(TheNewswire)
Highlights:
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Estimated total capital expenditureto bring ICO into production in 2022 revised to US$99.1 million(previously US$92.6 million) construction cost, principally due tomarket and inflationary pressures in the western UnitedStates
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Schedule substantially unchanged:first ore anticipated August 2022 (previously July 2022), andsustainable commercial production anticipated from December2022
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Detailed engineering progress at 64%complete with procurement 55% completed. Commitments are substantiallyadvanced with now over 76% planned dollars committed on purchaseorders
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Mine development has advanced in linewith plan for both west and east portals. Daily advance ofapproximately 20 feet per day with no critical groundconditions
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With the construction andcommissioning cost and schedule update, RPM Global is now scheduled tovisit site in January 2021 with a view to completing the Cost toComplete review for bondholders associated with its role asIndependent Engineer for the US$100 million Senior Secured Bonds. First US$50 million drawdown is anticipated in Q1 2022
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Once complete, ICO will be the onlymine supply of cobalt in the United States, a critical mineralnecessary for industry, defense, electric vehicles and energygeneration and distribution in a carbon constrained economy
Australia - TheNewswire - 1 5 December 2021 - Jervois Global Limited (“ Jervois ”) (ASX:JRV) (TSXV:JRV) (OTC:JRVMF) is pleased to update construction progressand results of a reforecast to project cost and schedule at its100%-owned Idaho Cobalt Operations ( “ICO” ) in Idaho,United States.
Jervois project team and EPCM M3 Engineering havecompleted a reforecast to schedule and budget based on current siteefficiency and price submissions on all equipment and siteconstruction contract work. In July 2021, the Jervois Board ofDirectors approved US$92.6 million capital for construction of themine and process facility with a first ore commissioning date of July2022. Based on current pricing from the market for labour andmaterials, inflationary pressure has resulted in an updated capitalcost of US$99.1 million. First ore through the mill is now plannedfor August 2022. The date for sustainable ore production remainsunchanged, during December 2022.
Increases in costs relating to high densitypolyethylene (“ HDPE ”) for the waste storage facility, steeland cement supply, camp materials, construction and site labour costhave contributed to inflationary pressure on the project budget, andare incorporated into the revised forecast.
Final commissioning date is now adjusted for theanticipated impact of winter weather conditions and the delays in campconstruction. Update project costs and schedule will underpin a Costto Complete test by Independent Engineer RPM Global, engaged under theterms of the previously announced US$100 million Senior Secured Bonds. Subject to the satisfaction of applicable Conditions Precedent,including the Cost to Complete test, the first US$50 million drawdownis now expected to occur in the first quarter of 2022.
Mill and concentrator building erection and civil workcontinue to progress with SAG and ball mill slabs laid; andfoundations to be poured in the coming weeks.
SAG and ball mill form work
Flotation building civil work is well underway, and anadditional steel erection crew, and two additional cranes havemobilized to site to complete erection.
Flotation building progress
The base support for the fine ore bin and mill feedconveyor structure has been erected.
Fine ore bin and mill feed conveyorbase structure
The water treatment plant (“ WTP ”) has beenwater commissioned with final punch list items complete in December2021. The pump back system will move water from the portal pumpstation to the WTP and will be complete and commissioned in December.
The mining advancement for both portals continues inline with plan. During the month of December both portals will beconnected and underground infrastructure will be developed.
West Portal development withinstalled ventilation
Portal bench infrastructure
ICO has completed recruiting for substantially all keymanagement positions including finance manager, mill manager and minemanager in advance of full operations.
ICO is a key asset in delivering Jervois’ strategy tobecome a leading independent cobalt and nickel company providingmetals and minerals for the world’s energy transition through awestern supply chain. When commissioned, ICO will be the UnitedStates’ only domestic mine supply of cobalt, a critical mineral usedin applications across industry, defense, energy and electricvehicles.
On behalf of Jervois
Bryce Crocker, CEO
For further information, please contact:
Investors and analysts: James May Chief Financial Officer Jervois Global jmay@jervoisglobal.com | 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 productions 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 social risks, contingencies anduncertainties. Many factors, both known and unknown, could causeresults, performance or achievements to be materially different fromthe results, performance or achievements that are or may be expressedor implied by such forward-looking statements. Jervois does notintend, and does not assume any obligation, to update theseforward-looking statements or information to reflect changes inassumptions or changes in circumstances or any other events affectionssuch statements and information other than as required by applicablelaws, 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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