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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Announcement that contains inside information according to UK
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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,
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.