| Thu 20 Sep 2007, 8:01 | | JBL - Jubilee - Tjate Project Scoping Study - Opti |
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JBL
JUJLP
JBL - Jubilee - Tjate Project Scoping Study - Optimisation Review
Jubilee Platinum Plc
AIM: JLP
JSE: JBL
Registration number: 4459850
ISIN: GB0031852162
("Jubilee" or "the Company")
Tjate Project Scoping Study - Optimisation Review
Jubilee is pleased to announce the results of a joint review with Tjate Platinum
Corporation (Pty) Ltd ("Tjate") of Tjate`s independent scoping study (announced
6 June 2007) to optimise the projected economic return on the Tjate project,
which is located in the eastern Bushveld of South Africa. The review suggests a
base case production (ore feed to mill) of 200 000 tonnes (t) per month as the
most practical and manageable. Jubilee, as project manager, will shortly be
inviting expressions of interest from outside engineering consultants to manage
a bankable feasibility study for the project and final selection will be subject
to Tjate board approval. Tjate will launch an accelerated drilling programme and
proceed to bankable feasibility study.
The Company and Tjate are also pleased to announce the appointment of Chris
Molefe, a non-executive director of Jubilee, as chairman of Tjate effective 27
August 2007.
Project Economics
Base Case
Production (ore feed to mill): 200 000 t per month
Ore grade: 5.0 g/t 4E (platinum, palladium, rhodium
and gold)
0.22% nickel and 0.13% copper
Capital cost: US$470 million
IRR (Internal rate of return): 22%
NPV@5% discount US$800 million
Production Rate Sensitivities
Production Production
75% of 120% of
base case base case
Production 150 000 t/month 240 000 t/month
Capital cost: US$430 million US$510 million
IRR 18% 24%
NPV@5% discount US$560 million US$1 000 million
Colin Bird, CEO of both Jubilee and Tjate said "We are delighted to announce
this optimisation result, following drilling and scoping study results, which to
date have shown the proposed initial Merensky reef mine to be an attractive
proposition. The appointment of Chris Molefe as chairman of Tjate brings to the
board a wealth of corporate and South African mining industry experience. Tjate
will now accelerate the drilling and other data capture programmes with a view
to completing our bankable feasibility study as soon as possible."
Notes to editors:
Chris Molefe (B.Com) was appointed chairman of Tjate at a board meeting held on
27 August 2007. Chris, a former CEO of Bafokeng Resources (Pty) Ltd and non-
executive chairman of SA Chrome Limited, a publicity-listed company in South
Africa, has held several positions in corporate banking and mining industry for
the previous 20 years.
The Tjate project comprises three contiguous farms, totaling 5,143 hectares in
the eastern Bushveld: namely Dsjate, Fernkloof and Quartz Hill. The farms are
down dip 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 and is currently
drilling a further five holes. All the holes drilled have intersected the
Merensky reef at targeted depths and the UG2 reef where deeper drilling was
carried out. These two reefs are the main platinum group metal bearing horizons
in the Bushveld Complex.
For further information please contact:
Colin Bird Louise Goodeve / Justine Howarth
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
1
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