Jubilee Metals Group has announced that in line with its stated strategy to expand operations in Zambia, it has signed a Joint Venture Agreement with a private Zambian company securing the rights to process 2 Mt copper Run-Of-Mine material containing in excess of 2% copper.
Under the JV Agreement, there is a further potential to increase the supply of copper ore to approximately 4 million tonnes with an additional 2.5 Mt of copper containing tailings available for processing.
The Project will target the near-term production of copper concentrate through a dedicated newly constructed copper concentrating facility for which Jubilee has completed the design for the construction at a targeted Brownfield site adjacent to the tailings.
The Processing Facility will be commissioned in two phases with the first copper concentrate and revenues expected within four months.
Leon Coetzer, CEO of Jubilee, comments:
“This JV Agreement offers tremendous earnings potential for Jubilee. The Project has been a key target for Jubilee to drive the ramp-up in our copper production while we are implementing our previously announced Project Elephant.
“This transaction complements the already secured large copper resource and will provide us with earnings in the near term. The earnings of this Project is further bolstered when we commence the processing of the 150 Mt of tailings secured under Project Elephant, allowing us to expand and fill to capacity, over the long term, our Sable Refinery.
“The combination of easily accessible large surface resources, together with a fully operational copper refinery, offers us the potential to replicate, at a larger scale, the success Jubilee is achieving with its PGM and Chrome operations in South Africa.
“Our exceptional in-house processing and metals recovery abilities are core to this success.
“For Jubilee to have entered into this JV Agreement so soon after announcing Project Elephant is testament to a period of intensive work by our team and I would like to thank everyone for their efforts.
“We have already completed the designs for our Processing Facility and engaged with key equipment suppliers to accelerate the implementation of Project Roan. I am confident that we are able to fund the capital required for the Project from our own strong cash reserves and our ability to raise project debt.
“Our innovative designs allow us to commence production of the first copper concentrate within four months while we complete the remainder of the Processing Facility to ramp-up to full capacity over the following eight months. The additional copper units this Project brings to our Sable Refinery ensures we are able to maintain a strong margin for our copper cathode.”