Jangada said the hydrology study demonstrated readily accessible sources of water close to the project in north-eastern Brazi,l at minimal potential risk to operations.

These include two major dams, situated within an 18-dam drainage basin, which will be the project's immediate sources of water.

The study also evaluated potential ground and surface sources and found there was a low-risk of water ingress into production pits.

The BFS is due to be completed this quarter, with verification of the metallurgy, environmental, legal and social components almost done, after which it can start the final mine design process.

Jangada said the project's final water requirement would be based on the finalisation of the plant design, which would inform its water acquisition strategy.

Chairman Brian McMaster said the BFS would confirm Pedra Branca's technical and economic viability and was ongoing, according to the previously outlined schedule.

"The hydrology study was an integral component of confirming the technical viability of this exciting asset; the positive findings bolster our confidence to continue to expedite development at the project," he said.

In January, Jangada upped Perda Branca's resource by 117%, which formed the foundation of the BFS.

At the current 2.12p (US2.77c), Jangada's shares (AIM:JAN) have fallen 25.6% in the past six months.