Jubilee Metals Regulatory News (JLP)

6 Jun 2007 09:59

Jubilee Platinum PLC06 June 2007 Jubilee Platinum Plc ("Jubilee" or "the Company") Positive Scoping Study Completed For The Tjate Project Jubilee is pleased to announce the completion of a scoping study ("the ScopingStudy") on Tjate Platinum Corporation Pty (Ltd)'s flagship platinum group metal("PGM") Tjate property ("Tjate" or "the Project"), located in South Africa'swestern Bushveld. The Scoping Study, which was carried out over approximately 15% of the totalProject area, demonstrates robust economics, showing a positive base caseinternal rate of return of 22% for an initial investment of US$400 million. TheScoping Study scenario outlined below, one of several considered, is for astand-alone underground mine, producing annually 262,000 ounces PGMs plus gold.The mining scenario considered is for a single vertical shaft system to a depthof 1100 metres and initially mining only Merensky reef. The Scoping Study was developed in conjunction with independent consultants,Snowden Mining Industry Consultants, a member of the Snowden Group ofinternational mining consultants. Scoping Study Highlights: • Tjate mine to produce annually 262,000 oz (PGMs + gold) • Internal rate of return (IRR) of 22% after tax • Net present value (NPV) of US$292 million after tax using a discount rate of 10% • US$400 million implementation capital investment (ZAR3 billion) • Metal prices discounted over current prices • Only 15% of Tjate project area studied Key Scoping Study Assumptions: Run of mine grade 5.2 grams per tonne (g/t) 4E (platinum, palladium, rhodium & gold); 0.22% nickel; 0.13% copper Resource 34 million tonnes Milling rate 1.8 million tonnes per year Life of mine 18 years (full production) Operating cash cost US$45/tonne Implementation capital U$400 million Metal prices 4E basket US$893/oz (5% weighted average discount over current prices) Nickel US$20,000/t (40% discount) Copper US$5,000/t (67% discount) Colin Bird, CEO of Jubilee, commented, "We are delighted to have completed apositive Scoping Study for the Tjate Project, which indicates a very favourablereturn for Tjate developed as a stand-alone mine. As we now move towards thepreparation of a bankable feasibility study, engineering optimisation shouldcontinue to improve the Project's economic returns. "It is also very positive to note that this Scoping Study is based upon aresource of 34 million tonnes, representing only a small proportion (about 15%)of the total Tjate Project area. Therefore, considerable scope exists downdipof and laterally from the current resource area and we believe there to beexcellent potential for further significant production expansion." Notes to editors: The Tjate project comprises three contiguous farms, totaling 5,143 hectares inthe eastern Bushveld: namely Dsjate, Fernkloof and Quartz Hill. The farms aredowndip of Impala Platinum's operating Marula platinum mine and of AngloPlatinum's developing Twickenham platinum mine. Jubilee has recently completedthe first phase drilling of seven boreholes on the Dsjate farm. All the holes,as previously reported, intersected at targeted depths the Merensky reef and,where drilled deeper, the UG2 reef. These two reefs are the two main PGM-bearinghorizons in the Bushveld. For further information please contact: Colin Bird Cathy Malins / Annabel LeatherJubilee Platinum plc Parkgreen Communications LtdTel +44 (0) 20 7584 2155 Tel +44 (0) 20 7851 7480 Andrew SarosiJubilee Platinum plcTel +44 (0) 1752 221937 This information is provided by RNS The company news service from the London Stock Exchange