Name of the Project
Jervois copper project.

Location
Northern Territory, in Australia.

Project Owner/s
KGL Resources.

Project Description
A feasibility study has increased the Jervois copper project’s mine life from eight years in the 2020 prefeasibility study to 11.75 years.

Production is estimated at 24 700 t/y of copper metal in concentrate with gold and silver credits.

The project will use proven opencut and underground mining methods, with well-established processing technology.

Openpit operations are planned for about three years to commission and ramp up production. KGL says that this will reduce up front mining costs, simplify operations during commissioning and reduce preproduction capital expenditure.

Underground operations will be undertaken incrementally to sustain a 1.6-million-tonne-a-year process plant feed once opencut operations cease. This mine development sequence results in higher-grade underground resources being delayed until later in the mine life, but results in reduced project execution risk.

Potential Job Creation
The number of personnel on site will peak during construction at about 200 people and during operations will range between 150 to 200 people.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% (real) discount rate, of A$241-million and an internal rate of return of 20.7%, with a simple payback of 4.2 years.

Capital Expenditure
Preproduction capital is estimated at  A$298-million.

Planned Start/End Date
The project is expected to come online in 2025.

Latest Developments
KGL intends to advance towards a final investment decision providing that project finance and shareholder equity can be secured to underpin the project during early 2023, subject to market conditions.

The board plans to:

• undertake a competitive tender for key contracts, including opencut and underground mining, engineering, procurement and construction, and ongoing operations for the processing plant;

• continue to identify opportunities to improve the project value and to reduce financing and operational risks in collaboration with the preferred tenderers; and

• continue exploration to expand the high-grade resource, focusing on resources and reserves within the known mineral deposits and in prospective parts of the Jervois tenements.

Key Contracts, Suppliers and Consultants
Xenith Consultants (project ore reserve).

Contact Details for Project Information
KGL Resources, tel +61 7 3071 9003 or email info@kglresources.com.au