Jangada Mines PLC Pitombeiras Project Update (3235W)
21 December 2021 - 6:19PM
UK Regulatory
TIDMJAN
RNS Number : 3235W
Jangada Mines PLC
21 December 2021
Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector:
Mining
21 December 2021
Jangada Mines plc ('Jangada' or 'the Company')
Pitombeiras Project Update
Jangada Mines plc, a natural resources company, is pleased to
provide an update on the preparation of the Feasibility Study
('FS') of the Pitombeiras Ferrovanadium Project located in the
state of Ceará, Brazil ('Pitombeiras' or 'the Project').
As previously announced, the scope for the FS was to evaluate
the opportunities to construct a low CAPEX direct shipping ore
("DSO") mining operation focused on the extraction of iron ore with
high vanadium content. GE21, the company contracted to conduct the
FS, has completed all aspects of the FS scope except for the
chapter relating to project economics. Results of the study by GE21
have identified an opportunity for Jangada to potentially benefit
from extracting additional value from the titanium dioxide present
at the Project. Considering the current National Instrument 43-101
compliant resource estimate for Pitombeiras is 5.70 million tonnes
('Mt') at an average grade of 0.51% vanadium pentoxide ('V2O5'),
10.09% titanium dioxide ('TiO2') and 50.42% of ferric oxide
('Fe2O3'), the Board, following recommendation from GE21, believe
the ability to extract the TiO2 could increase the positive impact
on the long-term value of the Project.
With this background and given the rising demand for TiO2 due to
its increasing use in renewable energy technologies including
electric batteries, as well as the decline in the iron ore price
since the publication of the Pre-Feasibility Study, the Board
believes that it is prudent to invest further in the evaluation of
the TiO2 component; accordingly, the publication of the FS is now
anticipated to be in Q1 2022. All other aspects of the FS have
concluded that the Project is technical and geologically capable of
proceeding as anticipated.
The Company recognises the importance of commodities focussed on
the renewable energy sector and to that end, its existing vanadium
pentoxide and titanium dioxide resources are highly sought in the
rapidly emerging "battery metals" space. Given the global
importance of this sector for the future, in addition to
progressing Pitombeiras, the Company, as previously announced, has
also invested in innovative metallurgical processing company,
Fodere Titanium Group. Additionally, the Company maintains an
active watching brief for other synergistic opportunities that may
supplement the existing asset suite.
Brian McMaster, Executive Chairman of Jangada, said : "As the FS
reaches finalisation, it is very encouraging to confirm we have no
technical or geological impediments to proceeding. The economics of
the Project are, as expected, dependant on the commodity process
and the extraction of the right commodity basket. On the advice of
GE21, we are assessing the potential of the titanium component of
the Project to positively impact its economics. This, together with
the pricing variabilities in the iron ore and vanadium prices, has
pushed back the completion date of the FS to Q1 2022.
"We are becoming increasingly linked to the positive battery
metal market dynamics: we are invested in Fodere Titanium Group,
which has developed innovative commercial processes to extract
titanium dioxide, vanadium pentoxide and other valuable products
from low-grade ores and waste stockpiles; and we are coming across
other development opportunities in the sector that have the
potential to be synergistic and value accretive. With a strong
balance sheet, we are in a position to progress our existing assets
and take advantage of opportunities that arise."
"We would like to wish all our shareholders a very happy
Christmas and prosperous New Year."
**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)
Brandon Hill Capital Jonathan Evans Tel: +44 (0)20 3463
(Broker) Oliver Stansfield 5000
St Brides Partners Isabel de Salis E: info@stbridespartners.co.uk
Ltd Oonagh Reidy
(Financial PR)
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