REG - Jubilee Metals Group - Project G Acquisition and Power Update

Jubilee MetalsAnnouncement

07/10/2024 07:00

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RNS Number : 0881H  Jubilee Metals Group PLC  07 October 2024

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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Project G Acquisition and Power Update

 

Jubilee, a diversified metals producer with operations in Zambia and South
Africa, is pleased to provide a further update on the roll-out of its Copper
Strategy in Zambia which is centred around achieving an initial production
capacity target of 25 000 tonnes of copper per year.

 

The Company has successfully concluded its due diligence of Project G, an open
pit copper mining operation in Zambia and has elected to acquire a majority
interest in Project G under revised terms increasing the Company's holding to
65% from 51%, as previously announced on 21 August 2024  (Agreement). Project
G marks the second open-pit copper operation acquired in Zambia following the
implementation of Project Munkoyo.

 

In addition, the Company is pleased to announce that it has increased the
allocation of power under the recently announced (23 September 2024) private
power purchase agreement (LHPC agreement) to secure an additional 2MW of power
in order to ensure that all of the Zambian operations are fully supplied under
the LHPC agreement. The increased power allocation allows the Roan
Concentrator (Roan) to operate at full capacity in respect of its newly
commissioned front-end module and its existing milling and floatation plant.
The Company's Zambian operations have now fully transitioned its power
requirements onto renewable energy sources.

 

Highlights

 

·    Project G Agreement implemented to secure an increased 65% interest
in the operations

·    The Company will settle the acquisition value of US$2.0 million in
cash instead of in shares, with a commitment to invest a further US$500 000
into the upgrading of the Project G operations

·    Project G targeted to commence operations and delivery of
pre-concentrated run-of-mine (ROM) to the Sable Refinery (Sable) by December
2024

·    Under the Agreement, Jubilee is appointed manager and operator of the
open-pit operations with immediate effect

·    Project G will ramp up over a 6 month period to reach 3 000 tonnes
per month of pre-concentrate material through a Jubilee on-site module, and
delivery of an additional 350 copper units per month (4 200 per annum) to
Sable for further refining

·    Resource drilling program currently underway, targeting a potential
increase of production to 20 000 to 25 000 tonnes of ROM ore per month

·    LHPC private power agreement increased by a further 2MW power
allocation effective immediately

 

 

Leon Coetzer, CEO of Jubilee commented:

 

"I am pleased to announce this transaction as our second open-pit mining
operation in Zambia. As I mentioned when we first announced these proposed
acquisitions, the strategic acquisition of two open-pit operations serves as
an example of our ability to leverage our process capability and early mover
advantage to secure significant near-surface copper resources which are
already in operation.

 

These assets' predictable, high grades and our ability to owner manage the
operations allowing us to control the optimal blend of feed ore to achieve the
25 000 tonne per annum copper target we have set for ourselves.

 

Zambia holds numerous similar near surface resource opportunities which we are
actively pursuing.

 

We are equally pleased to have converted our entire power supply requirement
to renewable energy in the form of hydro and solar power in future which is
vital for the green energy transition to ensure that the copper we produce has
as low a carbon footprint as possible."

 

Zambian Copper Strategy

 

The increased processing capacity of 25 000 tonnes of copper per annum will be
achieved through the upgraded Roan and the second copper tank house addition
to Sable.

 

The Sable upgrade is currently underway and expected to be fully integrated
into the existing operations over the next 10 months. The Company's focus is
now shifting towards bringing secured copper resources into full production to
fully utilise this upgraded capacity.

 

Copper Resources

 

Open Pit Mining Operations

 

Project G is the second open-pit mining operation acquired by Jubilee. The
Company's due diligence included full-scale processing trials at the Sable
Refinery. Under the transaction agreement Jubilee is appointed manager and
operator of the open-pit operations. Under the Agreement Jubilee will pay a
total of US$2 million dollars of which US$1 million payment is deferred until
after the transfer of the mining licences. Additionally, Jubilee has committed
to invest a minimum of US$500 000 into the expansion and development of the
operations.

 

The project plan for Project G targets to expand the existing open-pit
operations to achieve an initial mining rate of 10 000 tonnes per month by
February 2025. Project G includes an on-site upgrading facility capable of
pre-concentrating the mined ROM material with an immediate capacity to produce
3 000 tonnes of copper concentrate per month, containing 10% to 15% copper.
The lower grade copper reef will initially be stockpiled at source for future
processing through the targeted regional processing hub.

 

Project G and Project Munkoyo open-pit mines are located within 55 kilometres
of the Sable. Project Munkoyo commenced operations in July 2024 and continues
to ramp up to an initial target of 15 000 tonnes per month of ROM of which 5
000 tonnes per month are to be delivered directly to Sable for refining.
Project Munkoyo remains on track to reach its initial target of 15 000 tonnes
per month mined ROM ore by December 2024.

 

A resource drilling program is currently underway and, depending on the
confirmation of resource continuity, will target an increase of production to
20-25 000 tonnes of ROM ore per month.

 

 

ENDS

7 October 2024

For further information visit www.jubileemetalsgroup.com
(http://www.jubileemetalsgroup.com) , follow Jubilee on Twitter
(@Jubilee_Metals) 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.

Jubilee's Zambia Strategy

 

Jubilee has adopted an integrated copper strategy to achieve production in
excess of 25 000 tonnes of copper per annum. This strategy focuses on
expanding in-country processing capacity, securing and developing new copper
resources, and evaluating the potential of large-scale waste rock processing
to drive growth in Zambia's copper sector.

 

Jubilee's targeted copper resources are classed into three groups namely:

 

·    Previously Processed Material

Tailings and partially processed discarded low-grade materials

·    Open-Pit Mining Operations

Operationalise copper resources to fully utilise installed processing and
refining capacity to access near surface copper reefs that are accessible
through open-pit mining

·    Previously Mined Waste Rock

Process low grade stockpiled material from historical mining operations

 

 

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