Jubilee, a diversified metals producer with operations in South Africa and Zambia has concluded successfully the extensive processing trials at its Roan Concentrator (Roan).
The production results confirm Jubilee’s leading technical capabilities to process successfully high-grade shallow transitional copper reefs, previously deemed as waste or too complex by many operators.
Pursuant to the successful result of this trial, the company has entered into a long-term feedstock supply agreement at Roan with production commencing this week.
The development marks a critical step in advancing the company’s copper strategy and, together with the progress in its mining projects, provides the groundwork for a stable copper production profile moving forward.
“Our work in the recent months has involved continued progress in dedicating our existing processing capacity at Roan to the higher-grade mined material (ROM and stockpiles) predominantly in the transitional zones, deemed as waste or too complex by many operators.
“This material contains significantly higher copper grades than the tailings held within Jubilee’s portfolio and is of particular interest against the appreciating copper prices. Our copper operational focus that prioritises the run of mine, historically mined, and stockpiled materials, closely resembles the business evolution of our South Africa chrome and PGM operations, where today our world class processing capacity is dedicated to run of mine and previously mined material, with tailings instead traded to other partners,” said Leon Coetzer, Chief Executive Officer of Jubilee
He said the trials over the past eight weeks have affirmed Roan’s unique capabilities to process transitional copper reefs which are available in vast quantities both at surface and in near surface mining operations.
“We are excited to have commenced production under the new supply agreements and will provide more clear guidance as soon as we have sufficient operational data under the supply agreement in the coming weeks.”
Jubilee aims to monetise assets deemed as non-core, by divesting where fit and appropriate, to help deliver not only cash for growth, but the ability to further sharpen focus that the rationalisation will allow.
“We continue to pursue aggressively further near surface mining opportunities on the back of the success achieved at the Munkoyo operations and the potential offered by Project G, with execution of two further option agreements.”
The has also concluded the sale of one of non-core waste assets for a combined consideration of US$12.3 million as part of a review of the company’s portfolio in Zambia.
“We remain committed to scaling our operations in a non-dilutive, capital-efficient and sustainable manner as we advance toward our medium-term production targets.”
