Jubilee Platinum PLC Hernic Project Reaches Full Production (2209I)
15 June 2017 - 10:30PM
UK Regulatory
TIDMJLP
RNS Number : 2209I
Jubilee Platinum PLC
15 June 2017
("Registration number: 4459850")
AIM share code: JLP
AltX share code: JBL
ISIN: GB0031852162
Jubilee Platinum Plc
("Jubilee" or "the Company")
Hernic Project Reaches Full Production
Hernic project operating at full production rate.
Jubilee is pleased to announce that its Hernic platinum and
chrome processing operations ("Hernic") has achieved 100% of the
design throughput of 1 900 tonnes (t) per day of chrome and
platinum containing feed material equating to 55 000 t per
month.
PGM concentrate production continues to ramp up commensurate
with the increased production of approximately 420 ounces of PGM
delivered to the refinery.
Leon Coetzer, Chief Executive commented:
"I am very pleased to announce that Hernic is up to full
operational status. I now look forward to Jubilee receiving the
financial benefits that this project will undoubtedly deliver.
We are actively pursuing further opportunities in platinum and
base metal processing and will keep the market updated on progress
made in this regard."
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.
15 June 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
About the Hernic Project
Hernic Ferrochrome Proprietary Limited ("Hernic") is the world's
4th largest integrated ferrochrome producer with an estimated 3
million tonnes of platinum containing material at surface while
Hernic continues to add further material to the surface stock.
The Company was selected as the exclusive party to beneficiate
the chromite and PGMs contained in the Hernic Surface Material
("the Project") and address the project execution methodology as
well as the operational and financial performance targets. The
Project is the second of the Company's Two Projects.
The Hernic Surface Material has been independently fully drilled
and assayed for chrome and PGM content. This has resulted in an
independent resource statement of 1.7 million tonnes, of which
approximately 90% of the resource is classified in the measured
category under the internationally recognised SAMREC code. Hernic
also has access to secondary surface stocks, which it has
internally identified and could increase the surface stocks to in
excess of 3 million tonnes through further drilling programmes. The
Project is estimated to contain total PGMs in excess of 224 000
(3PGM + Au) oz.
The Project will be the largest PGM beneficiation plant of
surface chrome tailings in South Africa and is capable of producing
annual revenues of GBP 18.2 million (ZAR 400 million*) at an
average metal basket price of USD 906 per (3PGM + Au) per oz. The
financial and operational risks of the Project are significantly
mitigated since the material is already at surface and requires
neither the cost nor the risk associated with mining.
An extensive prefeasibility study has been concluded on the
Project, which included both pilot scale and full commercial scale
trials to confirm the design and operational parameters.
The Project is to be undertaken in four phases over an 11 month
period; namely
-- Phase one - Bankable Feasibility Study and Engineering
Design. - Completed.
-- Phase two - Construction of the chrome and platinum
processing plant ("Processing Plant"). - Completed.
-- Phase three - Commissioning and Ramp up of Processing Plant
to design capacity of 55 000 tonnes per month. - Completed.
-- Phase Four - Stable operation of the Processing Plant.
The Company has targeted a combined processing of platinum
containing surface material over the two projects in excess of 900
000 tonnes per annum.
The ZAR-based debt funding for both surface projects equates to
GBP 11.5 million (ZAR 255 million*) before financing costs. The
working capital required to bring the two surface projects into
operation and to achieve positive earnings is estimated at GBP 3.4
million (ZAR 75 million*).
*=Conversion as at the commencement of the Project
This information is provided by RNS
The company news service from the London Stock Exchange
END
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