Building a high-grade gold portfolio in Brazil
Jangada Mines Plc (AIM: JAN) has signed a letter of intent to acquire 100% of the high-grade Molly Gold Project in Brazil, which hosts historical drill intercepts such as 6.5m at 10.5 g/t and 1m at 200 g/t, alongside an initial JORC Inferred resource of 130,000 ounces of gold.
The deal includes staged cash and share payments totalling US$350,000, plus US$750,000 in shares on signing a definitive agreement and at the first anniversary. An additional US$5 per ounce is linked to future resource growth, while the vendor will retain a 2% Net Smelter Royalty.
Jangada plans an immediate 2,000m drill programme to test extensions and aims to define a multi-pit operation, with funding in place for the initial exploration work.
OVERVIEW
· LOI to acquire 100% of the 6,656.2 hectares high grade Molly Gold Project in Brazil
· Over 2,800m of historical drilling completed with intercepts including:
o 3.0m @14.4g/t
o 6.5m @ 10.5g/t
o 5.07m @ 8.6 g/t and
o 1.0m @ 200.0 g/t
· Initial JORC (2004) Inferred resource of 130,000 oz Au from 2.1Mt @ 2g/t, independently estimated in 2010
· Identified gold mineralisation extends from near surface to depths of c.150m and over a c.400m strike length
· Data indicates that the identified mineralisation, where the initial resource is located, represents a small part of a much larger system
· Mapping and geophysics indicate that the mineralised structure continues for at least 500m west of the current drilling, beyond the defined 400m resource strike length
· Acquisition comprises structured staged cash and shares payment based on work commitments aligned with exploration success, together with a Net Smelter Royalty (‘NSR’)
Jangada Mines CEO Paulo Misk said, “The Molly Project represents a high-grade, shallow gold project in a prime gold region that aligns strongly with our investment and development criteria. With an initial JORC resource of 130,000 ounces of gold, outstanding high-grade intercepts from drilling including 6.5m at 10.5 g/t and 1m at 200 g/t and clearly identified expansion potential, Molly is an excellent addition to our portfolio.
“Having signed the LOI, we intend to engage drilling contractors immediately to undertake a low-cost, high impact, 2,000m drill programme to test extensions at the initial Molly 1 target, which will generate additional targets and provide the basis for the next phase of exploration. The deal structure importantly provides us with a stage-gated and highly cost-effective framework to gain control of a gold asset with fantastic potential.
“We also expect our first phase drill results from Paranaíta later this month, which will be used to update the resource estimate and better quantify that project’s potential.
“Our team’s deep knowledge of Brazil continues to be instrumental in identifying projects that can be advanced rapidly and we are focussed on building a substantial, multi-project company, growing resource ounces and establishing a production profile that delivers long-term value for all stakeholders.”
