Jangada Mines PLC (AIM:JAN) announced an updated technical report, with the inclusion of the titanium component, for its Pitombeiras Vanadium Titano-Magnetite (VTM) project in Brazil.
The report envisages annual production of 186,000 tonnes (t) of ferrovanadium concentrate (Fe 62%) and vanadium pentoxide (V2O5) and 66,000t of titanium dioxide (TiO2) at a production/processing rate of 600,000t per annum over a nine-year mine life.
The report confirms that there are no legal, technical, or geological impediments to proceeding to mine development, construction, and production, highlights the project’s robust economics and excellent potential to become a profitable producer of Fe 62% and TiO2, the compnay said.
The project has a 100.3% post-tax Internal Rate of Return (IRR) and a US$96.5mln post-tax Net Present Value (NPV) at an 8% discount rate. All-inclusive capital expenditure (CAPEX) totals US$18.45mln.
The NI 43-101-compliant report supersedes a Preliminary Economic Assessment (PEA) published in 2021.
The AIM-listed company said the evaluation of the Fe 62% and V2O5 has been completed to a Feasibility Study standard, while the inclusion of the TiO2 remains at a PEA level.
It expects to release a Feasibility Study, which includes all three commodities, that will evaluate the opportunities to construct a low CAPEX direct shipping ore (DSO) mining operation, in the coming months.
Jangada said it can start full offtake discussions now that the technical report has de-risked the project and outlined a defined route to production.
“We are witnessing an increase in focus on commodities that broadly fit the emerging energy and battery space,” said executive chairman Brian McMaster. “Given this, we have gone back and optimised the development route at Pitombeiras to include the 9.85% TiO2 component alongside the Fe 62% and V2O5 to obtain a clearer picture of the project’s potential.”
“The resultant technical and economic fundamentals, including a NPV of US$96.5mln, an IRR of 100.3%, and an estimated 13-month payback, represents a positive development for Jangada as it identifies the company as an emerging producer of highly coveted new energy metals.”
He added that the company is continuously seeing additional projects and regularly reviews opportunities, particularly in the technology metal space, that may complement the group’s existing assets.
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