(Alliance News) - Jangada Mines PLC on Monday said it is progressing on the exploration programme at its Pitombeiras vanadium project, located in the state of Ceara, Brazil, and expects to prepare a preliminary economic assessment in the beginning of 2020.
The natural resources company said the exploration programme follows the "encouraging" results of the technical report, which was completed in September. It concluded that Pitombeiras can be "quickly" developed to define mineral reserves, which will form the foundation of a preliminary economic assessment.
Jangada said the multi-phase exploration programme will cover the entire tenement area of 1,093 hectares, with a total of 135 linear kilometres of gridlines. The company intends to carry out a ground magnetic survey to better define the magnetic anomalies.
The AIM-listed Jangada also said it will analyse a total of 2,700 samples collected, using handheld portable X-ray fluorescence equipment. The company also intends to complete a detailed topographic survey over the main mineralised areas.
Jangada said it plans to submit three bulk samples to conventional metallurgical testwork in order to define the best process for the ore beneficiation.
The company highlighted that this exploration programme will provide the "necessary" technical information to secure a mineral resource estimate and a subsequent preliminary economic assessment, prepared by an independent engineering company.
"The extensive exploration programme is now at full steam at Pitombeiras following the highly encouraging results obtained so far, which highlighted the potential of this exciting vanadium, titanium, iron project," said Jangada Chair Brian McMaster.
Looking ahead, McMaster added: "We believe that at the end of the planned exploration schedule and along with the conclusions of the logistic study, we will have substantial information to prepare a robust preliminary economic assessment in the first quarter of 2020."
Jangada shares were trading 17% lower on Monday in London at 2.00 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Jangada Mines (JAN)