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Jangada Mines rose over 10 percent after reporting that it will be significantly increasing the resource at its Pedra Branca PGMs project.
Shares of Jangada Mines (LSE:JAN) ticked up almost 11 percent on Monday (January 28) after the company announced it has substantially increased the size and categorization of the resource at its Pedra Branca platinum-group metals (PGMs) project.
The miner has more than doubled the resource estimate at Pedra, which is located in Brazil and is the largest and most advanced PGMs and nickel project in South America.
JORC-classified ore now sits at 74.8 million tonnes, with the indicated resource rising to 29.3 million tonnes, a 64-percent increase. As for the inferred resource, it has almost tripled to 37.1 million tonnes.
“Clearly today’s announcement is a significant step forward for Jangada. We have been working with a highly skilled team on the bankable feasibility study (BFS) work, which has identified significant increases in grade and classification that will help form extremely exciting inputs to the BFS model,” said Brian McMaster, executive chairman.
“The key economic drivers of the project are palladium and nickel, two of the most in favor minerals of today and for the foreseeable future,” he added.
The asset’s palladium component doubled to 3.1 million ounces, while gold and PGMs rose 48 percent to 2.2 million ounces. The overall resource grade is 1.3 grams of palladium equivalent per tonne of ore.
The base metals resource has doubled to 362.5 million pounds, which includes 298 million pounds of nickel. Jangada is also on track to have its feasibility study verified by the end of Q1 2019.
“[T]he increase in resource size will potentially drive a longer mine life and higher annual tonnage, all of which are positive developments. The work being done to finalize the BFS and prepare the project for development is exceptional and the results are coming through better than expected,” noted McMaster.
As of 3:31 p.m. EST on Monday, Jangada was up 10.48 percent, trading at GBX 2.32.
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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.