Jangada Mines (LSE:JAN) has completed the first phase of drilling at its Molly Gold Project in Brazil, confirming historical exploration data at the Molly 1 deposit while extending known mineralisation both along strike and down dip.
The drilling returned multiple high-grade gold intersections alongside copper grades that exceeded expectations. Jangada also identified a previously unrecognised style of disseminated mineralisation, potentially broadening the development options available for the project.
The presence of disseminated mineralisation could be particularly significant because it may provide scope for a lower-cost, bulk-tonnage open pit operation alongside the project’s higher-grade mineralised zones. Further geological and technical work will be needed to determine the scale and economic potential of this opportunity.
Exploration has also produced notable results from the newly defined Vivi target. Rock-chip sampling returned bonanza-grade gold values accompanied by significant concentrations of silver, copper, lead and zinc, establishing Vivi as an important new target for follow-up work.
The combination of results from Molly 1 and Vivi supports Jangada’s view that the wider project could form part of a district-scale polymetallic mineralised system rather than a collection of isolated gold occurrences.
The company is continuing geological modelling alongside drone-based magnetic surveys and ground induced-polarisation surveys. These programmes are intended to improve understanding of the mineralised system, support potential resource upgrades and identify additional targets for future drilling.
Jangada said it remains well funded for the next stage of exploration, allowing it to continue evaluating opportunities for further resource growth and expand its understanding of the wider mineralised district.
The company’s financial profile nevertheless remains a constraint. Jangada currently generates no revenue and continues to record losses and cash outflows, although its relatively low leverage provides some balance-sheet support.
Technical indicators are also weak, with the shares trading below major moving averages and MACD remaining negative. Conventional valuation measures provide only limited insight while the company remains loss-making, resulting in a negative price-to-earnings ratio, while no dividend yield is available.
More about Jangada Mines PLC
Jangada Mines plc is an AIM-listed natural resources company focused on mining opportunities in Brazil, with an emphasis on gold and polymetallic mineralisation.
Its principal asset is the Molly Gold Project, where exploration is targeting a broader system containing gold, silver, copper, lead and zinc. The company is evaluating the potential for both higher-grade mineralisation and larger-scale, bulk-tonnage open pit development as it works to establish the project’s district-scale potential.
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