Jangada Mines Plc (LON:JAN) has revealed details of a preliminary economic assessment conducted at the Pedra Branca platinum group metals project in north-eastern Brazil.
The PEA confirmed the findings of a 2017 scoping study that the project has the potential to become a robust, low capex and opex, shallow, open pit operation yielding attractive financial returns and a very short payback period.
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The net present value amounts to US$192mln, and the internal rate of return rings in at a punchy of 67%, giving a 1.6-year payback
The life-of-mine was set at 13 years in the study, based on a mineral inventory of 27mln tonnes of run-of-mine ore.
The average grade is pegged at 1.36 grams per tonne platinum group metals plus gold, with additional credits from nickel, copper and cobalt.
Estimated average annual production of would be 64,000 ounces of platinum group metals plus gold, with 2.2mln pounds of nickel, 1.2mln pounds of copper, 44,000 pounds of cobalt and 30,000 tonnes of chrome.
The PEA shows that the capital required to construct the mine to be a modest US$64.4mln.
"Pedra Branca is a truly exciting polymetallic project,” said Jangada executive chairman Brian McMaster.