Jangada Mines shares plummeted 23.4% to a closing price of 7.8p in Thursday trading following the updated technical report for its Pitombeiras Vanadium Project.
Shares fell after the company said the project now had $96.5 million post-tax Net Present Value (NPV) and 100.3% post-tax Internal Rate of Return (IRR).
This marked a downward revision in the projects economics from a report last year that pointed to a $106.5 million NPV and 317% IRR.
However, the company confirmed in its updated technical report that it had received the green light on all legal, technical and geological fronts, noting no additional impediments to the development and production of its Brazil mine.
Resources
Jangada Mines said that it currently expects high levels of Ferrovandium concentrate (Fe 62%) and Titanium Dioxide (TiO2) from its Pitombeiras Vanadium Brazilian project.
The company noted a particular interest in extracting TiO2 due to its accelerated rate of use in the booming green energy market, especially in lithium batteries used in electric vehicles across the green transport industry.
“We are witnessing an increase in focus on commodities that broadly fit the emerging energy and battery space,” said Jangada Mining executive chairman Brian McMaster.
“Given this, we have gone back and optimised the development route at Pitombeiras to include the 9.85% TiO2 component alongside the Fe 62% and V2O5 to obtain a clearer picture of the Project’s potential.”
The firm said that it anticipated an annual production of 186,000 tonnes of Fe 62% and 66,000 tonnes of TiO2 at a production/processing rate of 600,000 tonnes per year.
The group also commented that it expects a Life of Mine (LoM) extraction of resources at 5.1 million tonnes of measured and indicated material, with 3.1 million tonnes in inferred resources.
“[Given] our extensive in-country contacts and positioning, we are continuously seeing additional projects and regularly review opportunities, particularly in the technology metal space, that may complement our existing asset suite and create further value for shareholders,” said McMaster.
“We look forward to updating the market further as we complete the on-going Feasibility Study including the titanium.”