Jubilee Metals Regulatory News (JLP)

20 Sep 2007 07:01

Jubilee Platinum PLC20 September 2007 Jubilee Platinum Plc ("Jubilee" or "the Company") Tjate Project Scoping Study - Optimisation Review Jubilee is pleased to announce the results of a joint review with Tjate PlatinumCorporation (Pty) Ltd ("Tjate") of Tjate's independent scoping study (announced6 June 2007) to optimise the projected economic return on the Tjate project,which is located in the eastern Bushveld of South Africa. The review suggests abase case production (ore feed to mill) of 200 000 tonnes (t) per month as themost practical and manageable. Jubilee, as project manager, will shortly beinviting expressions of interest from outside engineering consultants to managea bankable feasibility study for the project and final selection will be subjectto Tjate board approval. Tjate will launch an accelerated drilling programme andproceed to bankable feasibility study. The Company and Tjate are also pleased to announce the appointment of ChrisMolefe, a non-executive director of Jubilee, as chairman of Tjate effective 27August 2007. Project Economics Base CaseProduction (ore feed to mill): 200 000 t per monthOre grade: 5.0 g/t 4E (platinum, palladium, rhodium and gold) 0.22% nickel and 0.13% copperCapital cost: US$470 millionIRR (Internal rate of return): 22%NPV@5% discount US$800 million Production Rate Sensitivities Production Production 75% of 120% of base case base case Production 150 000 t/month 240 000 t/monthCapital cost: US$430 million US$510 millionIRR 18% 24%NPV@5% discount US$560 million US$1 000 million Colin Bird, CEO of both Jubilee and Tjate said "We are delighted to announcethis optimisation result, following drilling and scoping study results, which todate have shown the proposed initial Merensky reef mine to be an attractiveproposition. The appointment of Chris Molefe as chairman of Tjate brings to theboard a wealth of corporate and South African mining industry experience. Tjatewill now accelerate the drilling and other data capture programmes with a viewto completing our bankable feasibility study as soon as possible." Notes to editors: Chris Molefe (B.Com) was appointed chairman of Tjate at a board meeting held on27 August 2007. Chris, a former CEO of Bafokeng Resources (Pty) Ltd andnon-executive chairman of SA Chrome Limited, a publicity-listed company in SouthAfrica, has held several positions in corporate banking and mining industry forthe previous 20 years. The Tjate project comprises three contiguous farms, totaling 5,143 hectares inthe eastern Bushveld: namely Dsjate, Fernkloof and Quartz Hill. The farms aredown dip 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 and is currentlydrilling a further five holes. All the holes drilled have intersected theMerensky reef at targeted depths and the UG2 reef where deeper drilling wascarried out. These two reefs are the main platinum group metal bearing horizonsin the Bushveld Complex. For further information please contact: Colin Bird Louise Goodeve / Justine Howarth Jubilee Platinum plc Parkgreen Communications LtdTel +44 (0) 20 7584 2155 Tel +44 (0) 20 7851 7480 Andrew Sarosi Jubilee Platinum plcTel +44 (0) 1752 221937 This information is provided by RNS The company news service from the London Stock Exchange