SYDNEY: KGL Resources Limited announced the Northern Territory Government has approved the Mining Management Plan for KGL’s 100% owned Jervois Copper Project.
Welcoming the decision announced by the NT Mining Minister, the Hon. Nicole Manison, KGL Chairman Denis Wood said this was the major outstanding approval required prior to the Jervois Project’s development.
“Our current project planning takes into account the conditions attached to the Government response,so this landmark approval provides an essential clearance for Jervois.
“The recently announced Pre-Feasibility Study (PFS) results show that the high grade Jervois deposit will support a robust initial 7.5-year mining operation. We are confident the drilling about to start in the new year will improve the quality and size of the resource.
“The new information will be fed into the full Feasibility Study (FS) which now has the Company’s highest priority. Work is already well advanced on the FS which we expect will improve the economics of Jervois even further.
“With the PFS completed and the authority to mine now in place, discussions have begun on project financing and the marketing of the mine’s concentrate.
“Jervois is exceptionally well placed to enter the world copper market as a supplier. It is a high grade deposit (9.4Mt @ 2.41% Cu Reserve) 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 vehicles uses as well as traditional construction, electricity transmission, communication and consumer goods applications.
The copper price currently is US$7914/tonne, having reached US$7968/tonne (US$3.61/lb) last month.”