Jubilee Metals Group PLC said on Tuesday it had secured one of the largest copper waste rock assets in Zambia and formed a strategic partnership that will invest in this ‘significant’ dump.
The London-based metal processing company with projects in South Africa and Zambia estimates the waste rock material on surface at more than 350 million tonnes.
Jubilee shares rose 4.7% to 5.53 pence each on Tuesday morning in London. In Johannesburg, they rose 10% to R 1.39 each.
Overall project costs, including mining equipment and project infrastructure, are likely to be around $50 million, Julilee said.
The metal processing firm said it has signed a binding funding term sheet with Abu Dhabi-based International Resources Holding RSC to form a dedicated special purpose vehicle through which both the acquisition of the copper waste rock asset and implementation of the processing solution will be funded.
International Resources is affiliated to the Abu Dhabi conglomerate, International Holding Company PJSC.
Jubilee said it will be appointed by the special purpose vehicle to design, implement and operate the mining and processing solution.
Early results from preliminary surface sampling indicate zones with grades higher than 1.5% copper, Jubilee said, noting that its team has started ‘extensive’ resource definition and process technical review with the aim of completing the project implementation detail and timeline within the next 60 days.
Jubilee said it has the capability to construct and commission all modular copper units within 12 months and aims to commence in the first quarter next year.
It said its newly developed modular copper units aims to produce in excess of 20,000 tonnes per annum of copper at a cost of below $4,000 per tonne of copper from this historical waste rock dump.
‘The transaction marks a significant milestone on our journey in Zambia, catapulting our copper expansion in the region. The Waste Rock Project, anchored by this substantial resource, will fast-track the rollout of our modular copper processing units in the country with the potential to far exceed our goal of reaching 25,000 tonnes of copper per annum,’ Jubilee Chief Executive Officer Leon Coetzer said.
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