| Wed 6 Jun 2007, 10:48 | | JBL - Jubilee - Positive Scoping Study Completed F |
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JBL
JUJLP
JBL - Jubilee - Positive Scoping Study Completed For The Tjate Project
JUBILEE PLATINUM PLC
AIM: JLP
JSE: JBL
Registration number: 4459850
ISIN: GB0031852162
("Jubilee" or "the Company")
Positive Scoping Study Completed For The Tjate Project
Jubilee is pleased to announce the completion of a scoping study ("the
Scoping Study") on Tjate Platinum Corporation Pty (Ltd)`s flagship platinum
group metal ("PGM") Tjate property ("Tjate" or "the Project"), located in
South Africa`s western Bushveld.
The Scoping Study, which was carried out over approximately 15% of the
total Project area, demonstrates robust economics, showing a positive base
case internal rate of return of 22% for an initial investment of US$400
million. The Scoping Study scenario outlined below, one of several
considered, is for a stand-alone underground mine, producing annually
262,000 ounces PGMs plus gold. The mining scenario considered is for a
single vertical shaft system to a depth of 1100 metres and initially mining
only Merensky reef.
The Scoping Study was developed in conjunction with independent
consultants, Snowden Mining Industry Consultants, a member of the Snowden
Group of international mining consultants.
Scoping Study Highlights:
- Tjate mine to produce annually 262,000 oz (PGMs + gold)
- Internal rate of return (IRR) of 22% after tax
- Net present value (NPV) of US$292 million after tax using a discount
rate of 10%
- US$400 million implementation capital investment (ZAR3 billion)
- Metal prices discounted over current prices
- Only 15% of Tjate project area studied
Key Scoping Study Assumptions:
Run of mine grade 5.2 grams per tonne (g/t) 4E (platinum,
palladium, rhodium & gold); 0.22% nickel;
0.13% copper
Resource 34 million tonnes
Milling rate 1.8 million tonnes per year
Life of mine 18 years (full production)
Operating cash cost US$45/tonne
Implementation capital U$400 million
Metal prices
4E basket US$893/oz (5% weighted average discount over current
prices)
Nickel US$20,000/t (40% discount)
Copper US$5,000/t (67% discount)
Colin Bird, CEO of Jubilee, commented, "We are delighted to have completed
a positive Scoping Study for the Tjate Project, which indicates a very
favourable return for Tjate developed as a stand-alone mine. As we now move
towards the preparation of a bankable feasibility study, engineering
optimisation should continue to improve the Project`s economic returns.
"It is also very positive to note that this Scoping Study is based upon a
resource of 34 million tonnes, representing only a small proportion (about
15%) of the total Tjate Project area. Therefore, considerable scope exists
downdip of and laterally from the current resource area and we believe
there to be excellent potential for further significant production
expansion."
Notes to editors:
The Tjate project comprises three contiguous farms, totaling 5,143 hectares
in the eastern Bushveld: namely Dsjate, Fernkloof and Quartz Hill. The
farms are downdip of Impala Platinum`s operating Marula platinum mine and
of Anglo Platinum`s developing Twickenham platinum mine. Jubilee has
recently completed the first phase drilling of seven boreholes on the
Dsjate farm. All the holes, as previously reported, intersected at targeted
depths the Merensky reef and, where drilled deeper, the UG2 reef. These two
reefs are the two main PGM-bearing horizons in the Bushveld.
For further information please contact:
Colin Bird Cathy Malins / Annabel Leather
Jubilee Platinum plc Parkgreen Communications Ltd
Tel +44 (0) 20 7584 2155 Tel +44 (0) 20 7851 7480
Andrew Sarosi
Jubilee Platinum plc
Tel +44 (0) 1752 221937
Date: 06/06/2007 10:48:57 Produced by the JSE SENS Department.
