Name of the Project
Idaho cobalt operations (ICO).

Location
Idaho, in the US.

Project Owner/s
Jervois.

Project Description
The project was partially constructed when Jervois acquired it in July 2019, with more than $120-million invested by the previous owners since the discovery of the cobalt deposit.

An updated bankable feasibility study (BFS) has confirmed the potential of ICO to establish a near-term, low-cost cobalt/copper/cobalt mine, with significant opportunity to increase the mineral resource and extend mine reserves once mining starts.

The BFS is based on extracting 2.5-million metric tons of ore at an average grade of 0.55% cobalt, 0.80% copper and 0.64 g/t gold. Based on a processing rate of 1 200 t/d, the project could produce 1 915 t/y of cobalt, 2 900 t/y of copper and 6 700 oz/y of gold in concentrate over a seven-year life-of-mine.

The operation will comprise a 1 200 t/d mill and concentrator to produce separated cobalt and copper concentrates.

Gold mineralisation in the reserve at ICO will be recovered at the São Miguel Paulista refinery, in Brazil, subject to Jervois’ completing the acquisition and restart of the refinery in stages during 2022 and 2023.

Jervois has also completed engineering design and costing, flowsheets to produce separate cobalt and copper concentrates, and calcined cobalt concentrate as part of the BFS.

Potential Job Creation
The project is expected to create about 200 construction jobs and 180 operational positions once the site transitions to commercial production.

Net Present Value/Internal Rate of Return
The project has a real post-tax net present value, at an 8% discount rate, of $95.7-million and an internal rate of return of 40.6%.

Capital Expenditure
$107.5-million.

Planned Start/End Date
The final construction of ICO will include the development of an underground mine over a ten-month period, starting in September this year, with first ore scheduled to be an operational mill by July 2022.

Latest Developments
Jervois Global expects to start commissioning the plant at its ICO in September, with first ore through the mill in October.

Full-rate ore processing is forecast to be achieved by February next year.

An official on-site opening ceremony has been planned for October 7, with US political leadership and Australian government delegates expected to attend.  

With detailed engineering, procurement and commitments all more than 90% complete, the final forecast capital expenditure (capex) to bring ICO into production has been revised to $107.5-million, up from the previous capex estimate of $99.1-million, reflecting an increase of about 7.5%.

Jervois has said that there were cost pressures on the construction of the project, owing to the significant inflationary environment in the US, which has been compounded by contractor shortages, continued delays in the operability of an accommodation camp at site, and poor weather throughout May and June.

These weather-related delays have affected the site installation, with the accommodation camp now operable only in August.

Meanwhile, mine development is progressing at about 25 ft/d. The company believes that the planned increases to underground working faces, improved water management and road conditions, as well as additional personnel and mining equipment being brought on site, will increase mine development productivity.

Further, the semiautogenous grinding mill, ball mill and crusher are in place, with work continuing on facilities construction and equipment placement.

Jervois and its mining contractor Small Mine Development are confident in the revised mining production targets that underpin the capital cost update.

Key Contracts, Suppliers and Consultants
DRA Global and M3 Engineering (BFS).

Contact Details for Project Information
NWR Communications, Nathan Ryan, on behalf of Jervois, tel +61 420 582 887.