REG - Jubilee Metals Group - Projects Update

Jubilee MetalsAnnouncement

28/03/2024 07:15

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RNS Number : 6694I  Jubilee Metals Group PLC  28 March 2024

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)

 

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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
(http://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.

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