NICO YOUNG NICKEL COBALT PROJECT
Jervois initiated exploration north-west of Young in New South Wales in the early 1990s discovering vast resources of nickel, cobalt and scandium. At the time this was a new discovery by Jervois and was totally concealed by varying depths of alluvium. Airborne magnetics, followed by ground magnetics and occasional fresh serpentine outcrop provided the vital clues that led to the discovery.
Nico Young has rapidly turned into a core asset, with cobalt-nickel resources becoming increasing valuable as a result of the forecast acceleration in demand due to electrification of the global economy.
The NiCo Young exploration licenses, held by Jervois, contain published JORC Inferred resources of 167.8Mt @ 0.59% Ni and 0.06% Co (using a 0.6% Ni equivalent cut-off); including a higher grade zone of 42.5Mt @ 0.80% Ni and 0.09% Co (using a 1.0% Ni equivalent cut-off).
Within this mineral resource, focusing upon cobalt leads to JORC Inferred resource of 99.1Mt @ 0.58% Ni and 0.08% Co (using a 0.05% Co cut-off) including 33.4Mt @ 0.66% Ni and 0.12% Co (using a 0.08% Co-cut off).
The Young nickel/cobalt resource is lower in nickel grade than many tropical laterites overseas. Conversely the cobalt content is above average. The Young resource does have the advantage, compared with other Australian laterites, of an attractive location with regard to existing infrastructure including the Cooper Basin gas pipeline.
The company is planning an infill drilling program during 2018 to focus on upgrading resource to Indicated category under JORC, and on proving up shallow, higher grade cobalt zones that may be amenable to early mining. Currently open cobalt resource extensions will also be tested.
Jervois has three main exploration areas other than those covered above.
These are Arunta West, Area 1 and the extensive North Queensland Tin Tenements.
All these have considerable technical merit, however consistent with the revised strategy Jervois will be refocusing its efforts toward core cobalt-nickel properties.
ARUNTA WEST PROJECT
The Arunta West project consists of three exploration licences which cover 345 sq km centred approximately 600 kms west-northwest of Alice Springs within the Gibson Desert of Western Australia near to the border of the Northern Territory. Jervois entered a joint venture agreement with Australian Mines Limited (ASX: AUZ) on the Arunta West Project in 2016. AUZ has the right to earn up to an 80 per cent interest in Arunta West, but can stop after earning 51 per cent by spending $350,000 over 24 months. AUZ will be the operator and manager of the project.
BHP came to the Arunta West region in the 1990s attracted to the potential for large scale iron-oxide copper-gold. BHP subsequently concentrated their activities on the North Dovers target which is also the intention of AUZ as we currently understand.
The base metal potential of the province was reaffirmed in October 2015 when Independence Group (ASX:IGO), in partnership with ABM Resources, announced the Bumblebee copper-gold-silver-lead-zinc-cobalt discovery immediately east of the Arunta West project area.
The Board regards Arunta West to be an exciting exploration project.
Refer : http://australianmines.com.au/wp-content/uploads/2016/07/AruntaWestJointVenture.pdf
NORTH QUEENSLAND TIN TENEMENTS
Our extensive Carbonate Creek and Khartoum tenements provide an excellent exploration play with a potential Exploration Target of over 100Mt of 0.25% tin. Jervois has recently undertaken a field programme to determine how best to realise value from these activities.
Area 1 is an early stage general exploration area. The area is prospective for platinum and base metal targets especially in the metamorphic contact area. It is an area of historic gold and tin workings in quartz veins related to the Girilambone Group. We have authorised mapping and low expenditure work to further gauge the potential, which again will lead into a decision on how best to monetise.