Jangada Mines Plc (AIM:JAN) Additional Cobalt & Chrome By-Product Credits

Jangada Mines plc, a natural resources company developing South America’s largest and most advanced platinum group metals (‘PGM’) project, is pleased to announce an updated JORC (2012) compliant resource estimate at the Company’s Pedra Branca PGM project (‘the Project’) in Ceará State, north-eastern Brazil, which now includes cobalt and chrome by-product credits.

Overview

· Global resources now include 1 million ounces of PGM+Au, 109 Mlbs of nickel, 23 Mlbs of copper, 6.4 Mlbs of cobalt and 600kt of chrome

· Global resource grade increased by 93% to 2.5 g/t from 1.3 g/t palladium equivalent (‘PdEq’)

· Contributions from by-product credits, including cobalt, chrome, nickel, and copper, give an additional in-situ value of approximately USD700 million or USD33 a tonne

· Subject to metallurgy, credits may significantly offset the cost of production leading to enhanced profitability

Brian McMaster, Executive Chairman of Jangada said,

“The additional cobalt and chrome credits follow on the heels of the extra nickel and copper credits and translate into significant additional potential value to be unlocked at Pedra Branca. Our current global resources now include 1 million ounces of PGM+Au, 109 Mlbs of nickel, 23 Mlbs of copper, 6.4 Mlbs of cobalt and 600kt of chrome. We have now commenced metallurgical test work to understand the optimum extraction process for these metals as part of the PFS, which we expect will demonstrate the strong economics of the Project.

“We have what we believe to be a highly valuable asset. Our plan remains to work towards the commencement of trial mining and then commercial production at an initial rate of 30,000 ounces PGMs per annum within 12-18 months.”

Further Information

The Pedra Branca Project is the largest and most advanced PGM project in South America and currently has a JORC compliant resource of approximately 1 million ounces of PGM+Au at a grade of 2.46 g/t Pd Eq, 109 Mlbs of Ni and 23 Mlbs of Cu, 6.4 million pounds of Co and 600k tonnes of Cr. The Project is located 280 km from the port city of Fortaleza in the northeast of Brazil and consists of three mining licenses and 44 exploration licenses over an area of 55,000 ha.

Previous operators have spent more than USD35 million on exploration and development activities, which include more than 30,000 metres of diamond core drilling, geophysical surveys and metallurgical tests. The current resources are at surface and Jangada is currently preparing a pre-feasibility study assuming shallow open pit mining and conventional processing methods.

As a continuation of the resource estimation work already conducted, GE21 Consultoria Mineral (“GE21”) has considered the potential for further by-product credits relating to additional minerals. This work has resulted in a substantial increase in the resource estimation as follows.

Cobalt

The resource upgrade identifies substantial cobalt credits. Based on drilling to date, which includes more than 30,000 metres of diamond drilling, the identified cobalt resource is approximately 6.4 million pounds at a grade of 0.013% Co. At current cobalt prices, this represents a potential in-situ increase to the ore value of approximately USD170 million or USD7.80 per tonne, subject to recovery rates. The addition of the cobalt by-product credits represents a substantial increase in the PdEq for the Project as summarised below:

· Global resource grade increased by 93% to 2.5 g/t from 1.3 g/t PdEq

o Curiú oxide deposit grade increased by 77% to 3.9 g/t from 2.2 g/t PdEq

o Esbarro deposit grade increased by 83% to 2.2 g/t from 1.2 g/t PdEq

Chrome

GE21 has also upgraded the resource estimate to account for chrome by-products, which includes the confirmation of localised higher-grade (‘Type 2’) chrome horizons within the PGM ore zones. Based on the drilling to date, which includes more than 30,000 metres of diamond drilling, the identified Type 2 chrome resource is approximately 670kt at 8% Cr2O3 plus an additional JORC (2012) compliant exploration target of between 600kt and 1.2mt grading 5% to 10% Cr2O3.

At current chrome ore prices, the Type 2 chrome horizons at the Project have the potential to add between USD55 million and USD80 million to the in-situ ore value or circa USD15 per tonne within the chrome ore horizon.

Overall Potential

The Project currently has a JORC (2012) compliant resource of approximately 1 million ounces of PGM+Au with additional by-product credits totalling 109 Mlbs of Ni, 23 Mlbs of Cu, 6.4 million pounds of cobalt and 600k tonnes of chrome. At current commodity prices, the basket of by-product elements adds approximately USD700 million (or USD33 per tonne) to the already existing PGM+Au.

Jangada’s ability to access the value from these by-products will depend on the recovery rates identified from the metallurgy test work. Previous bench scale flotation work has demonstrated that the ore is amenable to milling and floating. Current test work will produce an optimised processing flow sheet to extract maximum value from the ore. The Company will further investigate the option to extract chrome by conventional physical separation such as gravity, dense media or magnetic separation.

Pedra Branca Project – Grade Tonnage Table (click here to view image).

Competent Person Statement

The information in this statement which relates to the Mineral Resource is based on information compiled by Mr Bernardo H C Viana who is a geologist and full-time director and owner of GE21 and is registered as a Competent Person with the Australian Institute of Geoscientists. Mr Viana has sufficient relevant experience to the style of mineralization to qualify as a Competent Person as defined in the JORC Code (2012). Mr Viana also meets the requirements of a qualified person under the AIM Note for Mining, Oil and Gas Companies.

Cautionary Statements

The reader is cautioned that a Mineral Resource is an estimate only and not a precise and completely accurate calculation, being dependent on the interpretation of the limited information on the location, shape, and the continuity of the occurrence and the available sampling results. Actual mineralisation can be more or less than estimated depending upon the actual geological conditions. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. No Mineral Reserves are being stated.

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