(TheNewswire)
Highlights
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- Flowsheet optimisation forJervois’ São Miguel Paulista nickel-cobalt refinery determinesintegration of a pressure oxidation (“POX”) leach circuit
- POX leach circuit will debottleneckcapacity and provide greater flexibility to refinery feedoptions
- Jervois plans to process sulphideconcentrate from its Idaho Cobalt Operations (“ICO”) in the UnitedStates as well as third-party concentrates
- Jervois is in discussions withpotential third-party suppliers
- ICO remains on schedule for initialproduction from mid 2022; site construction adjusted to separatedconcentrate products to maximise optionality of SMP Refinery coppercapacity, and enhance restart economics
- Jervois on track to become avertically integrated producer capable of refining cobalt andnickel.
TheNewswire - 1 8 January 2021 - Jervois Mining Limited(“ Jervois ” or the “ Company ”) (ASX:JRV) (TSXV:JRV) (OTC:JRVMF)advises that it plans to integrate a pressure oxidation leach circuit(“ POX ”) into the São Miguel Paulista nickel-cobalt refinery(“ SMP Refinery ”) in Brazil.
Jervois paid the first tranche towards its acquisitionof SMP Refinery in December after announcing plans to acquire therefinery in September 2020. The acquisition aims to complement its100%-owned Idaho Cobalt Operations (“ ICO ”) in the UnitedStates, transforming Jervois into a vertically integrated producercapable of refining cobalt and nickel.
It appointed Elemental Engineering (“ Elemental ”) tocommence sysCAD modelling of the SMP Refineryflowsheet for optimization of product integration, includinghydroxides and carbonate products, oxides and sulphide concentrates aspart of a Feasibility Study (“FS”) for SMP’s restart. Elementalis an Australian based firm with significant nickel and cobaltrefining experience.
As a result of Elemental’s work, Jervois has determined it shall integrate a POX leach circuitat the SMP Refinery. The inclusion of the POX autoclave offers anumber of advantages compared to roasting concentrates, namely highmetal recovery, low overall operating costs, enhanced ESG metrics dueto lower emissions and energy usage, improved refined product purityand compact installation footprint on site. Preliminary POX sightertestwork at SGS Perth Western Australia in conjunction withElemental’s work returned satisfactory results.
Whilst POX will be higher capital than roastingalternatives, it is commercially demonstrated technology with lowtechnical risk, allowing Jervois to leverage its recently appointedcommercial team, led by Greg Young based in the United States. A POXautoclave better compliments the refinery flowsheet, unlocks sunkcapital by debottlenecking the existing leach capacity and addssignificant flexibility to future refinery feed options.
Jervois will process sulphide concentrate produced fromICO via this integrated POX leach circuit. Jervois’ commercialteam are actively pursuing supply contracts for nickel and cobaltintermediate products. The introduction of a POX autoclave opens upgreater capacity to leach other hydroxide and carbonate feed productsto maximize existing refinery capacity.
Third-party concentrates can also be potentiallyintroduced into the POX to process with Jervois’s ICO concentrates. Early discussions with potential third-partysuppliers of sulphide based concentrates have been positive, with theCompany now openly engaging with suppliers tooptimize the sizing and economics of front-end pre-treatment.
As part of this, a decision has been made to reservethe maximum amount of copper capacity at SMP Refinery for thirdparties. A consequence is that ICO construction is being advanced onthe basis of the production of separated cobalt and copperconcentrates. Jervois’s engineering advisers DRA Global and M3Engineering completed the ICO BFS on both bulk and separatedconcentrate flowsheets. Construction plans are being implementedbased on the production of cobalt concentrate (containing gold and lowin copper), and a copper concentrate. Commercial terms were obtainedfor both separated products as part of the BFS.
Jervois and Companhia Brasileira de Alumínio(“CBA”) continue to work expeditiously towards closing Jervois’acquisition of SMP, as previously announced. Jervois plans a measured and staged approach to the refineryfacility restart. Initial refurbishment works will be completed toprogress the processing of intermediate hydroxide and carbonateproducts followed by the integration of the POX leach circuit to alignwith ICO commissioning.
Jervois is in discussions with suitably qualifiedengineering contractors that have the appropriate nickel and cobaltrefining experience, have a significant presence in Brazil, and haverecently completed a POX and metals plant installation, to award theBFS for the refinery restart. This formal tender process isunderway.
On behalf of Jervois Mining Limited
Bryce Crocker, CEO.
For further information, please contact:
Investors and analysts: Bryce Crocker Chief Executive Officer Jervois Mining Limited | Media: Nathan Ryan NWR Communications nathan.ryan@nwrcommunications.com.au Mob: +61 420 582 887 |
About SMP Refinery
SMP Refinery is a nickel and cobalt electrolyticrefinery designed and constructed by Outotec that commenced operationsin 1981. The facility is located in an industrial zone in the cityof São Paulo, Brazil. It was placed on care and maintenance by CBAin 2016 after its primary source of raw materials at the time, CBA’s Niquela?ndia nickel-cobalt mine in the Brazilian State of Goiás , was also paused. SMPRefinery’s production capacity was 25,000 metric tonnes per annum(“ mtpa ”) of refined nickel cathode and 2,000mtpa refined cobaltcathode.
SMP Refinery produced electrolytic nickel with 99.9%purity, exceeding the base specification required by the London MetalExchange (“ LME ”). This product was historically used in premiumapplications such as superalloys, specialty stainless steels,electroplating and batteries. SMP Refinery broken cobalt cathodeswere also of high quality and historically used in superalloys andbatteries. Nickel and cobalt cathodes were sold under the brand“Tocantins” and have an established customer base in key regionsof demand today – the United States, Europe and Japan.
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 design, engineering,integration of equipment and operations to be undertaken at SMPRefinery, concentrate production at ICO and third party supply ofconcentrate for SMP Refinery. and certain other factors orinformation. Such statements represent the Company’s current viewswith respect to future events and are necessarily based upon a numberof assumptions and estimates that, while considered reasonable by theCompany, are inherently subject to significant 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. The Company 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.
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