Jubilee Metals Group acquires strategic PGM tailings in South Africa

Jubilee Metals Group plc

Jubilee Metals Group plc (LON:JLP), a leader in metals processing with operations in Africa, has today announced 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. 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 Metals Group, 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.

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