Jervois Base Metal Project


• December 2020 Pre- Feasibility Study (PFS) demonstrates an economically robust project with average annual copper in concentrate production of 30,000 tpa over an initial 7.5 year operating life.

• The outcome of the PFS provides the Board of KGL with the confidence to progress to a Feasibility Study (FS).

• Study investigations confirm potential to upgrade existing Inferred Resources and delineate additional Resources on the highly prospective Jervois leases in 2021.

Key Highlights

Ore Reserve

• JORC Probable Reserve of 9.4 Mt at 2.41% Cu, 32.9 g/t Ag and 0.39 g/t Au.

Strong Financial Returns

• Pre-tax NPV(8%) of A$177m and Pre-tax IRR of 23.1% based on initial 7.5 year mine life.

• Capital payback of 38 months.

Competitive Capex and Operation Costs

• Pre-production capital of A$200m (US$142m).

• Life of Mine (LOM) unit direct cash costs of operations of US$1.60/lb Cu.

• LOM AISC of US$2.25/lb Cu.

Physical Parameters

• Processing 1.6 Mtpa at 2.2% Cu (mean Cu head grade).

• Average annual production of 30,000 t Cu, 893,000 oz Ag and 8,600 oz Au.

• Mining inventory comprises 83% Probable Ore Reserves and 17% Inferred Mineral Resources.

• Initial mine life of 7.5 years.

• Current focus is copper-silver-gold production from indicated resources rather than to expand or develop known lead and zinc resources.

Significant Upside Potential from Initial Mine Plan

• Mine plan based currently on 11.3 Mt of Mineralised Material representing only 56% from Total Resource of 20.1 Mt.

• Focus for FS is to increase LOM which KGL is confident can be achieved through drilling targeted to upgrade Inferred Resources (currently 44% of Total Resources) as well as extensional drilling to the existing Reward, Rockface and Bellbird Resources with additional targets already identified.

Next Steps

• Board has approved progress to Feasibility Study.

• Restart drilling program to focus on identifying additional Resources/Reserves to facilitate a minimum 10 year mine life.

• Cost optimisation, including evaluating shipment from the Port of Darwin.


Click here to view the full PFS annoucement and Executive Summary.


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