REG - Jangada Mines PLC - Pitombeiras Update

Jangada MinesAnnouncement

13/04/2023 07:00

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RNS Number : 0399W  Jangada Mines PLC  13 April 2023

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

13 April 2023

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

 

Pitombeiras Update

 

Successful Extraction of Titanium Dioxide & Vanadium Pentoxide

 

Jangada Mines plc, a natural resources development company with interests in
Brazil and elsewhere, is pleased to announce that it has received positive
test results regarding the extraction of high-grade titanium dioxide ('TiO2')
and vanadium pentoxide ('V2O5') from its Pitombeiras vanadium titanomagnetite
('VTM') project in Brazil ('Pitombeiras' or 'the Project').

 

The tests were carried out by Zambian consulting firm, YCS Sustainable
Solutions Limited, utilising the proprietary technology developed by Fodere
Titanium Limited ('Fodere'), in which Jangada holds a 7.7% interest. The work
is part of the Company's strategy to optimise the value of the Project by
applying innovative processing technology while also improving its
Environmental, Social and Governance ('ESG') credentials.

 

By working closely with Fodere, the Board recognised that its sustainable
technology, initially developed to treat low-grade and complex
titanium-bearing feedstock, could be applied to and improve the economic
potential of Pitombeiras. The highly energy efficient technology maximises
resource recovery, improves processing effectiveness, reduces costs compared
to regular processing routes and importantly, minimises waste improving
environmental credentials and enhancing ESG performance.

 

Five samples, delivered by Jangada from various locations at Pitombeiras, were
crushed, homogenised, and milled. The samples were then subjected to magnetic
separation. Preliminary test works concentrated the Fe2O3, TiO2 and V2O5 with
all upgrading well and excellent recovery and purity rates reported, the
highest recovery rates being 86.73% TiO2, 91.19% Fe2O3, and 95.88% V2O5.

 

With the adaptation of Fodere's technology to successfully process ore from
Pitombeiras, Jangada is now preparing 25 tonnes of material to be tested on a
larger scale in order to finalise a commercial flowsheet and provide in-depth
economics for a Preliminary Economic Assessment ('PEA') focussed on the
extraction of TiO2, V2O5 from Pitombeiras utilising Fodere's technology.
This is anticipated to improve the already robust economic studies carried out
on Pitombeiras that were announced on 21 April 2022 with headline figures of
100.3% post-tax Internal Rate of Return, a US$96.5 million post-tax Net
Present Value (8% discount rate), a US$145.9 million post-tax undiscounted
operating cash flow, and a 13-month payback.

 

The Company remains focused on commodities that are critical in the energy
transition and drive the

circular economy. The strategic investment in Fodere was enacted as it
represented an opportunity to capitalise on a new environmentally improved
solution that extracted TiO2 and V2O5, two of the three major mineral
components of the Company's Pitombeiras project. The Board believes that these
test results have vindicated its investment decision. Importantly, Jangada
also owns exclusive rights to Fodere's IP for its application throughout South
America.

 

Continuing with the Company's investment strategy, the Company continues to
hold a 9.5% stake in Blencowe Resources Plc (LSE: BRES) which is advancing the
Orom-Cross graphite project in Uganda. A recent research note, by Resolve
Research Limited, stated that "Orom-Cross is fast becoming a Tier 1 project at
an inflection point for graphite demand" and applies a 23p target price with a
"Strong Buy stance".

 

Brian McMaster, Executive Chairman of Jangada said, "Fodere's successful
extraction of high-grade vanadium and titanium from material from the
Pitombeiras project utilising cost efficient environmentally sound
technologies is a major boost to Jangada. Furthermore, the adaptation of its
technology to process mined material rather than focus on waste materials
offers increased potential for its business; as shareholders in Fodere and
holders of its IP rights for South America, this is a very exciting
development.

 

"The transition to net zero is a key theme in resource development and with
energy efficient processes being applied we not only potentially reduce our
project OPEX but become more attractive to development partners, who we remain
in discussions with. We will now look to upscale the test and deliver an
additional economic study to further explore the project parameters.

 

"We are focussed on value creation through our own project development and via
investing in exciting opportunities in both mining and technology. As
mentioned, the advancement of Pitombeiras has been dependant on the right
pricing environment, particularly with relevance to iron ore. However, with
the application of Fodere's technology we can improve the value of the
titanium and vanadium components, and thus the attractiveness of the
Project."

 

**ENDS**

 

For further information please visit www.jangadamines.com
(http://www.jangadamines.com/)  or contact:

 

 Jangada Mines plc                     Brian McMaster    Tel: +44 (0) 20 7317 6629
 Strand Hanson Limited                 Ritchie Balmer    Tel: +44 (0)20 7409 3494

 (Nominated & Financial Adviser)       James Spinney

                                       David Asquith

 Tavira Securities Limited             Jonathan Evans    Tel: +44 (0)20 7100 5100

 (Broker)

 St Brides Partners Ltd                Ana Ribeiro       jangada@stbridespartners.co.uk

 (Financial PR)                        Isabel de Salis

 

 

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