(Sharecast News) - Jubilee Metals Group reported on the latest advancements at its chrome joint venture in South Africa on Monday, as well as the expansion of the Roan Concentrator in Zambia.
The AIM-traded firm announced the completion of the successful upgrade and commissioning of an existing brownfield processing facility on the western limb of the Bushveld Complex, which had achieved its targeted operational output.
Following an on 6 June, the long-term chrome processing partnership was expected to provide a potential surge in chrome processing capacity.
The increase was aimed at 360,000 tonnes per annum, targeting an additional 200,000 tonnes of chrome concentrate.
Additionally, that would enhance Inyoni's profile by adding an extra 10,000 platinum group metals (PGM) ounces annually.
Given the favourable chrome prices and robust market support, the expansion of chrome operations was described as timely.
The company reported a trade of 24,500 tonnes of the newly-produced final chrome product, and anticipated trading an additional 17,000 tonnes of metallurgical grade each month.
That was forecast to contribute an extra 60,000 tonnes of chrome concentrate and 4,000 PGM ounces by the half-year ending December.
Additionally, Jubilee said it was currently in the advanced stages of discussions to finalise another partnership agreement.
The new partnership would target an increase in processing capacity by 600,000 tonnes per annum.
Jubilee meanwhile said it had made significant strides in its copper expansion strategy, with progress ahead of its initial schedule.
All the essential long-lead items required for the Roan upgrade had been secured, and the equipment delivery and on-site assembly were slated for early September, while commissioning was set to start in October.
Once the Roan upgrade was complete, it would have the capability to process a diverse range of run-of-mine and waste sources.
Furthermore, Jubilee said it had secured a supplementary six-year copper run-of-mine supply at Roan, given the targeted operational expansion.
The supply agreement aimed at a minimum supply of 2% total copper grades of previously-mined material.
Jubilee said the freshly-designed modular Roan front-end presented an opportunity to swiftly introduce satellite modular units, which would be designed to enhance remote feed sources for further refining - a business model analogous to the chrome sector.
The company also revealed positive outcomes from the Northern refining process trials, which were designed to gauge the potential of waste and non-conventional ore opportunities.
It said the trials surpassed the expected copper recoveries from historical tailings materials.
As a result, there was an immediate start for the implementation of a semi-commercial pilot facility at the Luanshya tailings facility, which was set for completion within the next 12 weeks.
In conclusion, the pilot trials - focussing on feed batches of around 500 tonnes each - would help to validate the design assumptions on the scalability of the process flowsheet.
That step would be paramount in finalising the design for a full-scale operational solution, Jubilee explained.
"Our chrome production units form a vital part of the South African business' profitability and cost competitiveness, especially at a time when chrome prices are particularly strong, and this largely offsets the weakness in the PGM basket price," said chief executive officer Leon Coetzer.
"The strength and robustness of our diversified metal focus is best demonstrated during such volatility in metal prices where both chrome and copper are seeing strong price support, offsetting the weakness in both PGMs and cobalt.
"The expansion of our chrome operations intends to take advantage of price support in the market for chrome, coupled with our continued strong operational performance."
Coetzer said the upgrade of the Roan concentrator formed a vital link to the processing solution for the much larger Northern Refining solution, and would set a new standard in the processing of mixed copper ores in Zambia.
"The upgrade incorporates both the technical developments and lessons learnt from our South African operations as well as key breakthroughs in the processing of these weathered ores that many regard as too complex and reject the material as waste.
"I am particularly excited by the results achieved from our Northern Refinery trials.
"The copper recoveries exceeded our expectations and confirmed the potential of the process route that we are developing."
That process solution offered "tremendous potential" to deploy a low-cost efficient copper processing solution for the vast historical tails in Zambia, Leon Coetzer explained.
"We have agreed to immediately progress with the implementation of a bulk pilot facility to confirm scaling of the process as a key input into the design of our large-scale process facility.
"Results from the pilot trials which target feed batches of approximately 500 tonnes at a time will be used to confirm the design assumptions on scalability of the process flowsheet to confirm final plant unit sizes.
"Jubilee is on an exciting growth path both in South Africa on the back of its proven operational success, as well as in Zambia reaching the completion of the in-depth development work for the design of our copper tailings processing solution."
At 0836 BST, shares in Jubilee Metals Group were up 3.53% at 6.57p.
Reporting by Josh White for Sharecast.com.
Jubilee Metals (JLP)