Name of the Project
Jervois copper project.

Location
Northern Territory, Australia.

Project Owner/s
KGL Resources.

Project Description
A feasibility study has increased the 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 this will reduce upfront 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 will range between 150 to 200 people during operations.

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 Resources has announced a A$20.2-million capital raise to fund resource expansion and project development at its Jervois copper project.

The company has announced a proposed 10-for-27 pro-rata traditional nonrenounceable entitlement offer, priced at 12c each, with up to 168.4-million new shares up on offer, raising a minimum of A$9-million and a maximum of A$20.2-million.

Three of KGL’s major shareholders have committed to taking up their share of entitlements in full, providing an initial A$8.6-million in funding.

Funds raised will be used to fund activities following from the feasibility study, including project development and ongoing expansion of the resource.

KGL has been working on derisking and preparing for the project.

Proceeds from the offer, if fully subscribed, will enable the company to continue with these activities into 2024, KGL executive chairperson Denis Wood has said.

The current workstream at Jervois includes mine plan optimisation and tender for contracts for the construction, mining and operations. KGL is also implementing a risk management plan to meet delivery timetables.

The company hopes to increase the resource at Jervois, with there being potential to expand the high-grade resource and potentially extend the mine life.

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