Jangada Mines identifies multiple routes to market for Pitombeiras

Natural resources company Jangada Mines announced the conclusions of a logistic study it commissioned to assess possible routes to market for the products extracted from its Pitombeiras Vanadium Project in the Brazilian state of Ceará on Wednesday.

The AIM-traded firm said three potential routes for ore had been identified, with two to main Chinese ports.

Of those two, Jangada said an embarkation point at Fortaleza seaport was identified as the most cost effective, with an estimated cost of $84.64 per wet metric tonne.

The third route to market was via the Brazil-based Companhia Siderúrgica de Pecém refinery, with an estimated cost of $36.00 per wet metric tonne.

Jangada said the study considered an estimated initial production of 300 kilotonnes of vanadium pentoxide concentrate, increasing to 600 kilotonnes of concentrate.

It said the costs per wet metric tonne underlined the “competitive nature” of the high-grade vanadium deposit, and confirmed the study would form part of a preliminary economic assessment, which it was currently preparing.

“The logistic analysis has demonstrated that Pitombeiras is well located to reach overseas markets through both the Pecém and Fortaleza seaports in Ceará state, which are within the Ceará Free Trade Zone, an industrial free trade area for exporting companies' facilities,” said chairman Brian McMaster.

“Importantly, they provide tax and exchange benefits, and simplified administrative procedures, which positively impact the product's selling margins and bring additional competitive advantages to Jangada.”

At 1024 GMT, shares in Jangada Mines were down 0.55% at 1.82p.