Aim- and AltX-listed Jubilee Metals Group has executed a processing agreement in terms of which it has been appointed as operator to recommission and operate the existing run-of-mine (RoM) chrome beneficiation plant adjacent to its Inyoni Operations, in the Bushveld Complex of South Africa.
The processing agreement is backed by a guaranteed supply of at least 40 000 t a month of platinum-group-metal- (PGM-) and chrome-containing RoM, which has the potential to be increased to 80 000 t a month.
The PGM-bearing tails produced by the chrome plant will be further processed at Jubilee's adjacent Inyoni PGMs recovery plant.
Jibulee says the processing agreement not only significantly extends the life of the existing PGMs resource but also offers the potential for Jubilee to significantly expand its Inyoni operations.
The company is reviewing the expansion of Inyoni to reach 3 500 oz of PGMs a month.
CEO Leon Coetzer says the processing agreement secures up to 80 000 t of RoM feed for the Inyoni chrome plant for the next eight years, in addition to an existing 95 000 t a month of chrome processing capacity secured at the company’s Windsor chrome plant and new Windsor 8 facility.
Jubilee now has the ability to produce more than 90 000 t a month of saleable chrome concentrate.
The processing agreement secures both a committed feed of RoM material to the Inyoni operations, as well as the continued production of upgraded PGMs discard material for further processing at Jubilee's PGM recovery plants.
As part of the agreement, Jubilee will fund about £1.34-million, or R30-million capital required to upgrade the chrome ore beneficiation plant whereby capital plus interest will be recovered by Jubilee under a fixed charge per RoM ton processed over the first three years of the processing agreement.
Jubilee will fund the capital required from its own cash reserves.
The additional RoM feed processed by the chrome ore beneficiation plant to firstly recover the chrome will produce new PGM-enriched tailings, which are fed directly to the Inyoni PGM recovery plant.
To accommodate this additional PGMs feed, Inyoni will reduce the rate at which it is reclaiming PGMs feed material solely from its existing PGM surface tailings resources, thereby extending the life of its existing PGM resources.
The additional tailings offers Jubilee the opportunity for a modest capital investment, to expand the Inyoni Operations increasing its monthly PGM ounce production to 3 500 oz of PGMs a month.
The designs for the expansion are currently being considered by Jubilee and, if approved, will be funded by the company.