The Northern Territory Government has approved KGL Resources’ mining management plan to develop the Jervois copper project after the mining company completed a pre-feasibility study.
This gives KGL Resources the authority to mine, as awarded by Northern Territory Mining Minister Nicole Manison.
Results from the pre-feasibility outlined an initial 7.5-year mining operation at Jervois, extracting high-grade copper with a mineral resource of 9.4 million tonnes at 2.41 per cent copper reserve.
KGL Resources now aims to feed information from the pre-feasibility study into a full feasibility study, works for which are already well advanced, as it is the company’s top priority for 2021.
With this major approval from the Northern Territory Government obtained, KGL chairman Denis Wood is confident that Jervois is positioned to enter the global copper market as a key supplier in future.
“We are confident the drilling about to start in the new year will improve the quality and size of the resource,” Wood said.
“Jervois is exceptionally well placed to enter the world copper market as a supplier. It is a high-grade deposit at a time of declining copper grades among the major copper mines and constrained copper production generally.
“At the same time, demand is expected to increase strongly for copper in both emerging green energy and electric vehicle uses, as well as traditional construction, electricity transmission, communication and consumer goods applications.”
Copper prices sit at $US7914 ($10,146) at the time of writing and have reached as high as $US7968 per tonne during the past month.
With the opportunity to enter a hot global market, Jervois is in discussion for potential project financing and marketing the mine’s product to buyers.
The Jervois copper project is part of the wider Jervois base metal project, hosting prospective copper and silver deposits 380 kilometres north-east of Alice Springs.