Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector: Mining
14 February 2020
Jangada Mines plc ('Jangada' or the 'Company')
Shareholder Q&A
Jangada Mines plc, a natural resources company, is pleased to publish a Q&A document addressing recently received questions from shareholders in line with its commitment to maintaining an open dialogue with shareholders. The questions and answers can be viewed below.
Question: Following confirmation of the works schedule start, is it possible to share more details on the anticipated timelines of drill results utilising the XRF equipment?
Answer: As part of the process of preparing the drill core for sending to the independent laboratory for assaying, our team are sampling the core with a handheld XRF machine. The results of this analysis are used to guide decisions regarding the drilling programme. Jangada does not intend (or is required) to release the XRF results because they are generally not as accurate as the laboratory results. We are regularly sending core to the laboratory and we will release results as they come back from the laboratory.
Question: In the recent interview with Sarah Lowther of TMS, there was a reference to two potential forward plans, one was to go into production and the other was to progress with an industry partner, have either of these options developed any further?
Answer: Many of the decisions regarding future development will be determined by the results of the drilling programme. Our first and foremost priority is that we identify the size and quality of the resource to a JORC standard (which will be done through the drilling programme). From there, the alternative courses of action can be considered in detail, and the best one selected.
Question: The importance of the Logistics Study commented on in the November RNS may have been overlooked by investors. With this in mind, can you provide advice on the following points. In Brazil trial mining permits are often granted, is this the case for vanadium, titanium and iron? Can all three be extracted with such a single licence? And, is there a standard amount of ore such a trial licence would allow? What would the stages of a trial mining application be? And, any guidance on timeframes?
Answer: As noted in the question, Trial Mining licences are a normal process in Brazil. The specifics of the licence will be determined by the authorities on an application by application basis, and we are unfortunately not able to comment any further in this regard as we are not in possession of the necessary information. Brazil is renowned for being a country that sponsors mining development and as such the process to obtain a Trial Mining licence is well defined and generally takes 3-6 months.
Question: China are the largest producers of vanadium, titanium dioxide and steel. The reference to transport costs to China suggest the company are considering monetising some of the assets early without large CAPEX costs by simply digging up ore and transporting it to China for processing. Is this being considered?
Answer: The logistics study covered a number of parameters, including the option to sell unprocessed ore, regardless of whether it will be transported offshore pre-processing or sold domestically. The Company continues to assess all potential development options in order to best realise value for shareholders.
Question: The area in which Jangada's deposit really stands out on a peer comparison, is on the titanium dioxide grade. Largo are carrying out studies on TI02 production with results due. At least 2 Australian projects (TNG Ltd and King River Resources) have tested methods that produce pigment grade titanium dioxide which sells for over $2000 per tonne, in light of this what are the company's thoughts on how important the TI02 could be? Are tests and talks going on around this specific aspect of the deposit?
Answer: Jangada has only been focussing in earnest on this project for a short period and at this stage our efforts are dedicated to exploration. Following the completion of the drilling programme we will be able to assess with more detail the opportunities going forward.
Question: During the recent interview with Sarah Lowther from TMS, it was noted that the port infrastructure could be utilised by Jangada, could this involve any form of ore processing and if so, is the infrastructure already in place for Jangada to use? and are discussions on-going with the Port authority?
Answer: Jangada has held preliminary discussions with Pecem Port, which is located 352km away from site and accessible via a federal paved highway. If Jangada elected to utilise the Port's facilities for processing, Jangada would be required to construct the processing facility. The feasibility of this will be considered as part of a Preliminary Economic Assessment due to be completed following the conclusion of the current drilling programme.
Question: Would it be feasible to consider starting a low capex ore extraction process this year and for the ore to be processed off site with the support of a third party?
Answer: In theory this is feasible. We are committed to maximising value from the project and will accordingly consider all potential development options in order to best achieve this.
Question: Can you clarify if there are any plans to increase shareholder and investment community engagement, to raise project awareness? As it has been noted that the boards engagement has been at times very subdued and also Jangada's social media activity has also been very subdued.
Answer: As highlighted through this Q&A document and announcements released by the company to-date, the board is committed to maintaining transparent communications and providing timely updates in line with its regulatory responsibilities. We look forward to continuing to provide updates on activity at Pitombeiras as soon as we are in a position to do so, and once we have a more defined development path for the project, look forward to increasing our public relations programme accordingly. Our shareholding in ValOre Metals is a relatively passive investment and we consider it the jurisdiction of ValOre to be responsible for public engagement. We will continue to review our public relations strategy on a regular basis and invite shareholders to submit any questions they may have by emailing:
[email protected]
Question: The ValOre Metals team are also very active in regards to the development of Pedra Branca, is it the boards intention to continue to be supportive of ValOre and to retain the shareholding in ValOre as their development plans progress?
Answer: Jangada is delighted to be a major shareholder of ValOre and we remain very supportive of their efforts and the Pedra Branca project generally.
Question: The region is clearly very rich in elements and have the board been made aware of any other adjacent tenements that would be of interest to expand the scope of the Pitombeiras and Goela project?
Answer: We agree that the surrounding area is incredibly prospective. Following our decision to increase Pitombeiras' land holding in November 2019 to include Goela, we are delighted to have significantly increased our land holding even further through the granting of an additional 864 hectares worth of tenements, known as Mocidade, in February 2020 (see RNS dated 13 February 2020). This increase takes our total land holding to 1,958 hectares, marking a 80% increase. We now look forward to improving our understanding of the project's resource potential through the drill programme currently underway, the results from which will help shape future development plans.
**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) |
Charlotte Page Beth Melluish |
Tel: +44 (0)20 7236 1177 |
