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PEA completed for South America’s ‘most advanced’ PGM project

18th June 2018

By: Creamer Media Reporter

     

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A preliminary economic assessment (PEA) for the Pedra Branca platinum group metal (PGM) project, in north-eastern Brazil, has confirmed the economic potential of the project, which Aim-listed Jangada Mines says is South America’s largest and most advanced PGMs play.

The PEA has assigned a net present value of $192-million and an internal rate of return of 67% to the project, which will require about $64.4-million in capital expenditure.

At a production rate of 2.2-million tonnes a year, the Pedra Branca project will produce an average of 64 000 oz/y of PGMs and gold, 2.2-million pounds a year of nickel, 1.2-million pounds a year of copper, 44 000 lb/y of cobalt and 30 000 t/y of chrome.

“Pedra Branca is a truly exciting polymetallic project,” Jangada executive chairperson Brian McMaster said, adding that the PEA underlined the significant upside and economic potential of the project.

The payback period for the project is 1.6 years.

“Having a project demonstrating such excellent potential for returns in an established mining jurisdiction that has strong legislative stability makes this an extremely compelling proposition,” McMaster added.

The Pedra Branca project has a resource of about 1.45-million ounces of PGMs and gold, at a grade of 1.36 g/t, 140-million pounds of nickel, 26-million pounds of copper and 9.7-million pounds of cobalt.

The project is located 280 km from the port city of Fortaleza and holds three mining licences and 43 exploration licences over an area of 50 000 ha. Previous operators have spent more than $35-million on exploration and development activities, which include 30 000 m of diamond core drilling, geophysical surveys and metallurgical tests.

The PEA envisages a conventional, shallow, truck and shovel operation, operated by a mining contractor. 

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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