Jervois Global Limited announced the completion of an infill drilling campaign at the Nico Young nickel-cobalt project as part of the progress towards a Bankable Feasibility Study (BFS).
Jervois’ Nico Young nickel and cobalt deposits are made up of mineralisation formations covered by two different but nearby exploration licences, “Ardnaree” and “Thuddungra.” The nickel and cobalt laterite ore will be heap leached to create an intermediate mixed hydroxide precipitate (MHP). Jervois’ Directors and Executives previously built, commissioned, and ran the first commercially viable nickel-cobalt heap leach operation outside of China at Glencore‘s Murrin Murrin facility in Western Australia, based on ores comparable to Nico Young’s.
Jervois released a positive NI 43-101 compliant Preliminary Economic Assessment (PEA) on Nico Young in May 2019. The PEA validated heap leaching aterite ore’s technical and economic viability based on the manufacture of battery-grade nickel sulphate hexahydrate crystal and cobalt sulphide as final, refined products. Jervois also accomplished the equivalent degree of engineering, the capacity to build an MHP, within the scope of the research. The PEA was based on an MRE of 3.2 million tonnes (Mt) of 0.67% Ni and 0.04% Co in the Indicated category at Ardnaree and 90.1 Mt of 0.63% Ni and 0.05% Co in the Inferred category at Ardnaree and Thudunggra (with a 0.5% Ni cut-off).
Jervois’ drill campaign included 86 drill holes totalling little more than 3,000 metres, intending to increase confidence in the mineral resource by changing portions of the Ardnaree deposit from the Inferred to the Indicated category. Jervois reported that Wallis Drilling Pty Ltd completed the drilling successfully.
Jervois received funds from the NSW Government‘s Critical Minerals Activation Fund, Stream 1, for environmental studies and metallurgical testwork related to a BFS for Nico Young. The Critical Minerals and High-Tech Activation Fund aims to help regional NSW become a global leader in these industries. Jervois’ and/or future Nico Young owners’ contributions to these studies will be supplemented by the A$0.5 million grant.
The funding will assist with additional environmental and metallurgical testing and the environmental and infrastructure permitting required to move the project along. These studies are essential for improving process definition, progressing water access management and crucial Environmental Impact Studies (EIS), defining the product path-to-market, de-risking the project, and supporting project funding. A separate application under the Australian Government‘s Critical Minerals Development Program is required to fund the entire BFS.
According to Jervois, heap leaching is the most appealing development technique for the low-grade nickel-cobalt laterite mineralisation found in Eastern Australia. In dry climates, heap-leaching nickel laterites with high silica and low iron contents have a lower capital intensity, a lower carbon footprint, and less technical and environmental risk than high pressure acid leach (HPAL) facilities with high capital, energy-intensive, elevated construction and operating risk.
Jervois has determined that Nico Young is no longer key to the company’s strategy as part of an ongoing portfolio assessment. Jervois will begin the divestment process in the second quarter of 2023. Jervois intends to explore the sale of all or a portion of its 100% interest in Nico Young if the appropriate value can be realised through a sale transaction.
