JOHANNESBURG (miningweekly.com) – Dual-listed Jubilee Platinum’s Hernic project continues to successfully ramp up its production and is expected to reach full design capacity of 45 000 t/m of feed material by June.

The project produced its first commercial platinum concentrate in March.

Steady state production is set at 1 100 t/m of platinum concentrate containing 100 g/t platinum, palladium, rhodium and gold (4E) platinum-group metals (PGMs), which is being achieved and exceeds the contracted grade by 20%.

The hydraulic mining of the tailings feed material to the chromite and PGM recovery plant is expected to be commissioned over the next ten days.

This mining technique entails reclaiming the plant feed material from the existing tailings dams using high-pressure water guns instead of the current mechanical (excavator) reclamation operation.

Jubilee expects to conclude the ramp-up of the production to the plant on the back of the commissioning of the hydraulic-mining step.

“I am particularly gratified with the way our team tackled the Hernic project, which was delivered on time and budget. The scale of the Hernic project represents a real challenge as a small developing company and the outcome demonstrates our readiness to embark on other similar size or larger projects,” Jubilee CEO Leon Coetzer commented in a statement.

He added that the commissioning and ramp-up of the Hernic chromite and platinum recovery plant had shown “great progress, reaching 74% of designed throughput”.

“We look forward to ramping up production to full capacity over the coming weeks as we bring the final processing unit on line . . . Already the platinum and chrome processing plants have met the commercial specifications for both the platinum and chrome concentrates produced,” Coetzer stated.

At full production, the project is expected to be the largest PGM beneficiation plant of surface chrome tailings in South Africa, targeting the processing of 55 000 t/m of chrome- and PGM-rich material, Mining Weekly Online reported in March.

DILOKONG CHROME MINE
Further, the Dilokong chrome mine (DCM) has returned to its targeted operational output, following the successful commissioning of the expanded upgraded chrome tailings storage facility for the enriched PGM material. Chromite concentrate production reached 14 973 t in the first quarter of this year.

The earnings attributable to Jubilee for the first quarter from chromite concentrate production was up 10.87% year-on-year to £408 000. 

“Although the project revenue has been impacted by a declining chromite price, Jubilee's attributable earnings from chromite recovery have been buffered by the toll processing agreement of the material,” Coetzer commented.

PLATCRO PGM PROJECT
Jubilee’s new PlatCro PGM project has advanced, with the first £1.16-million upfront payment made for the PGM related royalties. 

Jubilee in March signed an agreement with PlatCro for the acquisition of new 4E PGM bearing surface material at PlatCro’s property, as well as all future surface material at PlatCro.

The existing surface material is estimated at 1.25-million tonnes with an estimated grade of 2.7 g/t 4E PGMs. The payment secured Jubilee the sole right to earnings from all PlatCro project's future platinum-bearing material.

The surface material is located within trucking distance of the Hernic operation, thereby offering the opportunity to process the additional material at the company's existing Hernic plant for PGM recovery. Jubilee also holds the option to acquire property located adjacent to the surface material for the construction of a dedicated platinum processing plant, if deemed appropriate, and at Jubilee's election.

The final payment for the existing surface PGMs is subject to the completion of the surface drill programme and receiving regulatory approval to start with the processing of the PGMs.

TJATE PROJECT
As announced on March 30, Tjate Platinum Corporation notarially executed a mining right granted by the Department of Mineral Resources in respect of the project, in Limpopo.

Tjate is reviewing the mine works programme and associated technical design criteria to conclude the updated design criteria as soon as possible and initiate applications for utility licences as soon as possible.

The current project design includes the establishment of a mine targeting 132-million tonnes of ore containing 22.3-million ounces of 4E PGMs (indicated and inferred) and associated platinum concentrating facility targeting 310 000 oz/y of 4E PGMs.

The design resource represents one-third of Tjate's targetable exploration potential of 70-million ounces of 7E PGMs, which comprise 4E PGMs, iridium, ruthenium and osmium, before geological losses.

“The significant milestone reached with the Tjate platinum project continues to demonstrate our aggressive pursuit to continuously advance the company's mission of a mines-to-metals company while growing shareholder value,” Coetzer said in the statement.

The project scope and linked mine work programme for the Tjate project is being updated, which will define the development strategy for the project.

RESILIENCE MINING AUSTRALIA COPPER TAILINGS PROJECT
Also announced on March 30, Jubilee executed a binding and exclusive term sheet to enter into a transaction with Resilience Mining Australia (RMA) to explore and develop RMA's Leigh Creek copper mine (LCCM) and other copper mining tenements, collectively owned or held by LCCM. Jubilee has requested an extension of the due diligence period to the end of this month.

The due diligence includes completion of RMA’s proposals for the design of a bulk sample trial on existing fresh surface copper-containing material to confirm the technical performance criteria of the selected process.

Subject to the successful conclusion of the due diligence, Jubilee expects the bulk sample trial to start in July.

Coetzer noted that final review of the scheduled bulk trials was under way. “The project offers the potential of a rapid project start-up to start producing copper from at- and near-surface resources, leveraging off Jubilee's processing expertise,” he stated.

“Our new business development is advancing at an encouraging pace and we are confident that we can make further acquisitions to complement our existing projects and extend our brand and capabilities into other global surface projects," Coetzer stated.