Jervois Commences Commissioning at Idaho Cobalt Operations
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Jervois Global Limited has commenced the first stage of plant commissioning at its Idaho Cobalt Operations mine site (ICO), following a successful opening ceremony on Friday, October 7, 2022.
ICO is commencing a commissioning phase during October, with equipment undergoing final completion testwork ahead of continuous commercial concentrate production expected across Q4 2022. Jervois continues to expect to achieve full nameplate capacity by the end of Q1 2023.
DRILLING
Across 2022, Jervois has made a US$4.8 million, or 46,000 feet, drilling campaign targeting both infill and expansion of the existing known mineral reserve and resource. To date, the company has completed 27,000 feet of drilling, which for infill has reduced drill hole spacing and which is expected to underpin mining in 2023 and into 2024. Given the underground access which has now been opened via mine development, surface drilling (including targeted resource expansion holes) is now switching to underground, where productivity is expected to improve and can continue through the upcoming winter.
MINE DEVELOPMENT
Ore delivery to the plant on the ICO site is expected to begin this month, with multiple ore faces now available for production mining. Underground mine infrastructure including the underground fuel island, triple clarifying sumps, and the main shop are nearing completion. Mine development continues with a focus on vertical development, to support additional production ore faces.
PLANT COMMISSIONING
Following the opening ceremony last Friday, plant commissioning will commence shortly with steady state production at nameplate capacity expected by the end of Q1 2023.
OFFTAKE
As there are no cobalt refineries in the U.S., the cobalt concentrate produced at ICO must currently be sent outside the country for refining. Jervois has an option to refine ICO cobalt concentrate at its 100 percentowned São Miguel Paulista (SMP) refinery in São Paulo, Brazil, and is continuing its negotiations with third-party processors in countries allied to the U.S.. Jervois will sell copper concentrate from ICO into North American markets.
OPERATING COSTS
ICO construction has taken place across a period of rising inflation in the U.S. Strong management by Jervois and its U.S. construction partners, led by M3 Engineering, minimized capital expenditure increases for mine development and construction. As the mine enters commissioning, Jervois is working to optimize its business plan for ICO including to mitigate these same U.S. inflationary pressures on ICO operating costs.
STRATEGIC IMPORTANCE OF ICO
ICO became an economically viable project as cobalt prices increased, and global geopolitical perspectives evolved with governments placing increased importance on critical mineral production in their own countries or in friendly jurisdictions. As noted by dignitaries during remarks at the ICO opening ceremony, ICO will be a key contributor to U.S. national security by securing a domestic supply of cobalt, which has been designated a critical mineral by the U.S. government.
Jervois said it is encouraged by its discussions with the U.S. Government regarding the importance of domestic cobalt supply to the U.S. economy and national defense. The IRA illustrates the importance that the U.S. places on both the energy transition and national security concerns relative to critical minerals, including cobalt.
Jervois also said it is proud of its environmental record to date and plans to continue to demonstrate its ability to operate ICO with strong environmental stewardship. Jervois will continue its productive relationship with its regulators, including the U.S. Forest Service, as it examines potential mine expansion within the currently disturbed site footprint.
About Jervois Global
Jervois Global Ltd 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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