Jubilee Metals Group PLC
Registration number: 4459850
Altx share code: JBL
AIM
share code: JLP
ISIN: GB0031852162
Jubilee Metals Group PLC (Jubilee or the
Company)
Dissemination of a Regulatory
Announcement that contains inside information according to UK
Market Abuse Regulations. Not for release, publication, or
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regulations of such jurisdiction.
UPDATE ON
COPPER PROJECTS AND EXPANSION OF CHROME OPERATIONS
Jubilee, a leading diversified
metals processor in Africa with significant operations in South
Africa and Zambia, announces an update on its strategic investment
with Abu Dhabi's International Resources Holding RSC Limited
("IRH") for the development of the "Waste Rock Project" and
progress with the upgrade of its Roan copper facility in Zambia
together with the continued expansion of its chrome
operations.
Highlights
Copper in Zambia
·
IRH exercises right to proceed with the formation
of the Joint Venture (JV) vehicle for the implementation of the
Waste Rock Project.
·
The Waste Rock Project aims to implement an
initial 4 Copper processing modular plants holding a combined feed
capacity of more than 2.4 million tonnes per annum targeting the
recovery of more than 20,000 tonnes per annum of copper in
concentrates of which 30% will be attributable to
Jubilee.
·
The Roan upgrade project is progressing to
schedule with commissioning activities and ramp-up expected to
commence during April 2024.
·
The resource definition of Project Munkoyo has
progressed with the aeromagnetic survey having identified a large
magnetic anomaly associated with the known copper mineralisation
confirmed by geochemical assays from recent trenching samples.
Processing trials have confirmed the recoverability of the copper.
Jubilee targets that initial copper ore from Project Munkoyo will
be delivered to the Sable refinery from September 2024.
Chrome & PGM's in South
Africa
·
Jubilee has extended its chrome tolling agreements
through to February 2027, securing a total processing feed capacity
of 2.4 million tonnes per annum in relation to fixed margin
feed.
·
The construction of Thutse's second chrome
processing module, with a capacity to produce 300,000 tonnes of
chrome concentrates per annum, is on track to commence in August
2024.
Statement from Leon Coetzer, Jubilee
CEO:
"The expansion of our copper
operations are well underway as we look to significantly increase
our copper production in the coming months on the back of the
expansion of both Roan and Sable.
I am particularly excited by the
progress of our strategic relationship with IRH as we look to
jointly develop the large Waste Rock Project which holds the
potential to again demonstrate Jubilee's unique capability of
turning waste to value.
We will continue to update the
market and our stakeholders on the development of Project Munkoyo
and the expansion of this portfolio of small-scale miners in Zambia
as we leverage the successes achieved at our chrome
operations.
Our chrome business continues to
grow with Jubilee's renowned processing and operational
capabilities as the drivers of our success. The continued
renewal of our toll processing agreements speaks to the
acknowledgement by industry of these capabilities."
Copper in Zambia
Waste Rock Project
The copper Waste Rock Project scope
targets the processing of in excess of 260 million tonnes of copper
containing surface material. The project targets to initially
implement four modular processing plants holding a combined
processing capacity of 2.4 million tonnes per annum capable of
producing more than 20,000 tonnes of copper in concentrates per
annum, commencing in Q2 CY24 of which 30% will be attributable to
Jubilee.
The copper modular processing units
are similar in design to the Roan plant upgrade which seeks to
upgrade the surface material to a copper concentrate which can be
further refined to metal. The initial capital investment for the
project is estimated at US$50 million.
Jubilee and IRH entered into a
binding Framework and JV agreement in December 2023 under which
terms IRH will provide the capital for the implementation of the
Waste Rock Project with Jubilee appointed to implement and operate
the project, subject to due diligence and finalisation of
definitive agreements. The JV attributes 70% to IRH and 30% to
Jubilee.
Under the binding Framework and
Joint Venture agreement, IRH has elected to exercise its right to
form the dedicated JV through which the project will be
implemented. This follows the due diligence of the project
undertaken by Jubilee which has included both an extensive
metallurgical test-program conducted at Jubilee's development
centre, as well as the review of both surface sampling and
historical drill results of the waste rock material and confirming
the quantity of material to be in excess of 260 million tonnes of
material. The grade of copper in the resource varies
depending on the origin of waste rock material, with Jubilee's
internally developed modular copper units confirming the capability
to successfully upgrade the material to produce copper concentrates
more than 7% Cu for further refining.
Project Roan Upgrade
The delivery and assembly of the new
front-end modular unit at Roan is proceeding as per the schedule to
commence commissioning and ramp-up during April 2024. The addition
of the modular unit enhances the Roan Operation's capability to
simultaneously process multiple feed sources and expands the
overall capacity of Roan to produce up to 13 000 tonnes of copper
in concentrates per annum.
Project Munkoyo
Project Munkoyo is located near
Sable refinery, in Kapiri Mposhi district, approximately 65km east
of Kabwe, with a prospect lease area of 450 hectares. Project
Munkoyo forms part of Jubilee's commitment in working with small
scale mining opportunities to convert the operations into
sustainable long term copper operations by integrating Jubilee's
processing and operational expertise. Jubilee holds a proven track
record of successfully converting such opportunities into large
sustainable operations as demonstrated by the success achieved in
Jubilee's chrome operations.
The aeromagnetic survey conducted
has revealed a large magnetic anomaly linked to the previously
identified copper mineralisation, further supported by geochemical
assays from trenching samples. These findings validate the presence
and extension of the existing open pit, currently spanning 400
metres, to an estimated length of 1 kilometre within the lease
area. The progress to-date confirms the potential to establish a
mining operation of 25 000 tonnes per month of copper reef for
processing at Sable, offering formal employment and investment
opportunities to the area. Jubilee targets that initial copper ore
from Project Munkoyo will be delivered to the Sable refinery from
September 2024.
Jubilee views Project Munkoyo as one
of many such identified opportunities in Zambia and targets to grow
its portfolio aggressively further in partnership with the
small-scale miners.
Chrome & PGM in South
Africa
Jubilee's chrome and PGM business
consists of two key business drivers. This includes the
processing of third-party chrome ore at Jubilee's Windsor and
Inyoni operations under agreed fixed margin return per tonne of
chrome concentrate produced, while Jubilee recovers the remaining
PGMs and retains the majority of this benefit. In addition, Jubilee
has significantly expanded its chrome operational capacity to
process chrome ROM materials in partnership with the holders of
chrome mining rights under an agreed earnings share model which
offers Jubilee greater exposure to the chrome market. Combined,
Jubilee holds a total chrome processing capacity capable of
producing 1.45 million tonnes of chrome concentrates per
annum.
Jubilee is pleased to announce it
has agreed an extension to February 2027 of the fixed margin
contracts for its Windsor chrome operations. Which combined
with the Inyoni operations has committed 2.4 million tonnes per
annum of processing feed capacity.
Jubilee has committed to expanding
its chrome operations in collaboration with the mining right
holders at Thutse, adding a second processing unit with a
processing capacity of 300,000 tonnes of chrome concentrates per
year. The commissioning of this unit is anticipated by August 2024,
financed through the cash flows from existing chrome
operations.
28 March 2024
For further information,
visit www.jubileemetalsgroup.com,
follow Jubilee on Twitter (@Jubilee_Metals) or contact:
Jubilee Metals Group
PLC
Leon Coetzer (CEO)/Neal Reynolds (CFO)
Tel: +27 (0) 11 465
1913
Nominated adviser - SPARK Advisory
Partners Limited
Andrew Emmott/James
Keeshan
Tel: +44 (0) 20 3368
3555
Public Relations and Investor
Relations adviser - Tavistock
Jos Simson/Gareth Tredway
Tel: +44 (0) 20 7920
3150
Joint broker -
Berenberg
Matthew Armitt/Jennifer Lee/Detlir
Elezi
Tel: +44 (0) 20 3207
7800
Joint broker -
WHIreland
Harry Ansell/Katy
Mitchell
Tel: +44 (0) 20 7220 1670/+44 (0)
113 394 6618
JSE sponsor - Questco Corporate
Advisory Proprietary Limited
Alison McLaren
Tel: +27 (0) 11 011 9207
About Jubilee
Jubilee is a low-cost, diversified
producer, specialising in the recovery and processing of metals
from previously overlooked resources, such as unprocessed
historical waste rock, run-of-mine materials and tailings in Zambia
and South Africa. The Company's low-capex, modular processing
facilities are deployed close to these various types of material,
producing high grade concentrates for sale or further refining to
finished metal at the Company's downstream facilities. Production
currently consists of copper, chrome, and platinum group metals
(PGMs). The modular processing facilities offer a platform for
growth and the rapid expansion of Jubilee's operational footprint
in Zambia and South Africa. Jubilee's success is derived from
operational and technical excellence, a highly experienced
management team and a pioneering Technical Development
Centre.