Photo by: KGL Resources
Name of the Project
Jervois base metals project.
Location
The project is located about 17 km north-east of Orrtipa-Thurra (Bonya) community, in the Northern Territory, Australia.
Project Owner/s
KGL Resources.
Project Description
KGL plans to reopen the Jervois mine – a brownfield site previously mined for base metals – copper, lead and zinc.
A December 2020 prefeasibility (PFS) has demonstrated an economically robust project, with average production of 30 000 t/y of copper, 893 000 oz/y of silver and 8 600 oz/y of gold over an initial 7.5 year operating life.
The initial mine plan is largely based on the project’s Joint Ore Mineral Reserve Committee-compliant mineral reserve of 9.4-million tonnes at 2.41% copper, 32.9 g/t silver and 0.39 g/t gold, and involves openpit mining at the Reward and Bellbird deposits, as well as underground operations accessed through declines at these deposits.
The mill production rate is estimated at 1.6-million tonnes a year.
The processing flowsheet includes a single-stage crushing circuit, with a conventional semiautogenous grinding mill and ball mill grinding circuit. The flotation circuit will comprise roughing, cleaning and recleaning stages.
Potential Job Creation
An estimated 230 people will be employed during the construction phase and 300 during operations.
Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of A$177-million and an internal rate of return of 23.1% , with a payback of 38 months.
Capital Expenditure
Preproduction capital is estimated at A$200-million.
Planned Start/End Date
KGL plans to start development in the second half of 2021, subject to a final investment decision.
Latest Developments
KGL Resources has raised A$21.57-million of a A$23.77-million target to fund the development of its Jervois copper project.
The funds from the equity raising are expected to go towards the Jervois copper project, and will enable KGL to optimise mine planning, complete a project feasibility, undertake financing and provide a pool of funds to test additional exploration targets in the area.
Infill and step-out drilling has restarted at Jervois and following the success of this raising, KGL plans to add a second rig in April to explore the key greenfield targets.
The feasibility study and financing discussions are well under way.
Key Contracts, Suppliers and Consultants
Xenith Consultants (ore reserve report); Entech (mining study); Mining Associates (resources); Pimo and KGL (mining analysis); Sedgman (processing); Knight Piésold and TMM; Balanace Advisory (marketing and logistics); and Core Metallurgy (metallurgy).
Contact Details for Project Information
Lithium Americas, email info@lithiumamericas.com.