Jervois Global Limited (ASX: JRV) (TSXV: JRV) expects to commence commissioning of the plant at its Idaho Cobalt Operations (ICO) in Idaho, United States.
Jervois expects first ore through the mill in October 2022 and sustainable, full rate ore processing now forecast by February 2023.
With detailed engineering, procurement and commitments all over 90% complete, final forecast capital expenditure to bring ICO into production has been revised to US$107.5 million (from US$99.1 million), an increase of ~7.5%.
Project construction has experienced cost pressures due to the significant United States inflationary environment, which has been compounded in recent months due to contractor shortages, continued delays in the operability of an accommodation camp at site, and poor weather conditions across May and June.
Due primarily to weather related delays affecting site installation, the accommodation camp will now only be operable in August.
ICO’s adjusted final forecast capital expenditure and schedule will form the basis of the Cost to Complete test by independent engineer RPM Global, engaged by the trustee acting for bondholders under the terms of Jervois’ US$100.0 million Senior Secured Bonds.
Jervois completed the first US$50.0 million drawdown (50%) of the Nordic Bonds on 7 February 2022. RPM Global is scheduled to visit site early July to undertake the final Cost to Complete test ahead of the planned second tranche bond drawdown of US$50.0 million later that month.
ICO Construction Progress
Mine development continues at ~25 feet per day. Planned increases to underground working faces, improved water management and road conditions, as well as additional personnel and mining equipment on site are expected to increase mine development productivity. Jervois and its mining contractor Small Mine Development (SMD) remain confident in the revised mining production targets that underpin the capital cost update.
Jervois is achieving infill drilling rates over 200 feet per day as part of a 19,000 feet underground campaign to decrease hole space aiming to enhance ore body knowledge. The drilling is improving the robustness of the resource model to generate a production block model for mining.
The SAG mill, ball mill and crusher are each in place, and work continues with facilities construction and equipment placement. An official opening ceremony is scheduled at site for October 7, 2022 with expected participation of United States political leadership and Australian government delegates.
For further information please visit: https://jervoisglobal.com/
