Jangada Mines (LSE:JAN) was down 1.9pc to 2.6p in midday trading on Monday after confirming that a high-grade vanadium deposit is present at its Pitombeiras West project in North East Brazil. Exploration drilling has confirmed that the deposits have the potential for significant resource delineation.

All four holes totalling 300m intersected high-grade, near-surface vanadium and titanium mineralisation. This was consistent with expectations from a recently-completed surface sampling campaign. It is also in line with other globally-significant vanadium deposits currently being worked in North East Brazil.

Jangada said the results indicate that Pitombeiras West contains a deposit with grades around three times higher than the 0.25pc in-situ grade that c.70pc at which global vanadium resources are currently mined.

Specifically, work identified a high-grade zone that contains an average of 0.83pc vanadium pentoxide, 11.6pc titanium oxide, and 48.4pc iron over a 12.8m average downhole width. Jangada said this high-grade mineralisation begins at surface and remains open at depth and along strike. Meanwhile, total mineralised intersections range from 26m to 46m wide with average grades of 0.57pc vanadium pentoxide, 8.1pc titanium oxide, and 37pc iron.

Elsewhere, the company said preliminary metallurgical tests demonstrate that the material mined at Pitombeiras West can be processed by conventional methods.

Jangada’s chairman Brian McMaster said: ‘The findings of this drill campaign are highly encouraging and further support our belief that we are discovering a potentially world class vanadium deposit. The mineralisation is consistent in width and grade, with high grade mineralisation starting at surface, all of which are very positive indications. The holes that we have drilled to date are shallow and have returned excellent results. The resource potential remains open at depth and along strike. If we continue to replicate these results in future holes then we will likely be holding a very substantial deposit. These results further confirm the breadth and potential scale of Pitombeiras West specifically, and Pedra Branca more widely.’

Pitombeiras West is found in close proximity to, but distinct from the PGM and nickel deposits within Jangada’s flagship Pedra Branca project. Here, the company announced a 117pc increase in JORC classified ore to 74.84 million tonnes. This included a 104pc increase in base metal content to 362.5 million pounds ('Mlbs') attributed to newly discovered nickel sulphide resource The firm said it is on track to complete its bankable feasibility study for the project by the end of Q1 2019.

Author: Daniel Flynn

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