Name and Location
Jervois copper project, Northern Territory, Australia.

Client
KGL Resources.

Project Description
Prefeasibility study (PFS) work to date on the Jervois copper project has shown that the development of a copper mine and concentrator is technically and commercially feasible.

The PFS is based on an indicated and inferred resource of 25.3-million tonnes containing 280 000 t of copper, 18-million ounces of silver, 120 000 t of lead/zinc and 113 000 oz of gold.

The study envisages the openpit mining of several deposits followed by underground mining to feed a two-million-tonne-a-year flotation plant producing 80 000 t/y to 100 000 t/y of copper concentrate and separate lead and zinc concentrates.

Openpit mining is proposed from three locations – Marshall-Reward, Green Parrot and Bellbird. The life-of-mine waste to ore stripping ratio for the openpits is 6.5:1. Openpit mining will continue for the first four-and-a-half years of the mine life.

Underground mining is scheduled to start in the fourth year of operations. Long-hole open stoping has been selected as the most suitable method to mine the underground deposits at the project.

Other mining methods investigated during the PFS work included sublevel open stoping and benching. Both of these mining methods might still be suitable to exploit specific areas of the underground reserve and will be considered during future work.

The project is forecast to produce 576 000 t of copper concentrate at a grade of about 24% copper and 240 g/t silver. This equates to an estimated 21 000 t/y of contained copper and one-million ounces a year of contained silver.

The Jervois project will also produce about 71 000 t of lead concentrate at a grade of 65% of lead, 1 440 g/t of silver and 29 000 t of zinc concentrate at a grade of 55% zinc over the life-of-mine.

Net Present Value/Internal Rate of Return
Not stated.

Value
Capital expenditure is estimated at A$189-million, including $22-million in contingency.

Duration
Construction is expected to start in mid-2016 followed by commissioning of the project in the fourth quarter of 2017.

Latest Developments
Only exploration results received before July 2014 were included in the resource update used as the basis of the PFS.
Since then, further high-grade drill results have been received. The board has, therefore, approved a further work programme, following which the PFS will be updated to include all the additional improvements identified.

Key Contracts and Suppliers
KGL Resources (geology); H&S Consultants (mineral resources); Peter O’Bryan & Associates (geotechnical studies); Auralia Mining Consulting (openpit and underground mining); AMEC Foster Wheeler and ALS Ammtec Metallurgy (metallurgy); AMEC Foster Wheeler and Lycopodium (process plant); Lycopodium (infrastructure and capital and operating-cost estimates); Knight Piésold (waste rock chemistry, tailings management, water management and related infrastructure); Environ & KGL Resources (environmental and social permitting); and Solution Development (Transport and concentrate marketing).

On Budget and on Time?
Not stated.

Contact Details for Project Information
KGL Resources, tel +61 7 3071 9003, fax +61 7 3071 9008 or email info@kglresources.com.au.
H&S Consultants, tel +61 2 9858 3863 or fax +61 2 9858 4057.
Peter O’Bryan & Associates, tel +61 8 9388 7070 or email prob@wbg.com.au.
Auralia Mining Consulting, tel +61 8 9322 5573, fax +61 8 9322 5574 or email enquiries@auralia.net.au.
Aquenta Consulting on behalf of AMEC Foster Wheeler, tel +61 8 8946 1700 or email darwin@aquenta.com.au.
ALS Ammtec Metallurgy, tel +61 8 9344 2416.
Lycopodium, tel +61 8 6210 5222 or fax +61 8 6210 5201.
Knight Piésold, tel +61 8 9223 6300 or fax +61 8 9223 6399.