ASX/TSX-V: JRV
OTC: JRVMF/FRA: IHS
HIGHLIGHTS
- Leading international engineering groups DRA Global and M3
Engineering appointed for Idaho Cobalt Operations ("ICO") Bankable
Feasibility Study ("BFS")
- Jervois has completed 1,800 metres of diamond core drilling
at ICO for metallurgical testwork and samples, infill drilling and
expansion drilling of the footwall – with a further 1,300 metres to
be completed through October
- Geological assaying and metallurgical testwork is underway
from this drilling programme
- Metallurgical testwork will support the production of
separate cobalt and copper concentrates, and prepare physical
concentrate samples for delivery to potential off-take customers
across Q4 2020
- Jervois will also receive tenders for a scoping study to
produce refined cobalt and copper from concentrate in Idaho, United States. Such a facility
will both enhance the security of United
States critical minerals supply and improve project
economics. Once this tender is complete the successful bidder
will be disclosed
- BFS and refinery engineering scoping study to be complete by
end Q1 2020
MELBOURNE, Sept. 19, 2019 /CNW/ - Jervois Mining
Limited ("Jervois" or "the Company") (ASX:JRV, TSX-V:JRV, OTCQB:
JRVMF, FRA: IHS) is pleased to announce it has selected DRA Global
("DRA") and M3 Engineering ("M3") as lead engineers for
finalisation of a Bankable Feasibility Study ("BFS") for its
100%-owned ICO in Idaho,
United States.
DRA and M3 represent an integrated project solution for
finalising and optimising an ICO feasibility study through to
construction and commissioning.
DRA and M3 have extensive study and construction experience
across all the relevant unit operations for the ICO, providing a
strong basis for successful BFS delivery. They were chosen
due to their strong track record with relevant process plant
studies as well as construction and operating implementation
phases, as Jervois looks to move seamlessly into construction after
BFS and project financing close. The joint engineering team
has extensive global experience across both cobalt and copper
mining operations and concentrator flowsheets, whilst also having a
detailed understanding of project delivery in the United States, specifically local
conditions in Idaho and regional
contractor capabilities.
Finalisation of the BFS will be based on a flotation mill
processing 1,200 short tonnes per day ("stpd") of ore, as well as
ancillary facilities. The project will ultimately consist of
an underground cobalt-copper mine, a flotation mill processing
1,200 stpd as well as ancillary facilities. These will
include aspects such as the mine and related infrastructure, ROM
pad and crushers, fine ore conveyor and silo, mill and flotation,
tailings, waste rock and water storage facilities, water treatment
plant, soil stockpile area, National Pollutant Discharge
Elimination System ("NPDES") discharge outfall and non-process
infrastructure to support the development and mine
operations.
The ICO is located on National Forest lands, and activities
adhere to United States Forest Service ("USFS") and Environmental
Protection Agency ("EPA") requirements – the site is
environmentally permitted with an approved Plan of
Operations. The level of production permitted under ICO's
approved Plan of Operations is 1,200 stpd ore processed and the BFS
will be updated and optimised within the framework of existing
approvals. In initial discussions with US regulators, Jervois
expressed its confidence and desire that the operation can
ultimately be expanded in an environmentally responsible
manner. Design and construction of the 1,200 stpd mine and
concentrator will be undertaken with a view to optimising future
expansion. Jervois looks forward to working with the USFS,
the Idaho Department of Environmental Quality, local environmental
groups and other stakeholders to implement this vision.
Jervois expects the BFS will be concluded in Q1 2020 and
summarized in a NI 43-101 compliant feasibility study soon
after.
Jervois has commenced diamond core drilling programme at ICO to
supply metallurgical samples for testwork to support the BFS
update, and to infill drill the RAM deposit during initial years of
envisaged mining operation. Most core will be drilled by
large diameter PQ size to enable sufficient ore samples for
comminution and flotation testing. In addition, HQ core will
extend several holes to test for the existence of footwall lenses
at depth, which is present in historic works south of the Jervois
claims.
Diamond cores have been quarter sampled for both assay and
assessment of specific gravity at SGS Canada Pty Ltd ("SGS") in
Toronto, which is generating
composites core samples for metallurgical testwork to optimise
selective flotation and locked cycle testing of separate cobalt and
copper concentrates. Orix Geoscience are executing the drill
programme and will complete an update of the geological model for
the BFS and NI 43-101 feasibility study.
Mineralogy will be defined via QEMSCAN characterisation and
comminution characterisation work will confirm the crushing and
milling circuit configuration. An assessment of the
suitability of ICO mineralisation to ore sorting will be progressed
as part of the planned testwork programme scope of work.
ICO will initially produce and sell separate cobalt and copper
concentrates, as Jervois formed a view early in its due diligence
of ICO that reversion to separate concentrates was commercially
necessary in the absence of a United
States refinery. In comparison to the partially
completed mine and mill, the refinery is at a preliminary level of
study and technical certainty, and so cannot be realistically
constructed within the same timeframe as mine to concentrate.
Jervois has commenced discussions with off-take partners for an
initial period covering mine ramp up and stabilisation.
Jervois will also commission a refinery engineering study to
consider commercially proven technology to process concentrates,
including third party feed through to refined cobalt and
copper. Jervois is focused on building domestic cobalt
refinery capacity locally within the United States.
Idaho has access to competitive
power costs produced by hydroelectric generators and competitive
skilled labour costs, which are key determinants of refinery
economics. Jervois owns a potential refinery site at
Blackfoot, Idaho, and believes the
ICO resource potential and production scale will ultimately support
downstream refining. Initial discussions with Idaho politicians and stakeholders have been
positive and highlight strong local support for this
initiative.
With the ICO BFS team now established, DRA and M3 will progress
the engineering design for the process plant and
infrastructure. In parallel, Jervois has commenced
discussions with potential lenders and a data room is being
prepared to facilitate due diligence. Upon project financing
close and opening of the ICO mine portal and decline, Jervois
expects a 12-month construction period with first saleable
concentrate in 2H 2021.
About DRA Global
DRA Global ("DRA") is a
diversified global engineering, project delivery and operations
management group headquartered in Perth,
Australia, with an impressive track record spanning more
than three decades. Known for its collaborative approach and
extensive experience in project origination and delivery, as well
as turnkey operations and maintenance services, DRA Global delivers
optimal solutions that are tailored to meet clients' needs.
With expertise in the areas of project development, mining, mineral
processing, plant optimisation, operations and maintenance and
related water, energy, and infrastructure requirements, DRA Global
delivers truly comprehensive solutions to the resources sector. DRA
Global employs over 4300 people and offers flexible engineering,
project delivery and operations & maintenance management
services worldwide through 17 offices.
For more information, visit www.draglobal.com
Enquiries:
Christo
Visser
Senior Vice President - DRA
Global
christo.visser@draglobal.com
+61402901555
About M3 Engineering
M3 Engineering ("M3"), a full
service Engineering, Procurement and Construction Management (EPCM)
firm, has provided services for over 13,000 projects for some 1,000
clients in its 33-year history. Thousands of these have been
retrofit, debottlenecking and expansion projects. From these
M3 has developed a special expertise in optimizing plants and
avoiding lengthy startups. M3 also has extensive experience
in performing EPCM for grassroots projects in the US$100 million to US$1.5
billion range.
With a staff of over 700 personnel, M3 has the resources and
expertise available to provide Jervois Mining the necessary
engineering services for the Bankable Feasibility Study (BFS) and
NI43-101 Feasibility Study.
Centered in a region with significant mining and astronomical
projects, M3 is well known both domestically and internationally
for its contributions to these industries. M3 brings to each
endeavor a team comprised of members with a wide range of knowledge
and understanding for the complexities of a project from the
conceptual design phase through the construction phase.
Having a professional staff of diverse backgrounds in-house,
M3 is extremely cost effective at multi-disciplinary work and
enjoys the challenges associated with such. Gaining an
understanding of the project requirements and stakeholder concerns
is paramount to developing a successful project. M3's staff takes
pride in their ability to listen and learn from the stakeholder.
The finished product is always a result of a close,
collaborative effort between M3 staff and the stakeholders.
For more information, visit www.m3eng.com
Qualified Person's Statement
The technical content
of this news release has been reviewed and approved by Dean Besserer, P.Geol., the Technical Advisor of
the Company and a Qualified Person as defined by National
Instrument 43-101
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
This news release may contain certain "Forward-Looking
Statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and applicable 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 identify forward-looking statements or information.
These forward-looking statements or information may relate the BFS,
the proposed timing of the BFS and start up, proposed operating
throughput of the ICO, drilling work to be undertaken on the
ICO, the reliability of third party information, and certain other
factors or information. Such statements represent the Company's
current views with respect to future events and are necessarily
based upon a number of assumptions and estimates that, while
considered reasonable by the Company, are inherently subject to
significant business, economic, competitive, political and social
risks, contingencies and uncertainties. Many factors, both known
and unknown, could cause results, performance or achievements to be
materially different from the results, performance or achievements
that are or may be expressed or implied by such forward-looking
statements. The Company does not intend, and does not assume any
obligation, to update these forward-looking statements or
information to reflect changes in assumptions or changes in
circumstances or any other events affections such statements and
information other than as required by applicable laws, rules and
regulations.
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SOURCE Jervois Mining Limited
