(TheNewswire)
Highlights:
-
- Update following visit to site toreview construction progress by Directors Mr. Bryce Crocker and Mr.Mike Callahan.
-
- Detailed engineering andprocurement substantially advanced with commitments for more than 40per cent of all equipment and material required for construction ofJervois’ 100% owned Idaho Cobalt Operations (“ICO”), UnitedStates.
-
- Since Board approval for fullconstruction Jervois has now committed more than US$30 million towardsequipment, materials and labour costs for ICO.
-
- Activity underway at ICO includescivil and concrete works for construction of the processing plant andpreparation for underground mining.
-
- ICO construction, procurement andengineering schedule is on track, with commissioning and firstproduction of cobalt concentrate from a mine in the United States ingenerations expected from mid 2022.
-
- First draw down of US$100 millionbond offering (the “Bond Offering”) continues to be anticipated inQ4 2021
TheNewswire - 27 September 2021 - Jervois Global Limited (“ Jervois ” or the“ Company ”) (ASX:JRV) (TSXV:JRV) (OTC:JRVMF) is pleased to update onconstruction progress at its Idaho Cobalt Operations ( “ICO” ) in Idaho,United States, which continues on schedule.
ICO construction update
Jervois has committed more than US$30 million towardsequipment and materials and labour costs both onsite and for detailedengineering. The construction, procurement and engineering scheduleis tracking well with plan and commissioning of the mine expected frommid 2022.
To date, more than 40 percent of all equipment andmaterial for the project is committed. Jervois has ordered all longlead items for the process plant, including SAG Mill, flotation cells,thickener, camp, transformers, and on-line analyser. Key equipmentdelivery to the site continues, with the SAG Mill and accommodationcamp expected in November 2021.
Jervois appointed United States based M3 Engineering(“ M3 ”) as the EPCM in November 2020 which has since progresseddetailed engineering and procurement of all equipment and materialsfor the construction of the process plant.
As part of the current construction cycle at site (overUS$100 million historically has been invested during prior workseasons), preparatory works commenced in Q2 2021, with theinstallation of equipment required to commission the water treatmentplant (“ WTP ”), civil and concreting works for the fine ore bininstallation, mill and flotation buildings erection, relining of thedry stack tailings facility, installation of the water pump backsystem and preparation of the portal bench including bolting andmeshing of the slope above the proposed portal. During Q4 2021 themill and flotation buildings will be erected, mine development willcommence with the opening of both east and west portals, the accommodation camp will be installed and plantprocessing equipment will start to be installed as key equipment andsteel arrive on site.
Great Basin Industrial, a local contractor, has beenworking with Jervois and M3 on the completion of the Veolia designedWTP. Commissioning of the plant started in September 2021 and itwill be fully operational in early Q4.
Local Idaho company Scarrow Excavation has completed aportal bench extension and associated road network from the portal. It has also commenced the installation of the water pump back systemfrom the portal to the process plant water distribution manifold andWTP.
Western United States construction company Capra Group(“ Capra ”) has been active on site since late July 2021, completingwalls for a mill building. Capra will finalise concrete walls forthe flotation building in Q4 2021. This will enable the erection ofthe mill and concentrator buildings which will then allow constructionto continue through winter.
Northwest Linings and Geotextile Products, Inc. hascompleted the laying of a high-density polyethylene (“ HDPE ”) liner on thedry stack tailings facility which will be used to temporarily storemine waste rock during mine development and mill dry stack tailingsduring operation when paste fill is not required. This linerinstallation has been certified to meet all standards required for aHDPE liner installation by geotechnical engineering company Newfields.
Small Mine Development (“ SMD ”) is finalisingbolting and meshing of the portal bench. SMD will now proceed toopen the west/east portal and anticipates to be in first ore in Q12022.
This construction update is provided after JervoisDirector’s Mr. Bryce Crocker and Mr. Mike Callahan traveled toSalmon Idaho to review site progress in September 2021. A selectionof photographs from the site visit are presented in Appendix A.
First draw down of US$100 millionbond offering (the “Bond Offering”)
The first of two (2) drawdowns of 50% of the BondOffering proceeds from the escrow account continues to be anticipated in Q42021 , following satisfaction of the conditionsprecedent to withdrawal, as outlined in the company announcement on 5July 2021, which include inter alia Jervois spending US$35 milliontoward the ICO project.
RPM Global, the independent engineer engaged by theBond Trustee, visited ICO in September 2021. The purpose of thevisit was to gather information for the Cost-to-Complete Test, one ofconditions precedent to withdrawal from the escrow account, and inaccordance with the Bond Terms.
Strategic significance of ICO
To illustrate the geopolitical significance of ICO andto reinforce the importance of what will be the first cobalt mine inAmerica in generations, Jervois Director and Executive Managementparticipated last week at the 70 th Anniversary ofthe ANZUS Treaty Commemorative Dinner in New York, hosted by theAustralian American Association.
ICO is a key asset in delivering Jervois’ strategy tobecome a leading independent cobalt and nickel company focused on thenon-China battery value chain.
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 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 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.
APPENDIX: PHOTOGRAPHS OF CONSTRUCTIONPROGRESS AT IDAHO COBALT OPERATIONS (SEPTEMBER 2021)
Copyright (c) 2021 TheNewswire - All rights reserved.