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Hernic work on schedule, says Jubilee

By BFN News | 07:40 AM | Monday 22 February, 2016


Pre-site work programme for the Hernic tailings project is on schedule and commissioning remains on track for the fourth quarter of this year, Jubilee Platinum says in an shareholder update. Other highlights: � Erection of ASA Metals processing plant completed � Commissioning of the Plant targeted during February 2016 � Annualised processing capacity in excess of 900 000 tons from the two platinum surface tailings projects ("Platinum Projects") targeted for commissioning in 2016 � Company continues to explore potential acquisition of further platinum surface projects The update says: ASA Tailings Project: Further to the announcement on 15 December 2015, Jubilee has progressed the construction and erection of its chrome plant at ASA Metals. The major plant process components, following the successful trial assembly at the manufacturer, were delivered to the ASA site in February 2016 and have been erected. The final tie-ins for piping, electrics and controls are being completed with commissioning slated before end February 2016 and ramping up to full production during March 2016. Jubilee has been able to remain on track despite rain delays during the construction phase. Shareholders are directed to the Company website for a picture library of the project. Hernic Tailings Project: The fast-tracked Hernic project is progressing to schedule with commissioning of the 55 000 tons per month processing plant remaining on track for Q4 2016. Hernic's contractual activities in the Project, in terms of the Co-operation Agreement executed in 2015, including site preparation, the provision of services and the pre-commissioning of their on-site coarse chrome recovery plant are well on schedule: this includes the surface levelling, soil preparation and geo technical testing of the site foundation for the fine chrome recovery section and the PGM recovery plant to be provided by Jubilee. The Company has, through its subsidiary Braemore Precious Metals Refiners Proprietary Limited together with its engineering consultant confirmed final offers for the long lead project process items including the vertical tower fine grind mill and the large flotation cells. These final quotes are under review and the selection and appointment of preferred contractors is to be completed over the next week. Other Opportunities: The Company continues to actively pursue further surface platinum opportunities on the back of securing successfully both the ASA Metals and Hernic projects, and has in-line with this target commissioned a study to determine a process strategy for an identified further 500 000 tonnes of similar surface material. The Company seeks to further increase its current estimated 4 000 000 tonnes of platinum containing surface material at the Hernic and ASA tailings projects. Disposal of Middelburg operations: The Company announced on 9 October 2015, the disposal of 100% of the issued shares in Jubilee Smelting and Refining Proprietary Limited ("JSR"), and 70% of the issued shares in Power Alt Proprietary Limited ("PA") ("Disposal"), to Siyanda Resources Proprietary Limited ("Siyanda") through its newly named nominated special purpose vehicle Hornbill Investments Proprietary Limited ("SPV") and receipt of 85% of the purchase consideration in cash ("First Payment"). 10% of the remaining 15% of the purchase consideration is held in escrow in an approximated amount of GBP0.390 million (ZAR8.9 million), net of closing adjustments including stock and supplier adjustments. This amount was due by the SPV to Jubilee following the expiry of the first warranty period on 31 December 2015 (90 days after the closing date of 30 September 2015). Payment has however not yet been made and Jubilee has taken the necessary steps to expedite payment. The remaining 5% is due for release 12 months after the closing date, being 30 September 2016. Tjate mining right application: The Company has received formal confirmation from the Department of Mineral Resources ("DMR") that the mining right application has progressed. We remain in contact with the DMR to continue expediting the process. Story provided by StockMarketWire.com

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