Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector: Mining
13 November 2019
Jangada Mines plc ('Jangada' or the 'Company')
Logistic Study Identifies Export Routes for Pitombeiras Vanadium Project
Jangada Mines plc, a natural resources company, is pleased to announce the positive conclusions from a logistic study commissioned by the Company to assess possible routes to market for the products extracted from its Pitombeiras Vanadium Project ('the Project') located in the state of Ceará, Brazil. To view the announcement with illustrative maps and diagrams please follow this link - http://www.rns-pdf.londonstockexchange.com/rns/1777T_1-2019-11-12.pdf
Overview
· Three potential routes for ore identified;
o Two to Main Chinese Ports (MCP) - Fortaleza seaport as embarkation point being the most cost effective with estimated at US$84.64/wet metric ton (wmt); and
o One to the Brazil-based Companhia Siderurgica de Pecém (CSP) refinery with an estimated cost at US$36.00/wmt.
· Study considered an estimated initial production of 300kt of V2O5 concentrate increasing to 600kt of V2O5 concentrate.
· The costs/wmt underlines the competitive nature of high-grade vanadium deposit.
· The study will form part of a Preliminary Economic Assessment ("PEA"), which the Company is currently in the process of preparing.
Brian McMaster, Chairman of Jangada, said: "The logistic analysis has demonstrated that Pitombeiras is well located to reach overseas markets through both the Pecém and Fortaleza seaports in Ceará state, which are within the Ceará Free Trade Zone, an industrial free trade area for exporting companies' facilities. Importantly, they provide tax and exchange benefits, and simplified administrative procedures, which positively impact the product's selling margins and bring additional competitive advantages to Jangada."
Details
C. Steinweg Handelsveem Latin America S.A. was commissioned by Jangada to prepare an initial analysis of the most favourable logistical routes for the vanadium product from the Pitombeiras Project on the basis of an estimated production of 300kt of V2O5 concentrate in 2020, increasing to 600kt of V2O5 concentrate in 2022. The objective of the initial analysis was to identify competitive logistic alternatives and provide indicative costs for the logistics Ex- Works ('EXW') from the Project to the ports of destination ('POD').
The analysis indicated three potential routes for the Pitombeiras ore, two of them considering the Main Chinese Ports ('MCP') as a final destination and the other the Brazil-based Companhia Siderurgica de Pecém ('CSP') refinery as a final destination.
The total indicative costs (ground and ocean costs) to transport the Pitombeiras ore from the Project to the MCP using the Fortaleza seaport have been estimated at US$ 84.64/wet metric tonne (wmt). Using the Pecem seaport as an alternative route, the total indicative costs have been estimated at US$ 90.02/wmt. The study demonstrated that the route using the Fortaleza seaport is the cheapest option, considering the MCP as a final destination.
In addition, the total indicative costs considering the CSP as a final destination have been estimated at US$ 36.00/wmt, which only involves ground transportation using trucks.
The map and tables below illustrate the path and distance utilising federal highways from the Project to the major seaports in Ceará State, including Pecém and Fortaleza, as well as the option to transport the ore directly to CPS - located nearby to Pecém. CPS is a steel company owned by the South Korean companies Dongkuk Steel, Posco (NYSE: PKX) and Brazilian mining company Vale (NYSE: VALE).
Figure 1: Pitombeiras Project location in relation to main seaports at Ceará State. - see PDF
Table 1: Ground transportation distances considered in the initial analysis.
Route |
Origin |
Destination |
Distance |
Transport Mode |
A |
Pitombeiras Project |
Pecém |
352 km |
Truck |
B |
Pitombeiras Project |
Fortaleza |
333 km |
Truck |
C |
Pitombeiras Project |
CSP |
349 km |
Truck |
Table 2: Three potential routes for the Pitombeiras vanadium ore.
Option |
Potential Routes Pitombeiras Project |
Truck Transport |
Details |
A |
Pitombeiras Project → Pecém |
Bulk |
Truck to Pecém → Storage at the Port → Loading into Vessels → Ocean Transport to MCP |
B |
Pitombeiras Project → Fortaleza |
Bulk |
Truck to Fortaleza → Storage at the Port → Loading into Vessels → Ocean Transport to MCP |
C |
Pitombeiras Project → CSP |
Bulk |
Truck to Companhia Siderurgica de Pecém (CSP) |
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 |
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Strand Hanson Limited (Nominated & Financial Adviser) |
James Spinney Ritchie Balmer Jack Botros |
Tel: +44 (0)20 7409 3494 |
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Brandon Hill Capital (Broker) |
Jonathan Evans Oliver Stansfield |
Tel: +44 (0)20 3463 5000 |
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St Brides Partners Ltd (Financial PR) |
Isabel de Salis David Penson |
Tel: +44 (0)20 7236 1177 |
