Year End Newsletter

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

22 December 2020

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

Year End Newsletter

Whilst 2020 has been a year of disruption globally, it has been a year of significant progress for Jangada, which saw the inherent value of our Pitombeiras Vanadium Project in Brazil significantly increase from its value in 2019 as a result of our successful exploration programme and project development initiatives. Additionally, we were delighted with the positive progress made by ValOre Metals Corp (TSX-V:VO), in which we hold a current 17.68% interest, as it continues to develop a number of assets including its flagship Pedra Branca PGM project,  adjacent to our Pitombeiras project. 

At Pitombeiras, we started the year with a new drilling programme to test three prospective magnetic anomalies targets (Pitombeiras North, South, and the newly discovered Goela) over a NE-SW structural trend and build upon the existing JORC Exploration Target.  While we scaled back the programme slightly to reduce costs given the onset of Covid-19, we were still able to test the boundaries of the anomaly at Pitombeiras North and Goela and deliver some very exciting results during the first half of the year, which all showed consistent vanadium-titanium-iron grades and widths. 

Notably, the programme also highlighted the effectiveness of our exploration approach of utilising airborne magnetic surveys to delineate vanadium titanomagnetite ('VTM') drilling targets; we believe that the VTM system will continue to grow as we expand our drilling footprint, which is now being considered as part of our ongoing development strategy. 

In August, using this newly generated data as well as data collected in 2019, we were able to report an initial National Instrument 43-101 ('NI 43-101') compliant resource estimate for the project:

·    Total Resource estimate of 5.70Mt at an average grade of 0.51% vanadium pentoxide ('V₂O₅'), 10.09% titanium dioxide ('TiO₂') and 50.42% of ferric oxide ('Fe₂O₃') for a contained resource of 28,990 tonnes V₂O₅

o  Indicated Resource estimate of 1.47Mt at an average grade of 0.50% V₂O₅, 9.85 % TiO₂ and 49.78% of Fe₂O₃ for a contained resource of 7,297 tonnes V₂O₅

o  Inferred Resource estimate of 4.23Mt at an average of 0.51% V₂O₅, 10.17% TiO₂ and 50.64% of Fe₂O₃ for a contained resource of 21,693 tonnes V₂O₅

We were very encouraged with this initial resource and ore quality, taking us to next phase of the exploration programme which is now underway with the focus on upgrading and expanding.  Given the mineralisation is at or near surface, that the resource remains open, and that to date only two out of 20 known targets have been drilled, our target seems achievable.   At this point, I should mention that in November we identified a further 12 targets from a ground magnetic survey at a new target area, Mocidade, located 3km north of the Pitombeiras North and Goela targets from which the aforementioned resource has been defined.  Further exploration works are underway in this area to refine drill targets, alongside a new 2,000 metres step out and infill drilling programme that started in October targeting both the Pitombeiras North and Goela targets as well as the currently untested Pitombeiras South target.  The first drill results from this follow-on programme were received earlier this month, with six of the seven drill holes completed to date intersecting VTM mineralisation. Additional results will be received early 2021.

The next step is the completion of the Preliminary Economic Assessment ("PEA"), which is being undertaken by GE21 Consultoria Mineral and has a targeted release date of Q1 2021.  This will be another milestone in our fast-track approach to production and will, we believe, validate the economic viability of the project.  As part of this, we are proceeding with additional metallurgical tests concomitant to the drilling programme.  Finally, I would like to highlight that Jangada is fully funded to execute the current drilling programme, along with associated project development activities, through to the completion of the PEA.

Moving onto Pedra Branca, this advanced palladium, platinum and nickel project continues to deliver.  With a reported maiden NI 43-101 compliant inferred resource of 1,067,000 ounces PGE+Au at an average grade of 1.22 g/t PGE+Au, ValOre's focus in 2020 was twofold targeting resource increase as well as discovery drilling.  To this end, a 6,000 metre two phase diamond drill programme was undertaken with the bulk aimed at expanding specific zones, which form part of the inferred resource, namely Trapia (Trapia 1 and Trapia 2) and Santo Amaro.  About 80% of this programme is now completed, although results have only been received from drilling at Trapia 1 so far. ValOre's Management believes the ore body thickens at depth and that mineralisation remains open in all directions. 

Furthermore, work related to mineralogy, processing and metallurgy has provided very positive initial results and some additional options which warrant immediate follow up.  As ValOre continues with a property-wide exploration programme at Pedra Branca, expectations are for a steady flow of news in 2021.

Finally, in early H2 2020, we provided an update on our investment in Fodere Titanium Limited, a UK registered clean technology company that is developing environmentally sustainable and highly innovative technology to extract high value metals from the titanium, vanadium, iron, and steel industries. 

This investment is key from the perspective of environmental responsibility, in addition to being instrumental to Jangada in the assessment of further optimisation of ore treatment and alternative revenue sources.  Having raised further capital and negotiated offtake agreements, this trailblazing business is now building its initial plant to commence operations.  We look forward to receiving further updates during 2021 as it builds both its market position and reach.

Like PGMs, vanadium is increasingly playing a key role in the fast-growing green economy given its emerging renewable use in sustainable energy storage, amongst other applications.   We are therefore well placed to take advantage of this as we advance key work streams during the year ahead to further position your Company to make the transition from developer to producer.

On behalf of the Board of Directors and all the team at Jangada, I wish all shareholders and stakeholders a very happy, healthy, and prosperous New Year.

Brian McMaster

ENDS

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