Jangada Mines (LSE:JAN) has reported promising results from Stage 1 diamond drilling at its Paranaíta Gold Project in Brazil. The 1,100-metre programme, comprising 10 drill holes at the TP2 target, intersected gold mineralisation in every hole. Among the highlights was an intercept of 1.32 metres grading 43.61 g/t gold, supporting the continuity of the mineralised system and indicating it remains open for further exploration. The company plans additional drilling, resource modelling and further geophysical and geochemical studies to upgrade and expand the project’s current inferred resource of around 210,000 ounces toward JORC classification. Drilling is also progressing at the Molly Project, which already hosts a 130,000-ounce JORC-compliant resource and has produced strong sulphide-bearing intercepts that point to further resource expansion potential.
Management believes the shallow vein-swarm style mineralisation identified at Paranaíta could be suitable for a relatively low-cost open-pit development, with a conceptual production target of roughly 20,000 ounces of gold per year. The latest drilling and trenching results are expected to support a revised geological model and inform a second-phase drilling campaign targeting multiple prospects along an approximately 8-kilometre corridor. Success at both Paranaíta and Molly could strengthen the company’s position in Brazil’s gold sector by demonstrating scalable, open-pit-friendly resources across its project portfolio.
The company’s outlook remains constrained by its financial profile, including its pre-revenue status, ongoing operating losses and continued cash burn, although it currently carries no debt. Technical indicators provide a more positive signal, with the share price trading above key moving averages and showing moderately positive momentum. However, valuation remains limited due to negative earnings and the absence of dividend support.
More about Jangada Mines PLC
Jangada Mines is an AIM-listed natural resources company focused on developing mining assets in Brazil, particularly gold projects in the Mato Grosso region and other established gold provinces. Its portfolio includes the Paranaíta Gold Project in the Alta Floresta-Juruena Gold Province and the Molly Gold Project, where the company aims to define shallow, open-pittable gold resources that could be developed with relatively low capital requirements.
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