REG - Jubilee Metals Group - Copper and Cobalt Operations Update

Jubilee MetalsAnnouncement

22/11/2022 09:00

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RNS Number : 1979H  Jubilee Metals Group PLC  22 November 2022

Jubilee Metals Group PLC

Registration number (4459850)

Altx share code: JBL

AIM share code: JLP

ISIN: GB0031852162

("Jubilee" or "the Company" or "the Group")

 

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Copper and Cobalt Operations Update

 

Jubilee, the AIM and Altx traded metals processing company is pleased to
announce key milestones achieved in its southern copper and cobalt operations
in Zambia. The Company's cobalt operation, at its Sable Refinery ("Sable"),
has successfully achieved the production of export grade cobalt product
allowing the ramp-up of its operations to commence.

 

Sable has also successfully commissioned the direct leaching and refining of
copper sulphide material in addition to the recovery and refining of its
copper oxide concentrates. In doing so, it has successfully bypassed the
traditional power intensive, smelting process used by the industry for the
refining of copper sulphide materials, significantly expanding Sable's
processing capability.

 

Highlights

 

·  Jubilee achieved export quality cobalt production, allowing the
commencement of the ramp-up of operations

·   The Company will initially target the production of 50 tonnes of
contained cobalt metal which is the equivalent of approximately 220 tonnes of
final product, before ramping up to the 1 200 tonnes of contained cobalt metal
annual capacity, which equates to 5 280 tonnes of final product

·    This achievement forms part of the development and design of the much
larger Northern Refining Project

·   The cobalt, seen as a by-product to the Southern Refining operations,
holds the potential to significantly contribute to overall earnings with
targeted margins at capacity expected to exceed 45% and first sale of product
targeted to commence end of December 2022

·   Direct leaching of copper sulphide from mixed copper concentrates
achieved at operational scale on a sustainable basis, resulting in improved
recoveries on overall copper treated.

This process by-passes the need for traditional power intensive smelting of
copper sulphide concentrates, offering additional growth opportunities from
Sable's operational capability from the processing of mixed copper oxide and
copper sulphide concentrates

 

Following its first production of export quality cobalt carbonate, Sable is
now able to commence with the commercial production of cobalt targeting an
initial production rate of 50 tonnes per month of contained cobalt metal for
the next three months, thereafter, stepping up to targeted capacity of 100
tonnes per month.

 

The cobalt production is expected to make a significant contribution to the
earnings potential of the Southern Copper refining operations with margins
expected to exceed 45% at capacity. This establishes Sable as one of the few
cobalt refineries in Zambia able to process and refine cobalt containing
materials at commercial scale.

 

Sable has also successfully achieved the direct leaching of copper sulphide
from mixed copper concentrates at operational scale. This leading refining
approach offers further diversity to its operational capability to target
mixed copper oxide and copper sulphide concentrates which Jubilee has
identified as a significant growth opportunity.

 

In its integrated annual report, Jubilee noted the water and power
infrastructure challenges present in Zambia and the constraints these have had
on the newly commissioned Roan concentrator. The water constraints will be
addressed with the upgrading of the water infrastructure commencing the first
week of December. This follows the award of a water licence to Roan allowing
it to own and operate a dedicated water supply infrastructure for its
operations. The intervention project is expected to be completed over 6 days
during which time the water infrastructure will be upgraded and
recommissioned. The power constraints experienced at Roan have been resolved
satisfactorily.

 

Leon Coetzer, CEO commented: "Jubilee's Project Roan is part of our Southern
Copper Refining Strategy ("the South"), and the predominant supplier of
concentrates, produced from perceived waste to the Company's copper and cobalt
Sable Refinery, which is adjacent to Jubilee's Kabwe tailings resource in
Zambia.

 

"The success and the lessons learned from the South are fundamental to the
development and de-risking of Jubilee's Northern Refining Strategy ("the
North") where we will implement the same strategy, but at scale.

 

"With approximately 264 million tonnes of copper-containing surface tailings
secured in the North, the focus is now on integrating the successful
technology of the Sable plant at a much larger scale into the North.

 

"With such a large resource secured, the North offers the potential to far
exceed the original stated

Production target of 15 000 tonnes per annum of copper. A key next decision
for the implementation of the North is to lock in the capacity of the North
refinery which sets in motion the final design capacities for the
concentrators that supplies the refinery with concentrated copper and
concentrate materials.

 

"With the now proven processes in the South, the Company expects to receive
the final recommendation on capacities from its design teams by mid-January
2023. I look forward to updating shareholders in this regard."

 

 

United Kingdom

22 November 2022

For further information visit www.jubileemetalsgroup.com
(http://www.jubileemetalsgroup.com)   or contact:

 

Jubilee Metals Group PLC

Leon Coetzer

Tel:  +27 (0) 11 465 1913

 

Nominated Adviser - SPARK Advisory Partners Limited

Andrew Emmott/James Keeshan

Tel: +44 (0) 20 3368 3555

 

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

Sharon Owens

Tel: +27 (11) 011 9212

 

PR & IR Adviser - Tavistock

Jos Simson/ Gareth Tredway/Charles Vivian

Tel: +44 (0) 207 920 3150

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