Jervois Global maintains it is on course to produce cobalt and copper concentrates at the only US domestic cobalt mine early in the June quarter, about six months after it held an official opening ceremony at the site near Salmon, Idaho.
The company said this week it was running 15-25% over its US$107.5 million construction budget.
It anticipated seeing “sustainable nameplate production across Q2 2023”. Production for the balance of this year is expected to be 1100-1300 tonnes of cobalt and 3000-3200t of copper. Jervois currently has a seven-year mine plan for the 100%-owned Idaho Cobalt Operations (ICO).
Management says infill drilling is continuing, with an updated JORC and CIM NI 43-101 resource and reserve statement “on track for delivery in early Q2 2023”.
Jervois said underground stoping had started and more than 25,000 short tons of mineralised material was stored for processing.
“The first stope in the mineralised horizon has been successfully opened, further de-risking mining and confirming the potential for short-hole, open-stope mining methods where appropriate, potentially lowering mining costs,” the company said.
“Ongoing labour shortages for qualified electricians delayed construction progress in the concentrator, with initial ore conversion into concentrate product now expected in early Q2.
“As outlined during the January 2023 quarterly earnings call, capital costs will rise relative to the construction budget, with upward pressures continuing.”