Source - RNS
RNS Number : 2209I
Jubilee Platinum PLC
15 June 2017
 

("Registration number: 4459850")

AIM share code: JLP  

AltX share code: JBL

ISIN: GB0031852162 

Jubilee Platinum Plc

("Jubilee" or "the Company")

Hernic Project Reaches Full Production

 

Hernic project operating at full production rate.

 

Jubilee is pleased to announce that its Hernic platinum and chrome processing operations ("Hernic") has achieved 100% of the design throughput of 1 900 tonnes (t) per day of chrome and platinum containing feed material equating to 55 000 t per month.

PGM concentrate production continues to ramp up commensurate with the increased production of approximately 420 ounces of PGM delivered to the refinery.

 

Leon Coetzer, Chief Executive commented:

"I am very pleased to announce that Hernic is up to full operational status. I now look forward to Jubilee receiving the financial benefits that this project will undoubtedly deliver. 

We are actively pursuing further opportunities in platinum and base metal processing and will keep the market updated on progress made in this regard."

 

Technical Sign-Off

Andrew Sarosi, Director of Jubilee, who holds a B.Sc. Metallurgy and M.Sc. Engineering, University of Witwatersrand and is a member of the Institute of Materials, Minerals and Mining, is a "qualified person" as defined under the AIM Rules for Companies and a competent person under the reporting standards. The technical parts of this announcement have been prepared under Andrew's supervision and he has approved the release of this announcement.

 

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

 

 

15 June 2017

 

Contacts

Jubilee Platinum plc

Colin Bird/Leon Coetzer
Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913
Andrew Sarosi
Tel +44 (0)1752 221937

JSE Sponsor

Sasfin Capital, a division of Sasfin Bank Limited
Sharon Owens
Tel +27 (0)11 809 7500

Nominated Adviser

SPARK Advisory Partners Limited
Sean Wyndham-Quin/Mark Brady
Tel: +44 (0) 203 368 3555

Broker

Beaufort Securities Limited
Jon Belliss
Tel: +44 (0) 20 7382 8300

 

About the Hernic Project

Hernic Ferrochrome Proprietary Limited ("Hernic") is the world's 4th largest integrated ferrochrome producer with an estimated 3 million tonnes of platinum containing material at surface while Hernic continues to add further material to the surface stock.

The Company was selected as the exclusive party to beneficiate the chromite and PGMs contained in the Hernic Surface Material ("the Project") and address the project execution methodology as well as the operational and financial performance targets. The Project is the second of the Company's Two Projects.

The Hernic Surface Material has been independently fully drilled and assayed for chrome and PGM content. This has resulted in an independent resource statement of 1.7 million tonnes, of which approximately 90% of the resource is classified in the measured category under the internationally recognised SAMREC code. Hernic also has access to secondary surface stocks, which it has internally identified and could increase the surface stocks to in excess of 3 million tonnes through further drilling programmes. The Project is estimated to contain total PGMs in excess of 224 000 (3PGM + Au) oz.

The Project will be the largest PGM beneficiation plant of surface chrome tailings in South Africa and is capable of producing annual revenues of GBP 18.2 million (ZAR 400 million*) at an average metal basket price of USD 906 per (3PGM + Au) per oz. The financial and operational risks of the Project are significantly mitigated since the material is already at surface and requires neither the cost nor the risk associated with mining.

An extensive prefeasibility study has been concluded on the Project, which included both pilot scale and full commercial scale trials to confirm the design and operational parameters.

The Project is to be undertaken in four phases over an 11 month period; namely

· Phase one - Bankable Feasibility Study and Engineering Design. - Completed.

· Phase two - Construction of the chrome and platinum processing plant ("Processing Plant"). - Completed.

· Phase three - Commissioning and Ramp up of Processing Plant to design capacity of 55 000 tonnes per month. - Completed.

· Phase Four - Stable operation of the Processing Plant.

 

The Company has targeted a combined processing of platinum containing surface material over the two projects in excess of 900 000 tonnes per annum.

The ZAR-based debt funding for both surface projects equates to GBP 11.5 million (ZAR 255 million*) before financing costs. The working capital required to bring the two surface projects into operation and to achieve positive earnings is estimated at GBP 3.4 million (ZAR 75 million*).

*=Conversion as at the commencement of the Project

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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