Technical Report on Pitombeiras Vanadium Project

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

 

30 September 2019

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

JORC Compliant Technical Report on Pitombeiras Vanadium Project

               

Jangada Mines plc, a natural resources company, is pleased to announce the completion of a JORC (2012) compliant Technical Report (the "Technical Report") on the Pitombeiras Vanadium Project ("Pitombeiras"), located in the state of Ceará, Brazil.

 

Highlights 

·    The Technical Report highlights the encouraging potential of Pitombeiras Project

·    Current JORC (2012) Exploration Target has been estimated from drilling, magnetic data and rock chip geochemistry to range between 40 Mt to 60 Mt at 0.3% to 0.6% V₂O₅, 40% to 55% Fe₂O₃ and 8% to 10% TiO_2.

·    Initial Davis Tube Recovery ("DTR") test work has demonstrated that the mineralization responds very well to magnetic separation with mass recovery of 59% and 62% and concentrate grades increasing to greater than 1.2% V₂O_5, including 95% Fe₂O₃. The titanium dioxide was concentrated on a non-magnetic fraction reaching grades around 33% TiO_2.

·    A preliminary logistics study has demonstrated favourable ore transportation costs to overseas markets

·    The Company is fully funded for the next stages of exploration and development discussed herein

 

Brian McMaster, Chairman of Jangada, said: "We continue to be encouraged with the potential of Pitombeiras to become a high-grade world-class vanadium, iron, titanium project with the ability to produce a concentrate through magnetic separation.  The JORC Exploration Target, as identified in the Technical Report, indicates we have grades and scale required to develop a substantial, economically viable project, situated in a logistically friendly environment."

 

Background

The Pitombeiras vanadium mineralisation is associated with a large airborne magnetic anomaly identified by Anglo American Platinum Exploration in 2013. The geological features indicate that the vanadium mineralization can be correlated with the Vanadiferous Titanomagnetite ("VTM") type deposits which are the principal sources of vanadium globally. Geophysical modelling and interpretation have shown that the airborne magnetic anomaly extends to approximately 1,750m x 1,000m in size.  Approximately 70% of global vanadium resources are currently mined at in-situ grades of approximately 0.25% V₂O₅. The Pitombeiras drill results indicate that it potentially hosts a deposit with grades significantly higher and compares favourably with those demonstrated by existing high-grade operations in Brazil, South Africa and Australia.

 

As announced earlier in 2019, Jangada conducted an initial exploration programme, which included five (5) diamond drill holes totalling 346.45 m. Four drill holes intersected high grade, near surface vanadium mineralization, consistent with expectations from the surface rock chip sampling campaign.   The results of this programme were announced on 5 February 2019 and further on 11 March 2019.

 

Initial metallurgical test work commissioned by Jangada has demonstrated that the vanadium bearing magnetite rocks from Pitombeiras respond well to magnetic separation and produced magnetic fractions rich in vanadium and iron. The mass recovery of the magnetic fractions from two samples were 59% and 62% with vanadium grades yielding 1.26% and 1.23% V₂O₅ plus 95.4% and 94.2 Fe₂O₃, respectively. The non-magnetic fraction returned enriched in titanium dioxide with 33.8% and 33.7% TiO_2.

 

The results also establish that the magnetic recoveries produce a low SiO₂ and low Al₂O₃ product. Significant upgrades of the Fe and V₂O₅ content confirm that the magnetite is a Fe-V complex amenable to magnetic separation yielding a product of potentially economic grades. These results were announced on 26 September 2019.

 

JORC Exploration Target

The JORC (2012) Exploration Target at Pitombeiras was estimated based on the integration of drill logs, surface mapping, aeromagnetic data and rock chip geochemistry currently available to Jangada. Drill sections show the lateral continuity between holes of the vanadium mineralization. Currently, the vanadium mineralization at Pitombeiras is open in all directions and it is believed to represent a small portion of a larger (1,700m by 1,000m) aerial magnetic anomaly.

 

The JORC Exploration Target has been estimated as a range of 40 Mt to 60 Mt of ore with grades in the range of 0.30% V₂O₅ to 0.60% V₂O₅, with possible by-products and co-products such as; iron (with a range of 40% to 50% Fe₂O₃) and titanium dioxide (with a range of 8.0% to 10.0%TiO₂).

 

The numbers of tonnage and grades herein presented are represented as a JORC Exploration Target as defined and, in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves ("the JORC Code" 2012 Edition), which states that: "An Exploration Target is a statement or estimate of the exploration potential of a minerals deposit in a defined geological setting where the statement or estimate, quoted as a range of tonnes and a range of grade (or quality), relates to mineralization for which there has been insufficient exploration to estimate a Mineral Resource". An exploration target potential quantity and grade are conceptual in nature as there has been insufficient exploration to estimate a mineral resource and therefore it is uncertain if further exploration work will result in the estimation of a mineral resource. 

 

Next Steps

The Technical Report stated that the actual exploration results are favourable and indicate that the Pitombeiras Vanadium Project is a property of merit that can be quickly developed to define JORC-compliant Mineral Resources/Reserves which will support the elaboration of a Preliminary Economic Assessment (PEA) in a short period of time.

 

Based on the encouraging results of the JORC Compliant technical report, the Company is currently devising an exploration and development plan to substantially progress Pitombeiras over the coming months. The Company is fully funded for the completion of this programme and anticipates releasing details of this programme, including a timeline for completion, in late October.

 

Qualified Person Review

The information in this announcement is based on the information included in the Independent Technical Report on Pitombeiras Vanadium Project, Ceara State - Brazil, prepared by Mr. Paulo Ilidio de Brito, who is a member of the Australian Institute of Geoscientists (MAIG # 5173) and a member of AusIMM - The Minerals Institute (MAusIMM # 223453). Mr. Brito is a professional senior geologist with +34 years of experience in the mining industry, which is relevant to the style of mineralization and type of deposit under consideration to meet the requirements of a qualified person as defined in the 2012 edition of the JORC Code. Mr. Brito also meets the requirements of a qualified person under the AIM Note for Mining, Oil and Gas 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 (Nominated & Financial Adviser)	James Spinney Ritchie Balmer Jack Botros	Tel: +44 (0)20 7409 3494
Brandon Hill Capital (Broker)	Jonathan Evans Oliver Stansfield	Tel: +44 (0)20 3463 5000
St Brides Partners Ltd (Financial PR)	Isabel de Salis Juliet Earl	Tel: +44 (0)20 7236 1177