| Wed 10 Nov 2010, 11:30 | | JBL - Jubilee Platinum Plc - Jubilee management update |
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JBL
JUJLP
JBL - Jubilee Platinum Plc - Jubilee management update
JUBILEE PLATINUM PLC
AIM: JLP
JSE: JBL
Registration number: 4459850
ISIN: GB0031852162
("Jubilee" or "the Company")
JUBILEE MANAGEMENT UPDATE
Jubilee is pleased to provide an update on the significant progress made by the
Company
Key Progress Areas:-
- Acquisition (70%) of Middelburg processing plant completed with option to
acquire remaining 30% shareholding
- Commenced processing of ferro-alloys and ferro-silicon to realise short-term
cash flow
- Final ConRoast demonstration concluded in March 2010 returns significant
income to the Group
- New ConRoast commercial facility on track to commence smelting in Q2, 2011
- Imminent conclusion of acquisition of a gas-fired generator providing own on-
site power and potential for growth as a standalone electricity supply business.
- Extended Framework Agreement with Sylvania Resources to 2011 to facilitate
conclusion of smelting and refining feasibility study for its northern limb
project
- Extended Memorandum of Understanding (MOU) with Northam Platinum to January
2011
- More than 90% of the additional scheduled metres for Tjate project`s Phase 1
prefeasibility drilling completed
- Tjate project`s environmental (winter phase) and social baseline report
completed
- Contract awarded for drilling Ambodilafa nickel project in Madagascar
Leon Coetzer, CEO said, "Jubilee is committed to the delivery of its listed
projects. The implementation of the new ConRoast facility is progressing well
and the project team is driving hard to secure all long lead items to adhere to
the project timelines. We are pleased with the results achieved thus far from
the drilling program on Tjate, which continues to illustrate the quality of this
asset. Our near term deliverables are clearly set on the commissioning of the
new ConRoast Facility and delivering the feasibility study of Tjate while we
continue to grow early revenues from our Middelburg smelting operation."
Middelburg Facility
Jubilee acquired a 70% shareholding in the Middelburg ferro-alloy smelting plant
earlier in 2010 to expedite the construction of its ConRoast platinum processing
facility. The key features of the existing Middelburg plant are: -
- Strategically located in the eastern region of South Africa near the emerging
new platinum mines with easy access to a national highway for ease of transport;
- Secure own power available on-site to meet the requirements of the expanded
processing facility;
- Existing smelting infrastructure to support the expansion of the processing
facility to include the ConRoast Process;
- Existing platinum process licences; and
- The potential ability to derive early revenue from the processing of ferro-
alloys, which are complementary to the Jubilee processing division.
Ferro-Alloy Smelting
The Jubilee enhanced management team of the Middelburg ferro-alloy smelting
plant has been successful in attracting profitable smelting contracts to utilise
the existing smelting infrastructure. A strong demand for the alloy smelting
facility continues to drive the revenue achieved from the existing facilities.
Although not the core reason for the acquisition by Jubilee, the existing alloy
smelting facility is targeted to be profitable by the end of November 2010.
New ConRoast Facility
The key process components of the ConRoast facility include concentrate drying
and roasting followed by a reductive smelt of the concentrates to form a
platinum-rich iron alloy for further refining.
The Company undertook an initial scoping and engineering study to review the
process design, equipment layout, capital estimate and execution time for the
implementation of a ConRoast processing facility at the Middelburg site.
Following a favourable review, the Jubilee board approved the execution of the
project on an accelerated time line. The Company awarded Tenova Pyromet the
contract to conclude the detailed engineering and design of the ConRoast
facility, the completion of which is scheduled before end 2010. All long lead
items have been identified with the furnace outer shell and electrical
transformer being critical path items, commitments for which are expected by
year-end. Smelting of platinum concentrates and ramp-up of the project is
projected to commence during Q2 2011. These time lines are dependent on
delivery commitments being met for the furnace shell and electrical transformer.
The location of the previous ConRoast demonstration furnace within a research
and development environment restricted Jubilee`s ability to operate the furnace
as a commercial entity due to the research establishment`s high fixed cost
structure. Jubilee concluded its industry demonstration trials at Mintek`s
research facility during March 2010. This highly successful trial was run over
an eight-month period treating high chrome-containing platinum concentrates. The
trial was designed to showcase the robustness of the ConRoast process when
treating material with a diverse compositional range of chrome and platinum
group elements (PGE). The trial was operated on a toll smelting agreement
(fixed charge per ton smelted) with a performance payment based on achieved
recoveries of PGE`s in excess of the industry targets. The trial proved
financially successful even within the commercial restrictions of a research
facility, by achieving exceptional PGE recoveries and returning a potential
profit to Jubilee`s subsidiary Braemore Platinum Smelters Pty Ltd in excess of
GBP 1 000 000. The new ConRoast facility`s operating cost structure should
potentially benefit markedly from being located within an existing industrial
smelting infrastructure at Middelburg.
In February this year, Jubilee announced the memorandum signed with Sylvania
Resources to review further platinum containing dump retreatment opportunities
as well as the processing of concentrates from Sylvania`s northern limb projects
in dedicated processing facilities. Jubilee and Sylvania have jointly progressed
the feasibility study for the processing of this Northern Limb project. Early
indications from this study are very encouraging.
ConRoast Future Expansion
In July this year, Jubilee announced an MOU signed with Northam Platinum
(Northam) to review and evaluate the feasibility of providing a dedicated
ConRoast smelting solution for Northam`s Booysendal Platinum Project. In
September, the parties extended the MOU, with both Northam and Jubilee
committing to accelerate the execution of the review phase. This review, which
will include production and cost forecasts, project-execution time lines and
processing capacities, is scheduled for completion in Q1, 2011.
Tjate Update
Tjate`s Phase 1 pre-feasibility drilling (Stats T drill pattern), which
commenced in July this year is more than 90% complete and is expected to finish
before end 2010. The drilling (9 new boreholes and 5 re-entry boreholes to UG2)
has to date consistently intersected both Merensky and UG2 reefs. Preliminary
results are confirming previous resource estimate PGE grades. The objective of
the Phase 1 drilling is to provide reef continuity information, which not only
will facilitate the planning of borehole spacing for the next phase 2 of infill
drilling for upgrading the currently inferred resource, but also may allow
upgrading of currently inferred areas without a great deal of infill drilling.
The Company, also as part of the pre feasibility phase, has completed an
environmental (winter phase) and social baseline study for the project. The next
phase of the feasibility study will include recommended further on-going
environmental studies during pre feasibility, the ecology part of which is only
possible during the wet/summer months.
Madagascar Update
In Madagascar, the drilling contract for the Ambodilafa nickel project was
awarded to a local contractor. Mobilisation of the drilling equipment and
establishment of the site camp is underway.
Outlook
Jubilee`s management are pleased with the progress on its activities. The
Company`s immediate strategic focus includes securing additional PGM
concentrates for the ConRoast facility, executing both the Framework Work
Agreement with Sylvania and the MOU with Northam to a complete concentrate
processing agreement, developing increased ferro-alloy production from the
Middelburg site to support early revenues and concluding the feasibility study
for Tjate.
For further information please contact:
Colin Bird/Leon Coetzer
Jubilee Platinum plc
Tel + 27 (0) 11 465 1913 Tel +44 (0) 20 7584 2155
Andrew Sarosi
Jubilee Platinum plc
Tel +44 (0) 1752 221937
Matthew Robinson/Rose Herbert
finnCap Ltd
Tel +44 (0) 20 7600 1658
Leonard Eiser /Sharon Owens
Sasfin Capital
Tel +27 (0) 11 809 7500
Michael Kinirons/Nick Rome
Bishopsgate Communications Ltd
Tel +44 (0) 20 7562 3350
Johannesburg
10 November 2010
Sponsor
Sasfin Capital(a division of Sasfin Bank Limited)
Date: 10/11/2010 11:30:01 Produced by the JSE SENS Department.
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