JOHANNESBURG (miningweekly.com) – Johannesburg- and London-listed Jubilee Metals has acquired two opencast Zambia copper mining operations.

“The strategic acquisition of the two opencast operations is an example of our ability to leverage our process capability to secure significant near-surface copper resources already in operation,” Jubilee CEO Leon Coetzer said of the continually advancing diversified metals producer, chaired by former Mpumalanga Premier Mathews Phosa.

The AltX- and Aim-listed Jubilee, which specialises in the recovery of metal from previously overlooked resources, such as unprocessed historical waste rock, run-of-mine materials and tailings in South Africa and Zambia, is also progressing the roll-out of its integrated copper strategy in Zambia.

“Zambia holds numerous similar resource opportunities which we are actively pursuing,” Coetzer highlighted in Monday’s stock exchange news service release covered by Mining Weekly.

While commissioning activity has begun at the upgraded and expanded Roan in Zambia, Jubilee has concluded a further offtake agreement for stockpiled low-grade mined material in support of the expanded Roan operations.

Moreover, preprocessing of targeted feed material destined for Roan has begun in preparation of an accelerated commissioning and ramp-up during July.

Meanwhile, the latest acquisition of two operating opencast copper mines supports the expansion of Jubilee's Sable refinery to target 16 000 t of copper a year.

A combination of $0.25-million in cash and $1.5-million in shares will pay for the first, which is targeting 25 000 t a month of 3% to 4% copper.

The second, which is targeting a ramp-up to 20 000 t a month at the same 3% to 4% grade range, will be settled by $2.1-million worth of shares.

Each mine has a life expectancy of more than eight years.

"It has taken a concerted effort by the team to reach this critical point in the commissioning of the Roan Upgrade. I look forward to the team completing an accelerated commissioning and ramp-up of operations during the coming month,” Coetzer outlined.

The Roan upgrade and Sable refinery are described as offering Jubilee processing flexibility that affords the company the opportunity to pursue copper resources that are unlocked by this capability.

The strategic acquisition of the two opencast operations is seen as an exemplification of Jubilee’s ability to leverage process capability to secure near-surface copper resources already in operation.

The offering to the resource partners incorporates a sustainable approach to mining and recovery of metals and may drive Jubilee's future copper production beyond the initial 25 000 t/y target.

INTEGRATED COPPER STRATEGY

Jubilee’s ability to extract value from materials often regarded by the industry as either waste or too complex to extract economically through the traditional methods is what underpins its integrated copper strategy in Zambia.

The copper resources sought are tailings and partially processed discarded low-grade materials, stockpiled low-grade material, and near-surface copper reef accessible through opencast mining.

All three categories are held in vast quantities within Zambia, offering Jubilee the opportunity to upscale its operations through targeted acquisitions of these resources.

The success in securing these targeted resources has afforded Jubilee the opportunity to transition Sable into a refiner for the processing of material from opencast operations, while the upgraded Roan will be processing mainly low-grade material and previously processed materials.

Sable and Roan are destined to operate as independent operations. With Sable at full capacity from opencast operations, Roan will either trade its copper-bearing concentrate on the open market or, subject to capital allocation, expand to incorporate downstream refining of its concentrate. The targeted combined processing capacity of 25 000 t/y of copper is achieved by an expanded Sable at 16 000 t/y and Roan at 8 000 t/y to 9 000 t/y, depending on copper feed grades.

The previously announced Waste Rock Project transaction falls within the low-grade material grouping, which Jubilee is executing in partnership with IRH based in Abu Dhabi. This project is undergoing further resource drilling and process testing as part of an independent technical and processing study being conducted by the joint project team.

Jubilee aims to install a satellite upgrade facility near both operations over the coming 12 months as part of its strategy to operate regional material upgrade facilities prior to refining.

Application will be made for the acquisition shares to be admitted to trading on the AltX and Aim on or about June 28.

Jubilee’s production, enhanced by a pioneering technical development centre, includes chrome and platinum group metals in South Africa.