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(Sharecast News) - Jangada Mines said on Thursday that recent exploration work at its Paranata gold project in Brazil had confirmed a large-scale hydrothermal gold system and supported the potential for an increase in resources.
The AIM-traded Brazil-focused natural resources company said drilling at the project, in the Alta Floresta-Juruena Gold Province, had identified about 1,200 metres of mineralised structure along a north-east-trending corridor at the TP2 target.
Management said the results supported the potential to define more than 50,000 ounces of additional inferred resource at Paranata, adding to the existing 210,000-ounce gold resource.
Jangada said drilling had improved its understanding of the geology and helped refine the exploration model, with results including 1.32 metres at 43.61 grams of gold per tonne in hole DDJG25-051 and 11.20 metres at 0.83 grams per tonne in DDJG25-02.
The company said the work confirmed two mineralisation styles at Paranata, comprising structurally controlled high-grade vein-hosted mineralisation and disseminated mineralisation associated with broader hydrothermal alteration zones.
It said the presence of both styles indicated a robust hydrothermal system and significantly enhanced the project's exploration potential.
Jangada said strong spatial correlation had been observed between geological mapping, drilling, artisanal workings and geophysical anomalies, increasing confidence in its targeting methodology and supporting the potential discovery of additional mineralised trends.
More than 20 artisanal pits have been identified across the project area, many of which remain unmapped and unsampled, highlighting further exploration upside.
Chief executive officer Paulo Misk said the company was pleased to have confirmation of 1.2 kilometres of mineralised structure from the first of five identified high-grade targets.
"Results suggest an additional potential inferred resource at Paranata Project of +50,000 oz can be generated from the TP2 target, adding to the existing 210,000 oz Au," he said.
Misk said the completed desktop study had improved the company's understanding of the geology and structural trends, helping to derisk the exploration model.
Jangada said its next phase of exploration would include airborne geophysics, ground geophysics and diamond drilling to support target refinement and further resource growth.
A high-resolution MagDrone survey covering about 135 line-kilometres is planned across the TP1, TP2 and TP3.2 targets, with flight lines spaced at 50 metres.
A ground induced polarisation survey of about 22.4 line-kilometres is also planned over TP2.
The company said follow-up diamond drilling would be planned after the geophysical studies at TP2 and TP3.2 to test priority mineralised zones, improve the geological model and assess resource expansion along strike and at depth.
Misk said Jangada was fully funded for the next stage of exploration at Paranata, including additional geophysics and IP work, as it sought to quantify the development potential of a low-capex, open-pit gold production project.
He added that work was also underway at the Molly gold project, which has a 130,000-ounce gold resource, with both work programmes funded from existing cash resources as Jangada pursues its strategy of building a multi-asset high-grade gold portfolio.
At 1100 BST, shares in Jangada Mines were down 2% at 1.1p.
Reporting by Josh White for Sharecast.com.
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