LONDON: South African and Zambian metals producer, Jubilee Metals Group, reports significant progress in the implementation of its Integrated Copper Strategy in Zambia. The company has achieved key milestones in both its Roan operations and copper resource acquisitions.

Roan Operation:

• Jubilee has secured an additional off-take agreement for stockpiled low-grade mined material (LG Material) to support the expanded Roan operations.
  • The LG Material undergoes upgrading at the source before further processing at Roan.
  • Upgrading of this material has already begun in preparation for the ramp-up at Roan.
• The Roan Upgrade project has completed construction, and operational readiness testing is underway.
  • The electrical control system (ECS), initially delayed, is now being tested for final implementation by July 2024.
• Jubilee’s team is actively pre-processing targeted feed material destined for Roan, anticipating an accelerated commissioning and ramp-up in July 2024.

Copper Resource Transactions:

• Jubilee has concluded two copper resource transactions involving operating open-pit mines with near-surface copper material.
  • These acquisitions significantly enhance Jubilee’s copper resource base and align with the expansion plans for the Sable refinery.
  • The goal is to achieve 16,000 tons per annum (tpa) of copper.
• The acquisitions include:
  • Project M: Material delivery to Sable has commenced three months ahead of schedule. The project aims to reach 25,000 tons per month (tpm) at a grade of 3-4% Cu by Q3 CY2024, with a project life expectancy exceeding 8 years.
  • Project G: An operating open-pit copper mine targeting a ramp-up to 20,000 tpm at a grade of 3-4% Cu by Q4 CY2024, with a substantial operational life.

Jubilee’s strategic moves position the company for continued growth and success in the copper sector.

Leon Coetzer, CEO commented: “It has taken a concerted effort by the team to reach this critical point in the commissioning of the Roan Upgrade. I look forward to the team completing an accelerated commissioning and ramp-up of operations during the coming month.

The Roan Upgrade together with our Sable refinery offers Jubilee tremendous processing flexibility and affords us the unique opportunity to aggressively pursue copper resources that are unlocked by this capability.

The strategic acquisition of the two open-pit operations is an example of our ability to leverage our process capability to secure significant near-surface copper resources already in operation. Zambia holds numerous similar resource opportunities which we are actively pursuing.

Our offering to our resource partners incorporates a sustainable approach to mining and recovery of metals, which ensures lasting value to our stakeholders and distinguishes Jubilee from many potential competitors. The opportunity set is particularly large and capable of driving Jubilee’s future copper production well beyond the initial 25 000tpa target.

I am also pleased to report that our copper production is on track to meet our revised copper guidance of 3 250 to 4 000 tonnes.”

Integrated Copper Strategy in Zambia

The Integrated Copper Strategy is enabled by Jubilee’s proven ability to extract value from materials often regarded by the industry as either waste or too complex to extract economically through the traditional methods.

The targeted copper resources are classed into three groups namely:

§ Tailings and partially processed discarded low-grade materials (Previously Processed Material);

§ Stockpiled LG Material; and

§ Near surface copper reef that is accessible through open-pit mining.

All three categories are held in vast quantities within Zambia, offering Jubilee the opportunity to further upscale its operations through targeted acquisitions of these resources. Jubilee has actively pursued the three copper resource groups to grow its copper portfolio as an enabler to drive the expansion of its processing and operational footprint in Zambia. The success in securing these targeted resources has afforded Jubilee the opportunity to transition Sable into a dedicated refiner for the processing of material from open-pit operations, while the upgraded Roan will be processing predominantly LG Material and Previously Processed Materials. 

At completion an upgraded and expanded Sable and Roan will operate as independent operations. With Sable at full capacity from open-pit operations, Roan will have the flexibility to either trade its copper-bearing concentrate on the open market or, subject to capital allocation, further expand to incorporate downstream refining of its concentrate. The targeted combined processing capacity of approximately 25 000tpa of copper is achieved by an expanded Sable at 16 000tpa and Roan at 8 000 to 9 000tpa (depending on feed grades) of copper.

The previously announced Waste Rock Project transaction falls within the LG Material grouping which Jubilee is executing in partnership with IRH based in Abu Dhabi. The project is currently undergoing further resource drilling and process testing as part of an independent technical and processing study being conducted by the joint project team.

Roan Upgrade

The construction activities for the upgrade of the Roan Operations have been completed with the ECS currently undergoing final testing before completing its installation during July 2024. The Jubilee team has commenced with the operational readiness testing of equipment at Roan to fast track the ramp-up period post commissioning.

As part of the commissioning and preparation of the Roan project, the Jubilee team has commenced with the processing and upgrade of the targeted LG Material which will be further processed at Roan’s new front end section to produce copper concentrates. Roan will predominantly process LG Material that is upgraded at source and further processed at Roan, while Roan’s unique flexibility allows the simultaneous processing of Previously Processed Material.

The capital allocation review and decision to incorporate downstream refining at Roan to supplement Sable’s refinery capacity, is expected during October 2024.

Copper Resource Transactions

Jubilee has executed three transactions to secure further copper resources which underpins the continued expansion of the Jubilee copper processing footprint in Zambia. As previously announced on 18 April 2024, Jubilee has secured an option, which it has now exercised, to secure a majority ownership in two open-pit copper mines.

The first transaction comprises an offtake agreement securing LG Material for the processing and recovery of copper at the newly upgraded Roan Operations. Under this agreement, Jubilee has secured the exclusive right as the sole off-taker of the LG Material. The material will be pre-processed at its current location to upgrade the copper content before being transported to Roan for further processing. This additional offtake agreement for Roan ensures that the capacity of the expanded Roan Operations is fully secured in advance for the next 3 to 5 years. The upgrade of this LG Material has already commenced in anticipation of the commissioning and ramp-up of the expanded Roan Operations.

The further two transactions involve the acquisition of a majority ownership in two operational open-pit copper mines. Both opportunities have undergone a rigorous review, which included the processing of the material at Sable to confirm the expected recovery of copper. Jubilee has agreed to issue shares in Jubilee in consideration for the acquisition to align the interests of the current owners to Jubilee’s long-term copper strategy in Zambia.

Jubilee has already commenced with operations at both opportunities with delivery of extracted material expected to ramp-up to a targeted 45 000 tonnes of material with an expected grade of 3-4% Cu during Q3 CY2024. Project M has exceeded expectations with first copper material delivery to Sable already commencing in June 2024, 3 months ahead of the original schedule. 

Jubilee aims to install a satellite upgrade facility near both operations over the coming twelve months as part of its strategy to operate regional material upgrade facilities prior to refining.

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