TIDMJLP
RNS Number : 5822E
Jubilee Platinum PLC
09 May 2017
("Registration number: 4459850")
AIM share code: JLP
AltX share code: JBL
ISIN: GB0031852162
Jubilee Platinum Plc
("Jubilee" or "the Company")
Market Update
Highlights
HERNIC
-- First commercial platinum concentrate production in March
2017 with production ramp-up continuing
-- Platinum concentrate achieving 100g/t 4E PGMs (platinum,
palladium, rhodium and gold)- 20% above contractual grade
-- Targeting steady state production of 1100 tonnes of platinum concentrate per month
-- Full design throughput expected to be reached during June
2017 on completion of the hydraulic-mining process to reclaim the
feed material from the surface platinum stocks
DILOKONG CHROME MINE
-- Earnings attributable to Jubilee for Q1 2017 from chromite
concentrate production up 10.87% to GBP 0.408 million (ZAR 6.66
million) compared with Q4 2016
-- Chromite concentrate production reached 14 973 tonnes and
production rates have been restored to previous levels following
successful expansion of the new tailings facility
PLATCRO
-- Jubilee executes the first payment of GBP 1.16 million (ZAR
22.8 million) as an upfront payment of all related future royalties
to the PGMs. The payment was funded from the proceeds of a placing
recently concluded by Jubilee as announced on 17 March 2017. The
existing surface material at PlatCro is estimated at 1.25 million t
with an estimated grade of 2.7 g/t 4E PGMs. The payment secures
Jubilee the sole right to future earnings from the platinum-bearing
material.
LEIGH CREEK COPPER MINE PROJECT
-- Jubilee is finalising its due diligence ("DD") on the Leigh
Creek Copper Mine ("LCCM") project
-- Completion of the DD is expected by the end of May 2017.
TJATE DEVELOPING MINE PROJECT
-- Tjate notarially excutes the granting of its Mining Right
-- Commenced review of the project's mine works program and
associated technical design criteria
Leon Coetzer, Chief Executive commented:
"I am very pleased with the progress being made in all aspects
of the company's performance including project build, operations
and new business development.
I am particularly gratified with the way our team tackled the
Hernic project, which was delivered on time and budget. The scale
of the Hernic Project represents a real challenge as a small
developing company and the outcome demonstrates our readiness to
embark on other similar size or larger projects. The commissioning
and ramp-up of the Hernic chromite and platinum recovery plant has
shown great progress reaching 74% of designed throughput. We look
forward to ramping up production to full capacity over the coming
weeks as we bring on-line the final processing unit which is the
hydraulic mining of the feed material. Already the platinum and
chrome processing plants have met the commercial specifications for
both the platinum and chrome concentrates produced.
The DCM project is again producing back at its previous levels
following the commissioning of the expanded tailings storage
facility for the enriched platinum material. Our new PlatCro PGM
project has advanced with the first upfront payment being made for
the PGM' related royalties. The payment secures Jubilee the sole
right to future earnings from the platinum-bearing material. The
final payment will fall due once regulatory approval is received to
commence processing of the platinum-bearing material.
Our due diligence of the Australian-based surface copper project
is concluding soon with final review of the schedule bulk trials
underway. The project offers the potential of a rapid project
start-up to commence producing copper from at and near surface
resources, leveraging off Jubilee's processing expertise.
The significant milestone reached with the Tjate platinum
project continues to demonstrate our aggressive pursuit to
continuously advance the Company's mission of a Mines to Metals
Company while growing shareholder value. The project scope and
linked mine work program for the Tjate project is being updated
which will define the development strategy for the project.
Our new business development is advancing at an encouraging pace
and we are confident that we can make further acquisitions to
complement our existing projects and extend our brand and
capabilities into other global surface projects."
Hernic Ferrochrome Platinum and Chrome Tailings Operation
("HERNIC")
The Hernic project continues successfully to ramp-up its
production. The project is expected to reach full design capacity
of 45 000 tonnes per month of feed material by June 2017. The
project produced its first commercial platinum concentrate in March
2017. The project targets a steady state production of 1100 tons of
platinum concentrate per month containing 100 g/t 4E PGMs, which is
being achieved and exceeds the contracted grade by 20%.
The remaining project item still to be commissioned is the
hydraulic mining of the tailings feed material to the chromite and
PGM recovery plant ("Plant"). The Hydraulic-mining step is expected
to be commissioned over the next 10 days. This mining techniques
entails reclaiming the Plant feed-material from the existing
tailings dams using high pressure water guns instead of the current
mechanical (excavator) reclamation operation. Jubilee expects to
conclude the ramp-up of the production to the Plant on the back of
the commissioning of the hydraulic-mining step.
Dilokong Chrome Mine Platinum and Chrome Tailings Operation
("DCM")
DCM has returned to its targeted operational output following
the successful commissioning of the expanded upgraded chrome
tailings storage facility for the enriched PGM material. Although
the project revenue has been impacted by a declining chromite
price, Jubilee's attributable earnings from chromite recovery has
been buffered by the toll processing agreement of the material.
Below is a table presenting the operational performance of the
DCM project for Q1 2017.
Chromite Project Project Project Project Jubilee Jubilee Jubilee Jubilee
concentrate revenue revenue earnings earnings attributable attributable working working
tonnes (GBP'000) (ZAR'000) (GBP'000) (ZAR'000) operational operational capital capital
produced * earnings earnings loan loan
(GBP'000) (ZAR'000) repayments repayments
(GBP'000) (ZAR'000)
-------------- ------------ ---------- ---------- ---------- ---------- ------------- ------------- ----------- -----------
Total
Q4 2016 19 108 2,754 47,662 1,837 31,792 368 6,367 97 1,667
-------------- ------------ ---------- ---------- ---------- ---------- ------------- ------------- ----------- -----------
Total
Q1 2017 14 973 3,372 55,223 2,407 39,400 408 6,664 - -
-------------- ------------ ---------- ---------- ---------- ---------- ------------- ------------- ----------- -----------
Total
since
project
commencement
in April
2016 77,828 9,214 159,382 6,535 113,097 2,120 39,295 375 6 667
-------------- ------------ ---------- ---------- ---------- ---------- ------------- ------------- ----------- -----------
*= Converted at the monthly average GBP: ZAR conversion rate
PlatCro Platinum and Chrome Tailings Project
As announced on 30 March 2017, the Company executed a Framework
and Processing of Tailings Agreement ("the Agreement") with PlatCro
in March 2017 for the acquisition of new 4E PGM- bearing surface
material existing at PlatCro as well as all future surface material
at PlatCro.
Jubilee executed the first payment of GBP 1.16 million (ZAR 20
million) as part of the PlatCro project. The PlatCro project
includes the upfront acquisition of all PGMs contained in surface
material as well as future PGMs from further processing and mining
operations. The existing surface material is estimated at 1.25
million tonnes with an estimated grade of 2.7 g/t 4E PGMs. The
payment secured Jubilee the sole right to earnings from all Platcro
project's future platinum bearing material.
The surface material is located within trucking distance of the
Hernic operation, thereby offering the opportunity to process the
additional material at the Company's existing Hernic plant for PGM
recovery. Jubilee also holds the option to acquire property located
adjacent to the surface material for the construction of a
dedicated platinum processing plant, if deemed appropriate, and at
Jubilee's election.
The final payment for the existing surface PGMs is subject to
the completion of the surface drill program and receiving
regulatory approval to commence with the processing of the
PGMs.
Resilience Mining Australia Copper Tailings Project ("RMA")
As announced on 30 March 2017, Jubilee executed a binding and
exclusive Term Sheet to enter into a transaction ("the Proposed
Transaction") with RMA to explore and develop RMA's LCCM and other
copper Mining Tenements, collectively owned or held by LCCM
Proprietary Limited. The Proposed Transaction is subject to
conditions precedent including satisfactory due diligence and/or to
entering into the transactional agreement.
Jubilee has requested an extension of the DD period to the end
of May 2017 to conclude the DD of the copper project. The DD
includes completion of RMA's proposals for the design of a bulk
sample trial on existing fresh surface copper-containing material
to confirm the technical performance criteria of the selected
process. Subject to the successful conclusion of the DD, Jubilee
expects the bulk sample trial to commence in July 2017.
Tjate developing mine project
As announced on 30 March 2017, Tjate Platinum Corporation
notarially executed a mining right ("Mining Right") granted by the
Department of Mineral Resources in respect of the Project
comprising the Farms Dsjate 249 KT, Fernkloof 539 KS and Quartzhill
542 KS, situated in the Magisterial District of Sekhukhune in the
Limpopo Province of South Africa.
Tjate is reviewing the mine works program and associated
technical design criteria in order to conclude the updated design
criteria as soon as possible and initiate applications for utility
licences as soon as possible.
The current project design includes the establishment of a mine
targeting 132 million tonnes of ore containing 22.3 million oz 4E
PGMs (indicated and inferred) and associated platinum concentrating
facility targeting 310 000 oz 4E PGMs per annum. The design
resource represents one third of Tjate's targetable exploration
potential of 70 million oz 7E PGMs* before geological losses.
7E PGM = 4E PGM plus iridium, ruthenium and osmium
Technical Sign-Off
Andrew Sarosi, Director of Jubilee, who holds a B.Sc. Metallurgy
and M.Sc. Engineering, University of Witwatersrand and is a member
of the Institute of Materials, Minerals and Mining, is a "qualified
person" as defined under the AIM Rules for Companies and a
competent person under the reporting standards. The technical parts
of this announcement have been prepared under Andrew's supervision
and he has approved the release of this announcement.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
9 May 2017
Contacts
Jubilee Platinum plc
Colin Bird/Leon Coetzer
Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913
Andrew Sarosi
Tel +44 (0)1752 221937
JSE Sponsor
Sasfin Capital, a division of Sasfin Bank Limited
Sharon Owens
Tel +27 (0)11 809 7500
Nominated Adviser
SPARK Advisory Partners Limited
Sean Wyndham-Quin/Mark Brady
Tel: +44 (0) 203 368 3555
Broker
Beaufort Securities Limited
Jon Belliss
Tel: +44 (0) 20 7382 8300
This information is provided by RNS
The company news service from the London Stock Exchange
END
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