TIDMJAN
RNS Number : 9597G
Jangada Mines PLC
12 November 2018
Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector:
Mining
12 November 2018
Jangada Mines plc
('Jangada' or the 'Company')
32% Reduction in Total Capital Expenditure
and Updated Process Flowsheet
Jangada Mines plc, a natural resources company developing South
America's largest and most advanced platinum group metals ('PGM')
project, is pleased to announce a substantial reduction in the
preliminary capital expenditure, as a result of the creation of an
updated process flowsheet in partnership with Consulmet Metals
(Pty) Ltd ("Consulmet"), for its Pedra Branca PGM project ("Pedra
Branca" or "the Project"), in the north-east of Brazil.
Pedra Branca currently has a JORC (2012) compliant resource of
approximately 1.45 million ounces of PGM+Au at a grade of 1.3g/t
PGM+Au (2.5 g/t Pd Eq), 140 million pounds of nickel, 26 million
pounds of copper and 6.7 million pounds of cobalt.
To view the full announcement, complete with illustrative
diagrams, please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/9597G_1-2018-11-9.pdf
Highlights:
-- Optimised and updated process flowsheet, delivered in
partnership with Consulmet, for Pedra Branca has resulted in a
significant reduction in projected plant capex costs and overall
upfront capex costs:
o 38% reduction in plant capex to US$33.8 million (previously
estimated at US$54.2 million)
o 32% reduction in overall capex figure to US$43.9 million
(previously estimated at US$64.9 million)
-- The updated flowsheet further enhances the already robust
economics of Pedra Branca and underpins Management's confidence in
the Project's potential to be a competitive and profitable mining
operation
Brian McMaster, Chairman of Jangada, said: "Pedra Branca is the
largest and most advanced PGM project in South America and the
Jangada team has already demonstrated its potential to generate
material returns to investors once in production. Today's
refinement and optimisation of the process flowsheet has delivered
an impressive 32% and 38% reduction in plant capex and overall
capex, respectively, further enhancing the Project's potential to
provide lucrative returns. As such, we are delighted with today's
result, which is primarily a result of Consulmet's highly
specialist experience in building PGM plants. The team from
Consulmet have hit the ground running and their experience and
understanding of projects such as Pedra Branca is coming to the
fore.
"As we extrapolate the revised capex number into the already
robust economic model, the financial merits of Pedra Branca will
simply get stronger. Importantly, the revised process flow sheet
has demonstrated a simpler and more efficient process route. We
anticipate that this will reflect in reduced operating cost metrics
that will feed into the ongoing BFS."
Further Information
Jangada and Consulmet entered into an agreement for the
flowsheet development and plant design of the Project as per the
Company's announcement on 27 September 2018.
As part of the initial work programme, Consulmet reviewed all
available metallurgical test work results from the Project and
produced a preliminary flowsheet for the production of a PGM-rich
nickel copper sulphide concentrate and a chrome concentrate. This
flowsheet, which demonstrates a notably simpler and more efficient
process than previously envisaged, will form the basis of all
subsequent test and design work relating to advancing the project
toward FEL3 level (commonly known as BFS level) feasibility.
Consulmet's review coupled with their institutional knowledge
and experience in developing PGM and base metal processing plants,
has resulted in important changes to the flowsheet which have
simplified and improved the efficiency of the overall process.
As part of the Consulmet's process flowsheet review, an updated
capital expenditure estimate has also been calculated by Consulmet.
The updated plant capex figure, that has been prepared to a
preliminary economic assessment level of accuracy, amounts to
US$33.8 million with an overall upfront capex of US$43.9 million.
These revised numbers compare favourably with the recently
completed Preliminary Economic Assessment for Pedra Branca prepared
by GE21 in Brazil (as announced on 18 June 2018) which estimated a
plant capex of US$54.2 million and total upfront capex of
US$64.9million.
The updated plant capex estimate amounts to a 38% reduction
whilst the impact on total upfront capex is a reduction of 32%.
Figure 1. Conceptual Block Flow Diagram for Pedra Branca
produced by Consulmet
About Pedra Branca
Pedra Branca is the largest and most advanced PGM project in
South America and currently has a JORC (2012) compliant resource of
approximately 1.45 million ounces of PGM+Au at a grade of 1.3g/t
PGM+Au (2.5 g/t Pd Eq), 140 million pounds of nickel, 26 million
pounds of copper and 6.7 million pounds of cobalt.
The Project is located 280km from the port city of Fortaleza in
the northeast of Brazil and holds three mining licences and 42
exploration licences over an area of 48,000 hectares. Previous
operators have spent more than US$35 million on exploration and
development activities, which include 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.
About Consulmet Metals
Consulmet Metals are a specialist engineering group focussed on
fast-tracked design and construction of minerals processing plants
on a fixed price basis (EPC/LSTK). They excel in delivering
projects in remote locations and developing countries. They have
delivered greenfield and brownfield projects in Africa, Australia,
Asia, Europe and South America for BHP Billiton, Rio Tinto, Anglo
American, mid-tier and junior mining companies.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014. Upon the publication of
this announcement, this inside information is now considered to be
in the public domain.
*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
(Nominated & Financial Ritchie Balmer 3494
Adviser) Jack Botros
Brandon Hill Capital Jonathan Evans Tel: +44 (0)20 3463
(Broker) Oliver Stansfield 5000
St Brides Partners Isabel de Salis Tel: +44 (0)20 7236
Ltd Gaby Jenner 1177
(Financial PR)
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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