Scoping study confirms Pedra Branca potential, says Jangada
Source - SMW
Jangada Mines said the recently completed scoping study for its Pedra Branca PGM project in north-eastern Brazil had confirmed that the project had the potential to become a robust shallow open pit operation, with a low capital expenditure requirement, yielding attractive financial returns and a very short payback period.
It said the study concluded that the project had the potential to produce an internal rate of return (IRR) of 80% and a payback period of 1.3 years.
It said the study indicated, low capital expenditure requirement of US$38.4m for the construction of the mining operation, processing plant and the associated infrastructure.
It said that at a production rate of 1.1Mt per year, the operation would have a potential life-of-mine ('LOM') of 13 years at a very low 1.07 strip ratio producing 34,000 ounces of PGM+Au per annum.
Executive chairman Brian McMaster said: 'The results of the scoping study are excellent and clearly demonstrate the outstanding potential of this polymetallic project as a low cost, shallow pit PGM operation with excellent financial returns.
'The addition of the by-product credits for critical technology metals including cobalt, nickel and copper has a significant positive impact on the economics and underpins our belief that Pedra Branca has the potential to be a "free platinum" operation, where by-product credits cover the costs of PGM production.
'We are also seeing significant value addition through the envisaged chrome concentrate production from the same ore zone.
'With these excellent results, we look forward to continuing to develop Pedra Branca as the pre-eminent PGM asset in South America, immediately advancing the project through the pre-feasibility study.
'We are also continuing to investigate further optimisation potential and value addition through our on-going metallurgical test work. Our management team on the ground is working hard to prepare the Project for final permitting as we continue toward our goal of trial production in early 2018.
'We have made excellent progress since listing in June 2017 and now expect to be entering a period of further positive news flow over the near-medium term, which we hope will assist in the re-rating of our Company.'
At 8:23am: (LON:JAN) Jangada Mines Plc Ord Gbp0.0004 share price was -0.13p at 5p