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Jangada adds US$500mln of value with the addition of copper and nickel

Last updated: 10:20 11 Jul 2017 BST, First published: 07:59 11 Jul 2017 BST

Platinum
The platinum, palladium and gold at Pedra Branca is now joined by nickel and copper

Shares in Jangada Mines PLC (LON:JAN) jumped by almost 14% in early trade to 6.25p after the company released an updated JORC resource for its Pedra Blanca platinum group metals project in Brazil.

The new resource includes significant nickel and copper credits, amounting to 109 mln pounds of nickel and 23 mln pounds of copper.

The grades are low, but that is less meaningful when metals are mined as a credit. The addition of the nickel and copper builds on the existing JORC resource of 23 mln tonnes of ore grading 1.3 grams per tonne PGMs plus gold, which contains around a million ounces of platinum group metals mineralisation.

The copper and nickel show up throughout all the deposits at Pedra Branca, including within shallow high-grade oxide zones that are the focus of the initial low capex, low opex, mine development plan.

At current spot prices of US$4.21 per pound and US$2.68 per pound respectively, the nickel and copper credits add an additional US$521mln to the in-situ value of the currently declared PGM plus gold resources, or approximately US$22.6 per tonne.

“These results, which add nickel and copper credits to the JORC resource, not only confirm the historically reported PGM resources that were estimated by the previous operator, Anglo American Platinum,” said Jangada executive chairman Brian McMaster, “but they also underscore management's belief that Pedra Branca hosts a high value, multi-commodity resource. With this in mind, we also continue our efforts in fully quantifying the known occurrence of cobalt, chrome and rhodium in the mineralised package.”

Broker Beaufort said that the nickel and copper credits could "significantly add to the economics of the project", given that it's likely they will be easily extracted "at no extra cost."

The broker retains a speculative buy rating on the company, ahead of further updates on the additional potential of associated chrome and cobalt.

 

 

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