REG - Jubilee Metals Group - Zambia Projects Update & Issue of equity

Jubilee MetalsAnnouncement

28/05/2025 07:05

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RNS Number : 3820K  Jubilee Metals Group PLC  28 May 2025

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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Zambia Projects Update

Issue of equity

Jubilee, a diversified metals producer with operations in South Africa and
Zambia, is pleased to provide an update on the implementation of its copper
projects in Zambia.

The Company has concluded successfully the extensive processing trials
announced previously at its Roan Concentrator (Roan). The production results
confirm Jubilee's leading technical capabilities to process successfully
high-grade shallow transitional copper reefs, previously deemed as waste or
too complex by many operators. Pursuant to the successful result of this
trial, the Company has entered into a long-term feedstock supply agreement at
Roan with production commencing this week.

This marks a critical step in advancing the Company's Zambian copper strategy
and, together with the progress in its mining projects, provides the
groundwork for a stable copper production profile moving forward.

Highlights

·    Jubilee completes successful trials at Roan concentrator with long
term supply agreement reached for high-grade copper (Cu) run-of-mine (ROM)
supply targeting a minimum grade of 1.4% Cu.

·    Results of the trials reaffirms Jubilee's technical processing
capability to treat successfully shallow transitional 'waste' copper ores,
achieving yields of copper of approximately 65%.

·    The successful trial also provides further confidence in Jubilee's
Large Waste Project (estimated 260 million tonnes at surface) which contains
vast quantities of similar transitional 'waste' copper ore.

·    The trials confirm Roan's capability to maintain a ROM feedstock run
rate of between 35 000 to 40 000 tonnes per month (tpm) on the transitional
reefs equating to 240 (at 35 000tpm throughput and min Cu grade) to 360tpm of
Cu units (at 40 000tpm and targeted Cu grade).

·    At the Company's Munkoyo mining operations a mine rate of
approximately 80 000tpm is ongoing, of which 3 500tpm of high-grade ROM in
excess of 2.5% Cu (equivalent to 88TCu per month) is delivered to the
Company's nearby Sable Refinery.

o Targeting a step up to 4 500tpm (112TCu) for June 2025 while continuing to
ramp up the high-grade ROM portion to reach 8 500 tpm (212TCu) by October
2025.

o Remaining lower grade material (0.7% Cu) is stockpiled at surface for future
processing at site. The extended large pilot trials are currently be completed
for the implementation of two 30 000tpm modular processing units.

o The resource drilling program has commenced and is expected to continue over
the coming six weeks, to upgrade the resource confidence and complete the
optimal open-pit mine layout

·    Combined Roan and Munkoyo high grade ROM only, targets to produce
288tpm of Cu units for June 2025 stepping up to a production rate of 400tpm of
Cu units from August 2025 with the potential of reaching 500 to 550tpm of Cu
units from October 2025.

·    Project G mine is undergoing currently work to upgrade its resource
and to complete the design of an open-pit expansion.

·    Jubilee continued to expand its near surface mining portfolio with
the execution of two further agreements offering Jubilee the exclusive right
to perform its due diligence on these properties with the option to purchase
the rights pending the outcome of the due diligence.

·    The previously announced trade of 10 million tonnes of the Large
Waste project (260 million tonnes at surface) to the value of approximately
US$6.75 million has commenced with the deposit payments received.

·    In addition, the Company has identified certain non-core assets in
Zambia and has concluded the sale of one of its waste assets outside of its
large Cu tailings for a combined consideration of US$12.3 million, payable in
tranches over the next 20 months.

Statement from Leon Coetzer, Chief Executive Officer:

"Our work in the recent months has involved continued progress in dedicating
our existing processing capacity at Roan to the higher-grade mined material
(ROM and stockpiles) predominantly in the transitional zones, deemed as waste
or too complex by many operators.

This material contains significantly higher copper grades than the tailings
held within Jubilee's portfolio and is of particular interest against the
appreciating copper prices. Our copper operational focus that prioritises the
run of mine, historically mined, and stockpiled materials, closely resembles
the business evolution of our South Africa chrome and PGM operations, where
today our world class processing capacity is dedicated to run of mine and
previously mined material, with tailings instead traded to other partners.

The challenges in Zambia that we faced at the turn of the year largely
impacted Q3 FY25's production due to Roan placed under care and maintenance
for an extended period and brought back into operation largely to conclude the
high-grade ROM trials 375 Cu tonnes for the period). Whilst difficult, this
focus helped us emerge with a clearer, more focused strategy backed by secure
power supply and long term material supply agreements.

The trials over the past 8 weeks have affirmed Roan's unique capabilities to
process transitional copper reefs which are available in vast quantities both
at surface and in near surface mining operations. We are excited to have
commenced production under the new supply agreements and will provide more
clear guidance as soon as we have sufficient operational data under the supply
agreement in the coming weeks.

Looking forward we aim to monetise those assets deemed as non-core, by
divesting where we see fit and appropriate, to help deliver not only cash for
growth, but the ability to further sharpen our focus that this rationalisation
will allow.

We continue to pursue aggressively further near surface mining opportunities
on the back of the success achieved at the Munkoyo operations and the
potential offered by Project G, with execution of two further option
agreements. I look forward to soon providing updates from the results of the
resource drilling program at Munkoyo and Project G.

Additionally, we are pleased to announce we have concluded the sale of one of
our non-core waste assets for a combined consideration of US$12.3 million as
part of a review of the Company's portfolio in Zambia.

We remain committed to scaling our operations in a non-dilutive,
capital-efficient and sustainable manner as we advance toward our medium-term
production targets."

Roan Concentrator

Subsequent to the RNS dated 30 April 2025, the Company completed eight weeks
of test work at the Roan concentrator, running several operational trials on
previously secured copper run-of-mine (ROM) materials. These trials whilst
longer than anticipated initially, have identified successfully the optimal
operational processing method for ROM copper feedstock across various grades
of high-grade copper ore, paving the way for a long-term supply agreement.

The trials have confirmed Roan's ability to adjust to an operational feedstock
processing recipe targeting only ROM material, which is expected to replace
the historical tailings over the medium term. The ROM material is transition
material, sourced from a nearby mining operation that targets copper sulphide
while stockpiling the more complex shallow copper oxide transition material
for further refining at Sable.

The work has confirmed Roan's ability to operate comfortably at a run rate of
35 000 to 40 000tpm. The ROM material averaged a grade of approximately 1.5%
Cu while maintaining copper recoveries of approximately 63%, exceeding
expectations with the potential to improve recoveries going forward.

Roan has set an immediate production target of 35 000 to 40 000tpm total
facility throughput targeting production of 240 to 360 tpm of Cu units
(depending on copper grades), with production commencing this week.

Munkoyo mining operations

The Munkoyo mining operations are operating currently a single pit, where
drilling to define a resource has commenced. Nine smaller pits have also
exposed a shallow copper reef. Jubilee is seeking to upgrade the resource
definition to confirm the mineralogical composition of the large magnetic
anomalies indicated by the aero magnetic study of the area.

Munkoyo is expected to maintain its current mining rate of approximately
80 000tpm of which 4 500t (increasing to 6 500t by end August 2025) of
high-grade ROM is transported directly to Sable for refining. The high-grade
ROM targets a grade in excess of 2.5% Cu, while the remaining low-grade ROM is
stockpiled at site at an expected average grade of 0.7% Cu.

An on-site processing plant is being planned, with funding discussions
ongoing, for the low-grade ROM that incorporates a copper leaching, solid
liquid separation, and copper precipitation circuit. Implementation of two 60
tonnes per hour (tph) processing units (30 000 tpm per unit) are targeted
with a combined production capability of 350tpm of Cu units. Implementation of
the second unit is scheduled to follow approximately six months after the
trials on the first unit.

Extended pilot trials are scheduled over the coming three months to include
the copper precipitation processing step to confirm the optimal composition of
the copper precipitant for direct refining at Sable. The implementation of the
first copper processing unit at Munkoyo is targeted for commissioning by end
of Q1 CY2026.

The Company is in advanced discussions with a potential mining partner to form
a collaborative agreement to combine their exploration and mining skills with
Jubilee's processing expertise. The combination of such expertise and skills
set would allow Jubilee to accelerate the implementation of its near surface
mining strategy to outpace potential competitors. Munkoyo offers a great
potential to initiate such a potential partnership.

Project G mining operations

Project G is scheduled to commence drilling of the resource during June 2025.
The Company aims to follow a similar implementation strategy to Munkoyo, with
a portion of the mined reef being upgraded on site using physical separation
techniques, while the remainder of ore is processed further using chemical
extraction techniques.

The Project G mining operations are adjacent to an existing mining operation,
as well as a new developing mine, which offers the potential to collaborate on
the implementation of a central processing unit. The area has already
established infrastructure such as power and roads allowing for a faster
implementation process.

The final targeted scale of the mining project and potentially shared
processing facility will be finalised on the back of a completed drilling
program and current negotiations to collaborate on the processing facility.

Sable Refinery expansion

The targeted increase in copper production driven initially by the copper
production profile from Roan and Munkoyo, necessitates the expansion of the
Sable Refinery to ensure availability of refining capacity for Project G and
other targeted near surface mining opportunities. The introduction of the
second tank-house at Sable would increase the capacity to approximately
14 000tpa which would accommodate the production from the modular units for
both the nearby Munkoyo operation and Project G.

The refinery expansion was delayed over the past quarter to prioritise
investment into these mining operations and the completion of the processing
trials at Roan. Completion of the Sable expansion is scheduled for Q1 CY2026.

Processing capacity leading up to expansion, including Roan Cu units (240 to
360tpm), is expected at 500 to 550tpm.

Large Waste Project

In the RNS dated 3 April 2025, the Company has executed a trade of 10Mt of the
near 260Mt of resources at surface. The movement of the material has
commenced, offering Jubilee the potential to improve the accuracy of its grade
profiling. The trade of the material was valued at US$6.75 million which is to
be paid in fortnightly tranches as the material is uplifted, with US$600 000
already received.

Jubilee has entered into negotiations with various parties to potentially
invest into the construction of the targeted modular processing units for the
Large Waste Project. The targeted companies offer more attractive investment
terms under a partnership agreement approach than offered previously by the
Abu Dhabi based invest firm, which is preferred by Jubilee and is also
non-dilutive for shareholders. Discussions over funding for processing plants
on site at the Company's mining projects, also extend to the Large Waste
Project.

Monetisation of non-core assets

The Company has made progress on the development of its mineral reef material
projects - Mining Projects and Large Waste project, by monetising certain
assets within its surface tailings portfolio that do not form part of
Jubilee's medium term operational focus.

In this regard, Jubilee was successful in completing a transaction on one of
its waste assets outside of its large copper tailings for a combined
consideration of US$12.3 million, payable in tranches over the next 20 months,
commencing with a US$1.3 million payment due in the first week of June 2025.

Issue of equity

Jubilee also announces that Mr Colin Bird, former chairperson of Jubilee, has
been issued 5 956 950 new Jubilee ordinary shares (Shares) to settle an
amount of £200 000 in lieu of his services to Jubilee and in conclusion of
his performance incentive. The shares were issued at the 30-day volume
weighted average share price of Jubilee on 23 May 2025. The Shares are subject
to a twelve-month lock in period from the date of admission.

Admission and total voting rights

The Shares are expected to be admitted to trading on AIM and listed on the
Altx of the JSE Limited on or around 3 June 2025 (Admission) and will rank
pari passu with the ordinary shares of the Company in issue.

The Company's total issued capital, after the issue of the Shares, will be 3
071 597 201 ordinary shares. As the Company does not hold any shares in
treasury, this figure may be used by shareholders in the Company as the
denominator for the calculations by which they will determine if they are
required to notify their interest in, or a change to their interest in, the
share capital of the Company following Admission.

United Kingdom

28 May 2025

 

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

Jubilee Metals Group PLC

Leon Coetzer (CEO)/Jonathan Morley-Kirk (FD)

Tel: +27 (0) 11 465 1913 / Tel: +44 (0) 7797 775546

 

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 63 482 3802

 

 

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