Jubilee secures further supply of chrome and PGM ROM feed

Jubilee Metals Group, a metals processing company, has announced that it has executed a processing agreement whereby Jubilee has been appointed as operator to re-commission and operate the existing run of mine chrome beneficiation plant adjacent to its Inyoni Operations.

The Processing Agreement is backed by a guaranteed supply of a minimum of 40 000 tonnes per month of chrome and PGM containing ROM which has the potential to be increased to 80 000 tonnes per month.

The PGM bearing tails produced by the Chrome Plant will be further processed at Jubilee’s adjacent Inyoni PGM recovery plant. The PGM rich tails, which will be produced under the Processing Agreement and supplied to Inyoni, are in addition to the existing PGM tailings resources already owned by Jubilee and the PGM tails produced by its Windsor operations.

The Processing Agreement not only significantly extends the life of the existing PGM resource but also offers the potential for Jubilee to significantly expand its Inyoni Operations.

Leon Coetzer, CEO of Jubilee, commented: “Jubilee has, through the Processing Agreement, further strengthened the sustainability of its operating capacity and earnings base in South Africa. Our specialist processing solution which recovers chrome and PGMs from feed materials and discard, as well as our access to unique processing solutions and intellectual property, make Jubilee an internationally recognised metals recovery company.”

“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.

“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.

“Our proven capability to maximise output through well developed and tested processing solutions sets the pace for Jubilee to secure further third party chrome material supplies. “

KEY TERMS OF THE PROCESSING AGREEMENT

Under the terms of the Processing Agreement, Jubilee has been appointed to operate and manage the chrome ore beneficiation plant situated adjacent to Jubilee’s Inyoni Operations at a fixed toll fee. The Processing Agreement further guarantees the supply of a minimum of 40 000 tonnes per month of ROM feed with the potential for this to be increased to 80 000 tonnes per month for an initial period of three years, and extendable by a further five years. Under the Agreement Jubilee also retains the rights to all discard material from the chrome ore beneficiation plant including all contained PGMs.

The Processing Agreement secures both a committed feed of ROM material to the Inyoni Operations as well as the continued production of upgraded PGM discard material for further processing at Jubilee’s PGM recovery plants.

As part of the Processing Agreement Jubilee will fund an estimated GBP 1.34 million (ZAR 30 million) capital required to upgrade the chrome ore beneficiation plant whereby capital plus interest will be recovered by Jubilee under a fixed charge per ROM ton processed over the first three years of the Processing Agreement. Jubilee will fund the capital required from its own cash reserves.

The additional ROM feed processed by the chrome ore beneficiation plant to firstly recover the chrome will produce new PGM enriched tailings which is fed directly to the Inyoni PGM recovery plant. To accommodate this additional PGM feed Inyoni will reduce the rate at which it is reclaiming PGM feed material solely from its existing PGM surface tailings resources, thereby extending the life of its existing PGM resources.

The additional tailings offers Jubilee the opportunity for a modest capital investment, to expand the Inyoni Operations increasing its monthly PGM ounce production to 3 500 PGM ounces per month. The designs for the expansion are currently being considered by Jubilee and if approved will be funded by the Company.

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