| Mon 20 Jun 2011, 11:00 | | JBL - Jubilee - Voluntary Announcement: Company Update |
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JBL
JUJLP
JBL - Jubilee - Voluntary Announcement: Company Update
Jubilee Platinum PLC
AIM: JLP
JSE: JBL
Registration number: 4459850
ISIN GB0031852162
("Jubilee" or the "Company")
VOLUNTARY ANNOUNCEMENT: Company Update
Jubilee Platinum, the AIM and JSE quoted mine to metal specialist, is pleased to
provide the following Company update.
HIGHLIGHTS
- Commissioning activities of new 5MW ferroalloy furnace at Middelburg has
commenced. Capacity remains fully contracted
-Tjate Platinum Corporation ("Tjate") submits Application for Mining Right to
the Department of Mineral Resources ("DMR").
-Jubilee is reviewing investment proposals to fund, to completion, Tjate`s
prefeasibility and bankable feasibility studies
-Jubilee signs a binding Memorandum of Understanding ("MOU") with Chemstof (Pty)
Ltd ("Chemstof") to acquire an operating mining and chrome beneficiation plant
from which it plans to expand its near surface platinum mining strategy
-Jubilee`s Braemore Platinum Resources (Pty Ltd) has submitted applications for
both PGM and Chrome prospecting rights for some 69 farms near the town of Brits
in the western Bushveld Igneous Complex
-The farms, which are prospective for near- or at-surface platinum bearing
chromite reefs are strategically underpinned by the ConRoast process
Leon Coetzer, CEO of Jubilee Platinum commented:
"Jubilee continues to make significant progress in the implementation of its
mine to metals strategy. It has been a meticulous process to ensure that we
hold all the components to implement this strategy which has included securing
infrastructure, electrical power and smelting capacity. The commissioning of
the new 5MW furnace at the Middelburg processing facility will significantly
enhance the company`s near term revenue generation. We are now able to fully
capitalise on our unique processing abilities through our access to the ConRoast
process, such as our focus on near surface platinum bearing chrome reefs. This
affords Jubilee near term access to own platinum for our processing plant in
Middelburg while we continue the development of the Tjate project in the longer
term."
Middelburg Smelting Facility
The continued strong demand for the processing of ferroalloys, in particular
ferronickel motivated the decision to construct a new 5MW ferroalloy furnace at
Middelburg. This builds upon the existing two 2.5MW Arc furnaces that are
currently operational on site.
This 5 MW furnace forms part of the first phase of expansion at the Middelburg
ferroalloy smelting facility. Commissioning activities have commenced with the
first alloy production expected during the first week of July. The new 5 MW
furnace effectively doubles the existing ARC furnace capacity on site. The
furnace`s targeted throughput is initially set for 1700 tonnes per month of feed
material before ramping up to 2200 tonnes per month. This planned capacity of
the new furnace is fully contracted out. The furnace will make a significant
contribution to the company`s growing revenue stream with expected revenue from
the 5 MW furnace of ZAR5.5 million per month.
Tjate Project
Tjate submitted an application for a mining right to the Department of Mineral
Resources in mid June. On acceptance of the application by the DMR, the
Company anticipates commencing with the requisite Scoping Report and
Environmental Impact Assessment, for which tenders have been obtained.
Jubilee is currently reviewing a proposal for a third party investment into the
Tjate project to fund the project to full bankability and potentially acquiring
an indirect interest in the Tjate project through part funding of the
development program. This proposal is in-line with renewed global interest in
new platinum mining projects and is testament to the quality of the Tjate
project.
New PGM-Chrome Properties
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 which would enable the
processing of own platinum concentrates through its Middelburg facility.
Processing of own platinum concentrates significantly enhances the business
model for Jubilee. As previously announced (5 April 2011 and updated 12 April
2011) Jubilee has entered into a binding MOU with Chemstof to acquire an
operating chrome mining and beneficiation entity. The acquisition is targeted
to form the foundation from which Jubilee seeks to expand its near surface
mining strategy. Jubilee holds a strong competitive advantage over its peers to
extract the platinum group metals ("PGM`s") from these chrome rich ore bodies
due to its exclusive access to the ConRoast process.
Braemore Platinum Resources (Pty Ltd) (BRR) (a subsidiary of Jubilee) has
submitted applications for PGM and Chrome prospecting rights for a further 69
farms in the western Bushveld Igneous Complex. The majority of the farms are
located near the town of Brits. BRR is a Black Empowered entity ("BEE") with the
BEE entity Sub Sahara Resources (Pty) Ltd holding 51% and Jubilee 49% interest
in the company.
Corporate developments
Jubilee has recently announced that preliminary merger and acquisition
discussions have been ended due to prevailing market conditions. Separate
discussions for both a strategic funding partner on the Tjate project as well as
the near surface chrome and platinum mining strategy have been initiated with
unrelated third parties.
Both the Northam Platinum and Sylvania Resources joint venture discussions are
advancing under the current Memorandums of Understanding.
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
Johannesburg
20 June 2011
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 20/06/2011 11:00:40 Produced by the JSE SENS Department.
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