Jubilee Metals Regulatory News (JLP)

21 Feb 2006 12:28

Jubilee Platinum PLC21 February 2006 JUBILEE PLATINUM PLC ("Jubilee" or "the Company") Jubilee Acquires 70% Option in Prospective New Platinum Project Jubilee today announces that it has agreed terms for a Joint Venture with MSAProjects (Pty) Ltd ("MSA"), which will allow the Company to earn a minimum of70% interest in the prospective Grass Valley Platreef project in the northernlimb of the Bushveld Complex. The earn-in option is valid over a period of 33months, mainly through the funding of exploration by its wholly owned subsidiaryWindsor Platinum Investments (Pty) Limited ("Windsor") and the staged issuing ofWindsor shares to MSA. Highlights • Jubilee acquires option to earn-in to a 70% interest in the Grass Valley platinum group metal (PGM) project in the northern limb of the Bushveld Complex • The 663 hectares project, represents possibly the last remaining untested block of Platreef ground in the Bushveld Complex • Five kilometres of potential Platreef identified in outcrop • The project is located between exploration successes including the War Springs, Rooipoort and Volspruit deposits • Open-pittable PGM deposits predominate on the Platreef • The project has Prospecting Rights and is drill ready The terms of the Joint Venture give Windsor the right to undertake anexploration programme including drilling, for which prior to commencementWindsor will pay MSA ZAR140,000 and Jubilee will grant MSA a five-year option,from date of the issue of the prospecting right, to subscribe for 500,000 sharesin Jubilee at the share price plus 15% prevailing at the time of subscription.After commencement of exploration, Windsor will earn-in to up to a 70% interestin the project by funding the programme in stages and by the issuance of Windsorshares to MSA. The issue of Windsor shares to MSA will depend on the level ofexploration funding committed by Windsor and the technical/commercial success ofthe various exploration stages. MSA will have the right to convert the Windsorshares to Jubilee shares up to a maximum of 5,500,000 Jubilee shares. Jubilee and MSA support both the philosophy and intentions of the Mineral andPetroleum Resources Development Act (MPRDA) and the Mining Charter of SouthAfrica and the agreement makes provision for a suitably qualified Black EconomicEmpowerment partner. Colin Bird, Chief Executive for Jubilee said: "This position is a major steptowards securing an open-pittable resource in the northern limb of the BushveldComplex. The strike length of this resource is considerable and we intend toprogress work on this target quickly. Soil geochemistry on the property and themineralisation on the surrounding farms indicate a drill ready target. Theshares issued to MSA will be against project success and thus for the Companythere is significant mitigation of both technical and financial risk." The 663 hectares Grass Valley Platreef project, which represents possibly thelast remaining untested block of Platreef ground in the Bushveld, is situatedjust south of Mokopane (formerly Potgietersrus), squarely between the PlatinumGroup Metals' War Springs deposit, Caledonia's Rooipoort deposit and the PanPalladium Volspruit deposit. Approximately 5 kilometres of potential Platreef outcrop have been identifiedthrough a geochemical soil-sampling programme undertaken by MSA during 2004. Acomprehensive diamond-drilling programme is currently being designed to drilltest these anomalies and will form the basis of initial resource estimates. Theinitial phase of diamond drilling is planned to start during the first quarterof 2006. The Platreef is a wide platinum bearing reef occurring along approximately 100kilometres of outcrop on the northern limb of the Bushveld Complex. This openpittable reef zone has been the focus of significant and well publicisedexploration during the past five years, with companies such as Angloplats,Anooraq, Ivanhoe, Platinum Group Metals, Pan Palladium and Caledonia havingembarked on extensive and successful drilling programmes in the zone. One of the major benefits of this wide reef zone in general is that, in additionto significant contained platinum and palladium, there is also substantialassociated nickel and copper credits, making the Platreef an exciting, low-cost,polymetallic prospect. 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