Global cobalt developer Jervois (ASX:JRV) has begun the process of selecting a site for its proposed cobalt refinery in the US through its subsidiary, Formation Holdings US.
The company, which has a market capitalisation of $175.6 million, reports site selection is the first stage of preparing a Bankable Feasibility Study (BFS) for the proposed refinery.
Jervois expects to spend US$300,000 to complete the site selection, which will be executed by US-based engineering and consulting company AFRY US.
However, the site selection is fully refundable under the company’s previously announced US$15 million funding agreement with the US Department of Defense’s (DOD) Defense Production Act Title III program.
Jervois reports site selection will consider local, state, and federal incentives, along with permitting processes, security of supply chains, logistics, access to workforce capacity and capability, and other technical and operational requirements to underpin the long-term competitiveness of the facility.
The company’s team is also working on the BFS for the proposed US refinery, including progressing planning for other component parts of the BFS, basic engineering, and an environmental permitting roadmap development.
Meanwhile, Jervois reports a surface drilling campaign is set to begin at the start of September 2023 at the Sunshine deposit, which sits adjacent to its Idaho Cobalt Operations.
Pending final approval from the US Forest Service, the company expects to spend US$2.4 million of the $15 million DOD funding agreement to complete 2,000m of drilling to upgrade Sunshine to a modern mineral resource.
Sunshine is described as a ‘unique’ brownfield exploration opportunity, with a ‘significant’ historical dataset that has underpinned the design of the upcoming program.
Direct expenditure for the drilling campaign and associated program supervision and administration is fully refundable under the funding agreement with the US DOD.
Jervois says its team in Salmon, Idaho, is also planning an underground drill program at the RAM deposit within the Idaho Cobalt Operations and expects to provide further information on this additional program as it progresses.
Jervois is a global cobalt developer that aims to be a global supplier of responsibly sourced cobalt and nickel materials for the battery and chemicals markets.
The company’s portfolio of assets includes the Idaho Cobalt Operations in the US, the São Miguel Paulista Refinery in Brazil, the Nico Young deposit in New South Wales, and a cobalt production facility in Finland.
As of 25 July 2023, Jervois had US$53.4 million cash at hand and US$148.9 million drawn debt, according to its latest quarterly report published on 27 July 2023.
Write to Harry Mulholland at Mining.com.au
Images: Jervois Global Ltd
