24th Aug 2020 12:38
(Alliance News) - Jubilee Metals Group PLC said it has signed a processing agreement with an undisclosed party, through which Jubilee will become the operator for recommissioning the run-of-mine chrome beneficiation plant next to its Inyoni operations in South Africa.
The agreement has been backed by guaranteed supply of a minimum of 40,000 tonnes of chrome and platinum group metals material per month, with the potential for this to be doubled to 80,000 tonnes per month.
As part of the processing agreement, Jubilee will fund from its existing reserves an estimated ZAR30 million, around GBP1.3 million, in capital needed to upgrade the chrome ore plant.
The capital plus interest will be recovered by the company under a fixed charge per run-of-mine tonne processed over the first three years of the processing agreement.
The additional feed to be processed by the chrome ore plant will produce new PGM-enriched tailings, which offers Jubilee the opportunity to expand the Inyoni operations, by increasing its monthly PGM ounce production to 3,500 ounces per month.
"We continue to strive toward ensuring that our operations are constantly supplied with quality feed sources allowing them to operate at full capacity, whilst at the same time significantly increasing our surface PGM resources from the discard of the chrome operations," said Chief Executive Officer Leon Coetzer.
"The processing agreement secures up to 80,000 tonnes of ROM feed for our Inyoni chrome plant for the next eight years in addition to the already 95,000 tonnes per month of chrome processing capacity secured at our Windsor chrome plant and new Windsor 8 facility as previously announced. Jubilee now has the ability to produce in excess of 90,000 tonnes of saleable chrome concentrate per month under protected operational margins and adding to its existing PGM resources."
Shares in Jubilee Metals were up 3.1% at 5.31 pence on Monday in London, while its Johannesburg shares were 1.6% higher at ZAR1.29.
By Dayo Laniyan; [email protected]
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