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Jubilee Executes Further Key Copper Cobalt Tailings Transactions in Zambia
Jubilee Metals Group PLC
Registration number (4459850)
Altx share code: JBL
AIM share code: JLP
ISIN: GB0031852162
("Jubilee" or "the Company" or “the Group”)
Jubilee Executes Further Key Copper Cobalt Tailings Transactions Nearly Doubling its Rights to
Copper Tailings in Zambia
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Jubilee Metals Group ("Jubilee" or the “Company"), the AIM and Altx traded metals processing
company, is pleased to announce that it has successfully concluded further copper tailings transactions
to secure the rights to an additional approximately 115 million tonnes of copper and cobalt containing
surface tailings in Zambia (the “Tailings”). These transactions are in line with its stated strategy to
expand operations in the country and are in addition to the already approximately 155 million tonnes
secured, as announced previously, significantly contributing to future sustained earnings.
Jubilee has secured the exclusive processing rights to the material through its subsidiary Braemore
Platinum Limited (“Braemore”) by entering into tailings supply and process development agreements
(the “Agreements”) with a number of privately held entities who collectively hold both the mining rights
to the tailings and the property title on which the tailings are located (the “Tailings Partners”). The
Agreements include both the formation of a development partnership with a well-established Zambian
private entity who has invested in securing various tailings assets, as well as securing the rights to the
processing of the Tailings from the resource owners.
The Agreements secure Braemore the exclusive right to process the approximately 115 million tonnes
of copper containing tailings through the implementation of a copper and cobalt processing facility (the
“Project”). In addition, the Project benefits from detailed resource analyses and vast historical process
test programmes performed by the Tailings Partners through the appointment of various independent
well established consulting firms. This affords Jubilee the opportunity to interpret these results and
incorporate its in-house expertise and IP to significantly accelerate the Project development cycle.
Jubilee’s secured pipeline of copper projects in Zambia to date places the Company on track to deliver
its stated objective to expand its copper producing capacity to in excess of the equivalent of 25 000
tonnes of copper units per annum.
Highlights
• Jubilee nearly doubles its access to secured copper and cobalt tailings to reach an approximate
270 million tonnes
• The Agreements secure the rights to an additional approximate 115 million tonnes of copper
containing tailings located within a 50 km radius from Jubilee’s Project Elephant and within the
Kitwe area
• The additional Tailings offer the potential to double the targeted production profile for Project
Elephant estimated at 12 000 tonnes of copper units per annum in addition to Project Roan,
currently under construction
• The close proximity of all of the projects offers the potential to integrate components of the
processing facilities, which could offer significant capital savings
• The Agreements places Jubilee on track to deliver its objective of reaching 25 000 tonnes of
copper units per annum
• This implementation of these Agreements combined with Jubilee’s existing copper projects, will
establish Jubilee as a leading copper producer from historical tailings alone
• The Tailings have been previously drilled and sampled to confirm both content and size
containing on average 0.3% copper and 0.05% cobalt
• The combined magnitude of the total secured copper tailings resources and related projects,
together with Jubilee’s Sable Refinery, offers the potential to deliver long term sustained quality
earnings making a significant contribution to Jubilee’s existing earnings from its PGM and
chrome operations in South Africa
• The Sable Refinery is operationally ready and able to significantly enhance its capacity alongside
the expected production build up, without incurring any significant new capital expenditure
Leon Coetzer, CEO of Jubilee, commented: “These Agreements, together with the previous rights to
material already secured, have resulted in Jubilee having access to an extensive copper and cobalt
containing resource, which importantly is at surface and able to generate long term quality earnings.
The implementation of our Zambian copper strategy has been carefully designed and aggressively
pursued by the Jubilee team in a very short amount of time. It targets to rapidly replicate at a much
larger scale our success achieved in the re-processing of PGM and chrome tails.
“We have, within 14 months of establishing our presence in Zambia, approximately 270 million tonnes
of copper tailings and commissioned a fully operational copper refinery with the ability to expand the
refinery into multi metal products.
“The formation of the development partnership with the Tailings Partners stems from the recognition of
Jubilee as the optimal partner to bring to fruition these copper and cobalt tailings. In addition, the
partnership affords the Jubilee team the opportunity to apply their know-how to the body of information
developed from the extensive drilling campaigns and analytical test programmes undertaken over
several years.
“These Agreements put us on track to play a commanding role in the processing of surface tailings in
Zambia by applying our proven technical know-how and IP. As I have stated before, Zambia contains
vast quantities of copper tailings requiring Jubilee’s skills to unlock the opportunities and value. We have
been working alongside leading institutions to review these opportunities and are now perfectly poised
to play a commanding role in this area. We have demonstrated our ability to combine the rehabilitation
of these historical tailings with the commercial extraction of the contained metals, thereby turning
liabilities into commercial ventures.”
Re-cap of Jubilee’s Strategy in Zambia
Vital to Jubilee’s strategy is its commitment to ensuring that there is a significant reduction in the
environmental hazard and waste left behind from centuries of mining activity, and Zambia is a focal
point of concern relating to this mine waste exposure. Using Jubilee’s proprietary knowledge and
expertise in physical and chemical processing this clean-up can be incentivised by extracting the metals
contained at attractive cash margins, before re-depositing the tailings in an environmentally secure
tailings facility, minimising the future impact.
In August 2019, Jubilee established its first fully integrated multi-metal recovery and refining
operational footprint in Zambia with the acquisition of the multi-metal Sable Refinery, adjacent to the
Company’s Kabwe tailings resource, marking a significant milestone in the Company’s international roll-
out strategy, as well as widening its commodity exposure. The acquisition served as an entry point for
Jubilee into Zambia, presenting the Company with a very well-placed platform from which to pursue the
various base metal opportunities presented by the country and to begin actively engaging with third
party suppliers to develop strategic partnerships as part of the expansion of the Integrated Kabwe
Operations.
The Board and management see a significant opportunity to expand operations in the country,
particularly in copper, where there is a large supply of on-surface waste material. Jubilee’s
implementation of its copper strategy is centred around its in-house proven ability to pre-concentrate
and extract value from tailings resources. The systematic implementation of the strategy includes; the
commissioning of the copper refinery circuit; processing tails owned by Sable Refinery to produce
copper cathode; entering into third party ore supply offtake agreements; securing exclusive access to
vast surface copper tailings resources. Jubilee is in addition working with the Zambian authorities,
reviewing further copper tailings in the Country which the Company expects will create a number of
opportunities for further expansion of operations in Zambia.
The Company’s highly experienced technical and operational teams plan to construct a copper
concentrator at the tailings resource to produce two separate concentrates for both the acid soluble
copper oxides and the sulphide associated copper. This facility enables the Project to process copper
tailings previously regarded as uneconomical.
Key Terms of the Agreements
Jubilee, through its subsidiary Braemore, has secured the exclusive processing rights to approximately
115 million tonnes of copper and cobalt containing tailings, located within a 50 km radius from Jubilee’s
Project Elephant, through the Agreements with the Tailings Partners. Under the terms of the
Agreements, Braemore secures the exclusive right to gain free unrestricted access to the tailings
resources and to uplift and process the tailings to recover copper and cobalt for on-sale into the market.
Braemore is appointed as the exclusive operator and solution provider to bring to account the Tailings.
In recognition of this right afforded to Braemore, the Tailings Partners are entitled to a future earnings
share from the processing of their respective tailings by Braemore ranging from 17% to 30%. Such
earnings share includes a capital charge allocated to each Tailings Partner by Braemore in respect of the
capital expended by Braemore for the implementation and commissioning of the processing facility for
the respective Tailings.
An extensive drilling and sampling programme has been concluded over the Tailings, as well as several
detailed process testing programmes over the past years, with various internationally recognised
engineering firms. The drill program has been independently verified and confirms an indicated
resource of 100 million tonnes containing 0.3% copper and 0.05% cobalt, with a further 14 million
tonnes classed as an inferred resource. This body of information offers a tremendous opportunity to
fast track the development of the Project under Jubilee’s guidance by applying its in-house IP and
technical expertise to complete an appropriate project design and implementation strategy.
The partnership with the Tailings Partners affords Braemore immediate access to the information
derived from numerous sampling and test campaigns undertaken by the Tailings Partners, as well as
their continued support in the implementation of the Project. In part recognition of the investment
undertaken by the Tailings Partners, Braemore has in addition agreed to a milestone based investment
in relation to the development of the Project. The Agreements combine Jubilee’s proven track record
of implementing and operating projects through its in-house expertise, with established and locally
respected presence in Zambia of the Tailings Partners.
The Project is strategically located close to Jubilee’s existing 150 million tonnes of tailings (Project
Elephant), offering the further potential to optimise the Project, by in part integrating the two projects
allowing for significant potential capital savings. Jubilee is targeting to complete the project scoping and
design phase within six months, during which time Jubilee’s Project Roan is expected to reach full
production and Project Elephant will be commencing its construction phase. Jubilee has targeted to
fund the capitalisation of its Zambian copper projects through a combination of its own cash reserves
and accessing non-dilutive project funding from leading institutions by leveraging off Jubilee’s strong
balance sheet. Jubilee is well progressed with the discussions to secure the targeted project funding and
will provide further updates in this regard in due course.
United Kingdom
5 November 2020
For further information visit www.jubileemetalsgroup.com or contact:
Jubilee Metals Group PLC
Colin Bird/Leon Coetzer
Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913
Nominated Adviser - SPARK Advisory Partners Limited
Andrew Emmott/James Keeshan
Tel: +44 (0) 20 3368 3555
Broker - Shard Capital Partners LLP
Damon Heath/Erik Woolgar
Tel +44 (0) 20 7186 9900
Joint Broker – WHIreland
Harry Ansell/Katy Mitchell
Tel: +44 (0) 20 7220 1670/+44 (0) 113 394 6618
JSE Sponsor - Sasfin Capital (a member of the Sasfin group)
Sharon Owens
Tel +27 (0) 11 809 7500
PR & IR Adviser - St Brides Partners Limited
Catherine Leftley/Beth Melluish
Tel +44 (0) 20 7236 1177
Date: 05-11-2020 10:00:00
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