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Jubilee Metals making solid progress at Kabwe Project

By Josh White

Date: Tuesday 17 Sep 2019

Jubilee Metals making solid progress at Kabwe Project

(Sharecast News) - Metals processing company Jubilee Metals Group updated the market on its Kabwe Project in Zambia on Tuesday, reporting that the existing copper leaching circuit had been brought on-line to process historical copper tailings as well as third party-sourced run-of-mine material, targeting the first plated copper cathode metal production during the early parts of the fourth quarter.

The AIM-traded firm said the ramp-up of the copper circuit remained on track, targeting 250 tonnes of plated copper cathode per month during the first quarter of 2020, before stepping up to reach 400 tonnes per month from the second quarter, which the board said would result in early project cash flows during the construction of the zinc and vanadium refining circuits.

It explained that the project was continuing to receive "keen interests" from small to medium mining operations offering third-party copper material for further refining, which was in-line with its vision of establishing Sable Refinery as a preferred regional refining hub.

The zinc and vanadium circuit, meanwhile, was primarily constructed for the processing of the Kabwe tailings material, with the board saying it was targeting the production of 8,000 tonnes of zinc and 1,500 tonnes of vanadium pentoxide per annum.

It said completion of the zinc circuit remained on track for the second quarter of 2020, with the vanadium circuit following during the third quarter.

The company said it was fully-funded to execute the project.

"We have hit the ground running since acquiring the Sable Refinery and the commencement of operations is a major step towards the implementation of the project," said Jubilee Metals chief executive officer Leon Coetzer.

"Kabwe represents an ideal example of where we can implement our bespoke multi-metal recovery processes to generate significant returns on capital investment, in tandem with addressing the environmental challenges caused by the historic tailings in the area.

"Our work onsite and offsite, which includes funding to establish metallurgical centres of excellence in the country, establishes our operational footprint in Zambia and demonstrates our commitment to local business and the environment."

Coetzer said that, with the company's experience, it could deliver both of those results quickly.

"We have rapid development timelines aiming to produce first copper cathode in the fourth quarter of 2019, with first zinc concentrates and commercial grade vanadium products in the second quarter of 2020 and early in the third quarter.

"Lead concentrates will follow the completion of the zinc and vanadium circuit with first production targeted for the fourth quarter of 2020.

"The Kabwe project is expected to deliver strong operational margins on the back of a multi metal recovery strategy delivered at a single refinery.

Zambia had a "rich history" of copper mining and a huge amount of potential in the mining waste processing space, Coetzer added.

"The acquisition of Kabwe acts as both an entry point for Jubilee into the country, and a potentially highly profitable operation on which to base further acquisitions as we look to establish further centres of processing excellence within Zambia, which target processing of a variety of surface assets, all the while fulfilling local environmental obligations.

"I am extremely excited by the progress we are making at Kabwe, which demonstrates to shareholders our ability to implement our strategy of diversifying earnings across multiple commodities and jurisdictions."


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