(TheNewswire)
Highlights
-
- Jervoisretains Ausenco as lead engineering contractor for São MiguelPaulista (“SMP”) refinery Bankable Feasibility Study (the“BFS”), as Jervois aims to restart operations during 2022
-
- Jervois willbecome a vertically integrated speciality metals producer when SMP isrestarted as described below and its Idaho Cobalt Operations(“ICO”) begins production, which continues to be expected frommid-2022
-
- Jervois aimsto restart SMP in discrete, independent phases, initially processingfeedstock similar to that processed during SMP’s previous 30+ yearsof operations
-
- Jervois thenplans to introduce material from ICO and other concentrates afterinstallation of a Pressure Oxidative Autoclave (“POX”) circuit toleach sulphide concentrates in Stage 2
-
- Stage 1 of theBFS is expected to be complete in Q3 2021, Stage 2 by end of the samecalendar year
-
- SMP refineryintegrity audit led by Promon Engenharia (“Promon”) is continuingon schedule despite Covid-19
TheNewswire - Jervois MiningLimited (“ Jervois ” or the “ Company ”) (ASX:JRV)(TSX-V:JRV) (OTC:JRVMF) announces it has selected Ausenco to lead theBFS to restart SMP refinery in Brazil, with the study to be completedin multiple stages.
Jervois announced an agreement to acquire SMP refineryin Q3 2020 as its part of its strategy to become a verticallyintegrated producer of nickel and cobalt. The transaction providesJervois with site access during 2021 to complete the BFS, with closingsubject to the satisfaction of usual conditions, expected to becompleted by December 2021. The acquisition and restart of SMP willtransform Jervois into a vertically integrated producer when its100%-owned ICO mine in the United States starts production,anticipated from mid-2022.
Jervois envisages a staged restart for SMP, which is anickel and cobalt electrolytic refinery designed and constructed byMetso-Outotec that has been on care and maintenance since 2016. Stages 1 and 2 of the restart BFS as described in more detail beloware expected to be completed by Q3 2021 and the end of 2021,respectively.
Prior to being placed on care and maintenance, SMP’sannual refined production capacity was 25,000mt of nickel and 2,000mtof cobalt respectively. Stage 1 is a restart of the SMP refinerywith initial production of 10,000mtpa of electrolytic nickel contentin mixed hydroxide product (“ MHP ”) or hydroxy carbonates and 2,500mtpa ofelectrolytic cobalt feeding the refinery with MHP and/or cobalthydroxides. This part of the study should be completed in Q3 2021. No major refinery process modifications are anticipated in Stage1.
Stage 2a includes the integration of a PressureOxidation Autoclave (the “ POX ”) to support processing ICO concentrate,and Stage 2b should add a further 5,000mtpa of nickel contained insulphide concentrates. The POX autoclave circuit will independentlyleach sulphide concentrate that will be discharged into the existing,operating refinery.
Ausenco will closely assess existing equipmentinstalled, identify process bottlenecks, and design a facility that isboth an optimal capital investment capable of rapid investmentdecision and implementation and consistent with Brazilian permittingrequirements to ensure regulatory compliance. Whilst the headlinecapacity of SMP remains significantly above Jervois’ Stage 2 restartscale, a measured approach is intended to balance initial capitalrequirements and risk, both operating and commercial. Stage 2 of theBFS is expected to be completed by the end of 2021.
Jervois has engaged Promon tocomplete an integrity audit of SMP refinery, as previously announcedon 4 March 2021. The integrity audit is an important part of therefinery restart process. Promon’s work is continuing and remainson schedule.
Jervois is also in final discussions with a third partyequipment supplier to advance a specific scope of work for the POXcircuit design criteria. This is in the final stages of negotiationand a further announcement will be made when it is finalized.
The Ausenco BFS final report will set out the capitaland operating costing with an estimated accuracy range of ±15% whichaligns with an AACE International, Class 3 Estimate. Estimated finalcontingency will be between 10% and 15%. Ausenco’s BFS team willbe staffed by a combination of its international offices in Torontoand Perth, as well as its Brazilian office in Belo Horizonte, toensure that an appropriate blend of nickel-cobalt refinery expertiseis combined with Brazilian construction experience. Jervois hasagreed the principal terms of Ausenco’s engagement and is finalizingdocumentation.
Jervois continues to work with potential lenders toidentify appropriate financing structures for ICO and SMP.
About Ausenco
Ausenco is a global company based across 26 offices in14 countries, with projects in over 80 locations worldwide. Combining deep technical expertise with a 30-year track record,Ausenco delivers innovative, value-add consulting studies, projectdelivery, asset operations and maintenance solutions to the mining& metals, oil & gas and industrial sectors.
Ausenco brings the necessary experience to deliver arobust and credible BFS for SMP refinery restart, which will supportJervois’ financing and development plan requirements. Ausencooffers:
-
- Ability to manage theintegration of all aspects of SMP refinery restart
-
- Proven ESG performance andpractices, including strong expertise and provenability to collaborate with the communities in which Jervois will workand within applicable Brazilian environmental regulations
-
- World clas s team and leadership with the right combination of technicalexpertise and local knowledge in Brazil, including significantbrownfield execution expertise and world-renowned subject matterexperts for project reviews
-
- Ability to execute within afast-track execution schedule
-
- Significant project deliveryexperience that will mitigate construction and production ramp-up riskto deliver SMP refinery restart
On behalf of Jervois Mining Limited
Bryce Crocker, CEO.
For further information, please contact:
Investors and analysts: James May Chief Financial Officer Jervois Mining Limited | Media: Nathan Ryan NWR Communications nathan.ryan@nwrcommunications.com.au Mob: +61 420 582 887 |
Forward-LookingStatements
This news release may containcertain “Forward-Looking Statements” within the meaning of theUnited States Private Securities Litigation Reform Act of 1995 andapplicable Canadian securities laws. When used in this news release,the words “anticipate”, “believe”, “estimate”,“expect”, “target, “plan”, “forecast”, “may”,“schedule” and other similar words or expressions identifyforward-looking statements or information. These forward-lookingstatements or information may relate to operations to be undertaken atSMP Refinery, concentrate production at ICO and third party supply ofconcentrate for SMP Refinery and project financing of ICO and certainother factors or information. Such statements represent theCompany’s current views with respect to future events and arenecessarily based upon a number of assumptions and estimates that,while considered reasonable by the Company, are inherently subject tosignificant business, economic, competitive, political and socialrisks, contingencies and uncertainties. Many factors, both known andunknown, could cause results, performance or achievements to bematerially different from the results, performance or achievementsthat are or may be expressed or implied by such forward-lookingstatements. The Company does not intend, and does not assume anyobligation, to update these forward-looking statements or informationto reflect changes in assumptions or changes in circumstances or anyother events affections such statements and information other than asrequired by applicable laws, rules and regulations.
Neither TSX Venture Exchange nor itsRegulation Services Provider (as that term is defined in policies ofthe TSX Venture Exchange) accepts responsibility for the adequacy oraccuracy of this release.
Copyright (c) 2021 TheNewswire - All rights reserved.