Projects Update

Jubilee Metals Group PLC

28 March 2024

 

Jubilee Metals Group PLC

Registration number: 4459850

Altx share code: JBL

AIM share code: JLP

ISIN: GB0031852162

Jubilee Metals Group PLC (Jubilee or the Company)

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.

UPDATE ON COPPER PROJECTS AND EXPANSION OF CHROME OPERATIONS

Jubilee, a leading diversified metals processor in Africa with significant operations in South Africa and Zambia, announces an update on its strategic investment with Abu Dhabi's International Resources Holding RSC  Limited ("IRH") for the development of the "Waste Rock Project" and progress with the upgrade of its Roan copper facility in Zambia together with the continued expansion of its chrome operations.

Highlights

Copper in Zambia

·    IRH exercises right to proceed with the formation of the Joint Venture (JV) vehicle for the implementation of the Waste Rock Project.

·    The Waste Rock Project aims to implement an initial 4 Copper processing modular plants holding a combined feed capacity of more than 2.4 million tonnes per annum targeting the recovery of more than 20,000 tonnes per annum of copper in concentrates of which 30% will be attributable to Jubilee.

·    The Roan upgrade project is progressing to schedule with commissioning activities and ramp-up expected to commence during April 2024.

·    The resource definition of Project Munkoyo has progressed with the aeromagnetic survey having identified a large magnetic anomaly associated with the known copper mineralisation confirmed by geochemical assays from recent trenching samples. Processing trials have confirmed the recoverability of the copper. Jubilee targets that initial copper ore from Project Munkoyo will be delivered to the Sable refinery from September 2024.

Chrome & PGM's in South Africa    

·    Jubilee has extended its chrome tolling agreements through to February 2027, securing a total processing feed capacity of 2.4 million tonnes per annum in relation to fixed margin feed.

·    The construction of Thutse's second chrome processing module, with a capacity to produce 300,000 tonnes of chrome concentrates per annum, is on track to commence in August 2024.

Statement from Leon Coetzer, Jubilee CEO:

"The expansion of our copper operations are well underway as we look to significantly increase our copper production in the coming months on the back of the expansion of both Roan and Sable.

I am particularly excited by the progress of our strategic relationship with IRH as we look to jointly develop the large Waste Rock Project which holds the potential to again demonstrate Jubilee's unique capability of turning waste to value.

We will continue to update the market and our stakeholders on the development of Project Munkoyo and the expansion of this portfolio of small-scale miners in Zambia as we leverage the successes achieved at our chrome operations.

Our chrome business continues to grow with Jubilee's renowned processing and operational capabilities as the drivers of our success.  The continued renewal of our toll processing agreements speaks to the acknowledgement by industry of these capabilities."

Copper in Zambia

Waste Rock Project

The copper Waste Rock Project scope targets the processing of in excess of 260 million tonnes of copper containing surface material.  The project targets to initially implement four modular processing plants holding a combined processing capacity of 2.4 million tonnes per annum capable of producing more than 20,000 tonnes of copper in concentrates per annum, commencing in Q2 CY24 of which 30% will be attributable to Jubilee.

The copper modular processing units are similar in design to the Roan plant upgrade which seeks to upgrade the surface material to a copper concentrate which can be further refined to metal. The initial capital investment for the project is estimated at US$50 million.

Jubilee and IRH entered into a binding Framework and JV agreement in December 2023 under which terms IRH will provide the capital for the implementation of the Waste Rock Project with Jubilee appointed to implement and operate the project, subject to due diligence and finalisation of definitive agreements. The JV attributes 70% to IRH and 30% to Jubilee.

Under the binding Framework and Joint Venture agreement, IRH has elected to exercise its right to form the dedicated JV through which the project will be implemented.  This follows the due diligence of the project undertaken by Jubilee which has included both an extensive metallurgical test-program conducted at Jubilee's development centre, as well as the review of both surface sampling and historical drill results of the waste rock material and confirming the quantity of material to be in excess of 260 million tonnes of material.  The grade of copper in the resource varies depending on the origin of waste rock material, with Jubilee's internally developed modular copper units confirming the capability to successfully upgrade the material to produce copper concentrates more than 7% Cu for further refining.

Project Roan Upgrade  

The delivery and assembly of the new front-end modular unit at Roan is proceeding as per the schedule to commence commissioning and ramp-up during April 2024. The addition of the modular unit enhances the Roan Operation's capability to simultaneously process multiple feed sources and expands the overall capacity of Roan to produce up to 13 000 tonnes of copper in concentrates per annum.

Project Munkoyo

Project Munkoyo is located near Sable refinery, in Kapiri Mposhi district, approximately 65km east of Kabwe, with a prospect lease area of 450 hectares. Project Munkoyo forms part of Jubilee's commitment in working with small scale mining opportunities to convert the operations into sustainable long term copper operations by integrating Jubilee's processing and operational expertise. Jubilee holds a proven track record of successfully converting such opportunities into large sustainable operations as demonstrated by the success achieved in Jubilee's chrome operations.

The aeromagnetic survey conducted has revealed a large magnetic anomaly linked to the previously identified copper mineralisation, further supported by geochemical assays from trenching samples. These findings validate the presence and extension of the existing open pit, currently spanning 400 metres, to an estimated length of 1 kilometre within the lease area. The progress to-date confirms the potential to establish a mining operation of 25 000 tonnes per month of copper reef for processing at Sable, offering formal employment and investment opportunities to the area. Jubilee targets that initial copper ore from Project Munkoyo will be delivered to the Sable refinery from September 2024.

Jubilee views Project Munkoyo as one of many such identified opportunities in Zambia and targets to grow its portfolio aggressively further in partnership with the small-scale miners.

Chrome & PGM in South Africa

Jubilee's chrome and PGM business consists of two key business drivers.  This includes the processing of third-party chrome ore at Jubilee's Windsor and Inyoni operations under agreed fixed margin return per tonne of chrome concentrate produced, while Jubilee recovers the remaining PGMs and retains the majority of this benefit. In addition, Jubilee has significantly expanded its chrome operational capacity to process chrome ROM materials in partnership with the holders of chrome mining rights under an agreed earnings share model which offers Jubilee greater exposure to the chrome market. Combined, Jubilee holds a total chrome processing capacity capable of producing 1.45 million tonnes of chrome concentrates per annum.

Jubilee is pleased to announce it has agreed an extension to February 2027 of the fixed margin contracts for its Windsor chrome operations.  Which combined with the Inyoni operations has committed 2.4 million tonnes per annum of processing feed capacity.

Jubilee has committed to expanding its chrome operations in collaboration with the mining right holders at Thutse, adding a second processing unit with a processing capacity of 300,000 tonnes of chrome concentrates per year. The commissioning of this unit is anticipated by August 2024, financed through the cash flows from existing chrome operations.

28 March 2024

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] 

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

 

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