Jervois Advances Bankable Feasibility Study for Its Idaho Cobalt Operations Mine
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Jervois Global’s subsidiary, Jervois Mining USA, has entered into an agreement with the United States Department of Defense (DOD), allowing Jervois to begin the work funded by the $15 million funding to advance U.S. cobalt supply chain security. The agreement funding is under the Manufacturing Capability Expansion and Investment Prioritization (MCIEP) office of Industrial Base Policy (IBP) using the U.S. Defense Production Act (DPA) authorities and utilizes funds from the additional Ukraine Supplemental Appropriations Act.
Jervois’ mineral resource drilling program at its 100 percent owned Idaho Cobalt Operations Mine (ICO) will be accelerated by the agreement funding. The drilling program will define and expand ICO’s RAM deposit existing cobalt resources and, also potentially, delineate the adjacent Sunrise historic resource to modern geological standards.
The agreement funding will also fund a bankable feasibility study (BFS) for a cobalt refinery in the U.S. Preparation of Jervois’ U.S. refinery BFS will be expedited by benefiting from efficiencies provided by the company’s decision to pivot to the U.S. refinery BFS its efforts and work-in-progress on a cobalt refinery expansion BFS at Jervois Finland. Jervois Finland is Jervois’ 100 percent owned cobalt refining and advanced manufacturing operation in Kokkola, Finland, existing cobalt refinery design, and work product including flowsheet will be utilized in preparing the U.S. refinery BFS.
Jervois suspended final construction at ICO in late March 2023 due to continuing low cobalt prices and U.S. inflationary impacts on construction costs, to prudently preserve the value of ICO’s cobalt ore body. The company expects cobalt prices to recover over the medium term, driven by the energy transition (such as the growth of electric vehicle adoption etc.) and a growing demand trend for cobalt with Western ESG credentials, such as cobalt from ICO.
ICO’s mineral resource and reserve is the largest and highest grade confirmed cobalt orebody in the U.S. and, when commissioned, ICO will be the U.S.’ only primary cobalt mine. Cobalt is a critical mineral as declared by the U.S. Government due to cobalt’s defense, military, and energy transition applications.
Jervois is a cobalt company with nickel and copper exposure, refinery assets, and growth opportunities. The company’s project includes Idaho Cobalt, Sao Miguel Paulista Refinery, Nico Young, and other non-core assets.
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