Jervois eyes 2021 cobalt production in Idaho
PERTH (miningweekly.com) – ASX-listed Jervois Mining on Thursday revealed plans to start cobalt concentrate production from its newly acquired Idaho cobalt operations by the second half of 2021, after closing the takeover of TSX-listed eCobalt.
Jervois in April this year struck a friendly merger agreement with eCobalt, offering 1.65 common shares in Jervois for every eCobalt share held, representing an implied offer price of C$0.36 an eCobalt share.
The merger closed earlier this week following both eCobalt and Jervois shareholder approvals, and final approval from the British Columbia Supreme Court.
The merger gave Jervois ownership of the Idaho cobalt project, which has now been renamed the Idaho cobalt operation, where an estimated $100-million has been invested to date in plant and infrastructure. The project is estimated to contain a resource of some 45.7-million pounds of cobalt grading 0.59% in the measured and indicated categories.
Jervois is looking to update the feasibility study on the project, with mobilization starting to support the study, with a drill programme planned to support final testwork and engineering for the permitted 1 200 t/d concentrator and enhance the geological confidence on the mineral resource in the early years of production.
Jervois has invited tenders for the feasibility study and will in parallel send invitations for the completion of a scoping study to produce refined cobalt and copper from the Idaho concentrate, within the state of Idaho.
The company said on Thursday that a domestic US refinery would improve project economics, increase investment and skilled job creation in Idaho, while enhancing the security of US cobalt supply.
The feasibility and refinery scoping study are scheduled for completion by the first quarter of 2020, and on the close of project financing, Jervois was expecting a 12-month construction period.
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