Wrap Text
Market update
Jubilee Platinum Plc
(“Registration number: 4459850”)
AIM share code: JLP
AltX share code: JBL
ISIN: GB0031852162
(“Jubilee” or “the Company”)
Market Update
Highlights
HERNIC
First commercial platinum concentrate production in March 2017 with production ramp-up
continuing
Platinum concentrate achieving 100g/t 4E PGMs (platinum, palladium, rhodium and gold)- 20%
above contractual grade
Targeting steady state production of 1100 tonnes of platinum concentrate per month
Full design throughput expected to be reached during June 2017 on completion of the hydraulic-
mining process to reclaim the feed material from the surface platinum stocks
DILOKONG CHROME MINE
Earnings attributable to Jubilee for Q1 2017 from chromite concentrate production up 10.87% to
GBP 0.408 million (ZAR 6.66 million) compared with Q4 2016
Chromite concentrate production reached 14 973 tonnes and production rates have been restored
to previous levels following successful expansion of the new tailings facility
PLATCRO
Jubilee executes the first payment of GBP 1.16 million (ZAR 22.8 million) as an upfront payment of all
related future royalties to the PGMs. The payment was funded from the proceeds of a placing
recently concluded by Jubilee as announced on 17 March 2017. The existing surface material at
PlatCro is estimated at 1.25 million t with an estimated grade of 2.7 g/t 4E PGMs. The payment
secures Jubilee the sole right to future earnings from the platinum-bearing material.
LEIGH CREEK COPPER MINE PROJECT
Jubilee is finalising its due diligence (“DD”) on the Leigh Creek Copper Mine (“LCCM”) project
Completion of the DD is expected by the end of May 2017.
TJATE DEVELOPING MINE PROJECT
Tjate notarially excutes the granting of its Mining Right
Commenced review of the project’s mine works program and associated technical design criteria
Leon Coetzer, Chief Executive commented:
“I am very pleased with the progress being made in all aspects of the company’s performance
including project build, operations and new business development.
I am particularly gratified with the way our team tackled the Hernic project, which was delivered on
time and budget. The scale of the Hernic Project represents a real challenge as a small developing
company and the outcome demonstrates our readiness to embark on other similar size or larger
projects. The commissioning and ramp-up of the Hernic chromite and platinum recovery plant has
shown great progress reaching 74% of designed throughput. We look forward to ramping up
production to full capacity over the coming weeks as we bring on-line the final processing unit which
is the hydraulic mining of the feed material. Already the platinum and chrome processing plants
have met the commercial specifications for both the platinum and chrome concentrates produced.
The DCM project is again producing back at its previous levels following the commissioning of the
expanded tailings storage facility for the enriched platinum material. Our new PlatCro PGM project
has advanced with the first upfront payment being made for the PGM’ related royalties. The
payment secures Jubilee the sole right to future earnings from the platinum-bearing material. The
final payment will fall due once regulatory approval is received to commence processing of the
platinum-bearing material.
Our due diligence of the Australian-based surface copper project is concluding soon with final review
of the schedule bulk trials underway. The project offers the potential of a rapid project start-up to
commence producing copper from at and near surface resources, leveraging off Jubilee’s processing
expertise.
The significant milestone reached with the Tjate platinum project continues to demonstrate our
aggressive pursuit to continuously advance the Company’s mission of a Mines to Metals Company
while growing shareholder value. The project scope and linked mine work program for the Tjate
project is being updated which will define the development strategy for the project.
Our new business development is advancing at an encouraging pace and we are confident that we
can make further acquisitions to complement our existing projects and extend our brand and
capabilities into other global surface projects.”
Hernic Ferrochrome Platinum and Chrome Tailings Operation (“HERNIC”)
The Hernic project continues successfully to ramp-up its production. The project is expected to reach
full design capacity of 45 000 tonnes per month of feed material by June 2017. The project produced
its first commercial platinum concentrate in March 2017. The project targets a steady state
production of 1100 tons of platinum concentrate per month containing 100 g/t 4E PGMs, which is
being achieved and exceeds the contracted grade by 20%.
The remaining project item still to be commissioned is the hydraulic mining of the tailings feed
material to the chromite and PGM recovery plant (“Plant”). The Hydraulic-mining step is expected
to be commissioned over the next 10 days. This mining techniques entails reclaiming the Plant feed-
material from the existing tailings dams using high pressure water guns instead of the current
mechanical (excavator) reclamation operation. Jubilee expects to conclude the ramp-up of the
production to the Plant on the back of the commissioning of the hydraulic-mining step.
Dilokong Chrome Mine Platinum and Chrome Tailings Operation (“DCM”)
DCM has returned to its targeted operational output following the successful commissioning of the
expanded upgraded chrome tailings storage facility for the enriched PGM material. Although the
project revenue has been impacted by a declining chromite price, Jubilee’s attributable earnings
from chromite recovery has been buffered by the toll processing agreement of the material.
Below is a table presenting the operational performance of the DCM project for Q1 2017.
Jubilee Jubilee Jubilee
Chromite Jubilee working
Project Project Project Project attributable attributable working
concentrate capital loan
revenue revenue earnings earnings operational operational capital loan
tonnes repayments
(GBP’000) * (ZAR’000) (GBP’000) (ZAR’000) earnings earnings repayments
produced (ZAR’000)
(GBP’000) (ZAR’000) (GBP’000)
Total Q4 2016 19 108 2,754 47,662 1,837 31,792 368 6,367 97 1,667
Total Q1 2017 14 973 3,372 55,223 2,407 39,400 408 6,664 - -
Total since
project
77,828 9,214 159,382 6,535 113,097 2,120 39,295 375 6 667
commencement
in April 2016
*= Converted at the monthly average GBP: ZAR conversion rate
PlatCro Platinum and Chrome Tailings Project
As announced on 30 March 2017, the Company executed a Framework and Processing of Tailings
Agreement (“the Agreement”) with PlatCro in March 2017 for the acquisition of new 4E PGM-
bearing surface material existing at PlatCro as well as all future surface material at PlatCro.
Jubilee executed the first payment of GBP 1.16 million (ZAR 20 million) as part of the PlatCro project.
The PlatCro project includes the upfront acquisition of all PGMs contained in surface material as
well as future PGMs from further processing and mining operations. The existing surface material is
estimated at 1.25 million tonnes with an estimated grade of 2.7 g/t 4E PGMs. The payment secured
Jubilee the sole right to earnings from all Platcro project’s future platinum bearing material.
The surface material is located within trucking distance of the Hernic operation, thereby offering the
opportunity to process the additional material at the Company’s existing Hernic plant for PGM
recovery. Jubilee also holds the option to acquire property located adjacent to the surface material
for the construction of a dedicated platinum processing plant, if deemed appropriate, and at
Jubilee’s election.
The final payment for the existing surface PGMs is subject to the completion of the surface drill
program and receiving regulatory approval to commence with the processing of the PGMs.
Resilience Mining Australia Copper Tailings Project (“RMA”)
As announced on 30 March 2017, Jubilee executed a binding and exclusive Term Sheet to enter into
a transaction ("the Proposed Transaction") with RMA to explore and develop RMA's LCCM and other
copper Mining Tenements, collectively owned or held by LCCM Proprietary Limited. The Proposed
Transaction is subject to conditions precedent including satisfactory due diligence and/or to entering
into the transactional agreement.
Jubilee has requested an extension of the DD period to the end of May 2017 to conclude the DD of
the copper project. The DD includes completion of RMA’s proposals for the design of a bulk sample
trial on existing fresh surface copper-containing material to confirm the technical performance
criteria of the selected process. Subject to the successful conclusion of the DD, Jubilee expects the
bulk sample trial to commence in July 2017.
Tjate developing mine project
As announced on 30 March 2017, Tjate Platinum Corporation notarially executed a mining right
(“Mining Right”) granted by the Department of Mineral Resources in respect of the Project
comprising the Farms Dsjate 249 KT, Fernkloof 539 KS and Quartzhill 542 KS, situated in the
Magisterial District of Sekhukhune in the Limpopo Province of South Africa.
Tjate is reviewing the mine works program and associated technical design criteria in order to
conclude the updated design criteria as soon as possible and initiate applications for utility licences
as soon as possible.
The current project design includes the establishment of a mine targeting 132 million tonnes of ore
containing 22.3 million oz 4E PGMs (indicated and inferred) and associated platinum concentrating
facility targeting 310 000 oz 4E PGMs per annum. The design resource represents one third of
Tjate’s targetable exploration potential of 70 million oz 7E PGMs* before geological losses.
7E PGM = 4E PGM plus iridium, ruthenium and osmium
Technical Sign-Off
Andrew Sarosi, 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's supervision and he has approved the
release of this announcement.
This announcement contains inside information for the purposes of Article 7 of EU Regulation
596/2014.
Contacts
Jubilee Platinum plc
Colin Bird/Leon Coetzer
Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913
Andrew Sarosi
Tel +44 (0)1752 221937
JSE Sponsor
Sasfin Capital, a division of Sasfin Bank Limited
Sharon Owens
Tel +27 (0)11 809 7500
Nominated Adviser
SPARK Advisory Partners Limited
Sean Wyndham-Quin/Mark Brady
Tel: +44 (0) 203 368 3555
Broker
Beaufort Securities Limited
Jon Belliss
Tel: +44 (0) 20 7382 8300
United Kingdom
9 May 2017
JSE Sponsor
Sasfin Capital, a division of Sasfin Bank Limited
Date: 09/05/2017 10:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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