Jubilee Metals Group 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.
According to media reports, 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, said that the agreement offers tremendous earnings potential for Jubilee. He further added that the project has been a key target for Jubilee to drive the ramp-up in their copper production while implementing their previously announced Project Elephant.
According to Coetzer, this transaction complements the already secured large copper resource and will provide Jubilee with earnings in the near term. The earnings of this Project is further bolstered when they commence the processing of the 150 Mt of tailings secured under Project Elephant, allowing them to expand and fill to capacity, over the long term, their Sable Refinery.
Further, the combination of easily accessible large surface resources, together with a fully operational copper refinery, offers Jubilee the potential to replicate, at a larger scale, the success the company is achieving with its PGM and Chrome operations in South Africa.
Jubilee has reportedly completed the designs for our Processing Facility and engaged with key equipment suppliers to accelerate the implementation of Project Roan. Coetzer also expressed confidence in Jubilee’s ability to fund the capital required for the Project from their cash reserves and ability to raise project debt.
