Zambia Copper Expansion Update

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, follow Jubilee on Twitter (@Jubilee_Metals) or contact:

Jubilee Metals Group PLC 

Leon Coetzer (CEO) /Neal Reynolds (CFO)

Tel: [phone] 

Nominated Adviser - SPARK Advisory Partners Limited 

Andrew Emmott/James Keeshan 

Tel: [phone] 

PR & IR Adviser - Tavistock 

Jos Simson/ Gareth Tredway

Tel: [phone] 

Joint Broker - Berenberg 

Matthew Armitt/Jennifer Lee/Detlir Elezi 

Tel: [phone] 

Joint Broker - WHIreland 

Harry Ansell/Katy Mitchell  

Tel: [phone] 

JSE Sponsor - Questco Corporate Advisory Proprietary Limited 

Alison McLaren

Tel: [phone]

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.

 

END