LONDON (ShareCast) - (Sharecast News) - Jangada Mines said on Wednesday that it has begun exploration at its 7,211-hectare Paranaíta Gold Project in Brazil's Alta Floresta-Juruena province, targeting an initial resource of 350,000 ounces across two high-grade open-pit zones.
The AIM-traded company said the fully funded programme aimed to validate the existing 210,000-ounce resource under Brazilian CBRR standards and expand it to 350,000 ounces under JORC reporting.

A preliminary economic assessment for a 20,000-ounce-per-year open-pit operation is expected within six months.

Priority targets included TP02, with 106,600 ounces at 16.65 grams per tonne, and TP3.2, with 34,600 ounces at 1.35 grams per tonne.

Work was already underway on trenching, drilling, surveys and assays, with first results expected in the coming weeks.

"With operatorship now in our hands and fully funded, we have hit the ground running at the Paranaíta Gold Project," said chief executive Paulo Misk.

"We have launched a focused exploration programme targeting two of the high-grade, open-pittable zones already identified, with the immediate goal of delivering a preliminary economic assessment for a 20,000 ounce-per-year operation.

"My recent site visit has reinforced my confidence in the Project's potential ... this is the first step in building a major, Brazil-focused gold producer, and I am excited to advance the project."

The licences at Paranaíta remain in good standing and would be upgraded to development and production status once the PEA is completed.

At 1346 BST, shares in Jangada Mines were up 56.52% at 0.9p.

Reporting by Josh White for Sharecast.com.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE