Mining outfit Jubilee Metals (JLP:AIM) gained 12.4% to 15.35p as it effectively secured the missing processing capacity to take it to the 25,000 tonnes per year of copper production it has been targeting in Zambia.
Today's gain takes the one-year advance for Jubilee shares to nearly 190% as it moves closer to taking full advantage of its opportunities in Zambia.
In its own words, Jubilee focuses on 'the retreatment and metals recovery from mine tailings, waste, slag, slurry and other secondary materials generated from mining operations’.
The company has agreed a venture with Mopani Copper Mines to create additional Zambian copper and cobalt refining capacity.
The terms of project will see Jubilee refine copper and cobalt produced at its Kitwe and Luanshya cobalt and copper tailings in Mopani's processing facilities in the north of the country.
In turn, Jubilee's Sable refinery in the south will refine concentrates produced at its in-development Roan project, set for commissioning in November, and copper tailings at Kabwe.
This will increase capacity by 17,000 tonnes, taking the total to more than 31,000 tonnes per year, well in excess of the 25,000 tonnes targeted.
Jubilee CEO Leon Coetzer commented: ‘The agreement will see Jubilee refurbish and expand some of Mopani's processing facilities currently not in use and removes the need to build a new processing facility to process the nearby tailings deposits we secured last year.
‘This agreement with Mopani directly improves both our expected project timelines and required project capital while reducing overall project risk through the access offered to existing refining infrastructure.’
