- Updated Idaho Cobalt Operations (“ICO”) Mineral Resource Estimate (“MRE”), to improve geological certainty ahead of project financing and mine development, has increased the contained Measured cobalt resource by 22%. Total tonnage of Measured and Indicated resources (available for conversion under JORC into Reserves) also rose by 22%.
- Jervois bankable feasible study (“BFS”) team has revisited and substantially modified stope design and mine plan execution versus the approach taken by prior ICO owners. This will increase mined cobalt grade and reduce dilution versus published historical studies.
- Updated ICO MRE audited by CSA Global (an ERM Group Company) ahead of appointment of lender Independent Engineer associated with project financing.
- BFS mine design is underway with an updated ICO Reserve estimate to be released in conjunction with BFS.
- ICO BFS remains on track for completion by the end of March 2020, with first concentrate production scheduled in Q4 2021.
Melbourne, Australia–(Newsfile Corp. – January 21, 2020) – Jervois Mining Limited (ASX: JRV) (TSXV: JRV) (OTCQB: JRVMF) (FSE: IHS) (“Jervois” or the “Company”) is pleased to announce updated Mineral Resource Estimate (“MRE”) modelling at its Idaho Cobalt Operations (“ICO”) in the United States.
Jervois updated the ICO MRE after completing 3,125m (19 holes) of diamond drilling to support its bankable feasibility study (“BFS”). The updated model uses modified methodology to improve estimation using industry standard applications for narrow orebodies, with Jervois also adopting a more appropriate approach to stope and mine plan design. This has involved block rotation and adoption of a smaller cell size than previously used, as the previous MRE released by eCobalt Solutions on 7 February 2018 was unrotated and used cell sizes not conducive to the narrow high-grade interzone intercepts found in the Main Ram zone.
The updated MRE is outlined below at an adjusted updated cut-off of 0.15% Co. The broader mineralized envelope at ICO is significant; this represents potential upside to Jervois in the event that future cobalt prices are higher than prevail today. Battery demand for cobalt is expected to rise sharply, and ethical, non-DRC, low capital sources of supply outside of ICO are essentially non-existent. A grade-tonnage sensitivity table is also presented at 0.2% Co cut off to enable comparison with previously published models.
Table 1 below details the updated MRE for January 2020 at a 0.15% Co cut-off. Table 2 details the January 2020 updated grade-tonnage sensitivity table at a 0.2% Co cut-off. Table 3 details the previous February 2018 MRE also at a 0.2% Co cut-off.
Jervois’ confidence in the economic potential of the ICO resource continues to grow as more information is generated for the updated BFS. Mine design and scheduling are progressing, as is plant design. An updated Reserve is expected to be released with completion of the BFS by the end of March 2020.
CSA Global (an ERM Group Company) were appointed to audit the updated ICO MRE ahead of this publication and release of the geological model to lenders as part of the project financing process currently underway.
Jervois continues to believe there is significant potential to operate at higher production rates than currently formalised under existing feasibility studies in an environmentally responsible manner, with the rotation of block cells part of this. This will require no modification to the existing ICO operating permits which currently cap ore production at 1,200 short tons per day. Similar to the audit role of CSA Global on the MRE, the Wood Group (who are also undertaking the ICO refinery scoping study) were appointed in Q4 2019 to undertake an audit of ICO environmental compliance and operating permits.
SOURCE: JERVOIS MINING
DATE: JANUARY 24, 2020