Jubilee Metals Group PLC
Registration number (4459850)
AIM
share code: JLP
Altx share code: JBL
ISIN: GB0031852162
("Jubilee" or "the Company" or "the Group")
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Announcement that contains inside information according to UK
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Project G Acquisition and
Power Update
Jubilee, a diversified metals
producer with operations in Zambia and South Africa, is
pleased to provide a further update on the roll-out of its Copper
Strategy in Zambia which is centred around achieving an initial
production capacity target of 25 000 tonnes of copper per
year.
The Company has successfully
concluded its due diligence of Project G, an open pit copper mining
operation in Zambia and has elected to acquire a majority interest
in Project G under revised terms increasing the Company's holding
to 65% from 51%, as previously announced on 21 August 2024
(Agreement). Project
G marks the second open-pit copper operation acquired in Zambia
following the implementation of Project Munkoyo.
In addition, the Company is pleased
to announce that it has increased the allocation of power under the
recently announced (23 September 2024) private power purchase
agreement (LHPC agreement)
to secure an additional 2MW of power in order to ensure that all of
the Zambian operations are fully supplied under the LHPC agreement.
The increased power allocation allows the Roan Concentrator
(Roan) to operate at full
capacity in respect of its newly commissioned front-end module and
its existing milling and floatation plant. The Company's Zambian
operations have now fully transitioned its power requirements onto
renewable energy sources.
Highlights
· Project G
Agreement implemented to secure an increased 65% interest in the
operations
· The Company will
settle the acquisition value of US$2.0 million in cash instead of
in shares, with a commitment to invest a further US$500 000 into
the upgrading of the Project G operations
· Project G targeted
to commence operations and delivery of pre-concentrated run-of-mine
(ROM) to the Sable Refinery
(Sable) by December
2024
· Under the
Agreement, Jubilee is appointed manager and operator of the
open-pit operations with immediate effect
· Project G will
ramp up over a 6 month period to reach 3 000 tonnes per month of
pre-concentrate material through a Jubilee on-site module, and
delivery of an additional 350 copper units per month (4 200 per
annum) to Sable for further refining
· Resource drilling
program currently underway, targeting a potential increase of
production to 20 000 to 25 000 tonnes of ROM ore per
month
· LHPC private power
agreement increased by a further 2MW power allocation effective
immediately
Leon Coetzer, CEO of Jubilee commented:
"I am pleased to announce this
transaction as our second open-pit mining operation in Zambia. As I
mentioned when we first announced these proposed acquisitions, the
strategic acquisition of two open-pit operations serves as an
example of our ability to leverage our process capability and early
mover advantage to secure significant near-surface copper resources
which are already in operation.
These assets' predictable, high
grades and our ability to owner manage the operations allowing us
to control the optimal blend of feed ore to achieve the 25 000
tonne per annum copper target we have set for ourselves.
Zambia holds numerous similar near
surface resource opportunities which we are actively
pursuing.
We are equally pleased to have
converted our entire power supply requirement to renewable energy
in the form of hydro and solar power in future which is vital for
the green energy transition to ensure that the copper we produce
has as low a carbon footprint as possible."
Zambian Copper
Strategy
The increased processing capacity of
25 000 tonnes of copper per annum will be achieved through the
upgraded Roan and the second copper tank house addition to
Sable.
The Sable upgrade is currently
underway and expected to be fully integrated into the existing
operations over the next 10 months. The Company's focus is now
shifting towards bringing secured copper resources into full
production to fully utilise this upgraded capacity.
Copper
Resources
Open Pit Mining
Operations
Project G is the second open-pit
mining operation acquired by Jubilee. The Company's due diligence
included full-scale processing trials at the Sable Refinery. Under
the transaction agreement Jubilee is appointed manager and operator
of the open-pit operations. Under the Agreement Jubilee will pay a
total of US$2 million dollars of which US$1 million payment is
deferred until after the transfer of the mining licences.
Additionally, Jubilee has committed to invest a minimum of US$500
000 into the expansion and development of the
operations.
The project plan for Project G
targets to expand the existing open-pit operations to achieve an
initial mining rate of 10 000 tonnes per month by February 2025.
Project G includes an on-site upgrading facility capable of
pre-concentrating the mined ROM material with an immediate capacity
to produce 3 000 tonnes of copper concentrate per month, containing
10% to 15% copper. The lower grade copper reef will initially be
stockpiled at source for future processing through the targeted
regional processing hub.
Project G and Project Munkoyo
open-pit mines are located within 55 kilometres of the Sable.
Project Munkoyo commenced operations in July 2024 and continues to
ramp up to an initial target of 15 000 tonnes per month of ROM of
which 5 000 tonnes per month are to be delivered directly to Sable
for refining. Project Munkoyo remains on track to reach its initial
target of 15 000 tonnes per month mined ROM ore by December
2024.
A resource drilling program is
currently underway and, depending on the confirmation of resource
continuity, will target an increase of production to 20-25 000
tonnes of ROM ore per month.
ENDS
7 October 2024
For further information visit
www.jubileemetalsgroup.com,
follow Jubilee on Twitter (@Jubilee_Metals) or contact
below:
Jubilee Metals Group PLC
Leon Coetzer (CEO)
Tel: +27 (0) 11 465
1913
Nominated Adviser - SPARK Advisory Partners
Limited
Andrew Emmott/James
Keeshan
Tel: +44 (0) 20 3368
3555
PR
& IR Adviser - Tavistock
Jos Simson/ Gareth
Tredway
Tel: +44 (0) 207 920
3150
Joint Broker - RBC Capital Markets
Farid Dadashev/Jamil Miah
Tel +44 (0) 20 7653 4000
Joint Broker - Zeus Capital
Harry Ansell/Katy
Mitchell
Tel: +44 (0) 20 7220 1670/+44 (0)
113 394 6618
JSE
Sponsor - Questco Corporate Advisory Proprietary
Limited
Alison McLaren
Tel: +27 (0)11 011 9207
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, an experienced management
team and a pioneering Technical Development Centre.
Jubilee's Zambia Strategy
Jubilee has adopted an integrated
copper strategy to achieve production in excess of 25 000 tonnes of
copper per annum. This strategy focuses on expanding in-country
processing capacity, securing and developing new copper resources,
and evaluating the potential of large-scale waste rock processing
to drive growth in Zambia's copper sector.
Jubilee's targeted copper resources
are classed into three groups namely:
·
Previously
Processed Material
Tailings and partially processed
discarded low-grade materials
·
Open-Pit Mining
Operations
Operationalise copper resources to
fully utilise installed processing and refining capacity to access
near surface copper reefs that are accessible through open-pit
mining
·
Previously Mined
Waste Rock
Process low grade stockpiled
material from historical mining operations