(TheNewswire)
Australia - TheNewswire - 16 March2023 - Jervois Global Limited (“ Jervois ”) (ASX:JRV) (TSX-V:JRV)(OTC:JRVMF) updates construction progress at its100%-owned Idaho Cobalt Operations ( “ICO” ) in Idaho,United States.
Highlights:
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Commissioning of the process watersystems for the mill at Jervois’s Idaho Cobalt Operations(“ICO”), in Idaho, United States successfully completed
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Full concentrator commissioningscheduled in the coming month; initial ore is expected to be processedinto cobalt and copper concentrates in early Q2 2023
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Underground, stoping activities havesuccessfully commenced in the mine, with more than 25,000 short tonsof mineralised material stored ready for processing
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Infill drilling continues, with theupdated JORC and CIM NI 43-101 Mineral Resources and Reserve Statementremaining on track for delivery in early Q2 2023
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ICO will become the United States’only mine supply of cobalt, a critical mineral necessary for industry,defense, electric vehicles and energy generation and distribution in acarbon constrained economy
Jervois has successfully completed water commissioningin the mill and concentrator facilities at ICO and full concentratorcommissioning is expected early Q2 2023.
Completion of the construction project will occur oncethe mill and concentrator have been successfully commissioned andproducing separated cobalt and copper concentrates.
Ongoing labour shortages for qualified electriciansdelayed construction progress in the concentrator, with initial oreconversion into concentrate product now expected also in early Q2. Recent additions in electrical labor are expected to increaseproductivity and advance progress.
Piping and mechanical work across the site is in thefinal stages of completion with significant progress over recentmonths; remaining construction activities are largely electrical andfocused on the concentrator and product packaging facilities.
In addition to advancing surface construction, miningunderground has developed the required ore access headings for ramp-upand transition to full production. During this development phase,Jervois has stored more than 25,000 short tons of mineralised materialready for processing. The construction stage of mine development isnow complete, with all underground infrastructure facilities readyincluding the primary ventilation raise, main shop, explosivemagazine, associated fuel services, paste injection holes and sumps,which are operational. The first stope in themineralised horizon has been successfully opened, further de-riskingmining and confirming the potential for short-hole, open-stope miningmethods where appropriate, potentially lowering mining costs.
As outlined during the January 2023 quarterly earningscall, capital costs will rise relative to the construction budget,with upward pressures continuing as outlined above.
Domestic cobalt for the UnitedStates
ICO is a key asset in delivering Jervois’ strategy ofacquiring and operating geopolitically strategic mining and criticalmineral processing assets that are important to not only nationalsecurity, but also energy transition. Cobalt is a critical mineral forthe United States and is used in applications across industriesincluding defense, energy and automotive.
Jervois notes the 28 February 2023 Presidential waiverauthorising use of the Defense Production Act (“ DPA ”) to allow theUnited States Department of Defense (“ DoD ”) toaggressively and more rapidly build resiliency of America’s defenseindustrial base and secure its associated supply chains. Withapproaching completion of the ICO construction phase, Jervois hasinvested in and established for its shareholders, host government andUnited States industry, a facility that represents significantoptionality and protection over future cobalt price volatility andphysical shortages.
Jervois is continuing to advance engagement with theUnited States Government on a series of potential financinginitiatives to support these objectives. At current cobalt prices andgiven the cyclicality of the commodity with Chinese marketconcentration, Government support is essential to ensure ICO’s longterm sustainability and the viability of domestic Americansupply.
On behalf of Jervois
Bryce Crocker, CEO
For further information, please contact:
Investors and analysts: James May Chief Financial Officer Jervois Global | 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”, “expected” and other similar words or expressionsidentify forward-looking statements or information. Theseforward-looking statements or information may relate to the timingconstruction activities at ICO, the timing of production at ICO andcertain other factors or information. Such statements representJervois’ current views with respect to future events and arenecessarily based upon a number of assumptions and estimates that,while considered reasonable by Jervois, 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. Jervois 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.
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