Jangada Mines (LSE:JAN) said recent drilling at its Paranaíta Gold Project in Brazil has confirmed the presence of a large-scale hydrothermal gold system featuring both high-grade vein-hosted mineralisation and broader disseminated gold zones, strengthening the project’s exploration potential. The company believes the TP2 target could contribute more than 50,000 ounces of additional inferred resources to the current 210,000-ounce resource base, following the identification of a 1.2-kilometre mineralised corridor and strong correlation between drilling results, geological mapping, geophysical data and extensive artisanal mining activity.
The group intends to undertake additional airborne and ground-based geophysical work, including drone surveys and induced polarisation (IP) studies, before launching an expanded drilling programme. The campaign will focus on growing and upgrading resources at TP2 while increasing geological confidence across the TP1 and TP3 targets. Jangada noted that more than 20 largely unexplored artisanal pits and several northeast-trending mineralised structures remain open along strike, reinforcing the view that Paranaíta represents a significant and developing gold system. The company added that both the Paranaíta project and its 130,000-ounce Molly Gold Project are fully funded for the next stages of exploration through existing cash resources.
Despite the encouraging exploration results, Jangada’s investment profile continues to be affected by weak financial metrics, including its pre-revenue status, recurring losses and ongoing cash consumption, although the company remains debt-free. From a market perspective, technical indicators appear more constructive, with the share price trading above key moving averages and showing moderately positive momentum. However, valuation measures remain limited by the absence of earnings and dividend payments.
More about Jangada Mines PLC
Jangada Mines plc is an AIM-listed natural resources company focused on the exploration and development of mineral assets in Brazil. The company’s portfolio includes the Paranaíta and Molly gold projects, where it is pursuing the development of a multi-asset, high-grade, low-capex open-pit gold production platform within the Alta Floresta-Juruena Gold Province and other prospective mining regions across Brazil.
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