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PERTH (miningweekly.com) – The Northern Territory government has approved the mining management plan for ASX-listed KGL Resources’ Jervois copper project.
A prefeasibility study (PFS) for the project in December found that it could produce some 30 000 t/y of copper concentrate over an initial mine life of seven-and-a-half years, for an initial capital investment of A$200-million.
The 1.6-million-tonne-a-year project is also expected to produce some 893 000 oz/y of silver and 8 600 oz/y of gold.
The project is expected to have a pre-tax net present value of A$177-million, and an internal rate of return of 23.1%, with a pay-back period of 38 months. The PFS estimated a life-of-mine unit cash cost of $1.60/lb, and an all-in sustaining cost of $2.25/lb.
Northern Territory Minister for Mining and Industry Nicole Manison on Thursday said that the approval of the Jervois mining project was big news for the territory, with mining being a significant job creator in the region.
“This is the fourth major mine approval over the past 12 months in the Northern Territory and a further step to strategically position us as a globally-significant hub for producing, processing and manufacturing minerals.
“The territory government is working hard to make the territory the best place for exploration and mining investment in Australia and we are committed to attracting and supporting exploration and mining investment.”
KGL has welcomed the approval, with chairperson Denis Woods saying it was a major outstanding approval required prior to project development.
“Our current project planning takes into account the conditions attached to the government response, so this landmark approval provides an essential clearance for Jervois.
“The recently annoucend PFS result show that the high grade Jervois deposit will support a robust initial seven-and-a-half-year mining operation. We are confident the drilling about to start in the new year will improve the quality and size of the resource,” Woods said.
He noted that with the PFS now completed and the authority to mine in place, discussions have begun on project financing and the marketing of the mine’s concentrate.