AMN - SOUTH AFRICA: Hernic at full production rate

Jubilee Platinum’s Hernic platinum and chrome processing operations in South Africa have achieved 100% of the daily design throughput of 1900 tonnes of chrome and platinum containing feed material equating to 55,000 tonnes per month. PGM concentrate production continues to ramp up in line with the increased production of approximately 420 ounces of PGM delivered to the refinery.

Chief Executive Leon Coetzer said, “I am very pleased that Hernic is up to full operational status and I look forward to Jubilee receiving the financial benefits that this project will undoubtedly deliver. We are actively pursuing further opportunities in platinum and base metal processing."

Hernic Ferrochrome Proprietary Limited is the world's fourth 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 and address the project execution methodology as well as the operational and financial performance targets.

The Hernic Surface Material has been fully drilled and assayed for chrome and PGM content. This resulted in an independent resource statement of 1.7 million tonnes, of which approximately 90% is classified in the measured category under the 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 programs.

The project is estimated to contain total PGMs in excess of 224,000 ounces. It will be the largest PGM beneficiation plant of surface chrome tailings in South Africa and is capable of producing annual revenues of ZAR 400 million at an average metal basket price of US$906 per ounce.

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 pilot scale and full commercial scale trials to confirm the design and operational parameters.

Jubilee has targeted a combined annual processing of platinum containing surface material over the two projects in excess of 900,000 tonnes.

www.jubileeplatinum.com