REG - Jubilee Metals Group - Zambia Copper Expansion Update

Jubilee MetalsAnnouncement

08/02/2024 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240208:nRSH4091Ca&default-theme=true

RNS Number : 4091C  Jubilee Metals Group PLC  08 February 2024

 

Jubilee Metals Group PLC

Registration number (4459850)

Altx share code: JBL

AIM share code: JLP

ISIN: GB0031852162

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

 

 

Dissemination of a Regulatory Announcement that contains inside information
according to UK Market Abuse Regulations. Not for release, publication or
distribution in whole or in part in, into or from any jurisdiction where to do
so would constitute a violation of the relevant laws or regulations of such
jurisdiction.

 

 Zambia Copper Expansion Update

 

Jubilee, a diversified leader in metals processing with operations in
Africa, is pleased to provide an update on progress at its copper operations
in Zambia.

The Company's strategy in Zambia is to expand its operations to reach an
initial goal of 25 000 tonnes of copper per annum. The strategy includes both
the expansion of Jubilee's copper resource base and processing capacity. As
part of this strategy, Jubilee is expanding its processing facilities at its
Roan Concentrator ("Roan") and Sable Refinery ("Sable") following the
successful securing of both significant virgin waste rock licences and
overlooked copper reef opportunities.

Highlights

Copper Processing Plants

·    Following the revision of the project timetable at Roan occasioned by
the logistical problems at South African ports, the expansion of the front end
of the Roan concentrator is on track for commissioning by end of Q1 CY2024. It
forms a fundamental part of Jubilee's strategy to progress production to 13
000 tonnes per annum of copper contained in concentrates.

·    Manufacturing and testing of the new 50 000 tonnes per month copper
processing module is now completed, with the final components being prepared
for transit to Roan for commissioning.

·    At Sable engineering designs for a new copper concentrate line are
underway. With construction on track to commence in Q2 CY2024, this should see
processing capacity increase to 16 000 tonnes per annum of copper contained in
copper cathode and copper concentrates.

Copper Resources

·    Waste Rock Project, the joint venture partnering with the Abu Dhabi
based International Resources Holding RSC Limited ("IRH"):

o  The Company has recently completed an independent survey which indicates
the minimum volume estimation of material at this project, at surface, is 260
million tonnes.

o  Processing trials on the initial bulk samples from this project,
undertaken at Jubilee's development centre have now been completed. The trials
confirmed that the Company can produce a high-grade copper concentrate through
Jubilee's modular copper processing units which is well suited for further
refining to metal.

o  These trials offer opportunity to further scale the project as a potential
supplier of copper concentrate to Sable refinery and major producers such as
Mopani copper mines recently acquired by IRH.

 

·    Munkoyo Project ("Munkoyo"):

o  Munkoyo is located within 50 kilometres of Sable and will be a feed source
to the Sable.

o  An estimated 80 000 tonnes of mined ore from Munkoyo has been tested and
refined at Sable indicating copper ore grades of between 1.5% to 3%.

o  Commenced preparations to construct an upgrading copper processing module.

o  In addition, initial exploration and aerial surveying has confirmed the
existence of a significant one kilometre long copper anomaly at surface. This
suggests the continuation of the current near surface and exposed copper reef
capable of providing Sable with a sustained long term feed resource.

o  Commencing an accelerated exploration programme to better delineate the
resource and targeting the expansion of current operations to reach production
levels of approximately 25 000 tonnes of ROM per month over the next 12
months.

o  Jubilee has agreed an option to acquire Munkoyo for up to US$1.5 million.

 

·    Both the large waste rock dump and the Munkoyo resources align with
Jubilee's strategy of unlocking overlooked copper resources through the
application of processing capability. Jubilee has identified several further
similar opportunities in Zambia which it seeks to secure in the short term as
it drives to continuously increase its copper resource base as the catalyst
for further expanding its processing capacity.

 

Leon Coetzer, CEO commented:

"I am very pleased to announce significant progress across our copper
portfolio in Zambia including the discovery of a new large scale one kilometre
long copper anomaly at our Munkoyo Project. We continue to expand our access
to copper resources overlooked by the industry, as a platform from which to
expand our copper processing operations.

"At Munkoyo, early test work of approximately 80 000 tonnes has revealed
excellent copper grades of 1.5% to 3% for what was believed to be an
uneconomic source of copper by previous owners. The discovery of this new
copper anomaly has the potential to become a long-term source of supply for
our Sable Refinery in the region. Munkoyo is a great example of Jubilee's
ability to convert abandoned surface projects into viable opportunities
through processing excellence.

"At Roan, I am pleased to announce we have completed the manufacturing of the
new modular front-end unit in South Africa, and we look forward to receiving
delivery of the module in Zambia.

"Jubilee is well on track of achieving its initial target of 25 000 tonnes of
copper per annum from the implementation of these projects.

"In addition, we continue to make good progress on the new waste rock project
with our partner IRH and completion is on track for 29 February 2024. Our
focus remains on commencing the construction of the copper processing modules
for this new exciting copper project."

Copper Processing Plants

Roan

The Company is pleased to announce that it has completed the manufacturing of
the new front-end modular 50 000 tonnes per month unit, which was designed by
the Jubilee Technical Services ("JTS") team in South Africa. The new modular
unit is pending painting before being dissembled and containerised for
shipping to Zambia during February 2024. Once installed, this module will
allow Roan to process multiple feed sources in excess of 1 000 tonnes per
month of copper contained in concentrates.

The Company has undertaken optimisation initiatives at Roan alongside
construction to maintain copper sulphide concentrate production at 50% of its
current production capacity. Furthermore, these optimisation initiatives have
performed well and have increased the copper sulphide concentrate's copper
content from 20% to above 25%. These enhancements result in an increased
revenue potential for the sale of copper sulphide concentrates in the market,
while also ensuring Roan continues producing while awaiting the delivery of
the new front-end module.

Sable Refinery and Concentrate Expansion

The Company's Sable Refinery is undergoing design phase to expand the current
copper sulphide concentrate circuit. This is in addition to the existing
production of copper cathode from oxide ore. Engineering designs have
progressed well, and the Company remains on track to commence construction in
Q2 CY2024 which will see capacity increase to 16 000 tonnes per annum of
copper contained in cathode and concentrates.

Copper Resources

Project Munkoyo

As announced on 1 November 2023, the Company signed a copper ore off-take
agreement with an existing mining company in close proximity to its Sable
Refinery. Approximately 80 000 tonnes of ROM material from Munkoyo has been
trialled and refined at Sable indicating a copper ore grade of between 1.5% to
3% contained copper. In addition, the Company has undertaken initial
exploration and aerial surveying of the licence area which has shown the
potential for a new copper resource along a one-kilometre strike.

Following this successful testing and the potential to delineate further
resources on the licence, the Company has agreed an option to acquire the
licence for up to US$1.5 million.

Work undertaken at Project Munkoyo includes:

§ Approximately 20% of the trenching program has been completed.

§ Following the successful trenching results, Jubilee plans to commence a
resource drilling program in Q2 CY2024.

§ This phase is expected to take 3-4 months, followed by 2 months for
analysis and planning of the subsequent phase.

§ In Q2 CY2024, the Company intends to commence excavating a deeper test pit
to access material below the current pit level. During this phase the
available ore will be sent to Sable for processing.

§ Subject to the results, the Company plans to start developing a larger pit
in the second half of the 2024 calendar year. The larger pit targets a rate of
25 000 tonnes per month of copper ore which initially will be transported to
Sable.

§ Concurrently, the Company plans to construct an upgrading copper process
module at Munkoyo, for which it has already secured long lead items. The
modular upgrade plant construction and implementation is expected to take 6
months.

Jubilee has identified several similar opportunities within Zambia where
surface open pit copper reefs have been abandoned and require Jubilee's proven
processing capability. Jubilee looks to secure more such opportunities in the
near term which offers tremendous potential for further growth in its copper
operations in addition to the waste rock project currently underway.

Waste Rock Project in Zambia

As announced during November 2023, Jubilee secured one of the largest copper
waste rock assets on surface in Zambia and has formed a strategic partnership
with IRH. The copper waste rock asset in Zambia, has been independently
surveyed confirming a minimum of 260 million tonnes of historical waste rock.
Initial third-party surface sampling and random bulk surface sampling by
Jubilee shows promising copper grades in these targeted areas of above 1.5%.
Jubilee is currently undertaking detailed surface waste drilling of the
material to confirm overall grades. The JTS team is working with IRH to
complete due diligence and is advancing towards finalising the project
implementation details with a targeted date for completion of 29 February
2024.

This initiative, named the "Waste Rock Project," involves using Jubilee's
modular copper units to produce approximately 24 000 tonnes of copper units
per year at a cost below US$4 000 per tonne.  Jubilee will design, implement,
and operate the Waste Rock Project. With a total projected investment of
around US$50 million, which will be funded by IRH in accordance with the terms
of the partnership, this venture highlights Jubilee's commitment to delivering
cost-effective and environmentally sustainable mining solutions.

8 February 2024

 

**ENDS**

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

 

PR & IR Adviser - Tavistock

Jos Simson/ Gareth Tredway

Tel: +44 (0) 207 920 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 of
metal from previously overlooked resources, such as unprocessed historical
waste rock, run-of-mine materials and tailings in South Africa and Zambia. 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 chrome, copper and platinum group metals
(PGMs). The modular processing facilities offer a platform for growth and the
rapid expansion of its operational footprint. Jubilee's success is derived
from operational excellence, a highly experienced management team and a
pioneering Technical Development Centre.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDUBAARSAUURUR