TIDMJLP
RNS Number : 6379A
Jubilee Metals Group PLC
03 June 2021
Registration number (4459850)
Altx share code: JBL
AIM share code: JLP
ISIN: GB0031852162
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED
UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014
WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL)
ACT 2018, AS AMENDED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A
REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO
BE IN THE PUBLIC DOMAIN.
Jubilee Metals Group PLC
("Jubilee" or "the Company" or "the Group")
Acquisition of PGM material in the Eastern Limb, South
Africa
and
Chrome and PGM Operations Update
Jubilee, a leader in metals processing with operations in Africa
(AIM: JLP/Altx: JBL), is pleased to announce acquisitions of
strategic PGM tailings and an update at its South African chrome
and PGM operations.
The Company is pleased to announce it has entered into a further
long-term, 10+ years of mine life, PGM feed supply agreement with a
chrome mining customer, thereby expanding its PGM Operations to the
Eastern Limb of the PGM-rich Bushveld Complex (the "PGM Supply
Agreements"). In addition, Jubilee has acquired outright 255 000
tonnes of PGM containing chrome tailings further increasing
Jubilee's existing surface PGM tailings.
Jubilee is also pleased to announce an update on progress at its
South African chrome and PGM Operations where, in line with the
Company's chrome strategy, final stages of the commissioning of the
chrome beneficiation plant have been entered with completion
anticipated on time, by the end of Q2 2021, a further testimony to
Jubilee's track record of delivering projects on time and within
budget. The Company also hereby provides an update on the expansion
of the Inyoni PGM Operations.
Highlights:
Processing Agreements
-- Jubilee secures new long term PGM Supply Agreements projected
to deliver an additional 16 500 tonnes per month of PGM rich feed,
equivalent to the production of an additional 14 500 PGM ounces per
annum
-- PGM Supply Agreement signals Jubilee's PGM expansion into the
Eastern Limb of the Bushveld Complex whereby further growth
opportunities in the area can be targeted
-- Feed material is mainly based on the LG6 chrome reef which is
particularly high in Rhodium content
-- Acquired outright a further 255 000 tonnes of PGM containing
chrome tailings (equivalent to approximate production of 12 300 PGM
ounces) produced from the processing of LG6 chrome reefs further
increasing Jubilee's existing surface PGM tailings
Chrome and PGM Operational Update
-- New 80 000 tonnes per month chrome beneficiation facility,
near the Inyoni PGM Operations, enters final stages of
commissioning to reach full production
-- The new facility consists of four integrated chrome
processing units including Jubilee's Fine Chrome Recovery circuit
to maximise chrome efficiencies
-- The new chrome beneficiation facility follows the recently
completed Windsor 8 chrome plant and which combined expands
Jubilee's chrome feed capacity to 250 000 tonnes per month of both
chrome ore and tailings
-- Construction of the expanded Inyoni PGM Operations are well
underway targeting to increase the processing capacity by 45 % to
75 000 tonnes per month with commissioning targeted to commence by
the end of July 2021
PGM - 6 Element Platinum Group Metals including platinum,
palladium, rhodium, ruthenium, osmium and gold
Leon Coetzer, CEO of Jubilee, commented: "To date, Jubilee's
current PGM operational footprint has been largely limited to the
Western Limb of the mineral rich Bushveld complex, a single area of
the two main PGM areas in South Africa This new long term PGM
Supply Agreement announced today are of significant strategic value
to Jubilee and expand our operations onto the Eastern Limb which
provides the platform to source further growth opportunities.
"The new supply agreement also demonstrates our ability to win
and form partnerships with key chrome mining clients, added to
which we are excited to replicate the success of our Inyoni
operation in the Eastern Limb region.
"We have already demonstrated that the improved efficiencies
across our chrome and PGM operations resulted in record production
and sustained earnings growth at the South African operations and
we expect this to continue at pace. With a total processing
capacity of 250 000 tonnes per month of chrome ore and tailings,
this will play a key role in providing a continued sustained chrome
and PGM feed."
Further Details of the PGM Supply Agreements
To date, Jubilee's current PGM operational footprint has been
largely limited to the Western Limb, a single area of the two main
PGM areas in South Africa. The Eastern Limb has been a key focus of
Jubilee to expand its PGM reach and operational capacity. The PGM
Supply Agreements entered into give access to this area offering a
platform to pursue further growth opportunities.
The PGM Supply Agreements are all based on the LG6 chrome reef
known for its high Rhodium content accounting for approximately 12
% of a produced PGM ounce compared with as low as 7 % of other
chrome reefs.
The PGM Supply Agreement has secured the rights to long term PGM
feed supply of an estimated 16 500 tonnes per month with the
potential of producing up to 14 500 PGM ounces per annum. The plan
is to initially process the increased PGM feed at Jubilee's
expanded Inyoni PGM Operations targeted for July 2021 however
consideration is being given to implementing a dedicated processing
facility in the Eastern Limb. The PGM Supply Agreement offers a
minority earnings participation to the Chrome Mine partner allowing
them exposure to the PGM values which also enhances their earnings
potential. They also demonstrate Jubilee's ability to continue to
grow its business by re-investing its earnings into high growth
projects and by forming true partnerships with its chrome mining
customers.
In addition to the PGM Supply Agreement, Jubilee has also
acquired outright a further 255 000 tonnes of PGM containing chrome
tailings (equivalent to approximate production of 12 300 PGM
ounces) produced from the processing of LG6 chrome reefs which
further increases Jubilee's existing surface PGM tailings.
South Africa Operations Update - Chrome and PGM
As previously announced, in November 2020 Jubilee commenced the
construction of an additional 80 000 tonnes per month of chrome ore
processing facility which on completion will increase Jubilee's
overall processing capacity to 250 000 tonnes of chrome ore and
tailings per month.
The facility consists of four integrated chrome recovery
circuits to maximise chrome efficiencies which includes Jubilee's
Fine Chrome operation. The final stage of the plant commissioning
to reach full design capacity has commenced which includes the full
integration into the feed system of the existing Inyoni PGM
Operations. The scheduled down time of the Inyoni PGM Operations to
facilitate this integration and commissioning is carefully planned
and the Company remains on target to reach its targeted record
production of more than 50 000 PGM ounces for the year.
In addition, the construction of the expanded Inyoni PGM
Operations is well underway targeting to increase its processing
capacity by 45 % to 75 000 tonnes per month. The Company targets to
commence commissioning of the expanded operation at Inyoni by the
end of July 2021.
United Kingdom
3 June 2021
**ENDS**
For further information visit www.jubileemetalsgroup.com or contact:
Jubilee Metals Group PLC
Colin Bird/Leon Coetzer
Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913
Nominated Adviser - SPARK Advisory Partners Limited
Andrew Emmott/James Keeshan
Tel: +44 (0) 20 3368 3555
Broker - Shard Capital Partners LLP
Damon Heath/Erik Woolgar
Tel +44 (0) 20 7186 9900
Joint Broker - WHIreland
Harry Ansell/Katy Mitchell
Tel: +44 (0) 20 7220 1670/+44 (0) 113 394 6618
JSE Sponsor - Sasfin Capital (a member of the Sasfin group)
Sharon Owens
Tel +27 (0) 11 809 7500
PR & IR Adviser - St Brides Partners Limited
Catherine Leftley/Charlotte Hollinshead
Tel +44 (0) 20 7236 1177
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