Jangada’s Pedra Branca PGM project remains on track

Jangada Mines PLC is developing the Pedra Branca PGM Project in northeast Brazil, one of the largest undeveloped PGM projects outside Africa, where it aims to establish a low-cost, low-capex, open-pit mine and commence production in 2018.  The company announced the results of a Scoping Study on 31 October 2017, which demonstrated the economic viability of a potential 1.1 Mt/y operation producing some 34,000 oz of palladium, platinum and gold.

From a PGM market viewpoint, demand is at an all-time high, driven by increasing uses and a lack of supply from traditional South African suppliers; notably, palladium prices are up 43% this year. However, in addition to the circa 1 Moz of PGM+Au, the project contains significant amounts of technology metals including nickel, cobalt and chromium as well as copper, which would essentially cover the costs for the PGM extraction. Importantly, circa 52% of its resource is contained within current mining licences and is considered a low development risk due to previous exploration work totalling +$35 million.

Looking ahead, news flow is expected to be steady as the project gathers momentum: a PFS is on track to be completed Q4 2017; additional metallurgical test work to confirm metal recovery rates is ongoing; and trial mining in early 2018 is planned.