KGL Resources Limited extends $200m NT copper mine feasibility study
A feasibility study into a $200m copper mine project in the NT has been extended to complete essential studies.
Northern Territory
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KGL Resources Limited is extending the feasibility study of its $200m Jervois Copper Mine project 380km north east of Alice Springs.
The company says the extension is to complete essential studies, and carry out the optimisation phase.
KGL Resources is now targeting a final investment decision (FID) on Jervois by the first quarter of 2022, with early works then starting.
KGL Managing Director Simon Finnis said the Feasibility Study (FS) of the high grade project was well advanced with the initial major costing packages including the mining, processing plant and logistics costs being received, and mine and infrastructure planning nearing completion.
“Although there have been cost increases, there have been no major surprises, however drilling curtailments and other restrictions caused by the Covid-19 pandemic are creating uncertainties in this pre-development period of the project, and that gives us time to carry out a measured optimisation program,” he said.
“The industry-wide shortage of drill rigs and drill rig crews, together with Covid-related problems of site access is affecting our resource development drilling program as well as exploration drilling.”
KGL said mining and construction contractors are having difficulty providing firm quotes as they manage the labour resource challenges across the sector created by the uncertain Covid-19 environment. “Having considered these factors, the board of KGL has elected to extend the FS and final investment decision,” Mr Finnis said.
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“While we cannot influence these global uncertainties, we are focusing on activities to further reduce the risks during the development and construction phases, while we also improve the outcomes for the high-grade resource at Jervois.
“Drilling designed to improve the confidence of the mineral resource and extend the proposed mine life is being prioritised, and an updated resource estimate is expected to be released in November.”
Mr Finnis said the initial major costing packages including the mining, processing plant and logistics costs have been received, and mine and infrastructure planning is nearing completion. Jervois is being prepared for development at a time of near record world copper prices that are forecast to remain strong for at least the life of the initial mine at Jervois.
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