Jangada Mines plc, a natural resources company developing South America’s largest and most advanced platinum group metals (‘PGM’) project, is pleased to announce a substantial reduction in the preliminary capital expenditure, as a result of the creation of an updated process flowsheet in partnership with Consulmet Metals (Pty) Ltd (“Consulmet”), for its Pedra Branca PGM project (“Pedra Branca” or “the Project”), in the north-east of Brazil.
Pedra Branca currently has a JORC (2012) compliant resource of approximately 1.45 million ounces of PGM+Au at a grade of 1.3g/t PGM+Au (2.5 g/t Pd Eq), 140 million pounds of nickel, 26 million pounds of copper and 6.7 million pounds of cobalt.
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· Optimised and updated process flowsheet, delivered in partnership with Consulmet, for Pedra Branca has resulted in a significant reduction in projected plant capex costs and overall upfront capex costs:
o 38% reduction in plant capex to US$33.8 million (previously estimated at US$54.2 million)
o 32% reduction in overall capex figure to US$43.9 million (previously estimated at US$64.9 million)
· The updated flowsheet further enhances the already robust economics of Pedra Branca and underpins Management’s confidence in the Project’s potential to be a competitive and profitable mining operation
Brian McMaster, Chairman of Jangada, said: “Pedra Branca is the largest and most advanced PGM project in South America and the Jangada team has already demonstrated its potential to generate material returns to investors once in production. Today’s refinement and optimisation of the process flowsheet has delivered an impressive 32% and 38% reduction in plant capex and overall capex, respectively, further enhancing the Project’s potential to provide lucrative returns. As such, we are delighted with today’s result, which is primarily a result of Consulmet’s highly specialist experience in building PGM plants. The team from Consulmet have hit the ground running and their experience and understanding of projects such as Pedra Branca is coming to the fore.
“As we extrapolate the revised capex number into the already robust economic model, the financial merits of Pedra Branca will simply get stronger. Importantly, the revised process flow sheet has demonstrated a simpler and more efficient process route. We anticipate that this will reflect in reduced operating cost metrics that will feed into the ongoing BFS.”