Jangada Mines PLC Operational Update and Q1 Schedule (9429M)

TIDMJAN

RNS Number : 9429M

Jangada Mines PLC

14 January 2019

Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector: Mining

14 January 2019

Jangada Mines plc ('Jangada' or the 'Company')

Operational Update and Q1 Schedule

Jangada Mines plc, a natural resources company developing South America's largest and most advanced platinum group metals ('PGM') and nickel project, is pleased to announce an operational update for the Pedra Branca PGM and nickel project ("Pedra Branca" or "the Project"), in the north-east of Brazil.

HIGHLIGHTS

-- Q1 work programme focussed on progressing the BFS through to completion of the verification stage for all aspects of the BFS;

-- Further drilling and laboratory testing at the vanadium deposit to be completed and reported within the first quarter;

   --     Company's current work programme fully funded. 

Following a busy conclusion to 2018, the Company is pleased to present its work programme for the first quarter of 2019.

Bankable Feasibilty Study

As previously announced, the Company is advancing the Project's PGM and nickel assets towards a combined Bankable Feasibility Study ("BFS"). The Company currently expects that the verification aspects of the BFS process, which are expected to prove the economic and technical vailabilty of the Project, will be completed during Q1 and the results are anticipated to be available early in Q2, as summarised below:

 
             Component               Expected Completion Date 
      Preliminary Flow Sheet                Completed 
                                    ------------------------- 
    Nickel Resource Estimation              Completed 
                                    ------------------------- 
        PGM Resource Review               End of January 
                                    ------------------------- 
          Hydrology Study                 End of January 
                                    ------------------------- 
  Legal, Environmental and Social        End of February 
              Factors 
                                    ------------------------- 
 Metallurgy Test Work Verification         End of March 
                                    ------------------------- 
 

The successful completion of this work will result in the mine design process to be finalised in Q2 2019.

Vanadium Exploration

The Company has commenced further exploration at its high grade vanadium deposit identified at Pedra Branca, in close proximity to, but distinct from the PGM and nickel deposits. The Company expects drilling to commence this week and conclude by the end of January with results to follow in March.

The vanadium anomaly, called Ptombeiras West, extends approximately 2,000 m N-S and 1,000 m E-W and to a depth of approximately 200 m. Previous outcrop results have returned consistent grades of 0.33% Vn, and the Board believes there is potential for this to be a significant vanadium discovery.

The current phase of exploration includes a 300 m diamond core drilling programme intended to confirm deposit

continuity and extent.   First results are anticipated throughout Q1 2019. 

Brian McMaster, Chairman of Jangada, said: "2018 was a busy and productive year for the Company with the work undertaken demonstrating the impressive scale and potential of the Pedra Branca project. Looking ahead to 2019, our first strategic objective is the delivery of a combined BFS for the PGM and nickel assets which should further confirm its technical and economic viability. Additionally, exploration drilling is underway at our vanadium project at Pedra Branca which is looking very exciting. With this in mind, we look forward to updating shareholders with our progress throughout the upcoming months."

About Pedra Branca

Pedra Branca currently has a JORC (2012) compliant resource of approximately 1.45 million ounces of PGM+Au at a grade of 2.5 g/t Pd Eq (1.3 g/t PGM+Au), 140 million pounds of nickel, 26 million pounds of copper and 6.7 million pounds of cobalt. The completed Scoping Study and Preliminary Economic Assessment has confirmed the Project's robust economics; with a NPV of US$192 million, IRR of 67% and 1.6 year payback. In addition to the PGM resource, high grade nickel mineralisation has been discovered and is understood to be the right composition to be suitable for usage in emerging battery technologies.

* ENDS *

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").

For further information, please visit www.jangadamines.com or contact:

 
 Jangada Mines plc         Brian McMaster (Chairman)   Tel: [phone] 
                                                        6629 
 
 Strand Hanson Limited     James Spinney               Tel: [phone] 
  (Nominated & Financial    Ritchie Balmer              3494 
  Adviser)                  Jack Botros 
 
 
 Brandon Hill Capital      Jonathan Evans              Tel: [phone] 
  (Broker)                  Oliver Stansfield           5000 
 
 St Brides Partners        Isabel de Salis             Tel: [phone] 
  Ltd                       Gaby Jenner                 1177 
  (Financial PR) 
 

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January 14, 2019 02:00 ET (07:00 GMT)