Jubilee Metals Group PLC (AIM:JLP, JSE:JBL, OTC:JUBPF) said it has agreed a partnership to extract copper from a large waste rock dump in Zambia, where it aims to produce more than 20,000 tonnes per year of copper using its newly developed modular copper units.

It aims to process copper at a cost of below US$4 000 per tonne from what it said is one of the largest in Zambia, where decades of copper mining have led to large accumulations of waste rock.

Construction of the eco-friendly processing units is planned to begin in the first quarter of 2024 and Jubilee said it has the capacity to capability to commission within 12 months.

The AIM-listed company said it has formed a strategic partnership with the owner of the site, Abu Dhabi based International Resources Holding RSC (IRH), which is affiliated to the Abu Dhabi-listed International Holding Company PJSC (IHC) conglomerate, with the formation of a special purpose vehicle.

This SPV will acquire the copper waste rock asset and fund the implementation of the processing modules, with the US$50 million costs paid for by IRH, with Jubilee designing, implementing and operating the mining and processing solution.

The pair estimate there is more than 350 million tonnes of waste rock material on surface, with early results from preliminary surface sampling indicate there are zones with grades higher than 1.5% copper and Jubilee's technical services team looking to complete resource definition within the next 60 days.

"The transaction marks a significant milestone on our journey in Zambia, catapulting our copper expansion in the region," said Jubilee chief executive Leon Coetzer.

"The Waste Rock Project, anchored by this substantial resource, will fast-track the rollout of our modular copper processing units in the country with the potential to far exceed our goal of reaching 25, 000 tonnes of copper per annum."

He said the binding funding term sheet executed with IRH provides "the opportunity to aggressively pursue its copper growth strategy in partnership with a prestigious group", making use of Jubilee's "unique technical and operational experience with the strategic in country copper focus and financial support of the IRH".

He noted the recent announcement that IRH has been selected as the preferred strategic equity partner for Zambia's Mopani Copper Mines asset, which owns the Mufulira slag dump project recently awarded to Jubilee.

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Jubilee Metals Group plc published this content on 12 December 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 December 2023 08:27:30 UTC.