20 Jun Company Update
Jubilee Platinum PLC
Registration number: 4459850
(“Jubilee” or the “Company”)
VOLUNTARY ANNOUNCEMENT: Company Update
Jubilee Platinum, the AIM and JSE quoted mine to metal specialist, is pleased to provide the following Company update.
- Commissioning activities of new 5MW ferroalloy furnace at Middelburg has commenced. Capacity remains fully contracted
- Tjate Platinum Corporation (“Tjate”) submits Application for Mining Right to the Department of Mineral Resources (“DMR”).
- Jubilee is reviewing investment proposals to fund, to completion, Tjate’s prefeasibility and bankable feasibility studies
- Jubilee signs a binding Memorandum of Understanding (“MOU”) with Chemstof (Pty) Ltd (“Chemstof”) to acquire an operating mining and chrome beneficiation plant from which it plans to expand its near surface platinum mining strategy
- Jubilee’s Braemore Platinum Resources (Pty Ltd) has submitted applications for both PGM and Chrome prospecting rights for some 69 farms near the town of Brits in the western Bushveld Igneous Complex
- The farms, which are prospective for near- or at-surface platinum bearing chromite reefs are strategically underpinned by the ConRoast process
Leon Coetzer, CEO of Jubilee Platinum commented:
“Jubilee continues to make significant progress in the implementation of its mine to metals strategy. It has been a meticulous process to ensure that we hold all the components to implement this strategy which has included securing infrastructure, electrical power and smelting capacity.
“The commissioning of the new 5MW furnace at the Middelburg processing facility will significantly enhance the company’s near term revenue generation. We are now able to fully capitalise on our unique processing abilities through our access to the ConRoast process, such as our focus on near surface platinum bearing chrome reefs. This affords Jubilee near term access to own platinum for our processing plant in Middelburg while we continue the development of the Tjate project in the longer term.”
Middelburg Smelting Facility
The continued strong demand for the processing of ferroalloys, in particular ferronickel motivated the decision to construct a new 5MW ferroalloy furnace at Middelburg. This builds upon the existing two 2.5MW Arc furnaces that are currently operational on site.
This 5 MW furnace forms part of the first phase of expansion at the Middelburg ferroalloy smelting facility. Commissioning activities have commenced with the first alloy production expected during the first week of July. The new 5 MW furnace effectively doubles the existing ARC furnace capacity on site. The furnace’s targeted throughput is initially set for 1700 tonnes per month of feed material before ramping up to 2200 tonnes per month. This planned capacity of the new furnace is fully contracted out. The furnace will make a significant contribution to the company’s growing revenue stream with expected revenue from the 5 MW furnace of ZAR5.5 million per month.
Tjate submitted an application for a mining right to the Department of Mineral Resources in mid June. On acceptance of the application by the DMR, the Company anticipates commencing with the requisite Scoping Report and Environmental Impact Assessment, for which tenders have been obtained.
Jubilee is currently reviewing a proposal for a third party investment into the Tjate project to fund the project to full bankability and potentially acquiring an indirect interest in the Tjate project through part funding of the development program. This proposal is in-line with renewed global interest in new platinum mining projects and is testament to the quality of the Tjate project.
New PGM-Chrome Properties
Numerous small-scale near term, mining opportunities are being presented to Jubilee due to its ability to process platinum concentrates containing high chrome values. Jubilee is reviewing these opportunities which would enable the processing of own platinum concentrates through its Middelburg facility. Processing of own platinum concentrates significantly enhances the business model for Jubilee. As previously announced (5 April 2011 and updated 12 April 2011) Jubilee has entered into a binding MOU with Chemstof to acquire an operating chrome mining and beneficiation entity. The acquisition is targeted to form the foundation from which Jubilee seeks to expand its near surface mining strategy. Jubilee holds a strong competitive advantage over its peers to extract the platinum group metals (“PGM’s”) from these chrome rich ore bodies due to its exclusive access to the ConRoast process.
Braemore Platinum Resources (Pty Ltd) (BRR) (a subsidiary of Jubilee) has submitted applications for PGM and Chrome prospecting rights for a further 69 farms in the western Bushveld Igneous Complex. The majority of the farms are located near the town of Brits. BRR is a Black Empowered entity (“BEE”) with the BEE entity Sub Sahara Resources (Pty) Ltd holding 51% and Jubilee 49% interest in the company.
Jubilee has recently announced that preliminary merger and acquisition discussions have been ended due to prevailing market conditions. Separate discussions for both a strategic funding partner on the Tjate project as well as the near surface chrome and platinum mining strategy have been initiated with unrelated third parties.
Both the Northam Platinum and Sylvania Resources joint venture discussions are advancing under the current Memorandum of Understandings.
Colin Bird/Leon Coetzer
Jubilee Platinum plc
Tel +44 (0) 20 7584 2155 / Tel +27 (0)11 465 1913
Jubilee Platinum plc
Tel +44 (0) 1752 221937
Matthew Robinson/Rose Herbert – corporate finance
Joanna Weaving – corporate broking
Tel +44 (0) 20 7600 1658
Leonard Eiser /Sharon Owens
Tel +27 (0) 11 809 7500
Michael Kinirons/Nick Rome
Bishopsgate Communications Ltd
Tel +44 (0) 20 7562 3350