| Wed 9 Mar 2011, 12:30 | | JBL - Jubilee Platinum Plc - Operations Update |
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JBL
JUJLP
JBL - Jubilee Platinum Plc - Operations Update
Jubilee Platinum Plc
AIM: JLP JSE: JBL
Registration number: 4459850
ISIN GB0031852162
("Jubilee" or the "Company")
Operations Update
Jubilee, the AIM and JSE Limited quoted mine to metal specialist, is pleased to
provide the following operations update.
HIGHLIGHTS:
First stage infill drilling programme for the Tjate project completed with
exceptional results achieved, final modelling of data in progress
Drill data confirm continuity of Merensky and UG2 Reefs, with significantly
improved grade and thickness for the UG2 reef
Application for a Mining Right for Tjate initiated on these encouraging drilling
results
Delivery times for long-lead items successfully negotiated to ensure new
ConRoast 5MW DC Arc furnace remains on track for Q4 2011
Numerous small-scale near-term mining opportunities are being presented to
Jubilee due to its ConRoast smelting capability to treat chrome bearing platinum
concentrates
Existing ferroalloys processing infrastructure at Middelburg fully utilised and
contributing to short term cash flows
New ferroalloy 5MW AC Arc furnace on target for commissioning in Q2 this year
and capacity fully contracted
Drilling to commence shortly in Madagascar
Leon Coetzer, CEO of Jubilee Platinum commented: "It is important to emphasise
that we are developing a company capable of achieving a Mine to Metal business
strategy.
"The platinum ConRoast project is on track and will be operational by year end.
The Tjate project`s exceptional drill results again confirm it as a world-class
asset and continue to present an excellent opportunity to develop a world-class
platinum mine. I look forward to updating shareholders with regard to the
Northam discussions and the Sylvania joint project as and when they conclude.
The ferroalloy processing division is operating well and generating short term
cash flow for the company. Its contribution to the overall business plan will
increase with the commissioning of the first 5MW ferroalloy furnace in May this
year.
"We continue to assess numerous small-scale near term mining opportunities,
which are being presented to the Company due to our ability to process platinum
concentrates containing high chrome values. These opportunities are in-line
with our focus on building our Mine to Metal business strategy."
Corporate developments
Discussions to establish a joint venture to evaluate the construction of a new
DC Arc furnace facility using ConRoast technology to treat a portion of Northam
Platinum`s platinum group metal ("PGM") concentrate have advanced under the
current Memorandum of Understanding, details of which, when concluded, will be
released to the market
The joint project with Sylvania Resources has progressed on schedule with all
roasting and smelting trials concluded as specified within the scoping study.
The PGM-rich iron alloy from these trials has been couriered to Canada for final
CVMR refining trials. The results from these trials will form the basis of the
scoping study.
Numerous small-scale near term, mining opportunities are being presented to
Jubilee due to its ability to process platinum concentrates containing high
chrome values. Jubilee is reviewing these opportunities to enable processing of
own platinum concentrates through its Middelburg facility. Processing of own
platinum concentrates significantly enhances the business model for Jubilee.
Further detail on these opportunities will be released to the market on
conclusion of the current review.
Middelburg Processing Facility
Jubilee has made significant progress in the implementation of its mine to metal
business strategy. The Company is implementing two distinct business strategies
at its Middelburg processing facility:
a platinum concentrate processing division operating under Braemore Platinum
Smelters (Pty) Ltd, a wholly owned subsidiary of Jubilee; and
a ferroalloy processing division, operating under the company RST Metals (Pty)
Ltd, a wholly owned subsidiary of Jubilee Smelting and Refining (Pty) Ltd
(formerly Thos Begbie Holdings).
Platinum Concentrate Processing Division
Pyromet Tenova has been formally appointed to support Jubilee with the execution
of the 5MW DC Arc Furnace for the ConRoast platinum project. Pyromet Tenova is
an internationally recognised company specialising in the execution of
pyrometallurgical (smelter) projects. The appointment falls in line with
Jubilee`s strategy of outsourcing specific technical roles to established
industry leaders to enhance the Company`s ability to execute the projects to set
deliverables.
Improved delivery times for key items on the critical path of the ConRoast
project have been successfully concluded to ensure the project remains on target
and orders will be placed on receipt of written confirmation of these delivery
times. Jubilee has concluded the submittal of all relevant environmental
applications to ensure the project remains on track.
This 5MW ConRoast furnace forms part of the 2nd phase of the Middelburg facility
expansion and is scheduled for completion towards the end of 2011. This
facility continues to enjoy strong support from the industry.
Ferroalloy Processing Division
Jubilee has fully contracted the existing smelting capacity at Middelburg
utilising the existing processing infrastructure - resulting in increased short-
term cash flow. As such it is able to process various ferroalloys including
ferronickel and ferrosilicon profitably while continuing with the expansion of
the processing facility to include the ConRoast processing plant.
The current strong demand for the processing of ferroalloys, in particular
ferronickel motivated the decision to construct a new 5MW ferroalloy AC Arc
furnace at Middelburg. This builds upon the existing two 2.5MW AC Arc furnaces
that are currently operational on site.
This 5 MW furnace will form part of the first phase of expansion at the
Middelburg ferroalloy smelting facility with commissioning targeted in May 2011.
This furnace will be an AC Arc furnace to capitalise on existing electrical
infrastructure including available transformers, thereby avoiding the long
delivery period associated with a DC Arc transformer.
Tjate Project
The Tjate project has completed its stage one infill drilling programme with
results confirming the previous Merensky reef grades and showing an improvement
in 4E (platinum palladium rhodium and gold) grade and reef thickness over that
previously obtained for its UG2 reef.
During February 2011 the Company completed its first stage 9-borehole infill-
drilling programme. The objective of this programme was to confirm the
continuity of the Merensky and UG2 reef structures and to establish the drill
spacing necessary to complete stage two of the drill programme so as to upgrade
the resource estimate category. Five of the boreholes in this programme that
were previously drilled to Merensky Reef were extended to UG2.
The results of this drilling are shown in the tables below with the weighted
average results of previous drilling and all drilling to date.
Merensky Reef Infill Drilling Results
Merensky Best Mine Cut Average (80 cm cut-off)
Borehole Cut Type Ave 4E Ave Cu % Ave Ni % Ave Width
g/t m
DT43 Typical 3.51 0.14 0.24 1.06
DT44 Typical 4.79 0.16 0.27 0.83
DT45 Typical 4.36 0.09 0.15 2.25
DT46 Typical 3.63 0.13 0.21 1.05
DT47 Faulted/Disturbed 3.85 0.004 0.008 1.03
DT48 Typical 4.57 0.21 0.29 0.98
DT49 Typical 4.11 0.15 0.21 1.07
DT50 Typical 5.03 0.15 0.22 1.42
DT51 Typical 3.17 0.11 0.19 1.07
Weighted average Infill drilling 4.23 0.13 0.20 1.20
Previous drilling 4.24 0.11 0.19 1.15
All drilling to date 4.24 0.11 0.19 1.16
UG2 Infill Drilling Results
UG2 Cut Averages (Chromitite Only)
Borehole Reef Type Ave 4E Ave Cu % Ave Ni % Ave Width
g/t m
DT43 Normal 8.40 0.05 0.08 0.89
DT44 Normal 8.01 0.059 0.073 0.69
DT45 Normal 9.30 0.030 0.049 0.67
DT46 Normal 8.28 0.047 0.056 0.73
DT47 Normal 6.72 0.049 0.073 0.47
DT48 Normal 8.92 0.038 0.069 0.63
DT49 Normal 6.94 0.006 0.024 0.80
DT50 Normal 11.26 0.07 0.10 0.97
DT51 Normal 11.93 0.02 0.05 1.25
Weighted average Infill drilling 9.26 0.039 0.064 0.79
Previous drilling 8.35 0.045 0.078 0.60
All drilling to date 8.69 0.043 0.073 0.66
The average infill drilling Merensky results confirmed continuity of both the
Merensky and the UG2 reefs. The Merensky results match the previous drilling
results while the infill UG2 results show both improved average 4E grade (by
approximately 0.9g/t 4E) and reef thickness over previous results.
The Company is encouraged by these results to date and has initiated preparation
of an application to the Department of Mineral Resources ("DMR") for a Mining
Right under the Mineral and Petroleum Resources Development Act 2002 for Tjate.
Independent mining industry consultant Snowden is currently modelling the data.
These results and their impact on current resource estimate and drill spacing
recommendation for stage two are expected to be reported shortly.
Phase two of Tjate`s three-phase feasibility study is progressing to schedule
and completion is targeted for end Q2.
Madagascar
The Company is shortly to commence exploratory drilling on its Ambodilafa
concession located centrally in south-east Madagascar.
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.
Contacts:
Colin Bird/Leon Coetzer
Jubilee Platinum plc
Tel +44 (0) 20 7584 2155 / Tel +27 (0)11 465 1913
Andrew Sarosi
Jubilee Platinum plc
Tel +44 (0) 1752 221937
Matthew Robinson/Rose Herbert - corporate finance
Joanna Weaving - corporate broking
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
9 March 2011
Sasfin Capital
(a division of Sasfin Bank Limited)
Date: 09/03/2011 12:30:05 Produced by the JSE SENS Department.
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