Jangada Mines PLC said June 18 that a preliminary economic assessment for the Pedra Branca platinum group metals project in northeastern Brazil outlined a net present value, discounted at 7%, of US$192 million, an internal rate of return of 67% and a 1.6-year payback period.
A previous scoping study for Pedra Branca in October 2017, pegged a NPV, discounted at 10%, of US$158.4 million, an IRR of 80.5% and a payback period of 1.3 years.
The study for a potential 13-year open pit operation was based on an updated resource of 1.45 million ounces of PGM grading 1.36 g/t of PGM.
CapEx for the operation is estimated at US$64.4 million, with operating expenses estimated at US$17.31 per run-of-mine tonne.
Average annual production is targeted at 64,000 ounces of PGM and gold, 2.2 million pounds of nickel, 1.2 million pounds of copper, 44,000 pounds of cobalt and 30,000 tonnes of chrome.
Following the study, the explorer believes that a pre-feasibility study for Pedra Branca is premature without the consideration for the inclusion of newly discovered aspects of the project, which has not been incorporated into the current project designs. It noted in particular a metallurgical test program which identified the potential for significant increase in recoveries and the recent resource upgrade.