Shares of Jangada Mines PLC (LON: JAN) rallied 16.5% after releasing an updated mineral resource estimate for its Pitombeiras Vanadium Project in Brazil.
The mining company reported a 221% increase in the Measured and Indicated Resources (‘M&I’) based on samples collected from two of the eight targets identified.
The new resource estimates were 5.10Mt at 0.46% Vanadium, 9.04% Titanium and 46.06% of Iron ore deposits, compared to the previous estimates.
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Jangada Mines noted that it could delineate up to 10Mt of resource potential at the site along the strike and depth of the identified mineral resources.
The vanadium mining company also revealed that the drilling programme at its Goela target begun in late April and was expected to conclude by the end of June 2021.
Jangada intends to release an updated Preliminary Economic Assessment (‘PEA’) in Q3 2021 after completing the updated mineral resource estimates for Pitombeiras and Goela, including new metallurgical tests.
The miner has also advanced multiple other workstreams, including new metallurgical tests for the updated PEA. The firm expects to start producing vanadium at Pitombeiras in 2022, an ambitious goal that could prove quite lucrative given the rising global demand for the battery metal.
Jangada’s Executive Chairman, Brian McMaster, said, “We are thrilled by these results as they sit firmly within expectations and bode well for future development as we look to fast-track plans to take the Project to production. The updated Mineral Resources Estimate for Pitombeiras North confirms our expectations of a well-defined deposit with about 71% within the Measured and Indicated categories, which brings a higher level of confidence to an already robust PEA.”
Jangada Mines share price.
Jangada Mines shares rallied 16.48% to trade at 9.26p, rising from Tuesday’s closing price of 7.95p.