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It all goes through pre-processing first then Zn recovery (leaching) then the tailings go into the Pb & V recovery process. So all of the Pb and V is reatined it's just a balance of cost against extra ore processed post Zn and the cost of acid for the Zn leaching. Of course this is JLP's area of expertise so they may be able to design something different.

Either way JLP will be fine - a rosy future awaits. Next steps for me are final definition of the processes (not necessarily an RNS), pilot tests, plant tweaks, commissioning and ramp up. Slightly confused on the timescales, the Kabwe RNS stated Q3 maybe Q4 this year but I have heard LC & CB say 12 months from the purchase for the saleable metal. Hopefully the next quarterly update will clear that one up.

Visitor - the Pb and V circuits are seperate to the Zn circuit. Mixing in GLR ore has no impact upon the PB & V recovery. It does increase their costs because the tailings Tonnes are higher but negotions would not be taking place if these costs were not more than offset by higher Zn content pre processing and thus lower acid costs.

Also as previously stated - work out the processing numbers, the Zn grades and the numbers dont stack - so additional GLR ore will add to the optimum plant efficiencies and the maxium profit for both companies.

Personally I am not sure why we are all getting so hung up about GLR - if the deal works both companies will benefit, if it does not then the deal would not pass the JLP board of which CB only has one vote and is not a significant shareholder by % so cannot sway the deal to suit GLR.

I would not too hung up on who is in the top seat when it comes to negotiating. The fact remains that both companies will gain and in that situation a mutually beneficial agreement will take place.

The Star Zinc / Kashitu ore will be added prior to introducing the metal to the leach circuit. LC has already stated that they did this with the tailings pilot in order to increase the Zn grade by 50% and thus significantly reduce the amount of acid required and thus the cost per tonne of ore processed. It does not affect the PB or V circuits which are fed after the Zinc recovery circuit.

That is just one part of the equation. The Kabwe plant is able to process far more Zinc than is required for just tailing enrichment. That is also where GLR ore comes in most likely on a 50/50 basis and with Kashitu Willemite containing upto 30% Zinc is a good deal for both.

The Star Zinc or Kabwe is required due to its high grade which adds profitability to JLP by making the processing more efficient and offsetting the high cost of the acid leaching. It was always planned for the tailing plant in a initial 1:1 i.e. an equal tonnage of Star Zinc.

How this changes with Kabwe is anyones guess. If you believe CB it is about 4,000T of Zn from Star Zinc but I certainly would not put my hat on that. One thing is clear - Star Zinc / Kashitu Zinc will be used. Now if you go back with a little investigation you find that the numbers no where near stack up. Taking into account the 2 years processing rate of 40T of feed per hour, the Zn recovery then something is a mile away. In my view the PB and V2O5 numbers are about right but the Zn numbers are ultra conservative - we will produce much more and GLR may end up supplying much more.

Either way it's a win win scenario.

Yes Eyesblue, they were my numbers. Slightly less now due to the dilution and I have not checked the current phosphate prices for a while. I inputed Star Zinc or Kashitu into my model last week after spending 4-5 days going through the potential for GLR Zn to JLP - easier to read my comments on the JLP board rather than repeat them hear.

Initially i was sceptical but reading the initial plans with BMR and then backgorund on the Kabwe plant I was convinced that GLR would supply JLP (well done Minor - you had me on that one!!). Looking at the numbers I believe it will be circa 4,000T of Zinc, coincidentally or not this ties in with Colin Birds $10-$12m contribution numbers he spoke about at the investor show. My calcs show a current EPS of 0.5p on that basis or an SP in the 3p-5p range. My only provison on this is how CB funds the equipment required. Debt or finance lease should be available with an offtake agreement so with a bit of luck no dilution. I estimate that they will need circa £2m.

Very importantly it would give GLR a steady and increasing cashpile over many years to develop their other projects without risk of dilution.

So yes - a gamechanger indeed.

A very understated interview, which is always the case with Roland. The key points though are:

1) Self funding by August - backs up what he has said previously which means no more fund raises.
2) Stoping on track for 3 levels which increases output.
3) Douible shift and then 3 by year end which increases output.
4) On track for an annualised rate of 25,000Oz by 2020/2021 which should correlate to an EPS of 1.5-2.0p.
5) Main entry built at a gradient and overall dimensions to take 40T vehicles - i.e. increased output.
6) Overall aim for in excess of 50,000 Oz / year, self funded.which is over 3p per share (not double the 25,000Oz due to historical losses will have been absorbed by the time 50,000 Oz are reached so tax is payable !).
7) Drilling to continue and self funded with the aim of a 2m Oz resource.

What's not to like. At 25,000 Oz the sp is multiples of its current sp. At 50,000Oz it's more multiples again and at 2M Oz with an operating mine it's a very saleable opportunity to both our neighbours and others, most likely at £50-100m.

The other solid point here is the consistency. Unlike other Aim companies the story does not change - it's been the same for a number of years now and the company just gets on delivering on that story.

With you on that Kalan, I have Platchro surpassing Hernic this year from an earnings view point and even DCM contributing some small earnings this year. All deatiled in some very complicated spreadsheets !!

£2.8 - £3.1m for Q1 on lower PGM output but strong Platchro Chrome would be fairly positive.

Me too Kalan, I would not be too suprised if the quarterlies are late - JLP have a lot going on at the moment but by my calcs the numbers are looking good even with the slow start to Hernic.

Back to Kabwe and GLR for a quick minute though. GLR could trun out to be one of the best investment of the year. I am presuming that the Kabwe tailings came from Sable in the first place??? If so then GLR will continue with it's tailings recovery circuits and use all of GLR ore in the Sable refinery which will be modified to enhance the Zn extraction and provide easier tailings access - Win win all down the line for both JLP and GLR. Exciting times ahead and I will increase my exposure to both companies.

This statement may give us the clue to the plans:

"We will commence our initial assessment on clearly defined veins, with apparent significant strike and the potential future opportunity to commence small-scale mining supplying ore to third party processing plants"

The JLP purchase of the Sable Zn refinery also used to be a Copper and Cobalt refinery so that might be where the plans are going. I would personally not bear too much on CB's investment and options - it's very small scale and can be easily be manipulated late on to give him a larger share of the company. So for me dilution will be coming and it will hit hard. That said I can see where CB is going with this project and it links very closely into his other Zambian projects. As usual a very risky investment - most of us have been in way to early and that is still most likely the point we are at today. Maybe another year or two - one or two or more dilutions and that will be the time !!!!

Hi Kalan,

It's not a contractual obligation - that appears to be something that CB has created - the actual is below but the control appears to be with JLP to take the product if they see fit. Bear in mind that this is through EPL, a subsidiary of EML which is owned by the BMR/JLP JV !!! At the end of the day if it works commercially for JLP they will take it if it does not then they wont. It is only really relevant if you are invested in GLR or see potential there.

Personally I do think that JLP will take very high concentration ore from Kashito because JLP pilot tests were to increase the Zn grade by 50% prior to introducing to the Zn leaching circuit at Kabwe in order to provide a buffer against the high and fluctuating acid prices. As long as the ratios for PV &V still work with the JLP ore then it makes sense.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Jubilee further holds the right as part of the existing agreements with BMR to offer tolling refining services to future zinc ore from the large scale exploration rights also held under EPL. BMR has entered into a joint venture agreement with Galileo Resources to further the exploration of these assets. Initial drilling results have confirmed the potential of significant shallow zinc resources suited for further refining by the Jubilee proposed zinc recovery circuit.

https://www.youtube.com/watch?v=WtqQv_Rb-SA

Have a watch of the above video - it tells you all you need to know about how CB operates. His strategy is "retrospective" and "opportunistic" in nature. Now that is all well and good if he is using his own money but when he is using shareholders money then it is not so good - shareholders money that we just dont have.

BZT cannot bring the Zambia project even close to a saleable asset. £200k of exploration gets you quite frankly the back of a fag packet with the odd drill if you are lucky. It certainly does not get you an IP strategy, exploratory drills, block & line analysis, more drills, a PFS and finally a strategy. Think £3-5m and you are getting close. At the BZT MCap a 100% dilution would look pretty - think more like 500% and that is even if we get that far without wasting the money in it's entirety. So in no way do I assume that BZT have bought this to take it to market.

Now the copper mine may very well have some very good high content tailings. If that is the case then JLP of which CB is Chairman and who have operations in Zambia may have an interest but to date they have not commissioned a Cu tailings plant. GLR are also in Zambia - of which CB is Chairman - they have Cu assets but are currently in a precarious position themselves.

So in summary this may well be part of a masterplan - or the hope that a masterplan somehow exists from a rash purchase. The problem for us PI's is it will dilute away our shareholdings and BZT may not stand the course. personally I think CB has realised that going to the market for a fundraise on the back of Manc and Eureka would be folly so he has had to find another asset to ensure a fundraise goes through - welcome to Zambia all !!!

The only rider to my post below would be that the majority of the income and profit from Kabwe does not come from Zinc - it comes from V205 and Pb. If GLR ore does not contain the same, which it will not, then it is a question of doing the numbers and working out what adds the maximum value to JLP - Kabwe Zn,V205 &Pb Ore or a mixture of GLR Zn enriched Ore.

Very complicated and only JLP will give us the answers.

Thanks Tiger.

My view is that the bottleneck is the processing rate which dictates the LOM i.e. 40T per hour maybe at 90% of nameplate capacity. This of course also dicates the amount of Zinc that can be extracted. JLP's ore is about 6% Zn, if Kashitu can muster up 30% ore then adding this into the mix would certainly work better than processing JLP's ore. Even on a 50/50 share we would end up with 15% Zn from material instaed of the 6% we currently have - or a mix of course.

If this is indeed the case then CBird for once will be correct and that Kashitu ore is very very valuable to both JLP and GLR and will allow JLP to produce more than 8,000T of Zn per year. I am invested in GLR also and it is the first time that 30% Ore has even been mentioned by CB. the last information I read stated a 1.5% soil sample from from Billiton but did state high grade Willemite. I totally disregarded Kashitu at 1.5% grade !!

Actually also looking at Star Zinc if the figures are correct it has 158,000T of Zn at greater than 10%, so my initial point on grading appears to be incorrect and Star Zinc will be very valuable to JLP also.

I think I am finally starting to piece together the jigsaw of GLR and JLP and contrary to my initial thoughts GLR will be very important to JLP. JLP can either invest heavilly in upgrading the refinery to process more than 40T per hour or they can process 40T per hour but at much higher grades by using GLR ore. The only thing that does not fit is the 8,000T of Zn per year - it has to be considerably higher. If CB is correct about a contribution of $10-12m to GLR then that is equivalent to 4,000T of Zn. I very much doubt that any GLR/JLP agreement would be on a 50/50 contribution basis.

Can anyone bring any clarity on why JLP need ore from GLR - I know the general consensus is that GLR Zinc is of a higher grade but that does not tie in with JLP's numbers. The official JLP - Kabwe numbers are 6.4mt of material (about 50% is JORC compliant) which contains 356,843T of Zinc. Well by my books that is much better than GLR's 12-20g/T from Star Zinc !!

Equally if we are only going to end up with 8,000T of Zn per year (I think it will be higher personally) then that gives 44 years of Zinc.

What am I missing - can anybody shed any light???

Been trying to figure it out myself Kalan !! Very strange for MM's to take that quantity without a home for them, but looking at the volumes they have not been traded.I have been watching the Ask and have not seen it drop below 3p, although it might have done for a short period when I was not watching! They will have sold a few at between 3.00 and 3.60 so they could afford to take an average position below 3p but it's peanuts in the grand scheme of last weeks sale.

Either way - short term who cares - 2019 looks like a small profit year, 2020 a reasonable profit and then 2021 onwards looks incredibly good. So finally it is coming together here.

MM, I think it is pretty much what CB has said - which of course we all should take with a very large pinch of salt.

He has said that JLP will require Star Zinc to increase the Zn content. He did not say how much and for how long. Taken simply that LC of JLP has stated that they will increase saleable Zn to 8,000T after 2 years it does not take a rocket scientist to figure out that GLR cannot be supplying too much Zn in their Ore - otherwise it would not be worthwhile for JLP. My number is of course a guess but it reinforces the point that we as investors cannot hang our coat on supplies to JLP.

If we can supply enough to prevent a further dilution whilst figuring out what to do with the rest and moving forward on Glenover then that will be enough for me.

Following the large sell last week at 3p I cannot see that the MM's will have offloaded those shares which should see the Ask stay at or above 3p whilst they try to move them on.

Not really a suprise that they have raised the funds - by my accounts they had less than 2 months worth of funds remaining. These funds will just about last the year.

I have spent a considerable time on JLP recently and I do not see the Sable Zn Refinery as the answer to GLR's prayers - happy to be corrected if anyone has further information. Firstly I don't believe that JLP will process Zn until Q1 2020. I did read about a Q4 potential for Sable and recently Leon stated that August would be the date for the Kabwe project. However, even if it is August then the volumes will be very low until the end of the year - and that is if they start Zn before the lead circuit which is doubtful.

Secondly the JLP Zn projections are 8,000T per year after 2 years, maybe hitting 50% by the end of 2020. Well if JLP are only going to sell 8,000T then they are certainly not going to buy 8,000T to enrich their tailings! So what do they need - well it is an unknown - but realistically it cannot be seen to be more than 20% enrichment which is 1,600T of Zn or £3.5m worth of revenue to GLR. Take into account mining and transport costs and that barely breaks even.

For me JLP is the start of an offtake agreement to get some early cash into the business and it works well because it will be Tonnes of rock sent down the road. However to progress GLR will need to sell at least 10,000T of Zn per year. That means that they either need to find another company to process their rock or they need to build a processing plant to produce Zinc concentrate or they need to sell the mine. I think this is the reason CB is so desperate to get a good JORC mineralisation for Star Zinc because he knows that he has either got to build a processing plant or sell the resource. JLP would have the funds to buy Star Zinc in a few years and to build an additional processing plant at Kabwe to handle the resource - that is if they want to become a mining company as well as a tailings company.

Lots of questions still remain and an uncertain future. If the company is sold then at these prices there are some significant gains to be had. Those of us in GLR for a number of years will have had the uneasy promises and then disappointment of Concordia. I have several million shares in GLR and I will continue to hold. If I see progress then I will add but purely because the prices are so low and the potential upside is good - but it's is a risky investment.

Depends upon what the annual production will be Edwina - but assuming 3000T/annum. V at the current price for the rest of the year and the exchange rate remaining constant then my calcs show a PE of 12. However - that is not driving the share price at the moment.