Name of the Project
Pedra Branca platinum group metals (PGMs) project.

Location
The project is located 280 km from Fortaleza, in north-east Brazil, and holds three mining licences and 43 exploration licences over 50 000 ha.

Client
Jangada Mines.

Project Description
The project involves the development of South America’s largest and most advanced PGM project.

A preliminary economic assessment (PEA) on the project has confirmed the findings of a 2017 scoping study, which concluded that the project had the potential to become a robust, low-capital and -operating expenses, shallow openpit operation yielding attractive financial returns and a very short payback period.

The PEA envisages a conventional, shallow, truck-and-shovel operation, operated by a mining contractor. A conventional sulphide flotation plant will produce saleable multi-element sulphide and chrome concentrates.

The project has a potential mine life of 13 years at a 1.2 strip ratio from a mineral inventory of 27-million tonnes of run-of-mine. The project has mineral resources of about 1.45-million ounces of PGMs and gold (PGMs+Au), 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.

Yearly production is estimated at 64 000 oz of PGMs+Au, 2.2-million pounds of nickel, 1.2-million pounds of copper, 44 000 lb of cobalt and 30 000 t of chrome.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated net present value, at a 7% discount rate, of $192-million and an internal rate of return of 67%, with a payback of 1.6 years.

Value
Capital expenditure is estimated at $43.9-million.

Duration
Not stated.

Latest Developments
The Pedra Branca project’s total capital cost has been reduced by 32%, following the refinement and optimisation of the process flowsheet.

The project’s total capital expenditure (capex) has fallen from an estimated $64.9-million in the PEA, to $43.9-million, of which the plant capex is $33.8-million ($54.2-million previously).

The process flowsheet, which has been updated by specialist engineering group Consulmet Metals, has produced a simplified preliminary flowsheet for the production of a PGM-rich nickel/copper sulphide concentrate and a chrome concentrate. The updated flowsheet has demonstrated a more efficient process than previously envisaged and will form the basis of all subsequent test and design work relating to advancing the project toward the bankable feasibility study level.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Jangada Mines, tel +44 20 7317 6635 or email info@jangadamines.com.