Jubilee Platinum's chromite project earnings up 108.13%

Jubilee Platinum Plc provided, on behalf of its subsidiary, Jubilee Tailings Treatment Company Pty Ltd (“JTTC”), a quarterly performance, operational and financial update of its chrome recovery section of the Dilokong Chrome mine tailings project (“DCM Tailings” or “DCM Project”) for Q3 2016 as well as a project update for the platinum processing project at Hernic Ferrochrome Pty Ltd (“Hernic”).

Highlights

- DCM Project

- Chromite concentrate production up 88.04% to 28 559 tons for Q3 2016 compared with Q2 2016

- Project revenue generated from chromite concentrate sales up 108.22% to GBP 2.09 million (ZAR 37.36 million, 95.23% increase) for the Q3 2016 compared with Q2 2016

- Chromite project earnings up 108.13% to GBP 1.55 million (ZAR 27.7 million, 95.05% increase) for Q3 2016 compared to Q2 2016

- Earnings attributable to Jubilee for Q3 2016 from chromite concentrate production up 94.73% to GBP 0.888 million (ZAR 15.89 million, 82.41% increase) compared with Q2 2016

- Platinum processing review completed with preferred option combining on-site upgrading of platinum content of the material to approximately double the in-situ value prior to toll processing the platinum rich feed material


Hernic Project

Construction of the 660 000 tons per annum platinum and chromite processing plant continues to progress to schedule targeting commencement of commissioning in December 2016 Project Capital expenditure to end of September 2016 of GBP 7.45 million (ZAR 137.6 million) equivalent of 71% of total projected capital. This is commensurate with the percentage project completion

The DCM chromite recovery process from surface tailings alone has reached full operational stability. As announced previously further increases in operational throughput requires the expansion of the new tailings, post chromite removal, storage facility. The expansion of the facility has commenced. Production throughput will be constrained during the construction phase but will be restored shortly after the completion of the expanded tailings storage facility.

All chromite production to date at DCM continues to be from the processing of surface tailings alone. Stated Project earnings are net of operational cost and cost of chromite concentrate sales.

The platinum processing option study has been concluded with the study including the review of numerous processing strategies for the recovery of the platinum from the chrome tailings material. The options studied included on-site trials to evaluate technical solutions for upgrading the platinum content in the chrome tailings prior to either toll processing of concentrated platinum material or further on-site processing of the material in-line with the much larger Hernic project. Both laboratory and commercial trials were run to test the various scenarios and to determine the optimal commercial solution for Jubilee.

The outcome of the trials indicated that the optimal strategy will be the combination of on-site upgrading of the platinum material approximately doubling the in-situ platinum content of the material to produce a high grade platinum feed concentrate, prior to toll processing the upgraded material to produce a final grade platinum concentrate. This strategy would provide both the benefits of lower committed capital as well as expediency in executing the strategy. Jubilee has engaged with a potential toll processor to conclude a commercial arrangement on this basis.

Leon Coetzer, Chief Executive Officer of the Company, commented, “The operating results are very satisfactory and show increasing performance quarter on quarter which is reflected in our financial performance. The results are also a complement to our technical team who have responded to numerous challenges in a positive way to achieve these results. The consistency and reliability of our operating team augers well for the Hernic project when it commences its build up to full commercial production.
The construction of the Hernic project remains on schedule and shareholders are invited to view the project pictures that are updated on our website. The pictures clearly capture the process hardware that has been installed and indicates the significant progress made as the project nears the completion of the construction phase.  
The Company continues to actively pursue projects consistent with our stated mission to increase cash flow and enhance shareholder value. We are confident that we will shortly conclude a further acquisition with discussions progressing favourably in other areas of acquisition and joint venture.”

Jubilee Platinum is a AIM and JSE listed exploration and development company with platinum and power operations in South Africa as well as nickel, iron and copper interests in Madagascar.