Jubilee Metals Group PLC
Registration number (4459850)
AIM
share code: JLP
Altx share code: JBL
ISIN: GB0031852162
("Jubilee" or "the Company" or "the Group")
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Announcement that contains inside information according to UK
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Copper Projects
Update
Jubilee, a diversified metals
producer with operations in Zambia and South Africa, is
pleased to provide an update on the implementation of its Copper
Strategy in Zambia.
The Zambian Copper strategy is
centred around an initial processing capacity target of 25 000
tonnes of copper per year, supported by two key operational sites:
the integrated Sable Refinery (Sable) and the upgraded Roan
Concentrator (Roan). The Company aims to fully utilise this
capacity by bringing its secured copper resources into production
through open-pit mining operations and the reprocessing of surface
waste.
A crucial factor for successfully
executing the Copper Strategy was securing a stable power supply, a
significant challenge in Zambia. The Company is pleased to announce
that its recently signed power purchase agreement with Lunsemfwa
Hydro Power Company (LHPC) which has been implemented, with
uninterrupted power being delivered to Jubilee's operations as of
last week covering all of its processing plants' power requirements
with 100% renewable power.
Highlights
·
Stable power supply to Zambian operations
commenced after successfully implementing the LHPC agreement on 18
September 2024.
·
Roan front-end module has achieved design
capacity, and operations have been handed over to the Roan
operational team.
·
Munkoyo open-pit operations began ramping up,
targeting to reach 15 000 tonnes of run-of-mine ore per month
comprising 5 000 tonnes of 3.0% high-grade copper ore delivered
direct to the Sable Refinery while the sub 1.0% lower grade copper
ore is being stockpiled at site for further processing.
·
Large Waste Rock project, with over 260 million
tonnes of surface rock, is set to begin a commercial trial of 15
000 tonnes processed through Roan's front-end module in November
2024 as part of the final due diligence review.
Leon Coetzer, CEO of Jubilee commented:
"I am pleased to provide this update
on the progress of the implementation of our Copper Strategy in
Zambia. Establishing a stable power supply was crucial to
maintaining steady progress in our projects. The frequent rolling
outages posed an ongoing risk to the stability of our operations,
so I am grateful that we have now secured a reliable, continuous
power source. This has been a critical factor in achieving design
throughput at our new Roan front-end module.
With upgrades at our Roan
Concentrator and Sable Refinery, we are well-positioned to achieve
our initial target processing capacity of 25 000 tonnes of copper
per year. The recent milestones, including the ramp-up of our
Munkoyo open-pit operation, near completion of our due diligence of
Project G, which if successful will be brought into operation
within 4 months, ensure a continued upward drive in our copper
output. Our discussions to secure a further two open pit
opportunities are progressing well and I am confident in our
ability to secure further similar opportunities.
We are nearing the completion of due
diligence for our Waste Rock project, with the distinct advantage
of conducting a full-scale commercial trial using our new Roan
front-end module.
We are optimistic about the future
and remain focused on bringing our secured copper resources into
production as we fully utilise our expanded processing capacity. I
look forward to keeping the market updated on all developments as
they unfold."
Implementation of Processing
Capacity
The increased processing capacity of
25 000 tonnes of copper per annum will be achieved through upgrades
to both the Roan Concentrator and the Sable Refinery.
The Roan Concentrator upgrade is now
complete, with its front-end module reaching design throughput of
45 tonnes per hour of waste rock feed for an 8-hour continuous
period under the supervision of the Jubilee technical team. This
milestone has enabled the handover of operations to the Roan
operational team to operate the plant on a 24-hour continuous
period.
Additionally, the commencement of
stable power supply through the LHPC agreement ensures continuous
operation of Roan's front-end module targeting to achieve 30 000
tonnes per month feed rate. Roan's front-end module
production is expected to start reflecting in the production of Q4
CY2024 as it commences to operate continuously which is in-line
with the Company's copper production forecast.
Roan is now capable of processing
both historically mined low grade stockpiled material and
previously processed materials simultaneously, with a combined
capacity of its front-end module as well as milling and flotation
plant of up to 13 000 tonnes of copper per annum (4 500 and 8 500
capacity respectively), depending on the feed grade. Roan will
initially be dedicated to processing waste from historical mining
operations, upgrading copper materials into a saleable concentrate
that can either be sold on the market or further refined at Sable,
depending on Sable's available capacity.
The planned Sable Refinery upgrade
marks the final stage in reaching the initial target of a combined
25 000 tonnes of copper processing capacity per annum. This upgrade
includes enhancements across several areas of the refinery,
culminating in the commissioning of a second tank house for copper
cathode plating. Upon completion, Sable will be capable of
producing both copper sulphide concentrates and copper cathode,
with a combined output of 16 000 tonnes per annum. The upgrade is
currently underway and expected to be fully integrated into the
existing operations over the next 10 months with an expected
capital investment of US$9 million, confirming the processing
capacity of 25 000 tonnes annually. The Company's focus is now
shifting towards bringing secured copper resources into full
production to fully utilise this upgraded capacity in line with the
production forecast which assumes that the impact of the capacity
upgrades will reflect during H2 FY2025.
Copper
Resources
Open Pit Mining
Operations
Jubilee acquired a 95% interest in
the Munkoyo mine, which is located within 55 kilometres of the
Sable Refinery, in June 2024 and proceeded to develop an open pit
mining operation to access the near surface weathered copper
reefs.
The Munkoyo open-pit mining
operations yield high-grade copper ore, which is transported
directly to Sable, as well as lower-grade copper ore that is
stockpiled on-site for further processing at a regional processing
hub (discussed further below). The high-grade ore, with a target
copper content of 3.0%, is refined at Sable. Munkoyo commenced
operations in July 2024 and continues to ramp up to an initial
target of 15 000 tonnes per month of run-of-mine of which 5 000
tonnes per month are to be delivered directly to Sable for
refining. Munkoyo remains on track to reach its initial target of
15 000 tonnes per month mined run-of-mine ore by December
2024.
A resource drilling program is
currently underway, and depending on the confirmation of resource
continuity, will target the potential to increase production to 20
000 to 25 000 tonnes of run-of-mine ore per month.
The decision on the capacity of the
regional processing hub is currently under-review and subject to
the completion of the technical development program which is
expected to be completed over the coming 4 months. The regional hub
will focus on upgrading the mined and currently stockpiled lower
grade copper reef (sub 1.0%). This material will then be
transported as a high grade copper concentrate to Sable which could
potentially double the copper output from Munkoyo delivered to
Sable. This approach would be replicated for all the open cast
mining operations that Jubilee targets for acquisition.
Project G is the second open-pit
mining operation being evaluated by Jubilee. The Company is nearing
the completion of its due diligence, which has included full-scale
processing trials at the Sable Refinery. A final decision on
Project G is anticipated by the end of September 2024. The due
diligence focuses on an initial mining rate of 10 000 tonnes per
month achievable by February 2025, with an existing on-site
upgrading facility of the run-of-mine material which already can
produce 3 000 tonnes of copper concentrate per month, containing
10% to 15% copper, for refining at Sable. The lower grade
copper reef will initially be stockpiled at source for future
processing through the regional processing hub.
Jubilee is also in advanced
discussions regarding two additional open-pit mining opportunities
in the Munkoyo and Project G region, as it aims to fully dedicate
Sable's 16 000 tonne per annum copper refining capacity to
processing open-pit mining resources. Jubilee has set a goal to
achieve this by December 2025.
Previously Mined Waste
Rock
Roan has begun processing low grade
stockpiled material from historical mining operations through its
newly commissioned front-end module. The module is designed to
upgrade the waste rock material more than tenfold, producing a
high-grade copper concentrate in excess of 10% copper contained for
further refining or market trading. Additionally, the plant
generates a lower-grade copper stream that requires further
processing. The Jubilee technical team is currently evaluating
various metal extraction techniques to refine this waste stream,
with a preference for on-site flotation and leaching. The review
includes exploring the use of glycine-based heap leaching in
partnership with Draslovka, a mining processing specialist. A
semi-commercial trial for flotation and on-site leaching of the
low-grade copper stream is scheduled for February 2025.
The large Waste Rock Project, with
an estimated 260 million tonnes of surface material, is currently
undergoing its final technical review. As previously announced,
Jubilee has secured the rights to the extensive waste rock
stockpile, pending the successful completion of due diligence to
Jubilee's satisfaction, in partnership with International Resources
Holding (IRH) from Abu Dhabi.
The due diligence of the copper
waste rock material undertaken by Jubilee has included various
sampling campaigns as well as laboratory and pilot scale test
programs to confirm the upgradability. In parallel to the test
program, Jubilee entered into agreements to accelerate delivery
timelines of key long lead items.
Jubilee has reached agreement to
extend the due diligence period to 6 November 2024 to accommodate
the extensive test program which culminates in a full commercial
trial of the large Waste Rock Material through the newly
commissioned Roan front-end module. It is planned to process
approximately 15 000 tonnes of the material at Roan as final
confirmation of the response of the material to the proposed
processing solution. Due to the initial delays in the commissioning
of Roan it is expected that the due diligence period will be
extended to January 2025 subject to agreement reached to ensure
sufficient time to complete the commercial trial and allow the
Jubilee technical and commercial team to complete the review of the
results.
To date, US$4.95 million has been
advanced to secure the rights to the large Waste Rock Project, as
part of the overall acquisition price of US$30 million, payable
quarterly over 18 months, contingent on the successful completion
of the due diligence period. According to the terms of the
agreement, Jubilee will forfeit the payments made thus far if it
decides not to proceed with the project. The successful completion
of due diligence is a critical factor in maintaining Jubilee's
partnership with IRH.
The scale of the large Waste Rock
Project indicates the need for four processing modules similar to
the Roan front-end module, requiring an estimated capital
investment of around US$50 million subject to funding. Preliminary
production estimates suggest that these modules could collectively
produce approximately 2 000 tonnes of copper per month.
An accelerated construction schedule
for all four modules could generate economies of scale and
significant cost reductions. The project timeline for implementing
all four modules depends on the sequencing of their installation,
but through the establishment of strategic partnerships with the
suppliers of key long lead items, modules could be completed within
a 12-month period from the commencement of construction.
The figures above serve only as
indicative numbers of the potential that the resource holds based
on the assumptions and test work undertaken by Jubilee's technical
services department and the successful completion of the due
diligence which includes the commercial trial at Roan.
Background Information on
LHPC
LHPC is an established independent
power producer in Zambia that owns and operates two hydropower
plants in the central province. LHPC is a member of the Southern
Africa Power Pool and an active power trader in the regional
market. LHPC is building a 20MW solar plant and plans to use its
portfolio of renewable power sources to meet Jubilee Zambia's power
requirements. The agreement highlights Jubilee's dedication to
sustainable energy practices. The power will be supplied from an
integrated solar power and hydro-storage facility which is expected
to be brought into operation over the coming 12 months. Under
the agreement all of the current power needs of both Sable and Roan
will be supplied via the LHPC agreement.
ENDS
23 September 2024
For further information visit
www.jubileemetalsgroup.com,
follow Jubilee on Twitter (@Jubilee_Metals), visit
www.lunsemfwahydro.com.zm or contact below:
Jubilee Metals Group PLC
Leon Coetzer (CEO)
Tel: +27 (0) 11 465
1913
Nominated Adviser - SPARK Advisory Partners
Limited
Andrew Emmott/James
Keeshan
Tel: +44 (0) 20 3368
3555
PR
& IR Adviser - Tavistock
Jos Simson/ Gareth
Tredway
Tel: +44 (0) 207 920
3150
Joint Broker - RBC Capital Markets
Farid Dadashev/Jamil Miah
Tel +44 (0) 20 7653 4000
Joint Broker - Zeus Capital
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, an experienced management
team and a pioneering Technical Development Centre.