AMN - SOUTH AFRICA: Increased capacity for ASA project

All matters relating to Jubilee Platinum’s chrome processing development and operations are progressing satisfactorily and the company reports increased throughput capacity together with operational control of the ASA project in South Africa.

Key points:

- Jubilee assumes operational control of all chrome processing capability at ASA

- Overall processing capability at ASA increases from 25,000 to 75,000 tonnes/month

- Increased processing capability provides increased scope for third party material importation

- Currently the company is processing 55 tonnes/head of feed, which will increase over the coming weeks

- Operating margins per tonne will not be compromised and could potentially improve, based on only modest change, to the fixed cost component of the overall cost structure

- The company’s other tailings projects remain on target with all long lead time orders placed and initial construction progressing satisfactorily.

Jubilee Platinum CEO Leon Coetzer says: “We are very pleased with progress on our tailings projects, particularly the increased chrome processing capability together with full operational control. This scenario will undoubtedly positively impact on all aspects of our chrome treatment business. We look forward to updating shareholders with real numbers as our operations progress.”

Jubilee is implementing a near-to medium-term strategy to capitalise on its unique processing ability (ConRoast) to smelt high chrome-containing platinum (PGE) concentrates. To this end, Jubilee through its various subsidiaries has:

- Entered into a Treatment of Tailings Agreement with Corridor Mining Resourcesand an Access agreement with ASA Metalsfor the right to recover PGE's contained in an estimated 1.1 million tonnes of PGE-bearing chrome tailings from ASA's Dilokong chrome mine tailings dump in the eastern limb of the Bushveld igneous complex.

- Entered into a Heads of Agreement (HoA) with Hernic Ferrochrome Proprietary for the beneficiation of chrome and PGEs from its surface tailings. In terms of the HoA, Hernic, the world's fourth largest integrated ferrochrome producer has targeted to appoint Jubilee as the exclusive party to beneficiate its PGE-bearing chrome tailings. The HoA facilitates the processing of approximately 1.7 million tonnes of tailings, which have been fully drilled and assayed for chrome and PGE content to produce a SAMREC compliant resource statement, and of which approximately 90% is classified within the measured category. In addition to this SAMREC compliant resource, Hernic has identified a further 1.6 million tonnes (Hernic estimate) of at-surface secondary stocks, which through additional drilling could augment the current SAMREC resource to a total 3 million tonnes

- Secured the funding for the detail design and engineering for both its chrome and PGMs surface processing operations, in order to allow the construction of the beneficiation processing plants (concentrators) at both Hernic and ASA

- Targeted project funding for the construction of both PGE tailings processing projects and in the interim, engaged with targeted financial institutions while the detail design and engineering studies are completed.

Jubilee has started to process of up tp 85,000 tonnes/month tailings from Hernic and ASA to produce an estimated 3000 oz of 3PGE+Au (platinum, palladium, rhodium and gold) per month (36,000oz annually) in concentrate.

Jubilee's unique access to the ConRoast process enables Jubilee to unlock the inherent PGE (platinum group element) values in the traditional chrome ores via the extraction of PGEs and chrome from near- or at-surface platinum containing chrome reefs. These ores were traditionally only mined for its in-situ chrome with the PGEs either lost as part of the run-of-mine ore sale or trapped within the tailings from the chrome beneficiation process and deposited on surface.

The ability of the ConRoast process to recover the PGEs from this chrome dominant ore structure affords Jubilee an unique opportunity to unlock the inherent PGE values.

The company, has applied for the PGE and chrome prospecting rights to 69 prospective PGE-chromite farms in the Brits area.

Leon Coetzer says: “I am very pleased with the commissioning and ramp up of our ASA tailings project. The increased throughput reflects the experience and training of our project and operational team and I look forward to even more increases. I appreciate that shareholders are eager to receive news on impact on financial performance and expect to give full details after our first quarter of full production.”

www.jubileeplatinum.com

News courtesy of International Mining