Jubilee Platinum : Hernic Project Ramping - Up and Live Webcast

Regulatory Story

Jubilee Platinum PLC - JLP

Released 10:30 19-May-2017

RNS Number : 6677F Jubilee Platinum PLC 19 May 2017

Jubilee Platinum Plc ("Jubilee" or "the Company")

Hernic Project Ramping-Up and Notification of Live Webcast

Highlights

• Hernic project completed with the commissioning of the hydraulic re-mining of the feed material

• Hernic project on ramping-up targeting full design capacity in early June 2017 successfully delivering on budget the world's largest platinum recovery plant from chrome tailings

  Leon Coetzer, Chief Executive commented:

  "I am pleased that we have successfully completed our Hernic platinum and chrome project. We are now looking forward to delivering the targeted production and financial numbers of this project. Platinum concentrate sales are ramping up with the first 100 tonnes of platinum concentrate delivered to the 3rd party purchaser. We are confident to reach full production in early June 2017. "

  Jubilee Live Interactive Webcast

  The Jubilee board invites shareholders to participate in a LIVE interactive webcast, scheduled to commence at 10am UK time (11am SA time), on Wednesday 24 May 2017. The webcast offers Jubilee shareholders the opportunity to engage with the Jubilee board for an update on the Company's projects. To participate, please follow the link provided:

  http://webcasting.brrmedia.co.uk/broadcast/591eafcc1ef2297b08216aaa

  Technical Sign-Off

  Andrew Sarosi, Director of Jubilee, who holds a B.Sc. Metallurgy and M.Sc. Engineering, University of Witwatersrand and is a member of the Institute of Materials, Minerals and Mining, is a "qualified person" as defined under the AIM Rules for Companies and a competent person under the reporting standards. The technical parts of this announcement have been prepared under Andrew's supervision and he has approved the release of this announcement.

  This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. 19 May 2017

  Contacts

  Jubilee Platinum plc Colin Bird/Leon Coetzer

  Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913

  Andrew Sarosi

  Tel +44 (0)1752 221937

  JSE Sponsor

  Sasfin Capital, a division of Sasfin Bank Limited Sharon Owens

  Tel +27 (0)11 809 7500

  Nominated Adviser

  SPARK Advisory Partners Limited Sean Wyndham-Quin/Mark Brady Tel: +44 (0) 203 368 3555

  Broker

  Beaufort Securities Limited Jon Belliss

  Tel: +44 (0) 20 7382 8300

  About the Hernic Project

  Hernic Ferrochrome Proprietary Limited ("Hernic") is the world's 4th largest integrated ferrochrome producer with an estimated 3 million tonnes of platinum containing material at surface while Hernic continues to add further material to the surface stock.

  The Company was selected as the exclusive party to beneficiate the chromite and PGMs contained in the Hernic Surface Material ("the Project") and address the project execution methodology as well as the operational and financial performance targets. The Project is the second of the Company's Two Projects.

  The Hernic Surface Material has been independently fully drilled and assayed for chrome and PGM content. This has resulted in an independent resource statement of 1.7 million tonnes, of which approximately 90% of the resource is classified in the measured category under the internationally recognised SAMREC code. Hernic also has access to secondary surface stocks, which it has internally identified and could increase the surface stocks to in excess of 3 million tonnes through further drilling programmes. The Project is estimated to contain total PGMs in excess of 224 000 (3PGM + Au) oz.

  The Project will be the largest PGM beneficiation plant of surface chrome tailings in South Africa and is capable of producing annual revenues of GBP 18.2 million (ZAR 400 million*) at an average metal basket price of USD 906 per (3PGM + Au) per oz. The financial and operational risks of the Project are significantly mitigated since the material is already at surface and requires neither the cost nor the risk associated with mining.

  An extensive prefeasibility study has been concluded on the Project, which included both pilot scale and full commercial scale trials to confirm the design and operational parameters.

  The Project is to be undertaken in four phases over an 11 month period; namely

• Phase one - Bankable Feasibility Study and Engineering Design. - Completed.

• Phase two - Construction of the chrome and platinum processing plant ("Processing Plant"). - Completed.

• Phase three - Commissioning and Ramp up of Processing Plant to design capacity of 55 000 tonnes per month. - On- going.

• Phase Four - Stable operation of the Processing Plant.

The Company has targeted a combined processing of platinum containing surface material over the two projects in excess of 900 000 tonnes per annum.

The ZAR-based debt funding for both surface projects equates to GBP 11.5 million (ZAR 255 million*) before financing costs. The working capital required to bring the two surface projects into operation and to achieve positive earnings is estimated at GBP 3.4 million (ZAR 75 million*).

*=Conversion as at the commencement of the Project

This information is provided by RNS

The company news service from the London Stock Exchange END