Construction At Idaho Cobalt Operations Nearing Completion

AUSTRALIA - Jervois Global Limited reported on construction progress at its Idaho Cobalt Operations (ICO) in Idaho. Commissioning of the process water systems for the mill at Jervois’s Idaho Cobalt Operations (ICO), in Idaho, United States successfully completed. Full concentrator commissioning scheduled in the coming month; initial ore is expected to be processed into cobalt and copper concentrates in early Q2 2023. The underground stoping activities have successfully commenced in the mine, with more than 25,000 short tons of mineralized material stored ready for processing. Infill drilling continues with the updated JORC and CIM NI 43-101 Mineral Resources and Reserve Statement remaining on track for delivery in early Q2 2023. ICO will become the United States’ only mine supply of cobalt, a critical mineral necessary for industry, defense, electric vehicles and energy generation and distribution in a carbon constrained economy.

Jervois has successfully completed water commissioning in the mill and concentrator facilities at ICO and full concentrator commissioning is expected early Q2 2023. Completion of the construction project will occur once the mill and concentrator have been successfully commissioned and producing separated cobalt and copper concentrates. Ongoing labour shortages for qualified electricians delayed construction progress in the concentrator, with initial ore conversion into concentrate product now expected also in early Q2.  Recent additions in electrical labor are expected to increase productivity and advance progress.

Piping and mechanical work across the site is in the final stages of completion with significant progress over recent months; remaining construction activities are largely electrical and focused on the concentrator and product packaging facilities. In addition to advancing surface construction, mining underground has developed the required ore access headings for ramp-up and transition to full production. During this development phase, Jervois has stored more than 25,000 short tons of mineralized material ready for processing. The construction stage of mine development is now complete, with all underground infrastructure facilities ready including the primary ventilation raise, main shop, explosive magazine, associated fuel services, paste injection holes and sumps, which are operational. The first stope in the mineralized horizon has been successfully opened, further de-risking mining and confirming the potential for short-hole, open-stope mining methods where appropriate, potentially lowering mining costs.

As outlined during the January 2023 quarterly earnings call, capital costs will rise relative to the construction budget, with upward pressures continuing as outlined above.

ICO is a key asset in delivering Jervois’ strategy of acquiring and operating geopolitically strategic mining and critical mineral processing assets that are important to not only national security, but also energy transition. Cobalt is a critical mineral for the United States and is used in applications across industries including defense, energy and automotive.