Jubilee Metals acquires PGM material in the Eastern Limb, SA
Jubilee, a leader in metals processing with operations in Africa, has announced acquisitions of strategic PGM tailings and an update at its South African chrome and PGM operations.
The Company has entered into a further long-term, 10+ years of mine life, PGM feed supply agreement with a chrome mining customer, thereby expanding its PGM Operations to the Eastern Limb of the PGM-rich Bushveld Complex. In addition, Jubilee has acquired outright 255 000 tonnes of PGM containing chrome tailings further increasing Jubilee’s existing surface PGM tailings.
Leon Coetzer, CEO of Jubilee, commented: “To date, Jubilee’s current PGM operational footprint has been largely limited to the Western Limb of the mineral rich Bushveld complex, a single area of the two main PGM areas in South Africa This new long term PGM Supply Agreement announced today are of significant strategic value to Jubilee and expand our operations onto the Eastern Limb which provides the platform to source further growth opportunities.
“The new supply agreement also demonstrates our ability to win and form partnerships with key chrome mining clients, added to which we are excited to replicate the success of our Inyoni operation in the Eastern Limb region.
“We have already demonstrated that the improved efficiencies across our chrome and PGM operations resulted in record production and sustained earnings growth at the South African operations and we expect this to continue at pace. With a total processing capacity of 250 000 tonnes per month of chrome ore and tailings, this will play a key role in providing a continued sustained chrome and PGM feed.”
The PGM Supply Agreements are all based on the LG6 chrome reef known for its high Rhodium content accounting for approximately 12 % of a produced PGM ounce compared with as low as 7 % of other chrome reefs.
The PGM Supply Agreement has secured the rights to long term PGM feed supply of an estimated 16 500 tonnes per month with the potential of producing up to 14 500 PGM ounces per annum. The plan is to initially process the increased PGM feed at Jubilee’s expanded Inyoni PGM Operations targeted for July 2021 however consideration is being given to implementing a dedicated processing facility in the Eastern Limb. The PGM Supply Agreement offers a minority earnings participation to the Chrome Mine partner allowing them exposure to the PGM values which also enhances their earnings potential. They also demonstrate Jubilee’s ability to continue to grow its business by re-investing its earnings into high growth projects and by forming true partnerships with its chrome mining customers.
In addition to the PGM Supply Agreement, Jubilee has also acquired outright a further 255 000 tonnes of PGM containing chrome tailings (equivalent to approximate production of 12 300 PGM ounces) produced from the processing of LG6 chrome reefs which further increases Jubilee’s existing surface PGM tailings.
