Tjate
Jubilee’s 63%-owned Tjate project on the eastern limb of the Bushveld Complex is independently judged to contain the world’s largest undeveloped defined block of platinum ore. The property covers 5,140 hectares on three farms and the area has been independently judged to contain a potential net 65 million ounces of platinum group elements (PGEs) and gold. This represents the resource targeted by future exploratory drilling.
However, this targeted estimate derives from the extrapolation of current drilling results and is approximately three times greater than the currently indicated and inferred SAMREC-compliant resource estimate shown below. This resource estimate was derived from exploratory drilling completed in May 2009.
| Classification | Tonnes (million) | 3PGE+Au (g/t)* | 3PGE+Au (Moz) |
|---|---|---|---|
| Indicated | 11,561,359 | 5.28 | 1.964 |
| Inferred | 120,919,133 | 5.24 | 20.365 |
| Total | 132,480,493 | 5.250 | 22.329 |
| Reef | Tonnes (million) | Width (m) | 3PGE+Au (g/t)* | 3PGE+Au (Moz) |
|---|---|---|---|---|
| Merensky | 56,273,224 | 1.10 | 4.66 | 8.429 |
| UG2 | 76,207,269 | 1.24 | 5.67 | 13.900 |
*3PGE+Au: platinum, palladium, rhodium and gold
Subsequent infill drilling completed in February 2011 has confirmed continuity of both the Merensky and the UG2 reefs. The Merensky results match the previous drilling results while the infill UG2 results show both improved average 4E grade (by approximately 0.9g/t 4E) and reef thickness over previous results.
| Merensky best mine cut average (80 cm cut-off) | |||||
|---|---|---|---|---|---|
| Borehole | Cut type | Ave 4E g/t | Ave Cu % | Ave Ni % | Ave width m |
| DT43 | Typical | 3.51 | 0.14 | 0.24 | 1.06 |
| DT44 | Typical | 4.79 | 0.16 | 0.27 | 0.83 |
| DT45 | Typical | 4.36 | 0.09 | 0.15 | 2.25 |
| DT46 | Typical | 3.63 | 0.13 | 0.21 | 1.05 |
| DT47 | Faulted/Disturbed | 3.85 | 0.004 | 0.008 | 1.03 |
| DT48 | Typical | 4.57 | 0.21 | 0.29 | 0.98 |
| DT49 | Typical | 4.11 | 0.15 | 0.21 | 1.07 |
| DT50 | Typical | 5.03 | 0.15 | 0.22 | 1.42 |
| DT51 | Typical | 3.17 | 0.11 | 0.19 | 1.07 |
| Weighted average infill drilling | 4.23 | 0.13 | 0.20 | 1.20 | |
| Previous drilling | 4.24 | 0.11 | 0.19 | 1.15 | |
| All drilling to date | 4.24 | 0.11 | 0.19 | 1.16 | |
| UG2 cut averages (chromitite only) | |||||
|---|---|---|---|---|---|
| Borehole | Reef type | Ave 4E g/t | Ave Cu % | Ave Ni % | Ave width m |
| DT43 | Normal | 8.40 | 0.05 | 0.08 | 0.89 |
| DT44 | Normal | 8.01 | 0.059 | 0.073 | 0.69 |
| DT45 | Normal | 9.30 | 0.030 | 0.049 | 0.67 |
| DT46 | Normal | 8.28 | 0.047 | 0.056 | 0.73 |
| DT47 | Normal | 6.72 | 0.049 | 0.073 | 0.47 |
| DT48 | Normal | 8.92 | 0.038 | 0.069 | 0.63 |
| DT49 | Normal | 6.94 | 0.006 | 0.0247 | 0.80 |
| DT50 | Normal | 11.26 | 0.07 | 0.10 | 0.97 |
| DT51 | Normal | 11.93 | 0.02 | 0.05 | 1.25 |
| Weighted average infill drilling | 9.26 | 0.039 | 0.064 | 0.79 | |
| Previous drilling | 8.35 | 0.045 | 0.078 | 0.60 | |
| All drilling to date | 8.69 | 0.043 | 0.073 | 0.66 | |
Tjate is located down-dip of Anglo Platinum’s Twickenham and Impala Platinum’s Marula mines and the Merensky and UG2 platinum reefs targeted for initial mining lie between 600 metres and 1,000 metres below surface. However, the property’s reefs extend to depths greater than 1,600 meters, offering significant potential to extend or expand production in future.
Tjate’s financial evaluation differs from that of its counterparts elsewhere in South Africa’s platinum sector in the Company’s ability to integrate the effects of ConRoast processes on the overall project. In essence, using conservative financial assumptions, ConRoast is estimated to enhance the project’s value by $0.5 billion over 20 years.
The ConRoast process overcomes the smelting problems associated with the high chrome content of ore from the UG2 reef relative to that that of the Merensky reef.
| Key assumptions - initial development | ||
|---|---|---|
| (15% of total resources - Merensky only)* | Effect of ConRoast and leach | |
| ROM grade | 5.0g/t (3PGE+Au); 0.22% Ni; 0.13%Cu | No change |
| Resource | 47Mt from 600m to 1,100m | No change |
| Production | 335,000oz per annum (3PGE+Au) | No change |
| Life of mine | 20 years (full production) | No change |
| Throughput | 200,000tpm | No change |
| Operating cost | R350/tonne ore | R415/tonne ore |
| Capital cost | - | US$100 million |
| Payability for PGEs | 82% | 96% |
| Payability base metal | 70% | 96% |
| Chrome penalty | Yes (if UG2 treated with MR) | No |
| NPV @ 5% discount | US$1.2 billion | US$1.7 billion |
Source Qinisele Resources