(TheNewswire)
Highlights:
-
Jervois celebrated the officialopening of Idaho Cobalt Operations mine site (“ICO”) mine sitenear Salmon, Idaho on Friday 7 October with United States(“U.S.") Federal and State government representatives and theAustralian Ambassador to the U.S. in attendance
-
Jervois has commenced initialcommissioning activities at ICO, with an expectation of nameplatecapacity to be sustained by the end of Q1 2023
-
Once commissioned, ICO will be theonly cobalt mine in the U.S.
-
Jervois is evaluating ways tooptimise near term operating plans, including to address costspressures resulting from U.S. inflationary headwinds
Jervois Global Limited (“ Jervois ” or the“ Company ”) (ASX: JRV) (TSX-V: JRV) (OTCQX: JRVMF) is pleased toannounce it has commenced the first stage of plant commissioning atits Idaho Cobalt Operations mine site (“ ICO ”), following asuccessful opening ceremony on Friday 7 October 2022.
ICO is commencing a commissioning phase during October,with equipment undergoing final completion testwork ahead ofcontinuous commercial concentrate production expected across Q4 2022. Jervois continues to expect to achieve full nameplate capacity bythe end of Q1 2023.
Drilling
Across 2022, Jervois has announced a US$4.8 million, or46,000 feet, drilling campaign targeting both infill and expansion ofthe existing known mineral reserve and resource. To date, theCompany has completed 27,000 feet of drilling, which for infill hasreduced drill hole spacing and which is expected to underpin mining in2023 and into 2024. Given the underground access which has now beenopened via mine development, surface drilling (including targetedresource expansion holes) is now switching to underground, whereproductivity is expected to improve and can continue through theupcoming winter.
An updated Australian JORC and Canadian NationalInstrument (“ NI ”) 43-101 Mineral Reserve and Resource Estimate is expectedto be published in Q2 2023.
Mine Development
Ore delivery to the plant on the ICO site is expectedto begin this month, with multiple ore faces now available forproduction mining. Underground mine infrastructure including theunderground fuel island, triple clarifying sumps and the main shop arenearing completion. Mine development continueswith a focus on vertical development, to support additional productionore faces.
Plant Commissioning
Following the opening ceremony last Friday, plantcommissioning will commence shortly with steady state production atnameplate capacity expected by the end of Q1 2023.
Offtake
As there are no cobalt refineries in the U.S., thecobalt concentrate produced at ICO must currently be sent outside thecountry for refining. Jervois has an option to refine ICO cobaltconcentrate at its 100%-owned São Miguel Paulista (“ SMP ”) refinery inSão Paulo, Brazil, and is continuing its negotiations withthird-party processors in countries allied to the U.S..
Jervois will sell copper concentrate from ICO intoNorth American markets.
Operating Costs
ICO construction has taken place across a period ofrising inflation in the U.S. Strong management by Jervois and itsU.S. construction partners, led by M3 Engineering, minimised capitalexpenditure increases for mine development and construction. As themine enters commissioning, Jervois is working to optimise its businessplan for ICO including to mitigate these same U.S. inflationarypressures on ICO operating costs.
Strategic Importance of ICO
ICO became an economically viable project as cobaltprices increased, and global geopolitical perspectives evolved withgovernments placing increased importance on critical mineralproduction in their own countries or in friendly jurisdictions. Asnoted by dignitaries during remarks at the ICO opening ceremony, ICOwill be a key contributor to U.S. national security by securing adomestic supply of cobalt, which has been designated a criticalmineral by the U.S. government.
Jervois believes opening ICO benefits U.S. nationalsecurity; compounded by the Company pursuing and funding via capitalmarkets accelerated mine development with issuance of the US$100million Senior Secured Bonds (“ ICO Bonds ”) in July 2021 (see announcementof 5 July 2021).
Jervois would be pleased to progress its engagementwith the U.S. Government to preserve and expand these nationalsecurity benefits, including potential investments into mine expansionand downstream processing, and other strategies to ensure that pricingvolatility associated with a commodity supplychain controlled by China does not adversely impact the U.S. nationalinterest.
Jervois is encouraged by its discussions with the U.S.Government regarding the importance of domestic cobalt supply to theU.S. economy and national defense. The IRA illustrates theimportance that the U.S. places on both the energy transition andnational security concerns relative to critical minerals, includingcobalt.
Jervois is proud of its environmental record to dateand plans to continue to demonstrate its ability to operate ICO withstrong environmental stewardship. Jervois looks forward tocontinuing its productive relationship with its regulators, includingthe U.S. Forest Service, as it examines potential mine expansionwithin the currently disturbed site footprint.
Jervois may pursue financing options for ICO and / orin other parts of its business with the U.S. Government that could bein addition to or in place of the existing ICO Bonds, in accordancewith the Bond Terms. Jervois does not expect to update the market onany such financing options unless a definitive agreement isreached.
On behalf of Jervois Global Limited,
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 commissioningof the mine, timing of fullnameplate capacity of the processing plant, completion of drilling,mining development, timing of delivery of ore, location for processingof cobalt concentrate, location for sale of copper concentrate, futureoperational costs and certain other factors or information. Suchstatements represent Jervois’ current views with respect to futureevents and are necessarily based upon a number of assumptions andestimates that, while considered reasonable by Jervois, are inherentlysubject to significant business, economic, competitive, political andsocial risks, contingencies and uncertainties. Many factors, bothknown and unknown, could cause results, performance or achievements tobe materially 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.
ICO Opening Ceremony
Ribbon cutting by Hon Bradley Little, Governor ofI daho and Ambassador theHon Arthur Sinodinos AO
VIP attendees at ICO Opening Ceremony (left to right):Dr. Isaf Al-Nabulsi, U.S. Dept of Energy; Mr. Matthew Lengerich,Executive General Manager Mining, Jervois; Ms Jennifer Knight, U.S.Dept of Commerce; Ambassador the Hon Arthur Sinodinos AO; Dr. GeriRichmond, U.S. Dept of Energy; Mr. Peter Johnston, Chairman, Jervois;the Hon Bradley Little, Governor of I daho; Mr.Bryce Crocker, Chief Executive Office, Jervois
Copyright (c) 2022 TheNewswire - All rights reserved.