Heinrich Muller Chief Operating Officer at Jangada Mines caught up with our very own Bonnie Hughes to discuss the latest news and fundraising announced by the company, whilst the market has reacted in a hesitant manner the company is extremely clear in sharing its pathway to profitability.
Previous operators have spent in excess of $35million on the Pedra Branca Project and whilst some question the depth of assets on the back of today’s news we believe that the company holds significant upside given the project was procured from a major industry partner.
The Pedra Branca Project
On 15 May 2018, the Company announced a substantial increase of the JORC compliant mineral resources across the commodity basket including:
· 50% increase in global ore volume to 34.5 million tonnes at 1.3 g/t PGM+Au;
· 53% increase in PGM resource to 1.45 million ounces;
· 28% increase in nickel resource to 140 million pounds;
· 11% increase in copper resource to 26 million pounds; and
· 4% increase in cobalt resource to 6.7 million pounds
The results of recent metallurgical tests – announced on 11 June 2018 – demonstrated that the inclusion of magnetic separation could positively impact the economics of the Pedra Branca PGM project. In test work the addition of magnetic separation increased recoveries of PGM and yielded unexpectedly high gold and chrome grades in pre-concentrate with samples demonstrating:
· Pre-concentrate PGM grades up to 8.1 g/t
· Average gold grades of 15 g/t, with the highest being 75.5 g/t
· Pre-concentrate chrome (‘Cr2O3’) grades of 42%
Magnetic pre-concentration is being incorporated in to an optimised process flow sheet expected to result in significant efficiencies including reduced plant size, CAPEX and OPEX.
In June 2018, the Company announced the results of a Preliminary Economic Assessment (“PEA”) that confirmed the findings of the 2017 Scoping Study that Pedra Branca has the potential to become a robust, low CAPEX and OPEX, shallow, open pit operation yielding attractive financial returns and a short payback period.
You can hear Heinrich Muller talking to our very own Bonnie Hughes here