Wrap Text
Copper Projects Update
Jubilee Metals Group PLC
Registration number (4459850)
AIM share code: JLP
Altx share code: JBL
ISIN: GB0031852162
("Jubilee" or "the Company" or "the Group")
Dissemination of a Regulatory Announcement that contains inside information according to UK Market
Abuse Regulations. Not for release, publication or distribution in whole or in part in, into or from any
jurisdiction where to do so would constitute a violation of the relevant laws or regulations of such
jurisdiction.
Copper Projects Update
Jubilee, a diversified metals producer with operations in Zambia and South Africa, is pleased to provide
an update on the implementation of its Copper Strategy in Zambia.
The Zambian Copper strategy is centred around an initial processing capacity target of 25 000 tonnes of
copper per year, supported by two key operational sites: the integrated Sable Refinery (Sable) and the
upgraded Roan Concentrator (Roan). The Company aims to fully utilise this capacity by bringing its secured
copper resources into production through open-pit mining operations and the reprocessing of surface
waste.
A crucial factor for successfully executing the Copper Strategy was securing a stable power supply, a
significant challenge in Zambia. The Company is pleased to announce that its recently signed power
purchase agreement with Lunsemfwa Hydro Power Company (LHPC) which has been implemented, with
uninterrupted power being delivered to Jubilee's operations as of last week covering all of its processing
plants' power requirements with 100% renewable power.
Highlights
• Stable power supply to Zambian operations commenced after successfully implementing the
LHPC agreement on 18 September 2024.
• Roan front-end module has achieved design capacity, and operations have been handed over to
the Roan operational team.
• Munkoyo open-pit operations began ramping up, targeting to reach 15 000 tonnes of run-of-
mine ore per month comprising 5 000 tonnes of 3.0% high-grade copper ore delivered direct to
the Sable Refinery while the sub 1.0% lower grade copper ore is being stockpiled at site for
further processing.
• Large Waste Rock project, with over 260 million tonnes of surface rock, is set to begin a
commercial trial of 15 000 tonnes processed through Roan's front-end module in November
2024 as part of the final due diligence review.
Leon Coetzer, CEO of Jubilee commented:
"I am pleased to provide this update on the progress of the implementation of our Copper Strategy in
Zambia. Establishing a stable power supply was crucial to maintaining steady progress in our projects. The
frequent rolling outages posed an ongoing risk to the stability of our operations, so I am grateful that we
have now secured a reliable, continuous power source. This has been a critical factor in achieving design
throughput at our new Roan front-end module.
With upgrades at our Roan Concentrator and Sable Refinery, we are well-positioned to achieve our initial
target processing capacity of 25 000 tonnes of copper per year. The recent milestones, including the ramp-
up of our Munkoyo open-pit operation, near completion of our due diligence of Project G, which if
successful will be brought into operation within 4 months, ensure a continued upward drive in our copper
output. Our discussions to secure a further two open pit opportunities are progressing well and I am
confident in our ability to secure further similar opportunities.
We are nearing the completion of due diligence for our Waste Rock project, with the distinct advantage
of conducting a full-scale commercial trial using our new Roan front-end module.
We are optimistic about the future and remain focused on bringing our secured copper resources into
production as we fully utilise our expanded processing capacity. I look forward to keeping the market
updated on all developments as they unfold."
Implementation of Processing Capacity
The increased processing capacity of 25 000 tonnes of copper per annum will be achieved through
upgrades to both the Roan Concentrator and the Sable Refinery.
The Roan Concentrator upgrade is now complete, with its front-end module reaching design throughput
of 45 tonnes per hour of waste rock feed for an 8-hour continuous period under the supervision of the
Jubilee technical team. This milestone has enabled the handover of operations to the Roan operational
team to operate the plant on a 24-hour continuous period.
Additionally, the commencement of stable power supply through the LHPC agreement ensures
continuous operation of Roan's front-end module targeting to achieve 30 000 tonnes per month feed rate.
Roan's front-end module production is expected to start reflecting in the production of Q4 CY2024 as it
commences to operate continuously which is in-line with the Company's copper production forecast.
Roan is now capable of processing both historically mined low grade stockpiled material and previously
processed materials simultaneously, with a combined capacity of its front-end module as well as milling
and flotation plant of up to 13 000 tonnes of copper per annum (4 500 and 8 500 capacity respectively),
depending on the feed grade. Roan will initially be dedicated to processing waste from historical mining
operations, upgrading copper materials into a saleable concentrate that can either be sold on the market
or further refined at Sable, depending on Sable's available capacity.
The planned Sable Refinery upgrade marks the final stage in reaching the initial target of a combined 25
000 tonnes of copper processing capacity per annum. This upgrade includes enhancements across several
areas of the refinery, culminating in the commissioning of a second tank house for copper cathode plating.
Upon completion, Sable will be capable of producing both copper sulphide concentrates and copper
cathode, with a combined output of 16 000 tonnes per annum. The upgrade is currently underway and
expected to be fully integrated into the existing operations over the next 10 months with an expected
capital investment of US$9 million, confirming the processing capacity of 25 000 tonnes annually. The
Company's focus is now shifting towards bringing secured copper resources into full production to fully
utilise this upgraded capacity in line with the production forecast which assumes that the impact of the
capacity upgrades will reflect during H2 FY2025.
Copper Resources
Open Pit Mining Operations
Jubilee acquired a 95% interest in the Munkoyo mine, which is located within 55 kilometres of the Sable
Refinery, in June 2024 and proceeded to develop an open pit mining operation to access the near surface
weathered copper reefs.
The Munkoyo open-pit mining operations yield high-grade copper ore, which is transported directly to
Sable, as well as lower-grade copper ore that is stockpiled on-site for further processing at a regional
processing hub (discussed further below). The high-grade ore, with a target copper content of 3.0%, is
refined at Sable. Munkoyo commenced operations in July 2024 and continues to ramp up to an initial
target of 15 000 tonnes per month of run-of-mine of which 5 000 tonnes per month are to be delivered
directly to Sable for refining. Munkoyo remains on track to reach its initial target of 15 000 tonnes per
month mined run-of-mine ore by December 2024.
A resource drilling program is currently underway, and depending on the confirmation of resource
continuity, will target the potential to increase production to 20 000 to 25 000 tonnes of run-of-mine ore
per month.
The decision on the capacity of the regional processing hub is currently under-review and subject to the
completion of the technical development program which is expected to be completed over the coming 4
months. The regional hub will focus on upgrading the mined and currently stockpiled lower grade copper
reef (sub 1.0%). This material will then be transported as a high grade copper concentrate to Sable which
could potentially double the copper output from Munkoyo delivered to Sable. This approach would be
replicated for all the open cast mining operations that Jubilee targets for acquisition.
Project G is the second open-pit mining operation being evaluated by Jubilee. The Company is nearing
the completion of its due diligence, which has included full-scale processing trials at the Sable Refinery.
A final decision on Project G is anticipated by the end of September 2024. The due diligence focuses on
an initial mining rate of 10 000 tonnes per month achievable by February 2025, with an existing on-site
upgrading facility of the run-of-mine material which already can produce 3 000 tonnes of copper
concentrate per month, containing 10% to 15% copper, for refining at Sable. The lower grade copper
reef will initially be stockpiled at source for future processing through the regional processing hub.
Jubilee is also in advanced discussions regarding two additional open-pit mining opportunities in the
Munkoyo and Project G region, as it aims to fully dedicate Sable's 16 000 tonne per annum copper refining
capacity to processing open-pit mining resources. Jubilee has set a goal to achieve this by December 2025.
Previously Mined Waste Rock
Roan has begun processing low grade stockpiled material from historical mining operations through its
newly commissioned front-end module. The module is designed to upgrade the waste rock material more
than tenfold, producing a high-grade copper concentrate in excess of 10% copper contained for further
refining or market trading. Additionally, the plant generates a lower-grade copper stream that requires
further processing. The Jubilee technical team is currently evaluating various metal extraction techniques
to refine this waste stream, with a preference for on-site flotation and leaching. The review includes
exploring the use of glycine-based heap leaching in partnership with Draslovka, a mining processing
specialist. A semi-commercial trial for flotation and on-site leaching of the low-grade copper stream is
scheduled for February 2025.
The large Waste Rock Project, with an estimated 260 million tonnes of surface material, is currently
undergoing its final technical review. As previously announced, Jubilee has secured the rights to the
extensive waste rock stockpile, pending the successful completion of due diligence to Jubilee's
satisfaction, in partnership with International Resources Holding (IRH) from Abu Dhabi.
The due diligence of the copper waste rock material undertaken by Jubilee has included various sampling
campaigns as well as laboratory and pilot scale test programs to confirm the upgradability. In parallel to
the test program, Jubilee entered into agreements to accelerate delivery timelines of key long lead items.
Jubilee has reached agreement to extend the due diligence period to 6 November 2024 to accommodate
the extensive test program which culminates in a full commercial trial of the large Waste Rock Material
through the newly commissioned Roan front-end module. It is planned to process approximately 15 000
tonnes of the material at Roan as final confirmation of the response of the material to the proposed
processing solution. Due to the initial delays in the commissioning of Roan it is expected that the due
diligence period will be extended to January 2025 subject to agreement reached to ensure sufficient time
to complete the commercial trial and allow the Jubilee technical and commercial team to complete the
review of the results.
To date, US$4.95 million has been advanced to secure the rights to the large Waste Rock Project, as part
of the overall acquisition price of US$30 million, payable quarterly over 18 months, contingent on the
successful completion of the due diligence period. According to the terms of the agreement, Jubilee will
forfeit the payments made thus far if it decides not to proceed with the project. The successful completion
of due diligence is a critical factor in maintaining Jubilee's partnership with IRH.
The scale of the large Waste Rock Project indicates the need for four processing modules similar to the
Roan front-end module, requiring an estimated capital investment of around US$50 million subject to
funding. Preliminary production estimates suggest that these modules could collectively produce
approximately 2 000 tonnes of copper per month.
An accelerated construction schedule for all four modules could generate economies of scale and
significant cost reductions. The project timeline for implementing all four modules depends on the
sequencing of their installation, but through the establishment of strategic partnerships with the suppliers
of key long lead items, modules could be completed within a 12-month period from the commencement
of construction.
The figures above serve only as indicative numbers of the potential that the resource holds based on the
assumptions and test work undertaken by Jubilee's technical services department and the successful
completion of the due diligence which includes the commercial trial at Roan.
Background Information on LHPC
LHPC is an established independent power producer in Zambia that owns and operates two hydropower
plants in the central province. LHPC is a member of the Southern Africa Power Pool and an active power
trader in the regional market. LHPC is building a 20MW solar plant and plans to use its portfolio of
renewable power sources to meet Jubilee Zambia's power requirements. The agreement highlights
Jubilee's dedication to sustainable energy practices. The power will be supplied from an integrated solar
power and hydro-storage facility which is expected to be brought into operation over the coming 12
months. Under the agreement all of the current power needs of both Sable and Roan will be supplied via
the LHPC agreement.
ENDS
23 September 2024
For further information visit www.jubileemetalsgroup.com, follow Jubilee on Twitter (@Jubilee_Metals),
visit www.lunsemfwahydro.com.zm 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.
Date: 23-09-2024 08:00:00
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