The company also reported interim results, including US$5mln cash in the bank
Jangada Mines PLC (AIM:JAN, FRA:JMU) provided an update on the preparation of the definitive feasibility study of the Pitombeiras Ferrovanadium project in the state of Ceará, Brazil.
The completion date for the feasibility study has been moved to the fourth quarter of this year as, while much of the work has been completed as planned, Jangada said a few workstreams have been slowed because of the pandemic.
Independent engineering advisory company GE21 Consultoria Mineral has been appointed to prepare a National Instrument 43-101 (NI 43-101) feasibility study rather than an upgraded PEA, as Jangada hopes to fast-track the project to early production.
This follows a preliminary economic assessment (PEA) and updated resource estimate for the project where the company has been granted a trial mining license to initiate the extraction of ferrovanadium (FeV) from the project through an open pit mine operation.
The initial PEA earlier this year indicated a US$106.5mln post-tax net present value; 317.8% post-tax internal rate of return; and three-month payback.
“It is anticipated that the completed FS will further strengthen these already strong economics,” Jangada said.
The project has been calculated to have Measured & Indicated Resources of 5.10mln tons (Mt) at 0.46% vanadium pentoxide (V2O5), 9.04% titanium dioxide (TiO2) and 46.06% of iron oxide (Fe2O3), and an Inferred resource of 3.16Mt at 0.44% V2O5, 9.00% TiO2 and 45.86% of Fe2O3.
Jangada also reported interim results where, with US$5mln of cash in the bank, it said it was “fully funded” for its existing work programme and, subject to completion of the FS to the board’s satisfaction, intends to proceed to mine development, with first production in mid-2022.
The company reported a total comprehensive profit of US$0.6mln for the half year, compared to a loss of $0.9mln a year ago.
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