REG - Jangada Mines PLC - Pitombeiras Project Update

Jangada MinesAnnouncement

21/12/2021 07:20

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RNS Number : 3235W  Jangada Mines PLC  21 December 2021

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

21 December 2021

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

 

Pitombeiras Project Update

 

Jangada Mines plc, a natural resources company, is pleased to provide an
update on the preparation of the Feasibility Study ('FS') of the Pitombeiras
Ferrovanadium Project located in the state of Ceará, Brazil ('Pitombeiras' or
'the Project').

 

As previously announced, the scope for the FS was to evaluate the
opportunities to construct a low CAPEX direct shipping ore ("DSO") mining
operation focused on the extraction of iron ore with high vanadium content.
GE21, the company contracted to conduct the FS, has completed all aspects of
the FS scope except for the chapter relating to project economics.  Results
of the study by GE21 have identified an opportunity for Jangada to potentially
benefit from extracting additional value from the titanium dioxide present at
the Project.   Considering the current National Instrument 43-101 compliant
resource estimate for Pitombeiras is 5.70 million tonnes ('Mt') at an average
grade of 0.51% vanadium pentoxide ('V2O5'), 10.09% titanium dioxide ('TiO2')
and 50.42% of ferric oxide ('Fe2O3'), the Board, following recommendation from
GE21, believe the ability to extract the TiO2 could increase the positive
impact on the long-term value of the Project.

 

With this background and given the rising demand for TiO2 due to its
increasing use in renewable energy technologies including electric batteries,
as well as the decline in the iron ore price since the publication of the
Pre-Feasibility Study, the Board believes that it is prudent to invest further
in the evaluation of the TiO2 component; accordingly, the publication of the
FS is now anticipated to be in Q1 2022.  All other aspects of the FS have
concluded that the Project is technical and geologically capable of proceeding
as anticipated.

 

The Company recognises the importance of commodities focussed on the renewable
energy sector and to that end, its existing vanadium pentoxide and titanium
dioxide resources are highly sought in the rapidly emerging "battery metals"
space.  Given the global importance of this sector for the future, in
addition to progressing Pitombeiras, the Company, as previously announced, has
also invested in innovative metallurgical processing company, Fodere Titanium
Group. Additionally, the Company maintains an active watching brief for other
synergistic opportunities that may supplement the existing asset suite.

 

Brian McMaster, Executive Chairman of Jangada, said: "As the FS reaches
finalisation, it is very encouraging to confirm we have no technical or
geological impediments to proceeding.  The economics of the Project are, as
expected, dependant on the commodity process and the extraction of the right
commodity basket. On the advice of GE21, we are assessing the potential of the
titanium component of the Project to positively impact its economics.  This,
together with the pricing variabilities in the iron ore and vanadium prices,
has pushed back the completion date of the FS to Q1 2022.

 

"We are becoming increasingly linked to the positive battery metal market
dynamics: we are invested in Fodere Titanium Group, which has developed
innovative commercial processes to extract titanium dioxide, vanadium
pentoxide and other valuable products from low-grade ores and waste
stockpiles; and we are coming across other development opportunities in the
sector that have the potential to be synergistic and value accretive.  With a
strong balance sheet, we are in a position to progress our existing assets and
take advantage of opportunities that arise."

 

"We would like to wish all our shareholders a very happy Christmas and
prosperous New Year."

 

**ENDS**

 

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

 

 Jangada Mines plc                     Brian McMaster (Chairman)  Tel: +44 (0) 20 7317 6629

 Strand Hanson Limited                 James Spinney              Tel: +44 (0)20 7409 3494

 (Nominated & Financial Adviser)       Ritchie Balmer

 Brandon Hill Capital                  Jonathan Evans             Tel: +44 (0)20 3463 5000

 (Broker)                              Oliver Stansfield

 St Brides Partners Ltd                Isabel de Salis            E: info@stbridespartners.co.uk

 (Financial PR)                        Oonagh Reidy

 

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