PERTH (miningweekly.com) – Junior KGL Resources is targeting a final investment decision (FID) on its Jervois copper project, in the Northern Territory, by the first quarter of 2022, after having to extend the timeline for the feasibility study (FS).
“The industry-wide shortage of drill rigs and drill rig crews, together with Covid-related problems of site access, is affecting our resource development drilling programme as well as exploration drilling,” said MD Simon Finnis on Friday.
“Mining and construction contractors are having difficulty providing firm quotes as they manage the labour resource challenges that are being experienced widely across that sector brought about by the uncertainties arising in the Covid environment. Having considered these factors, the board of KGL has elected to extend the FS and FID. While we cannot influence these global uncertainties, we are focusing on activities to further reduce the risks during the development and construction phases, while we also improve the outcomes for the high-grade resource at Jervois.”
Finnis said that the FS was well advanced with the initial major costing packages including the mining, processing plant and logistics costs being received, and mine and infrastructure planning nearing completion.
“Although there have been cost increases, there have been no major surprises, however drilling curtailments and other restrictions caused by the Covid pandemic are creating uncertainties in this pre-development period of the project, and that gives us time to carry out a measured optimisation programme.”
Drilling designed to improve the confidence of the mineral resource and extend the proposed mine life is being prioritised, and an updated resource estimate is expected to be released in November. Concurrent metallurgical test work is well advanced and is aimed at improving recoveries of copper as well as valuable gold and silver by-products, thus boosting expected revenue.
A prefeasibility study into the Jervois project has estimated that the project would produce some 30 000 t/y of copper in concentrate, along with silver and gold, over a mine life of seven-and-a-half years.