(Alliance News) – Jubilee Metals Group on Thursday said it has secured rights to around 150 million tonnes of copper-containing surface tailings which will be upgraded at site and refined at its Sable refinery in Zambia.

The company is dual-listed and has its headquarters in London. Its shares in Johannesburg were up 2.5% at ZAR0.83, while they were up 3.7% in London at 3.79 pence.

These rights were secured through Jubilee subsidiary Braemore Holdings Prop Ltd though it is entering into a joint venture agreement with mining rights holder Star Tanganika Ltd to process the tailings.

Further, a dedicated new copper concentrating facility will produce the copper concentrate, with the project having potential to produce copper concentrates exceeding the entire Sable refiner capacity of 14,000 tonnes per annum of copper cathode.

Jubilee plans to increase Sable’s capacity to more than 25,000 tonnes per annum over time.

According to the metals processing firm: “Based on current operating margins maintained at the Sable refinery for the production of copper cathode, combined with the performance of Jubilee’s large scale piloting test program on copper tailings, the project holds the potential to more than double Jubilee’s current earnings profile.”

This is the first in a planned series of targeted copper tailing resources, with current production having already confirmed the refiner’s ability to produce A-grade copper cathode from tailings with an operating margin of more than 35% based on current prices.

At present, Jubilee’s cash position stands at GBP9.2 million after the settlement of platinum group metal and chrome rights acquired in November 2019 plus historical debt of GBP2.0 million.

Chief Executive Leon Coetzer said: “This agreement with Tanganika is in line with our strategy to take a leading role in the processing of surface tailings in Zambia by applying our proven technical know-how and IP. Zambia contains vast quantities of copper tailings requiring Jubilee’s skills to unlock these opportunities and having worked alongside leading institutions to review these, Jubilee is now perfectly poised to play a commanding role in this area.

“We plan to construct a copper concentrator at the tailings resource which can supply both concentrate to the Sable refinery while selling excess concentrate into the market. We are well-positioned to take advantage of the expected increasing need for copper as the world’s demand for cleaner energy such as electric vehicle rapidly expands.”

Coetzer added: “I am looking forward to updating our shareholders on our zinc project as soon as we have better clarity on our ability to restart the construction of this project under current restrictions.”

By Anna Farley; annafarley@alliancenews.com

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