Jubilee Metals Group PLC (AIM:JLP, JSE:JBL, OTC:JUBPF) is on an "exciting growth path", according to chief executive Leon Coetzer, as the metals group updated on its chrome joint venture in South Africa and the growth of its Roan Concentrator in Zambia.
On the former, the company said it has successfully upgraded and commissioned a brownfield processing facility on the western limb of the Bushveld Complex, achieving its targeted operational output.
Increased capacity
As revealed on June 6, the chrome processing partnership is set to bolster the chrome processing capacity by 360,000 tonnes annually.
This move is expected to add 200,000 tonnes of chrome concentrate and 10,000 platinum group metal (PGM) ounces each year to Inyoni's profile.
The expansion is timely, given favourable chrome prices and robust market support. Jubilee has already traded 24,500 tonnes of the new chrome product and anticipates trading an additional 17,000 tonnes of metallurgical grade every month.
By the close of December, this is projected to contribute an extra 60,000 tonnes of chrome concentrate and 4,000 PGM ounces.
Advanced discussions
Furthermore, the firm is in advanced discussions to ink a new partnership agreement, targeting an additional 600,000 tonnes of processing capacity annually.
Turning to Zambia, Jubilee's copper expansion strategy is advancing ahead of schedule. All major components for the Roan upgrade have been procured, with equipment delivery and on-site assembly slated for early September.
The commissioning of the facility remains on track for October 2023. Once the upgrade is complete, Roan can process a diverse range of ROM and waste materials. In line with the expansion, Jubilee has secured a six-year copper run of mine (ROM) supply at Roan, targeting previously mined material with a minimum of 2% total copper grades.
New supply
This new supply is projected to account for approximately 60% of Roan's total capacity. Notably, Roan's innovative design will enable the swift deployment of modular units, facilitating refining at distant sources, a strategy reminiscent of the company's chrome business model.
Finally, refining process trials in the Northern region have yielded promising results, particularly in copper recoveries from historical tailings. These trials, underpinned by three years of research and development, sought a cost-effective solution to generate high-grade copper concentrate.
Encouraged by the findings, Jubilee is gearing up to initiate a semi-commercial pilot facility at the Luanshya tailings site within the next 12 weeks.
Design validated
Outcomes from these pilot trials will be instrumental in validating design assumptions and finalising plant unit sizes, marking a significant step towards a comprehensive operational solution.
"Jubilee is on an exciting growth path both in South Africa on the back of its proven operational success, as well as in Zambia reaching the completion of the in-depth development work for the design of our copper tailings processing solution," said CEO Leon Coetzer.
"I look forward to providing further updates as the project reaches completion and I am excited about the potential it offers Jubilee."