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Natural resources company Jangada Mines reported its initial compliant resource estimate for the wholly-owned Pitombeiras Vanadium Project in Brazil’s Ceara State on Wednesday.

The AIM-traded firm said the estimate was derived from the 2019 and 2020 exploration and diamond drilling programmes at the Pitombeiras North and Goela targets, which are part of the eight identified ground magnetic priority anomalies associated with a vanadium titanomagnetite mineralisation signature.

It reported a total resource estimate of 5.7 million tonnes at an average grade of 0.51% vanadium pentoxide, 10.09% titanium dioxide, and 50.42% ferric oxide, for a contained resource of 28,990 tonnes of vanadium pentoxide.

The indicated resource estimate was 1.47 million tonnes at an average grade of 0.50% vanadium pentoxide, 9.85 % titanium dioxide and 49.78% ferric oxide, for a contained resource of 7,297 tonnes of vanadium pentoxide.

Its inferred resource estimate, meanwhile, was 4.23 million tonnes at an average of 0.51% vanadium pentoxide, 10.17% titanium dioxide and 50.64% ferric oxide, for a contained resource of 21,693 tonnes of vanadium pentoxide.

Mineralisation was at or near surface with “significant” further upside, the board said, as the resource remained open in all directions, and to date only two out of eight known targets had been drilled.

An additional 2,000 metres of step-out and infill drilling was planned from September for resource expansion and upgrade at the Pitombeiras North and Goela targets, while also targeting Pitombeiras South.

A preliminary economic assessment was set to be completed after the drilling extension, with a release targeted in the first quarter of 2021.

The company said it was fully funded for those initiatives.

“A lot has been accomplished in the less than two years since we identified this vanadium, titanium and iron project,” said executive chairman Brian McMaster.

“Jangada is in the midst of unearthing an exciting opportunity and we are literally at the beginning of this journey.

“Given the excellent results that have been achieved to date and the extent of the remaining untested targets it is clear to see that Pitombeiras offers significant value uplift potential.”

McMaster said that, with further drilling due to begin in September to increase the size and the categorisation of the resource, and a preliminary economic assessment to be completed on finalisation of that to include those results, there was a lot to come.

“We look forward to sharing it with you in the weeks and months ahead.”

At 1301 BST, shares in Jangada Mines were down 3.73% at 3.22p.

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