Victor
CommoditiesCompany NewsCopperMarketsNewsProjectsSouthern Africa

Jubilee Metals concludes due diligence of Project G in Zambia

Highlights
  • Project G Agreement implemented to secure an increased 65% interest in the operations
  • Project G targeted to commence operations and delivery of pre-concentrated run-of-mine to the Sable Refinery by December 2024
  • Resource drilling program currently underway, targeting a potential increase of production to 20 000 to 25 000 tonnes of ROM ore per month

Jubilee Metals Group, a diversified metals producer with operations in Zambia and South Africa, has provided a further update on the roll-out of its Copper Strategy in Zambia which is centred around achieving an initial production capacity target of 25 000 tonnes of copper per year.

The Company has successfully concluded its due diligence of Project G, an open pit copper mining operation in Zambia and has elected to acquire a majority interest in Project G under revised terms increasing the Company’s holding to 65% from 51%, as previously announced on 21 August 2024. Project G marks the second open-pit copper operation acquired in Zambia following the implementation of Project Munkoyo.

In addition, the Company is pleased to announce that it has increased the allocation of power under the recently announced (23 September 2024) private power purchase agreement to secure an additional 2MW of power in order to ensure that all of the Zambian operations are fully supplied under the LHPC agreement. The increased power allocation allows the Roan Concentrator to operate at full capacity in respect of its newly commissioned front-end module and its existing milling and floatation plant. The Company’s Zambian operations have now fully transitioned its power requirements onto renewable energy sources.

Advertisement
Invincible Valves

Leon Coetzer, CEO of Jubilee:

“I am pleased to announce this transaction as our second open-pit mining operation in Zambia. As I mentioned when we first announced these proposed acquisitions, the strategic acquisition of two open-pit operations serves as an example of our ability to leverage our process capability and early mover advantage to secure significant near-surface copper resources which are already in operation.

These assets’ predictable, high grades and our ability to owner manage the operations allowing us to control the optimal blend of feed ore to achieve the 25 000 tonne per annum copper target we have set for ourselves.

Zambia holds numerous similar near surface resource opportunities which we are actively pursuing.

We are equally pleased to have converted our entire power supply requirement to renewable energy in the form of hydro and solar power in future which is vital for the green energy transition to ensure that the copper we produce has as low a carbon footprint as possible.”

Zambian copper strategy

The increased processing capacity of 25 000 tonnes of copper per annum will be achieved through the upgraded Roan and the second copper tank house addition to Sable.

The Sable upgrade is currently underway and expected to be fully integrated into the existing operations over the next 10 months. The Company’s focus is now shifting towards bringing secured copper resources into full production to fully utilise this upgraded capacity.

Copper resources

Open pit mining operations

Project G is the second open-pit mining operation acquired by Jubilee. The Company’s due diligence included full-scale processing trials at the Sable Refinery. Under the transaction agreement Jubilee is appointed manager and operator of the open-pit operations. Under the Agreement Jubilee will pay a total of US$2 million dollars of which US$1 million payment is deferred until after the transfer of the mining licences. Additionally, Jubilee has committed to invest a minimum of US$500 000 into the expansion and development of the operations.

The project plan for Project G targets to expand the existing open-pit operations to achieve an initial mining rate of 10 000 tonnes per month by February 2025. Project G includes an on-site upgrading facility capable of pre-concentrating the mined ROM material with an immediate capacity to produce 3 000 tonnes of copper concentrate per month, containing 10% to 15% copper. The lower grade copper reef will initially be stockpiled at source for future processing through the targeted regional processing hub.

Project G and Project Munkoyo open-pit mines are located within 55 kilometres of the Sable. Project Munkoyo commenced operations in July 2024 and continues to ramp up to an initial target of 15 000 tonnes per month of ROM of which 5 000 tonnes per month are to be delivered directly to Sable for refining. Project Munkoyo remains on track to reach its initial target of 15 000 tonnes per month mined ROM ore by December 2024.

A resource drilling program is currently underway and, depending on the confirmation of resource continuity, will target an increase of production to 20-25 000 tonnes of ROM ore per month.

Want more stuff like this?

Join over 65, 400 subscribers and receive our weekly eNewsletter!

Please tick the News Alerts you wish to receive:

Staff Writer

The African Mining Market is a source of insightful information on mining & industrial markets, and developments in Africa.
Back to top button