Jubilee Metals Group PLC (LSE: JLP; JSE: JBL) announced significant progress in its Integrated Copper Strategy in Zambia.
The company has acquired two near-surface copper mining operations, enhancing its resource base.
Roan Operation Upgrade
Jubilee has completed the civil and mechanical construction of the Roan Upgrade.
Commissioning activities have commenced, with the electrical control system (ECS) undergoing testing.
Operational readiness testing is underway, with an accelerated ramp-up expected in July 2024.
New Off-Take Agreement
Jubilee secured a new off-take agreement for stockpiled low-grade mined material (LG Material).
The LG Material is upgraded at source before further processing at Roan.
Upgrading of this material has started in preparation for the ramp-up at Roan.
Copper Resource Transactions
Jubilee has concluded two copper resource transactions involving operating open-pit mines.
These acquisitions significantly increase Jubilee’s copper resource base.
| Project | Targeted Production | Expected Grade | Acquisition Cost |
|---|---|---|---|
| Project M | 25,000 tpm (Q3 2024) | 3-4% Cu | $0.25 million in cash, $1.5 million in shares |
| Project G | 20,000 tpm (Q4 2024) | 3-4% Cu | $2.1 million in shares |
Project M Details
Project M has begun delivering material to Sable three months ahead of schedule.
The project targets 25,000 tonnes per month at a grade of 3-4% copper.
It has a project life expectancy exceeding eight years.
Project G Details
Project G is an operating open-pit copper mine.
It aims to ramp up to 20,000 tonnes per month at a grade of 3-4% copper by Q4 2024.
The project’s life expectancy exceeds eight years.
Acquisition Costs
Acquisition One will be settled with $0.25 million in cash and $1.5 million in shares.
The shares will be issued at 7.81 pence per share, the 30-day volume-weighted average price.
Acquisition Two will be settled with approximately 21,135,517 new Jubilee ordinary shares.
Strategic Significance
Leon Coetzer, CEO, commented on the strategic significance of the acquisitions.
He emphasized Jubilee’s ability to leverage its processing capability to secure near-surface copper resources.
Jubilee’s approach ensures lasting value to stakeholders and distinguishes the company from competitors.
Integrated Copper Strategy in Zambia
Jubilee’s strategy is enabled by its ability to extract value from often-overlooked materials.
The targeted copper resources are categorized into three groups:
- Tailings and partially processed discarded low-grade materials (Previously Processed Material).
- Stockpiled LG Material.
- Near surface copper reef accessible through open-pit mining.
These resources are abundant in Zambia, offering opportunities for Jubilee to upscale operations.
Expansion of Sable Refinery
The acquisitions support the expansion of Jubilee’s Sable refinery, targeting 16,000 tonnes per annum of copper.
The upgraded Roan and expanded Sable will operate as independent operations.
Sable will process material from open-pit operations, while Roan will handle LG Material and Previously Processed Materials.
| Facility | Targeted Capacity | Copper Processing |
|---|---|---|
| Sable | 16,000 tpa | Open-pit operations |
| Roan | 8,000-9,000 tpa | LG Material, Previously Processed Material |
Future Prospects
Jubilee aims to install satellite upgrade facilities near both operations within twelve months.
The company’s success in securing resources supports the expansion of its copper processing footprint.
Jubilee’s copper production is on track to meet revised guidance of 3,250 to 4,000 tonnes.