Technical Report Including Titanium Potential for Pitombeiras Vanadium Titano-Magnetite Project
Jangada Mines plc, a Brazilian focussed natural resource development company, announces an updated technical report (‘Technical Report’) with the inclusion of the titanium component at its 100%-owned Pitombeiras Vanadium Titano-Magnetite (‘VTM’) Project (‘the Project’) in Ceará State, Brazil. The Technical Report was prepared by Brazilian based GE21 Consultoria Mineral (‘GE21’) and is compliant with National Instrument 43-101 (‘NI 43-101’). The Technical Report supersedes the Preliminary Economic Assessment (‘PEA’) published in 2021.
The Technical Report confirms that there are no legal, technical, or geological impediments to proceeding to mine development, construction, and production, highlights the Project’s robust economics and excellent potential to become a profitable producer of Ferrovanadium concentrate (‘Fe 62%’) and Titanium dioxide (‘ TiO2 ‘).
The initial objective of the Feasibility Study considered a processing route centred on Fe 62% and vanadium pentoxide (‘ V2O5 ‘). Whilst completing this study, it became evident that an expansion of the saleable commodity basket to include TiO2 would likely be beneficial to the Project’s economics. Presently, the evaluation of the Fe 62% and V2O5 has been completed to a Feasibility Study standard, while the inclusion of the TiO2 remains at a PEA level. The Company is now consulting with GE21 on finalising the Feasibility Study, embracing all the three commodities to evaluate the opportunities to construct a low CAPEX direct shipping ore (‘DSO’) mining operation, and expects to release this in the coming months. The Company does not anticipate that the inclusion of the titanium to feasibility standard will result in a material deviation from the Technical Report conclusions and numbers below, and there remains no geological, economic, or legal impediment to proceeding to production.
· Robust economics inclusive of TiO2 :
o 100.3% post-tax Internal Rate of Return (‘IRR’)
o US$96.5 million post-tax Net Present Value (‘NPV’) (8% discount rate)
o All-inclusive CAPEX totalling US$18.45 million
o Payback time – 13 months
· Total Project Mineral Resource Estimation (‘MRE’) from only 3 of 8 known magnetic targets being Pitombeiras North, South, and Goela remains at:
Qualified/Competent Person Review
The resource 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 31 June 2021 updated Mineral Resource Estimate (“MRE”) for the Pitombeiras Project has been prepared by 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 an independent consultant based on Goiânia, Brazil.
The report, entitled “Technical Report – Pitombeiras Project, Ceará State, Brazil”, having an effective date of January 31th of 2022, was prepared on behalf of Jangada Mines Plc by GE21 Ltda and authored by Porfírio Cabaleiro Rodriguez – BSc (Min Eng), FAIG, Leonardo de Moraes Soares – BSc (Geology), MAIG and Maurício Prado – MSc (Geology), MAIG.
For further information please visit www.jangadamines.com or contact:
Jangada Mines plc
Brian McMaster (Chairman)
Tel: +44 (0) 20 7317 6629