Jervois Copper Project Feasibility Study Shows A$405M NPV, 30ktpa Copper Output

Project Overview and Financial Highlights

KGL Resources Limited has unveiled the results of its 2025 Feasibility Study Update (FSU25) for the Jervois Copper Project, located in the Northern Territory’s eastern Arunta region. The study confirms the project’s technical robustness and financial viability, with a post-tax net present value (NPV8) of A$405 million and an internal rate of return (IRR) of 24%. The project is designed to produce approximately 30,000 tonnes of copper annually over a 10-year mine life, supported by proven and probable ore reserves totaling 14.38 million tonnes at 1.77% copper grade.

Capital expenditure is estimated at A$362 million, including construction of a state-of-the-art concentrator plant with a 2 million tonnes per annum capacity. The project anticipates a simple payback period of 3.4 years from first concentrate production, with peak funding requirements of approximately A$497 million. Operating costs are competitive, with a steady-state C1 cost of US$1.95 per pound of copper on a by-product basis.

Mining Strategy and Production Profile

The mining plan optimizes early open pit operations, which will supply 41% of the ore during the initial years, increasing from 25% in previous studies. This approach reduces upfront capital and operational risks by simplifying commissioning and ramp-up phases. After four years, the operation will progressively transition to underground mining, leveraging higher-grade ore bodies to sustain plant feed through to the end of the mine life in 2036.

Open pit mining will employ conventional drill, blast, load, and haul methods with a contractor-managed fleet, including 360-tonne and 120-tonne excavators and 185-tonne haul trucks. Underground mining will utilize longhole stoping with cemented rock fill to maximize recovery and maintain ground stability. The project’s mine design incorporates detailed geotechnical assessments to ensure operational safety and efficiency.

Processing and Environmental Stewardship

The processing plant is a conventional copper concentrator incorporating jaw crushing, semi-autogenous grinding, ball milling, and flotation circuits designed to produce a 27% copper concentrate with gold and silver by-products. Metallurgical test work supports an average copper recovery of 92%, with gold and silver recoveries of 55% and 66%, respectively. The plant design has been peer-reviewed and optimized for capital efficiency and operational reliability.

KGL is committed to sustainable mining practices, with plans for a hybrid power station combining solar, wind, battery storage, and diesel generation to supply at least 60% renewable energy. Water management strategies include recycling and efficient use of groundwater sourced from a borefield 20 km north of the site. Tailings will be stored in a lined facility designed to meet stringent environmental standards, with progressive rehabilitation planned throughout the mine life.

Market Context and Next Steps

The Jervois Copper Project is well positioned to supply copper amid a forecasted global supply deficit driven by accelerating demand for electrification and decarbonization technologies. Independent market analysts project copper demand to grow by 75% by 2050, underpinning the project’s strategic timing.

KGL plans to progress to a Financial Investment Decision (FID) in Q3 2025, with first concentrate targeted for H1 2027. The company is advancing project financing discussions, contract negotiations with Tier 1 contractors, and early works to mitigate schedule risks. An Independent Technical Engineers Report and Environmental and Social Report are expected to be completed in H1 2025 to support financing.