Jangada Mines Regulatory News (JAN)

Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector: Mining

4 September 2017

 Jangada Mines plc ('Jangada' or the 'Company')

Positive Progress Update and Cost Savings

Jangada Mines plc, a natural resources company developing South America's largest and most advanced platinum group metals ('PGM') project, is pleased to provide an update on its activities at the Pedra Branca Project (the 'Project'), located in north-eastern Brazil, since successfully being admitted to trading on AIM (the 'IPO') in June 2017.

During the approximate eight weeks since the IPO, Jangada has substantially progressed a number of work streams. An update on the progress of these various work streams follows:

Resource Upgrades

As announced on 11 July and 16 August, Jangada has recorded substantial and important increases to its JORC (2012) compliant resource estimate. Jangada now records, in addition to the PGM + Au, an attractive suite of by-product credits, including nickel, copper, cobalt and chrome. It is envisaged these by-products will contribute considerably to both the in-situ value of the resource and the expected revenue from metal sales.

Scoping Study and Pre-Feasibility Study (PFS)

Jangada has recently engaged GE21 Consultoria Mineral ('GE21') based in Belo Horizonte, Minas Gerais, Brazil to prepare an interim Scoping Study followed by a Pre-Feasibility Study ('PFS'). The parameters of the Scoping Study are to address the following to a tolerance level of ±25%:

· Pit Optimisation;

· Mine Scheduling;

· Intermediate End-of-Period designs;

· Economic Analysis, including discounted cash flow, sensitivities, CAPEX and OPEX

The Scoping Study is currently on schedule and is expected to be available for release in mid Q4 2017. Following the Scoping Study, GE21 will finalise a PFS which will include those matters addressed above but to a tolerance level of ±15%. The PFS is expected to be completed by late Q4 2017.

Process Metallurgy Tests

SGS Laboratories in Vespasiana, Minas Gerais, Brazil has been commissioned to perform the process metallurgical test work. Representative drill core samples (250kg) from the Project's current mining targets have recently been submitted to SGS for analysis and interpretation. The purpose of the metallurgical test work is to optimise the milling and flotation conditions and develop an ore-type specific processing regime which will inform plant design and input parameters.

The Company expects to receive the first results from this test work in early Q4 2017.

Departamento Nacional de Produção Mineral ('DNPM') Visit

Personnel from the DNPM, the Brazilian mining regulator, attended the Project site over 26-27 July 2017. The purpose of the scheduled visit was for the Company to present its proposed work programme and for the DNPM officials to be informed directly about current and expected progress. The Company can confirm that the visit was a success and the Company maintains a supportive working relationship with the DNPM.

Licensing

The Company has identified that it is now likely to undertake a period of trial mining in early 2018, which is significantly ahead of the schedule outlined in the Company's AIM Admission Document dated 23 June 2017. In anticipation of this, the Company has commenced the application process for a trial mining permit and associated environmental permit. The Company expects to lodge these applications during Q4 2017 and will update the market accordingly.

Other Studies

In addition to the Scoping Study and PFS, the Company has also commenced additional studies. A hydrogeology study has commenced with the intention of understanding and quantifying the known regional groundwater sources at Pedra Branca. The study will be a key input into the PFS and the environmental permit application process. This study is expected to be competed in mid Q4 2017.

Additionally, a geotechnical study has been initiated to determine the geotechnical parameters of the proposed pit environment. The outcomes of this study will feed into the PFS and will inform the pit designs and assist pit and waste stripping optimisation.

Drilling Programme

The Company identified in its Admission Document that it estimated a total of US$470,000 would be required to "Undertake infill drilling exploration programme". It was envisaged that this programme would be required to provide drilling data for the Scoping Study and PFS. Subsequently, in conjunction with GE21, the Company has identified that the quantity and quality of the historical drilling is sufficient for the purposes of both the Scoping Study and the PFS and accordingly, the costs associated with this drilling programme will not be expended at this time.

Brian McMaster, Executive Chairman of Jangada said, "It has been only eight weeks since Jangada's successful IPO and oversubscribed fund raising. Given the depth and quality of the data set owned by Jangada as a result of the circa $30 million of historical expenditure, the team have been able to progress critical work streams at a significant pace as well as realising substantial cost savings of $470,000. We expect this work to culminate in a PFS sometime around year end and from that platform we expect to move into trial mining and mine development during early 2018 which is well ahead of schedule. There is a lot of work to be done and we have set aggressive schedules but we are confident in progressing as planned. We look forward to updating shareholders as we progress."

*ENDS*

For further information, please visit www.jangadamines.com or contact:

Further Information

The Pedra Branca Project is the largest and most advanced PGM project in South America and currently has a JORC (2012) compliant resource of approximately 1 million ounces of PGM+Au at a grade of 2.14 g/t Pd Eq, 109Mlbs of Ni and 23Mlbs of Cu. The project is located 280km from the port city of Fortaleza in the northeast of Brazil and holds three mining licenses and 44 exploration licences over an area of 55 000ha.

Previous operators have spent more than $35 million on exploration and development activities, which include 30,000 metres of diamond core drilling, geophysical surveys and metallurgical tests. The current resources are at surface and are amenable to shallow, open pit mining and conventional processing methods.