Name of the Project
Idaho cobalt operation (ICO).

Location
Idaho, in the US.

Project Owner/s
Jervois.

Project Description
The project was partially constructed when Jervois acquired it in July 2019, with more than $120-million invested by the previous owners since the discovery of the cobalt deposit.

An updated bankable feasibility study (BFS) has confirmed the potential of ICO to establish a near-term, low-cost cobalt/copper/cobalt mine, with significant opportunity to increase the mineral resource and extend mine reserves once mining starts.

The BFS is based on extracting 2.5-million metric tons of ore at an average grade of 0.55% cobalt, 0.80% copper and 0.64 g/t gold. Based on a processing rate of 1 200 t/d, the project could produce 1 915 t/y of cobalt, 2 900 t/y of copper and 6 700 oz/y of gold in concentrate over a seven-year life-of-mine.

The operation will comprise a 1 200 t/d mill and concentrator to produce separated cobalt and copper concentrates.

Gold mineralisation in the reserve at ICO will be recovered at the São Miguel Paulista refinery, in Brazil, subject to Jervois’ completing the acquisition and restart of the refinery in stages during 2022 and 2023.

Jervois has also completed engineering design and costing, flowsheets to produce separate cobalt and copper concentrates, and calcined cobalt concentrate as part of the BFS.

Potential Job Creation
The project is expected to create about 200 construction jobs and 180 operational positions once the site transitions to commercial production.

Net Present Value/Internal Rate of Return
The project has a real post-tax net present value, at an 8% discount rate, of $95.7-million and an internal rate of return of 40.6%.

Capital Expenditure
The project is expected to cost $78.4-million to produce a bulk concentrate.

Planned Start/End Date
The final construction of ICO will include the development of an underground mine over a ten-month period, starting in September this year, with first ore scheduled to an operational mill by July 2022.

Latest Developments
Jervois remains on track to start first ore processing at its ICO project in the third quarter of this year.

Nonexecutive chairperson Peter Johnston has reported that construction at the ICO project is continuing, and full production will be reached in December.

The company has started the underground drill programme to enhance the resource model, optimise initial mining and target resource expansion. The resource expansion drill programmes will be important to enable Jervois to evaluate options to extend the mine’s life and increase production levels beyond those contained in the initial BFS.

“The current deposit at ICO remains open at depth and along strike, and we are confident in the growth potential of the mineral reserves and resources,” Johnston notes.

Key Contracts, Suppliers and Consultants
DRA Global and M3 Engineering (BFS).

Contact Details for Project Information
NWR Communications, Nathan Ryan, on behalf of Jervois, tel +61 420 582 887.