| Wed 29 Dec 2010, 11:33 | | JBL - Jubilee Platinum plc - Operational and drilling update |
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JBL
JUJLP
JBL - Jubilee Platinum plc - Operational and drilling update
JUBILEE PLATINUM PLC
("Jubilee" or "the Company")
AIM: JLP
JSE: JBL
Registration number: 4459850
ISIN: GB0031852162
OPERATIONAL AND DRILLING UPDATE
We are pleased to provide an update on significant progress made by the Company
Highlights
- Engineering Design Study completed for the 1st new ConRoast facility at
Middleburg and on track for commissioning in 2011
- Feasibility Study completed on the Carbonyl process for the refining of
ConRoast PGM-iron alloy
- The Feasibility Study confirms viability to produce final metals: demonstrates
an indicated 38 month payback period on capital investment
- Marketing analysis projects refined Nickel, Iron and PGM products could
command premium prices
- In-fill drilling programme on Tjate confirms grade and continuity for both the
UG2 and Merensky reef
Leon Coetzer, CEO of Jubilee said "The pleasing results from both our refining
study on ConRoast alloy and in-filling drilling on Tjate confirm our confidence
in these projects and we are committed to executing the ConRoast furnace
facility in 2011".
New ConRoast Smelting Facility at Middelburg
Jubilee appointed Tenova Pyromet to conclude the engineering design study for
the construction of the new ConRoast smelting facility at Jubilee`s Middelburg
property by December 2010. The ConRoast facility is sized to include a 5MW
furnace. The study confirmed the potential recognised by Jubilee during the
acquisition of the property, to realise significant capital savings by
leveraging of the existing infrastructure at the Middleburg property. The long
lead items for the construction of the ConRoast facility have been identified
and are expected to be ordered by Jubilee within the first quarter of 2011.
Jubilee is currently in discussions with suppliers to review the delivery times
of the critical equipment to avoid any delays during the construction of the
facility.
Refining Process Feasibility Study
The feasibility study for the recovery and refining of Nickel, Iron and Cobalt
powders from the PGM iron alloy produced by the ConRoast Smelting process is the
culmination of three years of technical study and review. Jubilee commissioned
the feasibility study in February 2010 which included continuous refining pilot
runs to produce sufficient quantities of the final metal powders for detailed
market analyses.
The feasibility study confirmed the strong technical and economic viability of
the proposed refining process. The study indicated a payback period of 38
months.on capital invetsment to construct a refining plant that matches the
capacity of the new ConRoast facility.
Tjate Update
Tjate`s Phase 1 close spaced continuity in-fill drilling programme, was
completed bar one remaining borehole.
It is pleasing to report that all the boreholes in this Phase intersected the
Merensky and UG2 chromitite reefs, thereby adding confidence to the continuity
of the Tjate reef structures and permitting possibly a more modest drilling
programme for Phase 2 than previously planned.
It is also pleasing to report that the preliminary drilling results summarised,
confirm the 4E results, particularly those of the UG2 reef, of Tjate`s previous
mineral resource estimate (132 480 000 tonnes total indicated and inferred
resource with 5.24g/t 4E Merensky and UG2 combined).
The overall preliminary average drilling results for this Phase 1 are summarised
below:
Reef Average thickness (m) 4E* g/t % Nickel % Copper
Merensky 1.20** 4.22 0.18 0.12
UG2 chromitite 0.67*** 8.49 0.06 0.04
*4E platinum, palladium, rhodium and gold
** Merensky Best Cuts (Minimum 80 cm Best Mine Cut)
*** UG2 Chromitite band only Cut
The average results of the individual boreholes are shown in the two tables
below:
Merensky Reef Results - Weighted averages - Motherhole plus deflections
(Minimum 0.8 m Best Mine Cut)
Borehole Depth (m) Thickness (m) 4E g/t Cu % Ni %
DT44 959.17 0.83 4.79 0.16 0.27
DT45 869.50 2.25 4.36 0.09 0.15
DT46 819.19 1.05 3.63 0.13 0.21
DT47 1068.31 1.03 3.85 0.004 0.008
DT48 1131.04 0.98 4.57 0.21 0.29
DT49 1193.51 1.07 4.11 0.15 0.21
UG2 Reef Results - Weighted averages - Motherhole plus deflections
(Chromitite band only cut)
Borehole Depth (m) Thickness (m) 4E g/t Cu % Ni %
DT19* 1392.86 0.65 9.80 0.05 0.08
DT43** 1381.63 0.89 8.77 0.06 0.08
DT44 1135.81 0.69 8.01 0.06 0.07
DT45 1254.47 0.67 9.30 0.03 0.05
DT46 1211.00 0.73 8.28 0.05 0.06
DT47 1418.06 0.47 6.72 0.05 0.07
DT48 1495.00 0.63 8.92 0.04 0.07
DT49 1563.10 0.68 7.64 0.01 0.02
* previous borehole extended to UG2 reef
** assays for Merensky awaited
Madagascar
Ambodilafa drilling project
Lanoe Forage, the local drilling company mobilised its drilling equipment and
departed from the capital Tananarive on Sunday 19 December for the drill site in
the northwestern sector of the Ambodilafa concession. The drilling contractor
expects to commence drilling in January 2011.
Australia
Leinster Nickel Tailings project
Jubilee requested Bateman Projects SA to review the technical and project work
performed to date and update the economic models of the proposed project. This
technical and economic review is expected to be concluded within January 2010.
BHP Billiton requested Jubilee and Jubilee has agreed herewith to clarify
certain statements made by it, in its previous announcements in relation to this
project to the effect that BHP Billiton is a `joint venture partner` or in a
`joint venture` with Jubilee (or a subsidiary of Jubilee). BHP Billiton is
counterparty to the Tailings Supply Agreement with Braemore Nickel and as such
is neither a partner nor a joint venture partner with Jubilee (or any subsidiary
of Jubilee).
Andrew Sarosi, Director of Jubilee Platinum, who holds a B.Sc. Metallurgy and
M.Sc. Engineering, University of Witwatersrand and is a member of The Institute
of Materials, Minerals and Mining, is a `qualified person` as defined under the
AIM Rules for Companies and a competent person under the reporting standards.
The technical parts of this announcement have been prepared under Andrew
Sarosi`s supervision and he has approved the release of this announcement.
SGS Lakefield Research Africa in Johannesburg carried out the analyses of the
borehole core samples. This laboratory is SNAS TO 169 accredited.
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
ADDITIONAL INFORMATION
The Tjate Project comprises three contiguous farms, totalling 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 Anglo
Platinum`s developing Twickenham platinum mine. Jubilee is advancing the Project
to feasibility study. The Project`s "First mine" resource area hosts a SAMREC
Code compliant resource of 132.5 million tonnes (after geological losses) of
combined indicated and inferred resource of Merensky and UG2 chromitite reefs
containing 25 million oz 6PGE+Au at a combined grade of 5.93 g/t 6PGE*+Au
(platinum, palladium, rhodium, iridium, ruthenium, osmium and gold). An
independent geological consultant commented that if the Merensky Reef and UG2
chromitite reefs were to extend over the three Tjate Platinum properties, which
measure some 51 square kilometres, then within this area Tjate could likely
target a potential exploration of approximately 52 million oz 3PGE+Au (60
million oz 6PGE+Au) - after geological losses. However, the Company has yet to
establish the viability of this target in future studies.
Johannesburg
29 December 2010
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 29/12/2010 11:33:01 Produced by the JSE SENS Department.
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