Jubilee Metals Regulatory News (JLP)

10 Mar 2005 14:04

Jubilee Platinum PLC10 March 2005 4th Floor 2 Cromwell Place South Kensington London, SW7 2JE Tel: 020 7584 2155 Fax: 020 7589 7806 10 March 2005 AIM: JLP JUBILEE PLATINUM PLC ("Jubilee" or "the Company") Drilling Intersects Merensky Reef on Tjate Project Highlights - Drilling intersects Merensky reef on Tjate Project in the Bushveld Complex of South Africa - High grade of 7.78g/t platinum group elements ("PGEs") plus gold (Au) over a 1 metre reef width - Platinum (Pt) to palladium (Pd) ratio of 1.8 to 1 - Associated 0.33% nickel and 0.19% copper grades - In situ value of reef estimated at US$223 per ton rock at today's metal prices Jubilee and its partners in Tjate Platinum Corporation (Pty) Ltd ("Tjate") arepleased to announce significant results from the first diamond drill hole DT1 onTjate's 2,162 hectare Dsjate farm 249 KT. Hole DT1 intersected the Merenskyreef (MR) at 868.5 metres. The assay results indicate a weighted average gradeof 7.78g/t 3PGE + gold - sometimes referred to as 4E - over a 1.0 metre reefwidth, with associated 0.33 % nickel and 0.19 % copper. The indicated in-situvalue of this intersection is estimated at US$223 per ton of rock at today'smetal prices.. The weighted averages for the individual metals and in-situ values over the reefsection (868.46 metres to 869.45 metres) are as follows: Platinum Palladium Rhodium Gold Nickel Copper Assay 4.45g/t 2.49g/t 0.22g/t 0.62g/t 0.33% 0.19% US$/t rock 125 17 11 9 55 6 Colin Bird, CEO of Jubilee/Tjate, said "This is a milestone result in relationto our Tjate acquisition, which provides Jubilee with a strategic interest inwhat is believed to be one of the largest unmined blocks of PGMs in the worldclose to infrastructure and mature mining operations. The grade and thicknessof the reef intersected confirms third-party predictions that the Tjate areacontains PGM values consistent with other operations in the area. We now intendaggressively to continue the drilling programme in order to advance towardsfeasibility study. The partners in Tjate have worked well together to establishan early success for the first quarter." Vincent Phaala, Chairman of Tjate, said "I am delighted that after completion oflegal formalities, the board and operators have moved so quickly to achievesignificant drilling results. We believe the Tjate farms represent aworld-class PGM resource and our tripartite alliance is an excellent example ofeconomic empowerment working to the good of all the parties." Jubilee, as project manager, elected to drill hole DT1 considerably downdip ofand stepped out from the eastern boundary of the farm to establish continuity ofreef, which the directors' believe subcrops at around the 650 metre contour atthe eastern boundary. The Dsjate farm is one of three contiguous farms in theTjate project, which comprises 5,143 hectares in total. The directors believe,as advised, that the three farms are all underlain by the Merensky and the UG2chromitite reefs. From the depth of the intersection, and on the assumption that the reefsubcrops at a 650 metre contour at the eastern boundary, the directors believethat the Merensky reef may dip flatter - at around 7 to 8 degrees to the west -than that stated in the key assumptions and property description below. Thedrilling results overall are consistent with, if not better than, those statedin the key assumptions below: the 3PGE +Au grade reported for the Merensky ishigher than that stated below for 5PGE + Au. Drilling of hole DT1 is continuing towards the projected UG2 chromitite reef,the second PGE bearing reef in the stratigraphic sequence. Intersection of thisreef is expected in about two weeks, at some 350 metres below the Merensky reef,and the results will be reported as soon as they are received. The Companyintends to wedge up to three deflection holes (about 100 metres) per reef toallow multiple intersections on the reef from the "mother" hole and so confirmthe immediate reef extension, grade and thickness from the initial intersection. Jubilee has a strategic 25% stake in Tjate, together with an earn-in right to afurther 10% interest by expending ZAR14 million towards a bankable feasibilitystudy. The drilling programme is the first step in the feasibility study, whichwill determine the potential mine size, capital cost of development andoperating costs. Jubilee is the project manager. The key assumptions currently valid for the farms are as follows: Property: Three contiguous farms: Dsjate 249KT; Fernkloof 539KS; and Quartzhill 542KS Property Area: Total 5143 ha: Dsjate (2,162 ha); Fernkloof (1,317 ha); and Quartzhill (1,664 ha) Property Location: On the eastern limb of the Bushveld Complex and immediately downdip of Anglo Platinum's Twickenham and Impala Platinum's Marula mines PGM bearing reefs present: Merensky and UG2 Chromitite Inferred Resource tonnage: 282 million tonnes Inferred Resource grade: 7.25g/t (5PGM+Au) Merensky and UG2 weighted average 6.62g/t (5PGM+Au) for Merensky aloneInferred Resource metal: 65.8 million oz (5PGM+Au) Inferred attributable to Jubilee: 22.8 million oz (5PGM+Au) - after earn-in Attributable valuation in situ: $13 billion Basis per oz: Platinum $850; Palladium $180; Rhodium $1500; Iridium $150; Ruthenium $50; Au $400 Attributable market valuation: $171 million - based on l a market valuation $7.50/oz Property Description The Tjate farms are largely underlain by rocks of the Main Zone of the BushveldComplex that dip gently around 11o to 13o towards the west. Anglo Platinum is known to have drilled three diamond boreholes on the Dsjateproperty and intersected the Merensky and UG2 chromitite reefs. The outcrops of the two reefs are well mapped and the directors of Jubilee areadvised that there is little doubt that the three properties are underlain bythese economically important reef units. For further information please contact: Colin Bird Cathy Malins / Annabel LeatherJubilee Platinum plc Parkgreen Communications LtdTel: 07768 397 627 Tel +44 20 7493 3713 This information is provided by RNS The company news service from the London Stock Exchange