Jangada Mines’ (LSE:JAN) flagship asset is the Pedra Branca PGM project in north-eastern Brazil. Pedra Branca is the largest Platinum Group Metals (PGM) project in South America and currently has a JORC compliant resource of approximately 1.45 million ounces of PGM+Au. Today Jangada announced it has updated the process flowsheet for the project with Consulmet Metals (Pty) Ltd and the result is a projected 32% reduction in total capital expenditure. Jangada’s share price was up 5% on the news this morning.
As part of the initial work programme, Consulmet reviewed all metallurgical test work results from the Project and produced a preliminary flowsheet for the production of a PGM-rich nickel-copper sulphide concentrate and a chrome concentrate. Jangada states the review has resulted in important changes to the flowsheet which have simplified and improved the efficiency of the overall process.
The company has continued to deliver positive news on progress at Pedra Branca as it works towards producing a bankable feasibility study (BFS). The current resources are at surface and the study will assume shallow open pit mining and conventional processing methods.
Jangada announced the discovery of significant nickel and copper sulphide anomalies just a month ago and has also commissioned an independent nickel and copper maiden JORC resource estimate which is expected to be published in Q4, 2018.
Brian McMaster, Chairman of Jangada, said:
"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."
Author: Stuart Langelaan
Disclosure: The author does not own shares in the company mentioned above