Jangada Mines PLC Vanadium Deposit Sampling & Metallurgical Results (2573U)

TIDMJAN

RNS Number : 2573U

Jangada Mines PLC

23 October 2017

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

23 October 2017

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

Significant Vanadium Deposit Sampling and Metallurgical Results

at the Pedra Branca Platinum Group Metals Project in Brazil

Jangada Mines plc, a natural resources company developing South America's largest and most advanced platinum group metals ('PGM') project, is pleased to announce positive sampling and metallurgical test results from the vanadium deposit occurring at its Pedra Branca PGM project in north-eastern Brazil ('the Project'), as part of its strategy to increase by-product credits.

Overview

   --    Results highlight high-grade vanadium-titanium-iron mineralisation 

o Grades in outcrop samples from five locations average 0.33% vanadium, 5.0% titanium and 53% iron

o Grade and rock chemistry between samples showing consistent low variance

o Strong market dynamics for vanadium pricing

-- Vanadium deposit associated with a large magnetic anomaly identified by Anglo American Platinum Exploration in 2015

-- Company on track to complete Scoping Study in the near term, with a view to commencing trial mining early 2018

Brian McMaster, Executive Chairman of Jangada said, "In addition to the already quantified PGM, cobalt, nickel, copper and chrome resources at Pedra Branca, the vanadium results demonstrate the significant exploration potential of the 44 exploration licenses over the 55,000 ha that Jangada holds in the area. The prospectivity of the Project's tenements is highly encouraging: at least 11 other PGM targets have also been confirmed by drilling and forms the basis for our target to significantly increase resources from the current c.1 million ounces PGM+Au.

"We remain focused on executing our objective of developing South America's largest and most advanced PGM resource, targeting trial production in early 2018, while systematically unlocking the additional regional upside. Vanadium is particularly exciting given its increasing usage in grid scale vanadium redox flow batteries for solar and wind energy storage and continuing traditional demand from the high technology and steel making industries. Accordingly, the price of vanadium pentoxide has increased 500% since January 2016 and is currently trading at c.$8.50/lb."

Further Information

Jangada is developing the Pedra Branca PGM project, one of the largest undeveloped PGM projects outside of Africa. The Company announced on 9 October 2017 a significant upgrade in the Project's mineral resource classification: 77% of the Project's resources are now in the Indicated and Measured categories and are expected to be converted to economic Reserves during the finalisation of the Prefeasibility Study. Ahead of that, a Scoping Study is on track to be completed in the near term.

The Project currently has a JORC (2012) Compliant Resource of approximately 1 million ounces of PGM+Au, which it aims to increase significantly. Current work is focused on enhancing the in-situ value of the Project with the addition of by-product credits including cobalt, chrome, nickel, and copper. Today's results now highlight high-grade vanadium-titanium-iron mineralisation at the Project. Grades in outcrop samples from five locations average 0.33% vanadium, 5.0% titanium and 53% iron, with grade and rock chemistry between samples showing consistent low variance. Test results demonstrate that the ore is amenable to simple magnetic separation and produced fractions rich in vanadium (0.8%), and iron (64%) - titanium was enriched to 46% in the non-magnetic fraction.

The vanadium deposit is associated with a large magnetic anomaly identified by Anglo American Platinum Exploration in 2015; geophysical modelling (3D inversion) of the data has shown the anomaly to be approximately 2km long, 1km wide with a depth 200m. Mineralisation has been mapped in outcrop for 520m directly above the anomaly. Two further 20kg samples have been submitted for metallurgical testing and characterisation at NOMOS Laboratories in Rio de Janeiro, Brazil.

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.

* ENDS *

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

 
 Jangada Mines plc                                      E: [e-mail] 
 
 Strand Hanson Limited (Financial                              T: [phone] 
  & Nominated Adviser)                                                      3494 
  James Spinney / Ritchie Balmer 
  / Jack Botros 
 
 Beaufort Securities (Broker)                                  T: [phone] 
  Jon Belliss                                                               8300 
 
 St Brides Partners LTD (Financial                             T: [phone] 
  PR)                                                                       1177 
  Isabel de Salis / Olivia Vita 
 

This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No 596/2014.

Notes to the Editors

Jangada Mines plc is focused on developing the Pedra Branca PGM Project ('the Project'), one of the largest undeveloped PGM projects outside of Africa, with the potential to supply a market in long-term deficit. The Company is aiming to establish a low cost, low capex open pit mine, with a target to produce 30,000 oz/annum by the end of 2018 from three existing mining licences with mineralisation commencing at surface. The Project has a JORC (2012) Compliant Resource of approximately 1 million ounces of PGM+Au at a grade of 1,3 g/t, 109 Mlbs of Ni, 23 Mlbs of Cu and 6,4 Mlbs of Co. Circa 52% of this is contained within current mining licences and is considered a low development risk due to previous exploration work totalling + US$35 million.

Additionally, the Company owns a further 44 exploration licences spanning 55,000 hectares, which have significant upside potential for PGM, nickel, copper, chrome, rhodium, gold, and vanadium. The team has a wealth of experience, not only of the Project but of mining in South America across a range of commodities.

This information is provided by RNS

The company news service from the London Stock Exchange

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October 23, 2017 02:00 ET (06:00 GMT)