| Wed 13 Jun 2012, 8:00 | | JBL - Jubilee - Jubilee awarded rights to Platinum-Bearing Chromite Tailings |
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JBL
JUJLP
JBL - Jubilee - Jubilee awarded rights to Platinum-Bearing Chromite Tailings
JUBILEE PLATINUM PLC
AIM: JLP
JSE: JBL
Registration number: 4459850
ISIN GB0031852162
("Jubilee" or the "Company")
JUBILEE AWARDED RIGHTS TO PLATINUM-BEARING CHROMITE TAILINGS
Jubilee, the AIM listed and JSE quoted mine-to-metal specialist is pleased to
report that the Company has been awarded the rights to recover Platinum-group
elements ("PGE"s) from high PGE-bearing dumped chromite tailings ("Dump
Tailings") and chromite tailings from current and future operations ("Mine
Arisings"), on the Dilokong Chromite Mine ("DCM") in the Eastern Bushveld of
South Africa. This award represents a major advance in the Company`s mine-to-
metal strategy utilising its ConRoast process.
This award is subject inter alia to final due diligence, the finalisation of
contract and related service agreements and relevant regulatory approvals. A
further announcement will be made in due course.
HIGHLIGHTS
- The Dump Tailings are believed to assay between 3.5 and 4.0 g/t PGEs and to
contain between 90,000 and 100,000 ozs PGEs.
- PGEs in concentrate production are projected to peak at some 12,900 oz per
year when treating Dump Tailings and Mine Arisings.
- Average revenue from PGEs over an 11-year project model is projected to be
ZAR67 million per year with revenue expected to peak at ZAR97 million per year
when treating both Dump Tailings and Mine Arisings.
Leon Coetzer, CEO of Jubilee Platinum commented: "This award of contract is a
major advancement in the fulfilment of Jubilee`s mine-to-metal strategy and will
facilitate the Company`s medium term mission to install its new direct current
arc furnace for ConRoast. Jubilee`s ConRoast process will be ideally suited to
the smelting and refining of the PGE concentrates recovered from the Dump
Tailings and from other chromite ores and historic dumps of chromite waste. This
illustrates the versatility of the ConRoast process."
Jubilee has been awarded the rights to beneficiate and recover contained PGEs
from approximately 800 000 tonnes of historic Dump Tailings and from
approximately 8,000 up to 15,000 tonnes per month of Mine Arisings from the DCM
operation.
Under the award, the Company proposes to create a special purpose company in
which Jubilee will hold an initial 67.5% interest with the option to increase
its holding. Jubilee will assume responsibility for initial funding of the
project, with the other shareholders` contributions being recovered by Jubilee
from dividends.
Dump Tailings treatment rate is projected to peak at 20 000 tonnes per month
(240 000 tonnes per year) for six years (life of Dump Tailings) and thereafter
will depend on the tonnes per month from Mine Arisings.
The Platinum to Palladium ratio of the contained PGEs is believed to be around
2.8 to 1, a potentially favourable ratio for the project`s economics.
The capital cost of the PGE tailings beneficiation plant (including chrome
recovery) is estimated at ZAR120 million. The project offers a strong project
financing opportunity to minimising the need for additional equity funding.
Editor`s note
The DCM and ferrochrome smelter operation located approximately 30 kilometres
from Burgersfort and 125 kilometres south of Polokwane on the eastern rim of the
Bushveld Igneous Complex is wholly owned by ASA Metals Pty Ltd, a joint venture
between Eastern Asia Metals Investment Co Ltd from China and the Limpopo
Economic Development Enterprise ("LIMDEV") an agency of the Limpopo Provincial
Government in South Africa. Corridor Mining Resources (Pty) Ltd ("CMR") a wholly
owned subsidiary of LIMDEV holds the PGE mining rights to the Dump Tailings and
Mine Arisings.
Andrew Sarosi, Technical Director of Jubilee, 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
Jubilee Platinum plc
Colin Bird/Leon Coetzer/Andrew Sarosi
Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913/+44 (0) 1752 221937
finnCap Ltd
Matthew Robinson/Ben Thompson - corporate finance
Joanna Weaving - corporate broking
Tel +44 (0) 20 7220 0500
Shore Capital Stockbrokers Limited (Joint Broker)
Jerry Keen/ Edward Mansfield
Tel: +44 (0) 20 7 408 4090
Sasfin Capital
Leonard Eiser /Sharon Owens
Tel +27 (0) 11 809 7500
Bishopsgate Communications Ltd
Nick Rome/Shabnam Bashir
Tel +44 (0) 20 7562 3350
Johannesburg
13 June 2012
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 13/06/2012 08:00:03 Produced by the JSE SENS Department.
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