Dual-listed Jubilee Metals Group has secured the rights to about 150-million tonnes of copper-containing surface tailings targeted to be upgraded at site and refined at its Sable Refinery in Zambia.
Jubilee has secured the rights to the material through its subsidiary Braemore Holdings, by entering into a joint venture agreement with the mining rights holder Star Tanganika to process the about 150-million tonnes of copper-containing tailings.
The project will target the production of copper concentrate through a dedicated new copper concentrating facility.
This project alone holds the potential to produce copper concentrates in excess of the total Sable Refinery capacity of 14 000 t/y of copper cathode.
It is the company’s objective to increase the refinery's capacity to in excess of 25 000 t/y of copper over time, based on feed sources and projects currently under review.
The magnitude of the secured copper tailings resources and related project offers a long-term sustainable earnings profile to Jubilee’s Zambian business.
Based on current operating margins maintained at the Sable Refinery for the production of copper cathode, combined with the performance of Jubilee’s large-scale piloting test programme on copper tailings, the project holds the potential to more than double Jubilee’s current earnings profile.
The project is the first of what Jubilee hopes will be a series of targeted copper tailings resources, making a substantial contribution towards the company’s strategy to achieve in excess of 25 000 t/y of copper production to deliver sustainable quality earnings.
The Sable Refinery has already successfully completed the commissioning of its copper refinery circuit producing A-grade copper cathode from tailings commanding a premium in the market.
Current production has confirmed the Sable Refinery’s ability to produce A-grade copper cathode from tails with an operating margin in excess of 35% at current prices.
The Sable Refinery is operationally ready and able to significantly enhance its capacity alongside the expected production build up without incurring any significant new capital.
Jubilee’s surface platinum group metals and chrome operations have returned to full capacity following scaled down operations during April and May in line with South Africa’s lockdown regulations.
Jubilee has maintained a strong cash position currently at R198.1-million.
Jubilee CEO Leon Coetzer says the company plans to build a copper concentrator at the tailings resource which can supply both concentrate to the Sable Refinery while selling excess concentrate into the market.
“We are well positioned to take advantage of the expected increasing need for copper as the world’s demand for cleaner energy such as electric vehicles rapidly expands,” he notes.