REG - Jubilee Metals Group - South Africa and Zambia Project Expansion Update

Jubilee MetalsAnnouncement

21/08/2023 07:00

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RNS Number : 8475J  Jubilee Metals Group PLC  21 August 2023

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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South Africa and Zambia Project Expansion Update

Jubilee Metals Group PLC (AIM: JLP; Altx: JBL), a leader in diversified metals
processing, with operations in Africa, is pleased to provide an update on the
chrome joint venture ("JV") in South Africa as well as an update on the
expansion of its Roan Concentrator ("Roan") in Zambia.

Strategy and growth projects

PGM and chrome expansion

·    Successful upgrade, implementation and commissioning of an existing
brownfield processing facility, on the western limb of the Bushveld Complex,
has now been completed reaching targeted operational output.

 

·    As announced on 6 June 2023, the long-term chrome processing
partnership provides the potential for additional chrome processing capacity
of 360 000 tonnes per annum targeting an additional 200 000 tonnes of chrome
concentrate and adding an additional 10 000 PGM oz per annum to Inyoni's
profile.

 

·    The expansion of the chrome operations comes at an opportune time
with supportive chrome prices and strong market support further extending
operating margins:

 

o  A total of 24 500 tonnes of newly produced final chrome product already
traded and on track to trade an additional 17 000 tonnes of metallurgical
grade per month

o  Expected to contribute an additional 60 000 tonnes of chrome concentrate
for the half year ending Dec 2023 and 4000 PGM oz.

 

·    The Company is in advanced discussions to conclude its next
partnership agreement targeting an additional 600 000 tonnes per annum
processing capacity.

 

 

Copper

·    Roll-out of copper expansion strategy in Zambia progressing ahead of
schedule with all long lead items secured for Roan upgrade:

o  Delivery of equipment and on-site assembly scheduled to commence in early
September 2023.

o  Commissioning remains on track to commence in October 2023.

o  At completion, Roan will hold the unique capability to process a variety
of ROM and waste sources.

o  Jubilee has secured an additional 6-year Copper ROM supply at Roan on the
back of the targeted expansion of the operations. The ROM supply agreement
targets the supply of a minimum of 2% total Cu grades of previously mined
material.

o  The new ROM supply will form the base load material to be processed
through the upgraded front-end of Roan and account for approximately 60% of
the stated capacity at Roan.

o  The new modular designed Roan front-end, offers the opportunity, similar
to the chrome business model, to rapidly deploy satellite modular units to
upgrade remote feed sources for further refining.

 

·    Results from the Northern refining process trials which were
initiated to understand the extent of the waste and non-traditional ore
opportunities, delivered encouraging results, exceeding expectations in copper
recoveries achieved from historical tailings materials.

o  The process trials, a culmination of 3 years of research and development,
targeted the use of a low capital-intensive solution to produce a high-grade
copper concentrate for further refining.

o  The results achieved motivated the decision to immediately commence with
the implementation of a bulk semi-commercial pilot facility at the Luanshya
tailings facility which will be completed over the next 12 weeks.

o  Results from the pilot trials, which target feed batches of approximately
500 tonnes at a time, will be used to confirm the design assumptions on
scalability of the process flowsheet and to confirm final plant unit sizes.
The bulk pilot facility is a critical final step towards confirming the design
detail for the large-scale operational solution.

 

 Statement from Leon Coetzer, CEO:

"Our chrome production units form a vital part of the South African business'
profitability and cost competitiveness, especially at a time when chrome
prices are particularly strong, and this largely offsets the weakness in the
PGM basket price. The strength and robustness of our diversified metal focus
is best demonstrated during such volatility in metal prices where both chrome
and copper are seeing strong price support, offsetting the weakness in both
PGMs and cobalt.

"The expansion of our chrome operations intends to take advantage of price
support in the market for chrome, coupled with our continued strong
operational performance.

"The upgrade of our Roan concentrator forms a vital link to the processing
solution for the much larger Northern Refining solution and sets a new
standard in the processing of mixed copper ores in Zambia. The upgrade
incorporates both the technical developments and lessons learnt from our South
African operations as well as key breakthroughs in the processing of these
weathered ores that many regard as too complex and reject the material as
waste.

"I am particularly excited by the results achieved from our Northern Refinery
trials. The copper recoveries exceeded our expectations and confirmed the
potential of the process route that we are developing. This process solution
offers tremendous potential to deploy a low-cost efficient copper processing
solution for the vast historical tails in Zambia.

"We have agreed to immediately progress with the implementation of a bulk
pilot facility to confirm scaling of the process as a key input into the
design of our large-scale process facility. Results from the pilot trials
which targets feed batches of approximately 500 tonnes at a time will be used
to confirm the design assumptions on scalability of the process flowsheet to
confirm final plant unit sizes.

"Jubilee is on an exciting growth path both in South Africa on the back of its
proven operational success, as well as in Zambia reaching the completion of
the in-depth development work for the design of our copper tailings processing
solution. I look forward to providing further updates as the project reaches
completion and I am excited about the potential it offers Jubilee."

21 August 2023

 

FOR FURTHER INFORMATION VISIT WWW.JUBILEEMETALSGROUP.COM
(http://WWW.JUBILEEMETALSGROUP.COM) OR PLEASE CONTACT:

 

 Jubilee Metals Group PLC                             Tel: +27 (0) 11 465 1913

 Leon Coetzer
 PR & IR Adviser - Tavistock                          Tel: +44 (0) 20 7920 3150

 Jos Simson/ Gareth Tredway
 Nominated Adviser - SPARK Advisory Partners Limited  Tel: +44 (0) 20 3368 3555

 Andrew Emmott/ James Keeshan
 Joint Broker - Berenberg                             Tel: +44 (0) 20 3207 7800

 Matthew Armitt/ Jennifer Lee/ Detlir Elezi
 Joint Broker - WHIreland                             Tel: +44 (0) 20 7220 1670/

 Harry Ansell/ Katy Mitchell                           +44 (0) 113 394 6618
 JSE Sponsor - Questco Corporate Advisory Pty Ltd     Tel: +27 (0) 11 011 9207

 Alison McLaren

 

 

 

 

 

 

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