Jubilee Platinum Gets Bored With Waiting For BHP Billiton And Forms JV With Implats in Madagascar.
It is always good to see a junior put one over a major and this has been done in classic style by Jubilee Platinum with BHP Billiton. Doubtless the people at BHP Billiton underestimated Colin Bird, chief executive of Jubilee Platinum, as he has a quiet style, but underneath that he is shrewd negotiator. The story dates back to the beginning of November when the two companies agreed to carry out a large scale helicopter VTEM geophysical survey over their adjacent properties in Madagascar. This was going to be paid for by BHP Billiton and the data would be shared.
The idea was that this could lead to a joint venture over the combined property which is about 160 kms south east of Antananarivo. Jubilee’s Ambodilafa concessions covers a 20 kms long by 4kms wide mafic- ultramafic system. Before these concessions came into the hands of Jubilee some reconnaissance work was carried out in the late 1960s which intersected 93 metres of disseminated sulphides containing pyrrhotite, pentlandite and chalcopyrite, all of which are nickel and copper ore minerals, which averaged 1% copper equivalent. This intersection included a 1.5 metre intercept grading 2.2% nickel and 0.35% copper. This is enough to get any geologist excited and a few traces of platinum group metals in stream sediments have accelerated the process.
It made sense, therefore, to use VTEM as it is an excellent prospecting tool for identifying anomalies related to massive sulphides. The added advantage to Jubilee was that BHP Billiton undertook to interpret the data. All went well for some time, but then Colin Bird sensed that the major was stringing him along as it kept finding reasons to delay discussing the joint venture. A few weeks ago he was in South Africa working on Jubilee’s advanced Tjate PGM project on the eastern limb of the Bushveld when he met up with some senior executives from Impala Platinum. They were already aware of the Ambodilafa property and wanted to know more about it.
One thing led to another and early this month Jubilee Platinum announced that it had entered into a joint venture with Implats on the property. The terms were that Implats could earn a 51 per cent interest by contributing US$5 million to four phases of exploration. There were a few angry squeaks from BHP Billiton when the announcement was made, but Colin Bird had kept meticulously to his side of the deal and allowed even more time than specified for a joint venture to be negotiated. Les Paton, executive director of Implts, had no hesitation in saying that “we recognise the nickel-copper- platinum group element potential of the Ambodilafa project area and look forward to working with Jubilee.
The fat lady has now sung her song on this one as far as BHP Billiton is concerned and Colin Bird is clearly happy with his new partner. He was particularly impressed with the way he had seen Implats working with junior partners and has placed a big bet on the South African company being able to unlock the value of what could be his company’s biggest project. The actual joint venture will not be incorporated until Implats has spend its US$5 million and Jubilee will remain operator until then for a 5 per cent management fee. This could be the start of a rather bigger relationship between the two companies as the Tjate project, which has an inferred resource of some 65million ozs of PGMs and gold, is contiguous with the Marula mine owned by Implats.
The last news on drilling at Tjate was back in January so presumably an update can be expected soon. Colin Bird is a bit parsimonious in this respect as he tends to think that the achievements of his company speak for themselves. In February he added to the PGM portolio with an option to earn a 70 per cent interest in the Grass Valley project on the northern limb which has potential to be open-pittable. Maybe he will find time to sit down in London soon and write a succinct description of all the projects which can be attached to future releases. At the moment , however, he is in South Africa talking to his new best friends.
Companies featured in this Story
Jubilee Platinum Plc (AIM-JLP)
Platinum Group Metals Ltd (TSX-PTM)
The idea was that this could lead to a joint venture over the combined property which is about 160 kms south east of Antananarivo. Jubilee’s Ambodilafa concessions covers a 20 kms long by 4kms wide mafic- ultramafic system. Before these concessions came into the hands of Jubilee some reconnaissance work was carried out in the late 1960s which intersected 93 metres of disseminated sulphides containing pyrrhotite, pentlandite and chalcopyrite, all of which are nickel and copper ore minerals, which averaged 1% copper equivalent. This intersection included a 1.5 metre intercept grading 2.2% nickel and 0.35% copper. This is enough to get any geologist excited and a few traces of platinum group metals in stream sediments have accelerated the process.
It made sense, therefore, to use VTEM as it is an excellent prospecting tool for identifying anomalies related to massive sulphides. The added advantage to Jubilee was that BHP Billiton undertook to interpret the data. All went well for some time, but then Colin Bird sensed that the major was stringing him along as it kept finding reasons to delay discussing the joint venture. A few weeks ago he was in South Africa working on Jubilee’s advanced Tjate PGM project on the eastern limb of the Bushveld when he met up with some senior executives from Impala Platinum. They were already aware of the Ambodilafa property and wanted to know more about it.
One thing led to another and early this month Jubilee Platinum announced that it had entered into a joint venture with Implats on the property. The terms were that Implats could earn a 51 per cent interest by contributing US$5 million to four phases of exploration. There were a few angry squeaks from BHP Billiton when the announcement was made, but Colin Bird had kept meticulously to his side of the deal and allowed even more time than specified for a joint venture to be negotiated. Les Paton, executive director of Implts, had no hesitation in saying that “we recognise the nickel-copper- platinum group element potential of the Ambodilafa project area and look forward to working with Jubilee.
The fat lady has now sung her song on this one as far as BHP Billiton is concerned and Colin Bird is clearly happy with his new partner. He was particularly impressed with the way he had seen Implats working with junior partners and has placed a big bet on the South African company being able to unlock the value of what could be his company’s biggest project. The actual joint venture will not be incorporated until Implats has spend its US$5 million and Jubilee will remain operator until then for a 5 per cent management fee. This could be the start of a rather bigger relationship between the two companies as the Tjate project, which has an inferred resource of some 65million ozs of PGMs and gold, is contiguous with the Marula mine owned by Implats.
The last news on drilling at Tjate was back in January so presumably an update can be expected soon. Colin Bird is a bit parsimonious in this respect as he tends to think that the achievements of his company speak for themselves. In February he added to the PGM portolio with an option to earn a 70 per cent interest in the Grass Valley project on the northern limb which has potential to be open-pittable. Maybe he will find time to sit down in London soon and write a succinct description of all the projects which can be attached to future releases. At the moment , however, he is in South Africa talking to his new best friends.
Companies featured in this Story
Jubilee Platinum Plc (AIM-JLP)
Platinum Group Metals Ltd (TSX-PTM)
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