Jubilee Metals : nearly doubles copper tailings rights in Zambia

The metals group has secured the rights to an additional 115mln tonnes of copper and cobalt-containing surface tailings, taking its total access to around 270mln tonnes

Jubilee Metals GroupPLC (LON:JLP) said it has executed a number of copper cobalt tailings transactions that have nearly doubled its rights to copper tailings in Zambia.

The AIM-listed firm said the transactions have secured the rights to an additional 115mln tonnes of copper and cobalt-containing surface tailings as part of its strategy to expand operations in the country, taking its total access to around 270mln tonnes of tailings.

WATCH: Jubilee Metals Group accelerate production to achieve a record performance in third quarterThe deal, secured through Jubilee's subsidiary BraemorePlatinumLimited, provides the firm with the exclusive right to process the 115mln tonnes of tailings through the implementation of a copper and cobalt processing facility

The firm added that the additional tailings offer the potential to double the targeted production profile for its Project Elephant, estimated at 12,000 tonnes of copper units per annum, as well as Project Roan which is currently under construction.

Jubilee said the agreements combined with its existing copper projects have placed it on track to deliver its objective of reaching 25,000 tonnes of copper units per annum, adding that the tailings have been drilled and sampled to confirm both content and size containing on average 0.3% copper and 0.05% cobalt.

The firm said the combined magnitude of the total secured copper tailings resources and related projects, together with its Sable refinery, offered the potential to deliver "long term sustained quality earnings" and make a significant contribution to its existing earnings from itsPlatinumgroup metals (PGM) and chrome operations in South Africa.

"These agreements, together with the previous rights to material already secured, have resulted in Jubilee having access to an extensive copper and cobalt containing resource, which importantly is at surface and able to generate long term quality earnings", Jubilee chief executive Leon Coetzer said in a statement.

"As I have stated before, Zambia contains vast quantities of copper tailings requiring Jubilee's skills to unlock the opportunities and value. We have been working alongside leading institutions to review these opportunities and are now perfectly poised to play a commanding role in this area. We have demonstrated our ability to combine the rehabilitation of these historical tailings with the commercial extraction of the contained metals, thereby turning liabilities into commercial ventures", he added.

Shares in Jubilee were up 0.8% at 6.3p in early trading on Thursday.