RE: Offtake agreement14 Jan 2018 15:54
Future work programme
Based on the current project results, GE21 recommends that the Company completes minor additional resource and reserve drilling, a bulk metallurgy test study, and a scoping study to determine operation parameters and likely financial model. This work stream will be essential to secure the required permitting to progress Pedra Branca to near-term commercial pilot production. As part of this, database sample validation will need to be undertaken by the Company at another certificated laboratory.
GE21 estimates a budget of US$650,000 to complete the above exploration programme, with which the Company broadly agrees. All exploration work will initially be focused on the defined Mineral resource areas of the Curiu, Cedro and Esbarro prospects that sit within the three Mining Licenses.
In the medium term, GE21 recommends that Jangada carry out a field campaign to test other anomalies defined by previous exploration programmes with the overriding proviso that in any future drilling and exploration programmes, Jangada maintain the procedures and methodology, including QAQC definitions, used by Anglo American Platinum.
Subject to raising significant additional funding, the Directors intend to work towards the commencement of trial mining and then commercial production at an initial rate of 30,000 ounces per annum within 12-18 months following Admission.