(2) TiO(2) Fe(2)
O(5) O(3) O(5) O(3)
====== ======= ====== ======= ======== ======== =========== ============
VTM HG Pitombeiras
Indicated 705,508 0.62 11.65 58.38 4,339 82,172 411,842 domain North
================= ========== ====== ======= ====== ======= ======== ======== =========== ============
VTM LG
766,406 0.39 8.19 41.87 2,958 62,754 320,868 domain
================= ========== ====== ======= ====== ======= ======== ======== =========== ============
VTM HG
Inferred 1,684,841 0.60 11.57 57.45 10,163 194,883 967,924 domain
================= ========== ====== ======= ====== ======= ======== ======== ===========
VTM LG
1,841,845 0.41 8.39 42.57 7,589 154,544 784,015 domain
================= ========== ====== ======= ====== ======= ======== ======== =========== ============
705,986 0.56 11.49 55.48 3,941 81,104 391,682 VTM domain Goela
================= ========== ====== ======= ====== ======= ======== ======== =========== ============
Table 2. Pitombeiras Project Total Initial Resources (0.25% V(2)
O(5) cut-off)
Resource Classification Tonnes Average Grade % Metal Content t
==============================
V(2) TiO(2) Fe(2) V(2) TiO(2) Fe(2) O(3)
O(5) O(3) O(5)
====== ======= ====== ======= ======== ===========
Indicated 1,471,913 0.50 9.85 49.78 7,297 144,926 732,710
========================= ========== ====== ======= ====== ======= ======== ===========
Inferred 4,232,672 0.51 10.17 50.64 21,693 430,531 2,143,621
========================= ========== ====== ======= ====== ======= ======== ===========
Notes to accompany Mineral Resource table for the Pitombeiras
Project:
- The Mineral Resource is limited to within the tenement
boundaries. Mineral Resources that are not Mineral Reserves do not
have demonstrated economic viability. There has been insufficient
exploration to define the Inferred Resources tabulated above as an
Indicated or Measured Mineral Resource. There is no guarantee that
any part of the mineral resources discussed herein will be
converted into a mineral reserve in the future.
- The mineral resource estimate follows current CIM definitions
and guidelines for mineral resources.
- Mineral Resources are reported using a cut-off grade of 0.25%
V2O5 %, based on the following assumptions: Base case resource open
pit shell with a 45 pit slope, metal price of US$10.00/lb V2O5,
mining cost of US$2.78/t, processing cost of US$20,00/t, general
and administrative (G&A) costs of US$1.00/t, product transport
costs of US$2.00/t, metallurgical recovery of 80%, mining dilution
of 10% and mining recovery of 95%.
- Mineral Resources have been reported on a dry tonnage basis.
Discrepancies may occur due to rounding. Mineral Resources are
reported with an effective date of August 2, 2020. The Qualified
Person for the estimate, as defined by NI 43-101, was Mauricio
Prado, MSc. Geo. MAIG.
Figure 4. Drill hole locations for the 2019 and 2020 drilling
programme and structural NE-SW corridor associated VTM
mineralisation - See PDF
Quality Assurance & Quality Control
All drill samples have been prepared and analysed by SGS-Geosol
Laboratórios Ltda ('SGS-Geosol') based in Belo Horizonte, Brazil.
SGS-Geosol is ISO14001:2004 and ISO 9001:2008 accredited and is
independent of Jangada. The samples were analysed by fusion with
lithium tetraborate-XRF for Al(2) O(3) , CaO, Co, Fe(2) O(3) , K2O,
MgO, MnO, Na(2) O, P(2) O(5) , SiO(2) , TiO(2) , V(2) O(5) and
retained moisture (LOI) by multi-temperature.
QA/QC procedures include the submission by Jangada of systematic
duplicates, blanks and standard samples within every sample batch
submitted to SGS. In addition, SGS-Geosol inserts its own
standards, blanks and duplicate samples. The results from these
control samples indicate acceptable consistency of analysis.
Qualified/Competent Person Review
The technical information in this announcement has been reviewed
by Mr. Paulo Ilidio de Brito, who is a member of the Australian
Institute of Geoscientists (MAIG #5173) and a member of AusIMM -
The Australasian Institute of Mining and Metallurgy (MAusIMM
#223453). Mr. Brito is a senior professional geologist with +35
years of experience in the mining industry, which is relevant to
the style of mineralisation and type of deposit under consideration
and to the activity which he has undertaken to qualify as a
Competent Person as defined in the 2012 edition of the JORC Code.
Mr. Brito also meets the requirements of a competent person under
the AIM Note for Mining, Oil and Gas Companies. Mr. Brito has no
economic, financial or pecuniary interest in the Company and he
consents to the inclusion in this document of the matters based on
his technical information in the form and context in which it
appears.
The 2 August 2020 initial Mineral Resource Estimate of the
Pitombeiras Vanadium Project is the responsibility of Mr. Mauricio
Prado. MSc. Geo. MAIG, Qualified Person as defined by NI 43-101
guidelines, independent geological consultant contracted by Jangada
Mines Plc. Mr. Prado is partner and principal consultant with
BlueStone Geologia e Mineração Ltda., a Brazilian geology
consulting company based on Rio de Janeiro, Brazil.
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 Charlotte Page Tel: +44 (0)20 7236
Ltd Beth Melluish 1177
(Financial PR)
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END
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